Stock Ideas – Buy, Sell or Hold

I’ve subscribed to Equitymaster Midcap Select Service. Its 1-year subscription costs Rs 2500 and they give stock recommendation every fortnight. So there’ll be 26 recommendations per year.

That translates as every stock idea costs about Rs 100. That’s how I did the math before signing up. But it’s not that straight and simple math.

The problem is that every now and then, they offer a HOLD recommendation. Well, my question here is, how they can give a HOLD advice for a stock that they had not given a BUY recommendation earlier and charge me Rs 100 for that.

I feel long-term oriented premium stock recommendation services should give customers only BUY recommendations. Any HOLD/SELL advice should be in addition to their regular BUY recommendations. If they give a HOLD/SELL advice for stocks, which they have not given a BUY call earlier, then it will not add value to their customers as they won’t own the stock. Ideally they should not charge customers for that right? What do you say?

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