Don not sell a single share of coal before 300
# Goldilocks situation has happened in Coal India
1. There is massive demand for coal due to global energy crisis emanating from china and prices shooting up. Similar situation in India.
2. Super low valuation with just next 5 year profit sufficient to cover the market value coal india is trading today. This can easily climb to 10 times as many many growth stocks are trading at next 40 years profit.
3. Because of ESG stupidity this stock has been totally dejected and now acutely under owned.
# the stock is trading at 60% discount from all time high of 450 level it touched in 2015.
# once the stock is run up and institutions have built position, the narrative of monopoly, essential commodity and several other logic will spread. So don't bail out institutions by selling your shares cheap. Coal India is expected to payout at least 80 rupees in dividend in next 5 years. so there is very little downside of holding this opportunity tight.
# but one should maintain the discipline of portfolio allocation and dont allocate to any opportunity beyond what one can digest.
1. There is massive demand for coal due to global energy crisis emanating from china and prices shooting up. Similar situation in India.
2. Super low valuation with just next 5 year profit sufficient to cover the market value coal india is trading today. This can easily climb to 10 times as many many growth stocks are trading at next 40 years profit.
3. Because of ESG stupidity this stock has been totally dejected and now acutely under owned.
# the stock is trading at 60% discount from all time high of 450 level it touched in 2015.
# once the stock is run up and institutions have built position, the narrative of monopoly, essential commodity and several other logic will spread. So don't bail out institutions by selling your shares cheap. Coal India is expected to payout at least 80 rupees in dividend in next 5 years. so there is very little downside of holding this opportunity tight.
# but one should maintain the discipline of portfolio allocation and dont allocate to any opportunity beyond what one can digest.
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Also avoid looking at short term technical resistance on smaller time frame as in such massive tailwinds all resistances are broken easily.
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Exit Coal India as the govt is not going to let this company make use the opportunity of life time. If the company is not allowed to make money in good times and is forced to bleed in bad times apart from unnecessary expenditures on non core projects, shareholders will not be able to make money. Exit Period.