photon

@photon

photon
@photon 90
> hi guys. ace_bubble man, u had a preety gr8 analysis.the problem being that my fundas r not so developed or maybe i don't had such gr8 vocabulary.quite a few abbrivations went up my head.so plz give full name. will love to participate. guys, can anyone suggest a good site which give basic ...
hi guys.
ace_bubble man, u had a preety gr8 analysis.the problem being that my fundas r not so developed or maybe i don't had such gr8 vocabulary.quite a few abbrivations went up my head.so plz give full name. will love to participate.
guys, can anyone suggest a good site which give basic fundas fr the market terminology. because i had done a huge blunder :oops: in my last post.photon buddy, we had mixed bonus and stock split completely. there is no official reduction in the value of share. whatever the value reduction, it is purely on the basis of increased presence of shares in market.the profit went to shareholders who had purchased the share prior to a fixed date, so later buying won't help anyone. it happens only due to promising future returns.i am surprised why no one has corrected us. sorry nickspeedster :oops: .


Wait...wait am totally confused snan bhai can u help us out?
As an investor the only difference i could feel was that for a stock split the face value of the share also goes down. Rest all is same. What happens on the company's books; snan might be able to answer.
photon
@photon 90
> regardind ace_bubble, jindal is in serious of being acquired or sold in the next 3 -5 years, it doesn't have the scale, nor the ficus, it'll probably keep it's power business . SAIL is an awesome copmany with a bright future, it's debt/equity is high cos govt rules don't allow it to to off...

regardind ace_bubble,
jindal is in serious of being acquired or sold in the next 3 -5 years, it doesn't have the scale, nor the ficus, it'll probably keep it's power business . SAIL is an awesome copmany with a bright future, it's debt/equity is high cos govt rules don't allow it to to offload more equity.tisco & sail will be the one's to watch out for, though i seriously doubt any govt bailout of sail because of lack political fallout.


If i were to choose between TISCO and SAIL. I too would choose TISCO purely because of the fact that it is an Integrated Player
photon
@photon 90
Mux Iam ready to chip in. But before that was just wondering whether ppl out here also do the Technical analysis things before investing? I went through a book Technical Analysis of Stock Trends by Robert D. Edwards, John F. Magee Was amazed at how People's psychology was getting r...
Mux

Iam ready to chip in. But before that was just wondering whether ppl out here also do the Technical analysis things before investing? I went through a book

Technical Analysis of Stock Trends by Robert D. Edwards, John F. Magee

Was amazed at how People's psychology was getting repeated in the shape of chart patterns. Discussion could also centre arnd Supports n Resistances, RSI n ROC and Averages and what not. Truly addictive :shock:
photon
@photon 90
> Okay lets see... you buy one share from the market tomorrow... say for a price of 5500... after some time you get 3 more shares, so now you have four. The price per share however will drop significantly. Lets see it goes to as low as 2500. But you still have 4 shares, so that ...
Okay lets see...

you buy one share from the market tomorrow...
say for a price of 5500...
after some time you get 3 more shares, so now you have four.

The price per share however will drop significantly.
Lets see it goes to as low as 2500.
But you still have 4 shares, so that Rs. 10000 for you.
Plus a dividend of Rs. 115(that will more than take care of your brokerage too!!!)

Not a bad deal afterall


I guess the calculation after record date works differently.

Market Cap = No. of Shares * Share Price

Market Cap today lets assume for Infy is 5000 Crores. So even after the bonus adjustment the Market Cap should be 5000 Crores. In this case the share price would be divided by 4. So the adjusted price would be 1500 and not 2500 assuming that Infy price is 6000 the day before.

So the summary would be ur net worth on Infy both pre and post the bonus will remain the same. Any upsides from 1500 levels will ofcourse be beneficial
photon
@photon 90
I wld have to agree with mux. I have burnt quite a few fingers in stocks that i had bought after a sharp run up only for them to change trends and leave me high and dry. But the word on the street is that the infy stock is better now than after the record date. So dont rule out an Infy at 6000 so...
I wld have to agree with mux. I have burnt quite a few fingers in stocks that i had bought after a sharp run up only for them to change trends and leave me high and dry. But the word on the street is that the infy stock is better now than after the record date. So dont rule out an Infy at 6000 soon.

and yes mux, I too would not recommend day trading at all. I do it for the thrill. I do it to test my knowledge viz with the market. And more often than not the market humbles u.

snan and nick talked of P/Es and valuations. I just wanted to take that discussion forward. Does a High PE mean the stock is overvalued and a Low PE viseversa?

The icicidirect content website has an interesting ratio called PEG ratio which adds on to the PE ratio. I shall demonstrate using an example:

Infy: 30 PE and Wipro: 40 PE.
Let us assume EPS growth esimates for 04-05 for Infy: 30% and for Wipro is 50%
So the PEG ratio now works out to Infy 30/30 =1 and Wipro 40/50 = 0.8

According to them Fund Managers have started using this as a tool as they are not able to compare PEs direcly. So going by the above data Wipro is much better buy than Infy as its potential to grow is not factored into the stock price.
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photon
@photon 90
back aftr lunch :: Mutual Funds are yes safe give good steady returns are handled by Professional Fund Managers. But again its like you putting all the money to buy the car and make a driver take the car out. You just cant feel the power. Most ppl's ego wouldn't let them trust a fund mana...
back aftr lunch

Mutual Funds are yes safe give good steady returns are handled by Professional Fund Managers. But again its like you putting all the money to buy the car and make a driver take the car out. You just cant feel the power. Most ppl's ego wouldn't let them trust a fund manager when it comes to a question of their money.
photon
@photon 90
> this was the best advice i must admit. can u give some more details as to how a novice like me can open an online demat account or in short get into stock investing. I just filled up ICICIDirect's registration form at ICICI bank. Paid up the registration fees of Rs 750. Activation ...

this was the best advice i must admit. can u give some more details as to how a novice like me can open an online demat account or in short get into stock investing.


I just filled up ICICIDirect's registration form at ICICI bank. Paid up the registration fees of Rs 750. Activation takes arnd 15 days. Put some money into the icici account that comes with the package. Start trading. You can trade with amounts as low as 1000 bucks.

Businessworld did a study of all online services. Their study showed that 5paisa.com was rated the best service provider. I guess their website should have details of registration. I guess u need to have a bank account with HDFC for that. I must admit icicidirect is quite slow.


a gr8 idea as well. but i believe one needs to have sufficient money to make suffucient money if he is holding the blue chip ones. on the other hand 10Rs. scrips if held in large multiples may be able to generate some money for a decent appreciation. plz. help me clear my doubts on this one.


I agree. Another good methodology is to look for select midcaps or good stories. For example a bank like IOB quoting at 65+.
Something that i also look for in the ET everyday is two colums
Highest Deliveries at the NSE and Lowest Deliveries at the NSE
What is High delivery? It means the stock is being accumulated or people are buying the stock and holding. Ex i have been observing is "Morgan Stanley" which has been arnd 80% delivery for the past few weeks. It is quoting at 17+
What is Low delivery? Ppl just speculate on this stocks. You will be surprised to find out that good stories like TELCO or TISCO or SAIL the delivery taken everyday is an abyssmal 10-15%. Rest all is satta.


again photon, how can i student like me apply for a kitty in IPOs. the process i mean.

Once you have a demat account. You can apply directly through the web thorugh your broker. In icicidirect there is the IPO section where u choose the ipo put the amount of money you want to invest and Click ok.


some info. into how this is done would be illusionary!
asking for too much man, but u r the only one out here with the practical exp.


Everyday you bet on whatz gonna happen to a stock. For ex when the rupee appreciated to the Dollar, a direct consequence could be IT companies taking a hit on their profits. So u go into the market early and say SELL satyam shares at market rate(w/o actually having the stock ). You hope that the bad news will be factored into the stock price today and so u expect satyam stock to fall. All day trading orders are complemented by a subsequent cover order. So for this order there will be a BUY order also. So once the satyam price has fallen, you go into the market again and make the cover order to buy the stock. This procedure is called short selling cause u sold the shares first before buying them. The reverse procedure is also possible. You BUY first and SELL later.
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photon
@photon 90
> well, photon could plz. put some light on ur portfolio and how u actually started into investing and satta...nivoces like me could largely benefit. thankx. bow. Some of the learnings that i have experienced was 1\. Dont look out for penny stocks. Those stocks that are trad...


well, photon could plz. put some light on ur portfolio and how u actually started into investing and satta...nivoces like me could largely benefit.

thankx.
bow.


Some of the learnings that i have experienced was
1. Dont look out for penny stocks. Those stocks that are trading at prices less than 10 Rs. You have this big dream that they would go to 100 in a month or so. There is good reason why the stock is trading at sub 10 Rs. Avoid it.
2. Do lots of study before entering the market. But its better if you can say to urself. "Get an online demat account. Here is 5000 Rs. Let me put it into the market. Iam ready for this entire capital getting wiped out. Iam here to learn."
3. Stay invested with blue chips. Infosys, Wipro, SBI, TataMotors, TISCO, Reliance, ONGC to name a few. I know these stocks cost a lot infact out of the reach of retail investors. But see it this way. If the market is gonna pick up which companies are gonna do well. The market leaders ofcourse.
4. IPOs are a very good for beginners cause there is not much downside. In the recent past some of the stars have been: Divi's Labs, Maruti, Biocon, PTC. Well allotment is a matter of luck. So put ur best foot forward.

Portfolio? I now own only Petronet. I exited out of ICICI, Dabur, Glenmark Pharma, IPCL, Satyam. I have this feeling that these heights will not sustain and we shall bottom down again and the rise will be only after the elections.

Satta? I am just doing it for two months or so. There is a stat. 95% of all day traders lose money. Iam one among them. So i dont have much to share here. Will post up when i consistenly start making money.
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photon
@photon 90
This is something that has fascinated me since childhood. No surprises since it seemed to be the easiest way to make money. But why should u invest in Equity markets where the risks are so high and we have seen investors losing the money? One rational could be the fact that the inflation is ...
This is something that has fascinated me since childhood. No surprises since it seemed to be the easiest way to make money. But why should u invest in Equity markets where the risks are so high and we have seen investors losing the money?

One rational could be the fact that the inflation is hovering under the 5% mark. Fixed Deposit rates are at an all time low. So FD returns do not cover for the rise in inflation. Last year BSE Sensex gained 83% :shock: Can any of the banks beat that?

So with sensex poised to touch the 6000 mark again. Was just wondering what the ppl out here were thinking. What is the prognosis for the future? What are the instruments that ppl follow to track stock markets?

Read an article on how Infosys has created share holder wealth for the investing public
Imagine a retail investor putting in money in the Infy IPO in 1993 at Rs 95 a share getting 100 shares allotted. If he had gone on vanvas and returned back only yesterday these number of shares wld have appreciated to 6400 shares.

9500 Rs -> 3.5 Crores :shock: in 11 years

I have not been that lucky in my investments though but i also do satta(day trading) just to gamble away money.

But iam sure the current volatility would settle down and the trend is still secular post the elections. What say?
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photon
@photon 90
me fan too...watched the movies first...so am in prequel mode now, reading the books...so far i kinda like Aragon...Gandalf comes a close second... happened to see a book on origins of words and phrases on LOTR...ignored the book that time arnd...repenting now at leisure... :disappointed: ...
me fan too...watched the movies first...so am in prequel mode now, reading the books...so far i kinda like Aragon...Gandalf comes a close second...

happened to see a book on origins of words and phrases on LOTR...ignored the book that time arnd...repenting now at leisure...

i seem to relate more to the movie....loved the scene in the twin towers...the one at Helmsdeep...gives me goosebumps everytime i watch it...

Shyam