Frequently Asked Questions

Pre-Registration Queries


There is no straight answer to this question because return depends on multiple ever-changing variables. We have our internal target which is mentioned in our Package chart. However, it doesn't mean that every year one should expect a linear return. On few years the return would be much higher and in few years it would be much lower. Over a period of 3-4 years, return tends to average out.

We have also seen that many investors expect the stock price to initiate an upward journey from the next day after his/her investment. You have to understand that the stock is not waiting for your entry to start upward journey! Stock price has its own dynamics that depends on multiple uncertain variables. Thus on multiple occasions, the price will fall after your investment and the price might rise after your exit. No matter how much someone prays, how much someone shouts, the stock price doesn't listen to anyone! As an investor, the focus should be to select quality business and wait for the stock price to catch up the fundamentals while ignoring short term price movement and noise in the market. If the business improves then sooner or later the stock price will follow, if it is not then investors need to figure out an alternative.


No, not all past stock recommendations would be visible in your account. We will share the stocks worth investing as per your membership package. As there is no membership "Expiry Date" so you will keep receiving updates on those stocks lifetime i.e. until we suggest "full Exit" from the same stock. Our subscription charge is not time (date) based rather based on the number of stock recommendations offered. Depending on the market situation and available opportunity the stock recommendations can be spread over any number of months.

If you are subscribing for 5 stock recommendations package then make sure that you have the investable amount for all the 5 stocks. Depending on the opportunity, those 5 stocks can be offered in any number of months. After receiving 5 stocks you have to pay only if require any additional stock recommendation. No payment is required for receiving updates on those 5 stocks.


Queries on non-recommended stocks are not addressed. The reason is we had noticed that investors collect stock tips from TV, magazine, blogs, forums, newspaper etc from various analysts and ask our view on the same. Please don’t ask questions like "Someone recommended to buy ABC Ltd. Now, what’s your view in it?"

Another reason is, suppose today we share our positive view on any non-recommended stock and based on that you purchase the same. However, being our "non-recommended stock" you won’t receive updates about the future news flow and quarterly result. In future for any negative development, we can’t aware you. Thus you may not exit on time.

Only during initial portfolio review, members receive suggested action on existing holdings (stocks)

Post Registration Queries


Portfolio will be built gradually over the coming months. We always suggest investing an equal amount in all our recommendations to build a well-balanced portfolio. For example, if you subscribed for 10 stocks and have 5 Lacs investable amount, so allocate 50,000 in each of our upcoming recommendations.

 


Since 2012, we are in equity advisory service and experimented with releasing recommendations at the different point of time. During our early years, we used to recommend stocks during after market hours and that caused 10%+ price jump at the opening and sometimes even circuit with no sellers. So we permanently dropped the idea and release recommendation at different point during the market time.

After experimenting with many timing, we noticed that releasing recommendation around 9.30-9.35 AM keeps the price jump at the minimum level. Our procedure is that one day prior to the recommendation we share email alert to all of our members that "Tomorrow we are going to recommend a stock within ___ time. Kindly follow your email/ log-in to our website." Accordingly, we release the recommendation on the next day.

We will never go back to releasing recommendation after the market hours for the benefit of our members. However, within the market hours, we might experiment with the timing in future.


Generally, after our recommendation, stock price moves up by 2%-5% due to increased buying interest from our members. It is absolutely fine to invest up to 5% higher rate (alternatively within "Good Buy" price range) as our recommended stocks have higher upside potential over the long run. However, if the stock price moves up by more than 6% or moves beyond our published "Good Buy" range then here is the suggested action -


Invest 50%-60% of your desired amount on the very next day of our recommendation.(whatever be the price). Utilize the remaining after few days during price correction. (If any).


There is no fixed date for releasing new stock recommendation. Further, there may not be any new recommendation on any particular month. Depending on the market condition and opportunities there might be more than one recommendation on any particular month. You will receive an email alert whenever a new stock is recommended or any repeat buy opportunity is shared.

Members won’t lose anything even if there is no new recommendation over 1-2 months period because membership expires only after receiving the said number of stocks. For example, under Pro Membership there would be 10 new stock recommendations. The membership won’t expire unless the member receives 10 new stocks. So, queries like "When the new stock recommendation will release?" won’t be addressed.

Also note we release stock recommendation during the market hours. Over the last 5 years, we had experimented with different timing for releasing recommendations and offer solution that is best suited for all members. So queries like "Why recommending at this time and why not at this time" won't be addressed.


Equity investors always need to prepare with "cash in hand" for any sudden opportunities. Suppose you are investing 20,000 in our every stock recommendations. So you always need to keep minimum 20,000 in such a way that it can be invested in the equity instantly. You can keep the fund in savings bank account (linked with trading account) or in liquidbess so that it can earn 4%-5% (annualized) which is sufficient return for the "cash in hand" amount.


There is a popular misconception that low priced stocks are cheaper and have high return probability than high priced stocks. We had also composed a detailed article regarding the same. It is a must read for all. Click here to read the full article. (Must-read) After reading that article, we hope now it is clear to you that separating stocks based on price is worthless. Purchasing Rs-50 stock of 20 quantities is similar of having single quantity stock priced at Rs-1,000. It’s all about quality of the business, future outlook and valuation. Stock price is not an indication of valuation, it is just a number. How many times a stock move up in the future is not dependent upon the current market price rather it depends upon the valuation and the price has no co-relation with the valuation. A hundred rupees stock can be cheaper than the ten rupees stock.


We send SMS alert upon releasing new recommendation or for inportant updates to all our clients having 10 digit Indian Mobile number registered with us. If you won’t receive SMS, you need to verify your registered number with our records. From after log-in section (left hand menu), click on "Profile" then "Edit Profile" and mention your 10 digit Indian mobile number and then click on "Update". Mention only 10 digit Indian mobile number, don’t put "0" or "+91" at the beginning. SMS will not be reached for numbers that starts with 0 or +91.

P.S - It is not possible to send detailed recommendation and Good Buy range with details over SMS. You will receive SMS notification like "Update/new stock idea is released,now check your email or log-in to our website for details". As per TRAI regulation, we can’t send SMS to international numbers.


Make sure to include our email-id (info@paulasset.com and prasenjit@paulasset.com) into your contact list of mailbox for safe and timely email delivery. Click here to know the details of how to do the same. If you find any of our email into SPAM box then mark it as "Not Spam". Click here for further details if you have gmail id.If you are not finding any of our email into your "SPAM" or "Trash" then re-check your registered email-id with us from "Profile" section(after log-in). If still problem remains then drop an email at info@paulasset.com. We will get back to you.

Book Related Queries


There are multiple dimensions of the answer as follows -

 

All the book parameters are based on the last 3/5 years historical data. So it would remain relevant only if the underlying business itself remains more or less same. For example, business-like Maruti Suzuki, Hero, TCS, HUL, Asian Paints and many others remain same. Maruti Suzuki was a car manufacturer 5 years ago. In spite of introducing new product variants, they are still in car manufacturing. So all book parameters are highly applicable to such business. However, for many of our recommended stocks, the underlying business model changed over the last 5 years. Many loss-making units turned around, many companies introduced a completely new set of products catering to the completely new segments. Many companies are demerged entity, many are the result of an acquisition or merged entity. So, in such case, while the underlying business changed a lot, How can the past numbers remain relevant?

Another problem is many investors follow old data instead of the latest one. For example, as on April/May/June 2018 one need to follow the latest (March 2018 ending) data but most of the financial website contains ROE, ROCE, D.E etc data as on March 2017 (one year old) because it takes time for updating. Further, maximum website doesn't update half-yearly balance sheet figures. It really makes no sense for considering FY17 (March 2017 ending) figure while you are in 2018 and so on.

The formulas mentioned in the book are not like a mathematical formula. In algebra, (a+b)2 always have a specific outcome, there can’t be an exception. However, the stock market is all about predicting the future with the help of multiple ever-changing variables. Thus, there can’t be any evergreen formula/process that will work every time. If there was any such evergreen formula/process then making money in the stock market would be the easiest thing in the world. Just put the formula in MS-Excel or buy some advanced software and make money lifetime without any effort!

Overall, the process mentioned in the book can be used as the foundation. After the foundation, multiple other factors need to be considered for making the final investment decision. This is why you might find a slight variance in few occasions with the book parameters to our stock recommendation.