Reader Query for Upcoming Small Cap

1. I got a query from one of the readers to provide him with a scrip which has a potential to turn into a multi bagger and it should be with in 50 Rs level.

2. Well this is the average investor state of mind as the mind says that get atleast 100 shares for Rs 5000/- if a single share is priced for Rs 50/- and it confirms to our human psychology.

3. I have deliberately written this post to bring this human emotions in picture as mind says that one is only risking 5000 rupees for 100 shares whereas had the share been priced at Rs 5000 he would have had got 1 shares and the mind first of all is not ready to accept that we are paying 5000 Rupees for a single share whereas it does not make any difference in the demat segment i.e. whether you buy one share or 100 shares.

4. Mind says that chance of Rs 50 share becoming double is easier as it is thinking that it has to just jump 50 rs whereas the mind is not ready to accept that rs 5000 share can become 10000 as it has to jmp 5000 Rupees though percentage vise it is the same and it is highly possible that a 5000 Rs can double earlier than Rs 50 share as it was already in a breakout mode.

5. Nonetheless I have tried to analyse the human emotions but no query is wrong and I only feel that the answer can be wrong and subduing to the desires of the reader I am posting a scrip which has a potential to rise and is close to rs 50 level and the name of the scrip is Premier explosives which is in the field of supplying explosives to defence and industries.

6. So far I have seeen Premier explosives fall till 40-42 level and thereafter it rallies to 56-58 level and than again fall back. I have number of times bought this stock around 432 levels and sold it at 50+ level. Try to accumulate this scrip as it has a one year target of 85/-.

7. I thank my reader for the interesting query which helped me also to clear the clutter from my own mind and of course help analyse the human emotions.