Jubilant Foodworks Ltd IPO Message Board (Page 9)

There is an old saying that the market is driven by just two emotions: fear and greed. Succumbing to these emotions can have a profound and detrimental effect on investors' portfolios and the stock market. Anchor investors / institutional interest in this IPO is a perfect example.

GREED

So often investors get caught up in greed ("excessive desire"). After all, most of us have a desire to acquire as much wealth as possible in the shortest amount of time.

This get-rich-quick mentality makes it hard to maintain gains and keep to a strict investment plan over the long term. It's times like these when it is crucial to maintain an even keel and stick to the basic fundamentals of investing, such as maintaining a long-term horizon.

FEAR

Just as the market can become overwhelmed with greed, the same can happen with fear ("an unpleasant, often strong emotion, of anticipation or awareness of danger"). When stocks suffer large losses for a sustained period, the overall market can become more fearful of sustaining further losses. But being too fearful can be just as costly as being too greedy.

Just as greed dominated the market during the property boom in 2008, the same can be said of the prevalence of fear following its bust. In a bid to stem their losses, investors quickly moved out of the equity (stock) markets in search of less risky buys. Money moved out of market. Mutual Funds were holding cash when Sensex fell more than 50% & stocks lost more than 90%. In fact that year saw the largest amount of outflows.

This mass exodus out of the stock market shows a complete disregard for a long-term investing plan based on fundamentals. Investors threw their plans out the window because they were scared, overrun by a fear of sustaining further losses. Granted, losing a large portion of your equity portfolio's worth is a tough nut to swallow, but even harder to digest is the thought that the new instruments that initially received the inflows have very little chance of ever rebuilding that wealth.

Just as scrapping your investment plan to hop on the latest get-rich-quick investment can tear a large hole in your portfolio, so too can getting swept up in the prevailing fear of the overall market by exiting from stock market.

COMFORT LEVEL

All of this talk of fear and greed relates to the volatility inherent in the stock market. When investors lose their comfort level due to losses or market instability, they become vulnerable to these emotions, often resulting in very costly mistakes.

Invest Rs.10,000 or 20,000 (10% to 20% of your investment corpus) in this IPO instead of investing one lac. Avoid getting swept up in the dominant market sentiment of the day, which can be driven by a mentality of fear and/or greed, and stick to the basic fundamentals of investing. For example, if you are an extremely risk averse person, you are likely to be more susceptible to being overrun by the fear dominating the market, and therefore your exposure to equity securities should not be as great as those who can tolerate more risk.

Keep in mind this isn't as easy as it sounds. There's a fine line between controlling your emotions and being just plain stubborn. Remember also to re-evaluate your investment strategy and allow yourself to be flexible to a point, and remain rational when making decisions to change your plan of action.

FINAL WORD

You are the final decision-maker for your portfolio and thus responsible for any gains or losses in your investments. Sticking to sound investment decisions while controlling your emotions, whether it be greed or fear, and not blindly following market sentiment is crucial to successful investing and maintaining your long-term strategy. But beware: never wavering from an investment strategy during times of high emotions in the market can also spell disaster. It's a balancing act that requires you to keep your wits about you. Hence, my view is to SUBSCRIBE in small lots as it is generating institutional interest instead of completely avoiding.

Many issues are in pipeline in this month and next month. So we can skip this high priced ipo and look at better once. Beyond that one can apply at there own risk.

Would this IPO also witness last minute scramble as in the case of DB Corp and Infinite solutions..?

Employee quota subscribed 0.000000%. that simply means that issue will tank on lisitng.

empolyee nahin apply karte to sumzoo managment bhee ghaplewala hai salary nahin deta hai, sawdhan

issue is not good, so plz don't apply.

At Last .... what should we do ...????? either Apply or wait for forthcoming IPOs.

QIB and HNI's over subscription indicates this issue to provide listing gains. Hope for the best and go for this issue in full swing!!!

Best of Luck!!!

Must thinkmany timesbeforeapplying in this jubilant, it is just a francisee co.

Many more good IPO's near by ie in January only.

89. rahul sahi khata hai, only promoter is good baki sub bukwas, only a turnover co. veryless np margin, listing loss ke liye tayyar rahen,ibpower se jyada loss hoga 40% niche list hoga,tulsiyan and capital market both are sahee honge,

it will be over subscribe 6 times in QIB .
.........................10.5 times HNI,
.......................4.7 times RETAIL.....
every applicant will get 3000 profits........
disclamair........its my view..............

At 3:10 Pm this issue is subscribe by 2.20 Times
in Retail at Cut-off it was 10 %

Mr.Bhavesh ,

in retail 5,38,000 shares beeded
quota of retail is 71,41,000

means only 7% subscriebed in retail till 2 O' clock

JFL subscrine 1.5times total and 0.25times in retail

So many IPOs coming up in last week of January.Why go for such a Faltoo issue?

Fair Value seen at Rs.130 if it is valued on operating cash flow of the business. However, on its annualised full year earnings of FY2010 fair value seen at only Rs.61.

Pricey Pizza, too hot to eat. Asking price for the offer is too high. Stiffly priced but risk seekers could apply.

The company being the first of its kind to list is likely to attract premium (may list around Rs.172). Risk-appetite investors can apply in the IPO with a stop-loss of Rs.130 (few Rupees below IPO price band of Rs.135-145).

Institutional interest is strong in the IPO given by the list of anchor investors and they could be buyers post-listing.

RISK FACTOR

The issue is primarily an exit route for strategic investors with just 20% of funds raised actually accruing to the company. This creates uncertainty about funding for the company's future expansion plans, which are key to its growth prospects.

JUBULINANT NOT SHOWING IN ICONNECT (AXIS) WHAT TO DO?

hi,

Baap re Baap too expensive, but people are running for every IPO now, no matter, if this IPO comes at 300 or so Public might still have applied for listing gains,

only fools applies in this issue,

just look at the book value,

earning per share (all fundamentals Pathetic)

still because of brand name people are running like anything, mad scramble for forms and applying for maximum

what a great Indian market and fools,

hai Ravi Bangalore your comments on this...........

Avoid this ipo and keep funds fro NTPC which will give u good returns. NTPC opens on 3/2/2010 and closes on 5/2/2010

HI EVERYBODY, APPLY IN BULK TO GET HEAVY RETURNS(NEGATIVE) SO THAT U WILL BE FREE FROM FUTURE TENSIONS, SINCE U WILL HAVE NO FUNDS WITH U AFTER THIS IPO. THIS IPO MAY GIVE RECORD BREAKING NEGATIVE RETURNS.