20 MICRONS breakout

5 авг. 2022 г.

1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on RSI close below 30 (or use any other method of your liking)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop

After a consolidation since January 2022, 20MICRONS has given a breakout today. Buy with a stop just below ₹96.50.

Strengths: -
1. TTM Sales growth is at 27% and TTM Profit growth is at 50%

2. Debt to equity at 0.49 (less than 1 is good), Interest Coverage at 3.83 (greater than 3 is good) and FCF to CFO at 60%

3. Credit rating agency has reaffirmed the ratings of the company on 4th May (please go through the credit rating report for better understanding)

4. ADX > 30 on daily chart

Weaknesses: -
1. The company has delivered a poor sales growth of 9.35% over the past five years

2. Company has a low return on equity of 13.36% for last 3 years

3. Though the company is reporting repeated profits, it is not paying out dividends consistently

4. 5 Year Sales growth is only at 9.35% and 5 year Profit growth is only at 16.55%

5. FII stake decreased from 1.07% in March 2022 to .70% in June 2022

Disclaimer: I am not SEBI Registered. Do trade or invest at your own risk, I am not responsible for any losses and won't claim anything from your profits either. Take financial advices from your advisors before jumping in.