ravisupreme

Concept Stocks are of companies that, spurred by new ideas, are trying out something different, which means these might or might not work. Look at Moser Baer, which is moving briskly in the photovoltaic segment. But how successful it would be depends on how enduring its technology proves to be and how scalable the model is. Efforts to get more information from the management went in vain with the company remaining tight-lipped, as they did not want the information to go in the public domain.
Exploring and fanning out value stocks becomes a compulsion in a downhill market. This is more so because it is easier to identify and come up with a basket of benefic scrips when the market is in the ascendant mode. Almost anything picked fires off in the uptrend. But when the market plunges into chaos, and volatility is the order of the day, investors are left groping as their old hoary methods are no longer applicable in a different market. This is the time when exploration in the sea of stocks and coming up with few gems hold the promise of getting good returns....

Concept Stocks continue to be in demand as long as they are unique. But if the business model is easily imitated then investors’ preference wanes. When a company with similar business model comes in the stock market, the original company does not command valuations it used to earlier. For instance, Everest Kanto Cylinders (EKC), the company into development and production of industrial and CNG cylinders, was an investors’ darling when it was only listed on the bourses with this business model. But after the entry of Nitin Fire Protection, a company following similar business model, EKC premium on the bourses reduced. In the case of Educomp Solutions, its appreciation moderated with the onset of Everonn Systems.