Phoenix

Phoenix is an exclusive long term based investment strategy that calculates intrinsic values of banks and NBFCs.

The algo uses inputs from the difference of cost of capital and return on capital to calculate the financial strength of such institutions. As this strategy calculates only intrinsic values no stop loss or targets are calculated.

However, this strategy leads to profound investment avenues as valuations of Banks and NBFCs is not carried out in the traditional manner and hence leads to avenues which mostly go untapped but have great potential of profit.

We recommend a holding period of atleast 8 months for this strategy.

How to Trade?

1. Purchase of equity can be done when the current price is less than intrinsic value.

2. It's recommended that a margin of safety is maintained wherein the current price must be less than the intrinsic value by a sizable difference.

3. Partial exits must be made when the stock rallies.

4. Holding time must at least be 8 months.

5. Dividends and bonuses must also be calculated as returns.

6. If the company announces a buy back or rights issue, it is recommended that investors participate.