Equity Markets

[bow123]

this one cud be only a perception, i guess. its rather a choice b/w high risk, high gains and low risk, low gains.

[nickspeedster]

Mutual Funds...
Safe...yes
Fun...No!!!

[neil]

Lol...I thought making money was fun enough

[photon]

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.

[nickspeedster]

Hey neil

I will have to disagree with you on that one...
Even though they give goo moey but Mutual Funds are totally boring...
I mean whats the fun in coming to the office, seeing your stupid NAV(which would have gone up barely .05 points) and going to work...

Stocks is where the fun is dude..
you always have to keep your ears open to whats going on!!!
Nine o clock means India Business Hour
When a smiling Udayan Mukherjee makes your day!!!
Thats fun man...

Plus i seriously think that one can make a lot more money by playing stocks then MFs!!!

Whats do you say big guy?

[muks]

voila.
stocks. so many invest and so few understand.
my feeling is that anyone should 1st understand a stock bfore investing in it. don't know bout it, don't invest in it.simple.
i dislike the satta. do it as less as possible(30% of transaction is enough).go for long term investment. anyway that's my thought only.
mutual funds. hmmmm a little better than fd's.but if u know ur fundas,why do it?

snan bhai, list is good but u missed old fav. stock section in economictimes.com .it gives gr8 display if u want to analyse a stock. also i went to sharekhan a few times and couldn't find anything. probably u had to register.

photon wrote:

Stay invested with blue chips. Infosys, Wipro, SBI, TataMotors, TISCO, Reliance, ONGC to name a few.

boy,had u seen their rates these days? i think 1 or 2 r sufficient although wait fr the market to cool a little(although it won't go down much).
also CNBC is a must fr anybody.see it as much as possible.
btw, getting in INFY is not good now.jitna badna tha, bar chuka.
added later: ya uddayan is a big brand himself.he attract many to CNBC.also view classroom on sundays(CNBC).heard it is good(par main hamesha bhool jata hoon ).


mux

[nickspeedster]

Dude...the Infy price may look steep but with the bonus issue kicked in....not a bad bet at all...
Plus you are covering 115 bucks per share for the dividend alone!!!

What do you say?

[muks]

buddy,
that was good bfore they announced the goodies. it has increased by Rs 350 already in a day.good buy is that one which is picked before increase or which will keep increasing.
mux

[nickspeedster]

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

[photon]

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.