Bull Streak

Whew!!!!! The past five sessions on the stock market has been great for me. Over the time, one of my stocks Glenmark Pharma has risen by over 35% and another IDBI Bank has risen over 40%. With Glenmark, the board is meeting on this 6th to decide about issuance of bonus shares. I realized (a bit late?) that I should be buying some more of the stock since the price band has shifted up [tenets of value investing :) ] and picked up a few more today.

I am bullish on Glenmark for the long-term. The company has licensed out a molecule for treatment of chronic obstructive pulmonary disorder and asthma to US-based Forest Labs Inc. in a deal worth up to $ 190 million in Sep 2004. The company has sharpened its focus on research and development (R&D) activities and is expected to step-up investment in the area of basic research. Currently, it employs over 100 scientists focusing on asthma, diabetes and obesity. In fact, I personally heard Dr. Anji Reddy of Dr. Reddys Labs in his speech at IIM Bangalore saying that this company is doing some great work on innovation.

IDBI Bank is set to merge with IDBI and the board is going to decide about the stock swap ratio this month. Since IDBI Bank has a better asset portfolio and lesser NPAs, punters are expecting the ratio to be favorable to the bank.

Now yet another stock in the IT - hardware sector, DLink has risen 15% over two days - yesterday and today! I suspect this is in anticipation of good quarterly results as also due to removal of many hardware components off the import duty list.

But.. you know what? Even this unabated Bull Run leaves me queasy. When I first saw Glenmark hitting the 10% upper circuit on two consecutive days, I didnt know what was happening. You might say 'so what if you didnt know why...if it is rising it is good'. But heh.. if I dont know why, then I also dont know how long and when.. when should I get out?!

Uncertainty...uncertainty.. Thats the name of the game!