PAST MULTIBAGGER STOCKS

Understanding the relation of EPS

And Multi year Trend reversals
WHAT IS EPS ?

https://www.investopedia.com/terms/e/eps.asp
RELATION WITH TREND REVERSALS
 For a stock price to move up it requires demand
 Demand is created when earnings of a company
increase / improve .
 Change in EPS trend ( negative to positive ) creates
demand for a stock .
 This generally leads to multi year breakout – multi
year trend reversals which push the stock price 3-4x
HOW TO ANALYSE CHARTS :
 We used Stage analysis to mark the long term
trend of a stock
 Wait for Stage 1 Breakout

 Volume on right side of base > Left side of base

 30 weekly EMA to understand trend

 52 week Relative Strength turns positive after

many years
 Wait for positive EPS
IMAGICAA
 Imagica has been a loss making from 10 years
until 2022
 Its EPS was negative and stock was in Stage 4
downtrend
 In June 2023 it reported its first positive EPS
 Stock broke out at 25rs even before positive EPS
reported and from that price 3xed and from the time
+ EPS reported Stock Doubled

WONDERLA
 Imagica and Wonderla Broke out together , where
wonderla reported + EPS while Imgicaa didn’t
 Both belonged to same sector ( Entertainment Parks )
while one reported + Eps other didn’t
 I guess market knew that imagicaa will report +
earnings hence it broke out and made a move
 Wonderla reported Positive EPS with Stage 1 BO
and RS +
 Stock 3xed from breakout level without
breaching 30 wema
MRPL
 Loss making for 4 years and reported profits for the
first time in Feb 2022
 MRPL with Chennai Petro , both broke out together !

 Again same sectors breaking out with + Earning

indicating change in cycle
 In this case Earnings were reported and then the
breakout happened in both Stocks .
 During that time both midcap and smallcap stocks
where in correction mode , hence this could be a reason
why these stocks didn’t breakout before the earnings or
with the earnings
MRPL
CHENNAI PETRO
SDBL
 Sometimes the Losses reducing is also a good sign and
factors that the company may report good earnings in
future
 EPS+ was in july but breakout happened in March .

 The losses were consistently decreasing probably

boosting the price up
SDBL
 After breakout Stock 5xed from the Stage 1
 Currently Stock has reached Stage 3 and may see
a distribution period
ENIL UFO AND SHEMAROO
 All of the three stocks broke out in Jan 2024
 All 3 stocks belonged to entertainment Sector

 ENIL had reported the highest positive earnings

among 3 while shemaroo still reported Loss
 Shemaroo reversed from the breakout while ENIL
moved up 40% from the first breakout level
 UFO reported + earning but muted + hence this stock
is still near breakout level
 All 3 stocks again broke out before earnings period
ENIL
UFO
SHEMAROO
ANALYSIS
 While all 3 stocks broke out togther Shemaroo reported
a Loss after + Eps in last few quarters while reverse
happened with other 2 stocks from same sector
 It is important to buy near the stage 1 breakout or wait
for fresh base formations after breakout if you have
missed the main entry
 I have entered ENIL and UFO while I didn’t buy
Shemaroo as it already had positive EPS during the
breakout
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