[drsingh]

Originally Posted by ajay_satpute

I held Suzlon for over two years and about 2 months ago, made HUGE profit...i mean HUGE. Post selling it off, i haven't seen it spike much. But hold on i suggest. 2 years is a safe period to hold on to. I am hoping Modi govt will support companies like Suzlon more and more gradually.

Cheers!!!

You're probably the one who took a contra bet when it was trading at 4-5 rupees two years ago.

[humyum]

I have started buying futures of good quality names which have discounted themselves because of the fall in Sensex/Nifty. Stocks like LUPIN, L & T to name a few are on my buy list. I am a short term trader so even a 50 to 100 buck gain in a few days is good enough for me considering futures has the number advantage/disadvantage.

[SmartCat]

Value investor & fund manager Parag Parikh died in a car crash in Omaha while on a visit to Berkshire Hathway Annual shareholder's meeting.

http://www.omaha.com/news/stockbroke...3c70d95a2.html

[amit]

Originally Posted by smartcat

Value investor & fund manager Parag Parikh died in a car crash in Omaha while on a visit to Berkshire Hathway Annual shareholder's meeting.

http://www.omaha.com/news/stockbroke...3c70d95a2.html

From the picture, the Jetta had curtain airbags yet Parag seated in the back died. Maybe he was not belted up?

[inder]

What happened today
Btw I sold VRL logistics alloted in IPO @ 287 on monday.

[ajay_satpute]

Originally Posted by inder

What happened today
Btw I sold VRL logistics alloted in IPO @ 287 on monday.

I know. One of the biggest crash in the recent years. 722 points is huge. All my basket is cherry red today.

I hope this has nothing to do with the Salman Khan's case verdict.

[drsingh]

Has anybody looked at the 'skill development' sector?

Like aptech, niit, etc. Any other established names in this sector?
Any thoughts on this sector?

[vinay kamath]

Falling out of love, foreign funds dump Indian shares, bonds
MUMBAI
May 7 (Reuters) - Overseas funds sold around a net $630 million in Indian shares and bonds on Wednesday, marking their biggest single-day sales since January 2014, reinforcing fears that an emerging market darling is losing its allure.

The single-day sell-off, according to preliminary data from exchanges and depositary data, is the biggest since foreign investors sold around a net $877 million on Jan. 27, 2014 when emerging markets were gripped by U.S. rate hike fears, Thomson Reuters calculated.

It marks the culmination of weeks of selling by foreign investors, which analysts have mainly attributed to the uncertainty created by the minimum alternate tax (MAT) that is being demanded from some overseas funds.

Indian shares and bonds have wiped out their entire gains for the year over the past few weeks, with the broader NSE index down 11 percent since hitting a record high on March 4.

Meanwhile, the rupee on Thursday fell below 63.90 per dollar, its weakest since Sept. 13, 2013. (Reporting by Swati Bhat and Rafael Nam; Editing by Eric Meijer)

http://www.reuters.com/article/2015/...0XY2PT20150507

[vina]

Originally Posted by PatienceWins

I do not look at quarterly statements. I read annual reports. I usually get an idea of the latest quarterly results from screener.in updates.

It is very easy to manipulate earnings. Accountants use their knowledge not for the welfare of shareholders, but for the welfare of owners who employ them - incentive caused bias. There are many ways to manipulate earnings - recording bogus revenue, recording revenue early, shifting expenses etc. I would recommend you to read the book Financial Shenanigans.

Cash flow statement is much more reliable, especially the cash in bank and cash involved in investing activities.

A company produces value for shareholders by three ways - 1) Earning Growth 2) Capital Efficiency 3) Capital Allocation.

1. The self claimed experts you see around are after short term earnings growth - quarterly guidance and actual figures which are more noise. What really matters is consistent and stable earnings growth over a long period of time (preferably 10 years), which buffett looks for. E.g. Coke, P&G etc. Read Buffetology by Mary Buffett.

2 and 3 are also very important, but you do not see much stress on this. The success of great investors/ businessmen like Buffett, Tom Murphy can mainly be attributed to their stress on capital efficiency and superior capital allocation skills. Read the book outsiders.

If you want to become a good investor, the first thing you need to do is to switch off CNBC and stop listening to all the noise around related to quarterly guidance, estimates, actuals etc. Investing requires more temperament than active management of stocks.

Got your point; and when I do invest in a company I usually go through three years worth of annual reports (including cash flow statements) with earnings reports etc. going much farther back (at least to 2005; i.e. before the last boom, to see what I'm getting myself into).

The problem is, with the high volatility of the Indian economy itself the above tells you little about most but a few companies for the purpose of "tracking" investments. And I'm not rich enough to be in the pure-long-term mode; a once-a-decade correction can leave me very damaged (though I'll survive).



Anyway, can you give a list of a few companies that are long-term good and have been a BUY in the last one year ever?

[sukhoi]

Any views on Oracle Financial Services. It has recently declared a dividend of INR 180 per share Announcement on Moneycontrol.

At CMP of 3555 it gives a decent dividend yield of 5.06% odd. Rumours are rife that it would go for de-listing by end of year and would see a price rise as well. De-listing rumours aside, any views or opinions on this from fellow boarders.

On related note, how exactly does de-listing work and how do shareholders get the monies for equity they hold? Why do people expect a rise in price at time of de-listing as is being discussed on MC message boards? Could someone please explain about the de-listing process etc.

Cheers,
S

[binand]

Originally Posted by sukhoi

On related note, how exactly does de-listing work and how do shareholders get the monies for equity they hold? Why do people expect a rise in price at time of de-listing as is being discussed on MC message boards? Could someone please explain about the de-listing process etc.

If you agree to sell your shares back to the promoters, I expect shares to leave your demat account and money to arrive in your linked bank account.

Voluntary de-listing is usually driven by promoters (for various reasons) and the conditions imposed by SEBI includes maximum minority and minimum promoter shareholdings; so to achieve these targets promoters offer share buy-backs. These buy-backs are at a significant premium over the current market price (to incentivize minority shareholders to sell); so trading prices tend to rise when a de-listing is in the offing.

To understand the actual SEBI-mandated process, you need to trawl the SEBI website I'm afraid.

[alpha1]

Originally Posted by sukhoi

A

On related note, how exactly does de-listing work and how do shareholders get the monies for equity they hold? Why do people expect a rise in price at time of de-listing as is being discussed on MC message boards? Could someone please explain about the de-listing process etc.

Cheers,
S

Is it necessary that when a company stock is de-listed, it is also bought back??

I see that both the things are different. De-listing actually should mean that the stocks are no longer traded on the particular exchange.

I can give you an example of a company (forgot its name), which stopped trading on NSE. I saw that the stock in my DP report had changed from NSE to BSE.

[binand]

Originally Posted by alpha1

Is it necessary that when a company stock is de-listed, it is also bought back??

I see that both the things are different. De-listing actually should mean that the stocks are no longer traded on the particular exchange.

I can give you an example of a company (forgot its name), which stopped trading on NSE. I saw that the stock in my DP report had changed from NSE to BSE.

You need to differentiate between delisting from (a) only some of the exchanges (in Indian context, I expect that to mean from only one of BSE and NSE and not both), and (b) all exchanges. In the former case SEBI does not mandate buy-backs, but in the latter case buy-back is a requirement.

Here are SEBI's regulations: http://www.sebi.gov.in/acts/delisting2009.pdf

[DudeWithaFiat]

Hi all,

I am planning to invest in some good stocks long term and was going through the many resources available online and offline, but I have this very noob question which I couldn't find a real answer to even after googling a bit:

Who decides the price of a particular stock?

I am aware that there are many factors that affect the pricing on a stock, like it going up if the demand for that particular stock goes up and vice-versa, but at the end, who decides the price?

Let me try to draw an analogy:

A farmer is selling carrots, he decides the price of the carrot to be Rs.10/- per kg and its selling well. Suddenly, there is a rise in the demand for carrots and the supply is scarce, so he decides to increase the price to Rs.15/- per kg. Now, a particular buyer wants to make sure he gets more carrots, so he offers the farmer Rs.18 per kg and gets preferred by the farmer over his other customers. Now the price of carrot has gone up from Rs.10 per kg to Rs.15 per kg to Rs.18 per kg. A few days later, for some reason or the other, everyone stopped buying carrots. Buyers find carrot too expensive at Rs.15 or Rs.18 per kg or even at Rs.10 per kg, so the farmer brought down the price to Rs.8 per kg to attract buyers. Still no one is buying his carrots. Now a potential buyer offers Rs.5 per kg for the carrot and the farmer decides to sell his carrots at that price. Now the standard price of a kg of carrot has some down to Rs.5 per kg from its original Rs.10 per kg

In the above case, the carrots' price kept changing based on the demand and supply for the carrot (just like the price of a share) . But here, we have a farmer and a buyer who decides the price of a kg of carrot. The prices are decided by these two individuals (or the companies those individuals represent). Likewise, when there is a huge rise in the demand for a particular stock, assuming that prices shoot up, who decides the new 'increased' price of that particular stock? The company whose stock it is? Some 'authorized' staff at the stock exchange?

[rookieraj]

Originally Posted by DudeWithaFiat

Hi all,

I am planning to invest in some good stocks long term and was going through the many resources available online and offline, but I have this very noob question which I couldn't find a real answer to even after googling a bit:

Who decides the price of a particular stock?

I am aware that there are many factors that affect the pricing on a stock, like it going up if the demand for that particular stock goes up and vice-versa, but at the end, who decides the price?

Let me try to draw an analogy:

A farmer is selling carrots, he decides the price of the carrot to be Rs.10/- per kg and its selling well. Suddenly, there is a rise in the demand for carrots and the supply is scarce, so he decides to increase the price to Rs.15/- per kg. Now, a particular buyer wants to make sure he gets more carrots, so he offers the farmer Rs.18 per kg and gets preferred by the farmer over his other customers. Now the price of carrot has gone up from Rs.10 per kg to Rs.15 per kg to Rs.18 per kg. A few days later, for some reason or the other, everyone stopped buying carrots. Buyers find carrot too expensive at Rs.15 or Rs.18 per kg or even at Rs.10 per kg, so the farmer brought down the price to Rs.8 per kg to attract buyers. Still no one is buying his carrots. Now a potential buyer offers Rs.5 per kg for the carrot and the farmer decides to sell his carrots at that price. Now the standard price of a kg of carrot has some down to Rs.5 per kg from its original Rs.10 per kg

In the above case, the carrots' price kept changing based on the demand and supply for the carrot (just like the price of a share) . But here, we have a farmer and a buyer who decides the price of a kg of carrot. The prices are decided by these two individuals (or the companies those individuals represent). Likewise, when there is a huge rise in the demand for a particular stock, assuming that prices shoot up, who decides the new 'increased' price of that particular stock? The company whose stock it is? Some 'authorized' staff at the stock exchange?

The price of a share is decided by buyers and sellers. The market price of a particular share gets decided upon the growth prospect of the company and the returns that would accrue to the holder of the share by way of appreciation, dividend or asset sale. The buyer rates the share higher on these parameters than the seller. At times the prices do get influenced by rumours/news and speculation but these are generally short term movements.

To refer to your analogy, if the buyers could hold on to their carrots in the hope that the farmer would grow more carrots in subsequent years and would not only share a percentage of his profits but would also share the amount received from selling his land to another farmer, then the price of the carrots would be decided by the year on year increase in the farmer's produce, how well his carrots are received in the market, the fertility of his land and the size of his land holding, the possibility of him growing other vegetables, his ability to work hard and his integrity to cite just a few factors.