Vinyl Chemical Breakout 1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on RSI close below 30 (or use any other method of your liking)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
After a consolidation since October 2021, NSE:VINYLINDIA has given a breakout today. Buy with a stop just below ₹291.
Vinyl Chemicals (India) Limited, a Parekh Group Company, is engaged in the business of trading in Chemicals mainly Vinyl Acetate Monomer (VAM), which is imported/sourced from various global suppliers and distributed in India.
Strengths: -
1. TTM Sales growth is at 114% and TTM Profit growth is at 199%.
2. 10 year and 5 year average ROE more than 20%.
3. Debt to equity at 0.01 (less than 1 is good), Interest Coverage at 266 (greater than 3 is good), FCF to CFO at 100%.
4. Dividend yield at 1.55% (consistent dividend payer since 2011).
5. FIIs increased stake from 0.07 in December 2021 to 0.42 in June 2022.
7. ADX > 29 on daily chart
Weaknesses: -
1. March quarter sales growth was at -27%
2. Stock is trading at 6.37 times of its book value
Disclaimer: I am not SEBI Registered. Do trade or invest at your own risk, I am not responsible for any losses and won't claim anything from your profits either. Take financial advices from your advisors before jumping in.
