PerformanceGurus is excited to report that some of our hidden gems are now finding their way into the mainstream. We reproduce below a chat with ET Now, Daljeet Singh Kohli, Head of Research at IndiaNivesh Ltd, shares his views on the markets and some stocks. Excerpts:
ET Now: Info Edge, Just Dial and Lycos Internet are some of the hallowed internet stocks making a comeback. Is this largely because of the NASDAQ effect?
Daljeet Singh Kohli: Yes, this has more to do with the international flavour of the time. One thing which is clear is that we should understand that these companies are a concept kind of stocks and therefore their valuations will be totally different from our traditional way of calculating valuations.
If you talk to old timers like us, they will always tell you about valuations which are very high. It will always appear as if it is something optically very costly to buy.
But these companies tend to be valued based on their potential and on how much they can monetise their (Intellectual Property Rights) IPR. It is an IPR business. They have to look at how they can monetize and how they can find the next buyer who can pay higher than the previous one.
If you understand that concept and if you believe in that, then only you should buy these stocks. Otherwise you will always find 5% up and down movement in these stocks. So, it is purely dependent on investor`s appetite.
We do not have coverage on any of these stocks. So we will not have a formal rating. But the broad idea is that a small portion of your portfolio can be in these stocks because when these stocks work well, they can take your portfolio up really high. The risk is that when they go down, then the portfolio also comes down.
Digital marketing is a big space for Lycos. So that is another area which is coming up. Just Dial and Info Edge are very well known, but Lycos or digital marketing has still not been discovered. If I were to choose one out of these three, I would go for the third one, that is Lycos digital marketing partner.
Note: Lycos is a Perform15 stock.
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