Thursday, August 13, 2020

Update 8 - COMB - Buy when others Fear.....RCA Strategy has paid off!!!

 RCA STRATEGY 

In December of last year I truly believed that the year ahead is going to benefit the Equity Markets. However due to the challenges that Investors would encounter I initiated a strategy of Accumulation, instead of a Buy and Hold Strategy. Also I wanted to employ a planned out method. Hence I used a fixed volume strategy and a set rupee amount strategy called RCA Strategy. We encountered some of the most extraordinary events that we never expected to happen. Despite the challenges the 2 strategies proved beyond doubt that planned investment approach is rewarding.

The present status of the 2 strategies are given below:

Fixed Volume Amount -

Fixed Volume = 5000 shares at a time

No of Shares Accumulated:            390,000

Scrip dividend:                                   6,901

Total Shares:                                    396,901

Amount Invested:                       31,121,196.80

Dividends received:                         345,000.00

Nett Invested Amount:               30,776,199.80

Cost Per Share:                                         77.54

Closing Price as at 12.08.2020:                81.00

Nett Sale Price:                                         80.09

Nett Sale Value:                          31,788,879.58

Nett Gain/(Loss):                          1,012,682.35

% Gain/(Loss)                                            3.29


Set Rupee Amount or RCA Strategy -

Fixed Rupee Amount = Rs. 500,000.00 at a time

No. of Shares Accumulated:                 515,583

Scrip Dividend:                                         9,110

Total Shares:                                          524,693

Amount Invested:                        39,500.000.00

Dividends Received:                        378,820.10

Nett Amount Invested:                39,121,179.90

Cost Per Share:                                          74.56

Closing Price as at 12.08.2020:                81.00

Nett Sale Price:                                         80.09

Nett Sale Value:                           42,022,628.12 

Nett Gain/(Loss):                           2,901,448.23

% Gain/(Loss)                                             7.42


The next stage of accumulation will only be if the prices fall below the 2 average prices.

Targets Placed are - 

 Ave Price + 50% or PE of 9.8  (EPS as at 31.12.2019 was 16.80, which can be lower in 2020).





    


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