Prudent Equity Review. Review on Prudent Equity

I was Prudent Equity(PE) subscriber for around three years so I can tell you about Prudent Equity.

I bought his membership seeing the online reviews and impressive track record on PE website. This was my mistake. No one can perform so consistently in Stocks market for so many years as it was shown on the website. Later I found that performance shown is manipulated and a lie.

After three years around I lost heavily following Prudent Equity recommendations. Mind you that their subscription fee is much higher than others(25K around including GST for a year or 8 recommendations). Needless to say I lost 2 years subscription fee too.

I will tell you all the cons fist as there are so many compared to pros.

Cons:

Subscription Model - Their subscription fee is very high(25K in a year/ 8 recommendations) . This is very high compared to other even lot better services. And I have a problem with such subscription models with all such services. They block you from accessing their website after a year. This means you would have to renew again if you want updates on the existing stocks that you bought. Ideal thing is that you block users accessing new recommendations and not from entire website, specifically updates on stocks that they bought during the previous year membership. But that is fine, we do not live in such an ideal world.

Recommendation Model - This is the area which is the most fishy in nature in this service of Prudent Equity. He has different sections of recommendations. Currently only one section is active and others are closed. There is no solid justification he gives to have many such sections. He recommends many stocks under different sections. His one recommendation section(Stock Recommendations - SR) is a permanent section while other sections keep coming and going. I and other members have suffered a huge huge loss following his recommendations in these other sections. During my subscription time, most of the recommendations were given from other sections instead of SR. Now, why I said that this model is fishy at the least, I will explain below.

Recommendation Model(2.1.) - He started many sections other than SR, namely Value Pro, Cash Stocks and I guess 2 more. It is hard for me to recollect their names correctly. 90% of the stocks recommended there were given exit call at the loss of 70 - 100%. Yes! Read it again once. These stocks were falling since long time and every time when we asked him about them, he defended them very aggressively and convinced us to stay in them strongly. One fine day he just took 180 degrees U-turn and asked us to book so huge loss in them. The names of these stocks are Alphageo, Nandan Denim, Technofab Engineering, Indsil Hydro, Man Industries, Deep Industries, Deepak Fertilizer and Sarda Energy and Minerals and may be one or two more. He used to tell that he had also position in those stocks. He never told us if he sold them at right time or he also suffered the same loss as us. My understanding is that he sold them long back as he is not dumb for sure and he always had lot of information about these internals of these stocks. He would have pocketed decent profits also from those calls. I also came across that he runs another service for HNI clients(PE-Ace) . Someone was accusing him of manipulation using Prudent Equity members. It goes like this. He buys X stock at Y price. This X stock has low liquidity. Then he recommends this X stock to his HNI clients. X stock pumps hard because of low liquidity. Now the same X stock he recommends to his PE members, X stock again pumps hard. After waiting for some time, he exits with his HNI clients. He earns a handsome profit, makes profit for his HNI clients and get a handsome cute from their profit as his fees or commission. That is a huge sum of money compared to what he earns from his members. Then the stock dumps, some of them recover, some do not recover, like it happened to us. Earlier I was not believing this but now the things add up so perfectly that it is hard not to believe that now.

Recommendation Model(2.2.) - He keeps on closing recommendation sections other that the SR and keeps removing silently from his website. That is a big fraud and cheating. If you see his website as a non-member, you will see stellar performances because he is giving the track record of only SR section and not others to attract new members. This is a big lie and cheating. He should be actually sued for that. This recommendation model is made to facilitate him to do manipulations using PE members .

Stock Picking / Risk Management - He picks up stocks from small cap space. Even if he is not dishonest( which I do not think), there is lot of risk involved under any adverse situation. His stock picking has been poor and worse than that when the fundamentals of his stocks started getting worse, he just kept on sitting them like laying eggs and just hoping them to recover. Even worse, he kept on defending them and finally asked us to exit them when they were at 80-100% loss and not before. So he has very poor risk management in place. With small cap recommendations, very poor risk management, a dishonest person at helm and a depressing environment around, you should think multiple times taking Prudent Equity services.

Personal issues - I tried to remain objective while writing this review, keeping my personal experience away. But here I cannot stop myself saying that he is an ahe and I curse him from my guts. He is so loud mouthed and he says things that even Warren Buffet would not say about market. He never accepted any of his mistakes and have shown no intention learning from mistakes. He feels insulted to take any suggestion or advice for improvement. This guy has only one answer every time to all his failures - Blame PM Modi and Amit Shah. When I joined he told “ We will do good in bull market, and we will do better in the bear market”. And when bear market hits, he has only PM Modi to blame for his fall out. So arrogant fool and coward! . He also many times said that “ Corona virus situation is last item to worry in my list”. I am sure he must be blaming again for PM Modi for current Covid-19 situation.

Pros:

Now let us talk about some pros.

Stock Recommendation Section - If by all means, you decide and go ahead to take his service, Do not buy anything from other than SR. Currently only SR is open, so anyways you would do that. Somehow I have seen that his SR section recommendations has been good. God knows if that is not manipulated again somehow. I do not know what happens in future as the market is going to be very choppy. He has recommended Mirza International, Renaissance Global, Beekay Steel, Federal Bank, Welspun Corp in that section. All have fallen but he cannot be blamed seeing the covid19 situation around. Welspun Corp and Mirza International looks risky in current scenario . Although Welspun Corp has corrected a lot more but he still not bothered or sent any note around explaining the situation in this stock or asked to exit initially. Watch out he may ask to exit at 90% or 100% loss.

Query Section - You can ask him your concerns here. He is selective in displaying and replying them. He loves and replies queries of those who are his sycophants. God knows why these people are so spineless and pathetic that instead of demanding an explanation from him they become his sycophants. You pay him for that job. Instead he rebukes members who question him or try to hold him accountable for his wrong recommendations. Anyways, as such I do not really know if his answers help you or harm you as he is not completely truthful in his replies. So do not trust him fully, take his answer as pinch of salt and do your own research.

So this is my review about Prudent Equity. Stay Safe and Do not loose your hard earned money. Before taking any recommendation service, just scrutinise it thoroughly. Do not believe anyone blindly. It is your hard earned money for which these people do not care at all.

PS- Irony died when it saw on PE website, “Rule No. 1 - Never Loose money, Rule No. 2 - Refer rule number 1”.