Both are IPO shares. Thus, I only had 10 units of each stock bought at a face value of Rs. 100 per share.
1) Mountain Energy Nepal (MEN)
MEN lost on the third day of listing. Since I do not know anything about the company, a red candle on the third day of the listing is a bad signal for me, technical analysis-wise. I thus sold the entire 10 shares of Mountain Energy Nepal (MEN) at Rs. 357 per share.
The stock went sideways for a few days after I sold. Then, out of nowhere, it gained massively, hitting 10% positive circuits in multiple days. While writing this, the stock has gone as high as Rs. 563 per share. However, you can’t really speculate on IPO shares. This is because we have so little past reference for the chart to be of any value.
Little profit is never the same as a loss. I’m a happy man with a 257% profit in my IPO shares.
2) Prabhu Life Insurance (PLI)
This is a good company that opened at the lower range of Rs. 137 per share on the first day for some reason. Since no one believed the shares were worth that low, PLI had a hard time trading in the first few days because there were virtually no sellers.
However, it gradually gained for 20 days straight after being listed in NEPSE. There was a huge volume of buy orders with no sell orders until today. Just 10 minutes ago, I checked into my trading account and saw sell orders piling in. Now, according to my research, this means that the first phase of bullish optimism is coming to an end for PLI.
The company might be good, but every stock goes through a period of correction or sideways trading. Sensing that, I sold the entire 10 shares of PLI at Rs. 750 today, perhaps 8 minutes ago.
Again, I’m a happy man with a 650% pure profit from my investment.