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FirstInvesT
www.firstinv.weebly.com Investors Choice

Investment is a process, where the money is made by discipline, strategies, focus and correct
temperament. Stock Markets inherently subject to risk. Markets give you what you want with
a double impact. Our advice to our readers is do not try to fight with market, do not try to
time with market rather try to go with market. Enter into the markets with correct acumen
and a clarity which says why are you investing, where are you investing and what is your
rationale for that investment. Believe it or not all the successful investors had a very clear
mindset on these 3 questions.

Our Letter Investors Choice is designed not to give any magic way of being millionaire
however it can help you in achieving your goal systematically with the minimum time
investment and with maximum impact. Here we will cover the topics from Psychological
Perspective, Economy Perspective and Investment Perspective. Hope you all will enjoy the
Read.
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MYTHS IN STOCK MARKET

Myth #1: - No common can make money because of dirty deals and inside nexus. As we are common man and do
not have access so better to be out of it.

Answer: - Crash 2008. To answer the above Myth these 2 words are enough for people who are familiar to Crash 2008
but for those who are not aware of it let me explain. The Crash of 2008 was called as Credit Crash in American economy
caused by Sub-Prime Crisis. Sub-Prime crisis is caused due to over lending to below par people having the very low
credit score.

In this crisis, the interesting part was that all the Top-Notch institutions were either bankrupted or got bailed out by
government. These top-notch institutions had the links everywhere, all inside news available to them, the whole box
of best talent was there with them but still they get vanished. WHY? Simple answer is greed and sheer greed. So,
friends, if only shrewd people could have made money then 2008 Crash could have been avoided or should never
happened as they had all that you think, like if we had Stanford Researcher then we can make money easily etc. etc.So,
please overcome the Myth that only super intelligent people can make money in the market.

Myth #2: - Investing in Stock Market is Like Gambling

Answer: - I will answer this question is 2 ways, one based on psychological and other based on Investment nature.

Lets first answer that what is gambling. Gambling is the activity where we enter without any knowledge and the results
or outcome based on the luck. We also have a famous quote in olden times where doing business is also a game of
gambling till the point you do not know what are you doing. Basically, anything that we do without knowing qualifies
the features of Gambling. Hence in case you are investing in Mutual fund or SIP or something else ia also a gambling
as you are allowing some other person to manage your money without knowing him personally or testing his
knowledge. Why we do this is because we believe in brand value of that company that you are going with in Mutual
funds or SIP. So basically, even though you do not know the outcome or even that where your money going you just
put and the reason is psychological comfort and a belief that the person in company knows better than you about
market. Hence the question is you can believe on other then why cannot you believe in yourself and start little
investment by yourself.

Now let me clarify more purposely why Investing is different from Gambling. To understand why investing in stocks is
inherently different from gambling, we need to review what it means to buy stocks. A share of common stock is
ownership in a company. It entitles the holder to a claim on assets as well as a fraction of the profits that the company
generates. Too often, investors think of shares as simply a trading vehicle, and they forget that stock represents the
ownership of a company. In the stock market, investors are constantly trying to assess the profit that will be left over
for shareholders. This is why stock prices fluctuate. The outlook for business conditions is always changing, and so are
the future earnings of a company. Assessing the value of a company isn't an easy practice. There are so many variables
involved that the short-term price movements appear to be random (academics call this the Random Walk Theory);
however, over the long term, a company is supposed to be worth the present value of the profits it will make. In the
short term, a company can survive without profits because of the expectations of future earnings, but no company
can fool investors forevereventually, a company's stock price can be expected to show the true value of the firm.

Gambling, on the contrary, is a zero-sum game. It merely takes money from a loser and gives it to a winner. No value
is ever created. By investing, we increase the overall wealth of an economy. As companies compete, they increase
productivity and develop products that can make our lives better. Don't confuse investing and creating wealth with
gambling's zero-sum game.

In Similar fashion, we have many myths that got build for stock markets either by some people who lost money due
to greed and instead of accepting their fault they claimed markets to be wrong, some people get fooled out by fear
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that they booked the profit too early that the major move of stock is lost by them, stories are many but the truth is
that stock markets are very efficient in decent space of time, having short term turbulence and empowered enough
to give you what you want.

GST: Goods and Service Tax

GST is levied on the supply of goods and services at each stages of the supply chain from the supplier up to the retail
stage of the distribution. Even though GST is imposed at each level of the supply chain, the tax element does not
become part of the cost of the product because GST paid on the business inputs is claimable.

GST is a broad-based consumption tax covering all sectors of the economy i.e all goods and services made in
Malaysia including imports except specific goods and services which are categorized under zero rated supply and
exempt supply orders as determined by the Minister of Finance and published in the Gazette.

Benefits of GST
1) Lower Business Cost

2) Global Competitiveness

3) Better Compliance

4) Better Transparency

5) Fair pricing to consumers

The GST Council has finalised a four-tier GST tax structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent,
with lower rates for essential items and the highest for luxury and de-merits goods, including luxury cars, SUVs and
tobacco products, that would also attract an additional cess. Moreover, with a view to keeping inflation under check,
essential items including food, which presently constitute roughly half of the consumer inflation basket, will be taxed
at zero rate.
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Investment Themes
Aegis Logistics: This company is in Oil Marketing and Distribution.
PROS:
1) Company expected to give Good Growth.

2) Company maintains the healthy Dividend Pay-out.

Companies in Same Sector:

1) IOCL 2) Petronet LNG 3) Castrol 4) Gulf Oil 5) Tide Water 6) Panama Petrochem.

Market Cap: - Aegis stands 5th in terms of Market Cap behind Gulf oil and Castrol too.

Performance Metrics with Comparisons to Competitors

Performance Metrics of Standalone Share

Technical and Quantitative Insight

The company has formed the bullish patterns and has crossed the multi-year resistance of Rs 174 and currently
trading at Rs 204-210 Band. From here the company is looking good from entry perspective with the excellent
fundamentals speaking for the company compound growth we can consider this stock as a long-term hold and an
investment idea.
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