[shetty_rohan]

Allocation Rules for the IPO:
I had applied(two applications) for the Advanced Enzymes IPO for the highest quantity with the highest price(208 shares @ Rs 896). I have not got any allotment for the same.

Since there are couple of more IPOs on pipeline(like Dilip BuildCon, S P Apparels, RBL), any advice on how to increase the chances of allotment?

[swiftnfurious]

Originally Posted by shetty_rohan

...Since there are couple of more IPOs on pipeline(like Dilip BuildCon, S P Apparels, RBL), any advice on how to increase the chances of allotment?

This is purely a lottery system and the only thing you can do is to bid on the highest band always (if there is a range). Then, pray the IPO doesn't oversubscribe. There are n other shortcuts. Also, if this oversubscribes, please don't apply for more than 1 or two lots there by blocking your amount.

[shetty_rohan]

Originally Posted by swiftnfurious

This is purely a lottery system and the only thing you can do is to bid on the highest band always (if there is a range). Then, pray the IPO doesn't oversubscribe. There are n other shortcuts. Also, if this oversubscribes, please don't apply for more than 1 or two lots there by blocking your amount.

Thanks swiftnfurious. My earlier assumption was that if I apply for the larger quantity, then there is higher chance of getting allocation. But this assumption seems to be incorrect.

Summary:
- If the IPO(RII) is oversubscribed, then apply for the single lot(with a highest bidding price)

Googled, and found the following from http://www.business-standard.com/art...2100606_1.html

However, if demand in this category is greater than the allocation in the retail portion at or above the offer price, then the maximum number of RIIs who can be allotted the minimum bid lot will be computed by dividing the total number of equity shares available for allotment to RIIs by the minimum bid lot, this is known as ‘Maximum RII Allottees’.

Assuming that there are shares worth Rs 10 lakh to be allotted in retail segment and the minimum lot size is worth Rs 10,000. Thus only a maximum of 100 applicants will be receiving the minimum lot of Rs 10,000. Since Sebi says that no RII will be allotted less than the minimum bid lot, in case of over subscription, allocation of shares lower than the minimum lot is not possible. In this case, the Maximum RII Allottees are 100.

In case there is a small oversubscription then first the minimum lot is distributed among all participants and then the balance available equity shares in the retail portion shall be allotted proportionately to the RIIs who have bid for more than one minimum bid lot.

But in case the number of RIIs is more than Maximum RII Allottees, the RIIs (in that category) who will then be allotted minimum bid lot shall be determined on the basis of draw of lots. The draw of lots is now a computerised process and thus there is no room for partiality.

[hillsnrains]

Originally Posted by shetty_rohan

Allocation Rules for the IPO:
I had applied(two applications) for the Advanced Enzymes IPO for the highest quantity with the highest price(208 shares @ Rs 896). I have not got any allotment for the same.

Since there are couple of more IPOs on pipeline(like Dilip BuildCon, S P Apparels, RBL), any advice on how to increase the chances of allotment?

I am also in the same boat. I have 4 applications, but zero allotment (applied 1 lot in each at higher price band). Allotment is computer based lottery: only 1 out of ~8 got allotment due to over subscription.

NOTE: Dilip Buidcon is not worth applying primarily due to shoddy promoters, so better stay away.

[S_U_N]

Originally Posted by vrprabhu

Let me see if I can help you!

..... - (a) Limit (b) Market & (c) StopLoss. In the first case, your order will not get executed below the limit; in the second, it will be at market driven price at the time of placing order; in the third, it will be within the margin given by you. Probably you have placed the order at market price? And system must have matched the order at price of about 747.50.

Originally Posted by swiftnfurious

By the time the orders are executed, it's normal to have a slight variation in the price (especially when we are selling at CMP) because the price fluctuates rather heavily.

I think this is the case. I have noticed that even when we place target price / triggers, it need not sell at the exact same price due to fluctuations.

I believe I have specified Rs. 750 as the price and selected Limit order. Otherwise, it can get sold at any other price. I will watch out for this in the next transaction. I do not expect the shares to be sold even for Rs. 749.50 if I specify Rs. 750.


Meanwhile, I came across an interesting take on the IT sector in India.
https://www.valueresearchonline.com/....asp?str=31668


This is an area which I want to focus on (since I belong to this sector and have some knowledge.)

Is anyone researching on companies which are focused on 3D printing?

[redcruiser]

Originally Posted by S_U_N

Is anyone researching on companies which are focused on 3D printing?

You can study Kelton which deals with next age technology. Could be the next Infosys or get acquired. Share your research to us.

[Dieselritzer]

HI BHPians. I have recently got rid of a home loan and now i wish to invest in stocks. I do it every now and then but it is mostly basis recommendations from people whom i trust, and the amount is also not significantly big.

I have a few questions to folks who very regularly invest in stocks:

- Is there any course or classes in Mumbai where i can go and learn the fundamentals on trading

- In general, what is the % of money you'll invest in stocks out of the total investments you'll do? During my college days i learnt that Equity to Debt ration should be 100 - your age = Equity. I am 28 yr old, so 72% of what i invest should be in equity and the balance in Debt. Does this hold true?

- I have read horrid stories of people going bankrupt by losing a lot of money in trading, i personally do not know anyone with whom this has happened, but in general, why does this happen? Do we tend to get greedy and hold on to stocks far longer than required? What are the watch outs that a new trader like me so look out for?

- I currently use Asit Mehta trading account purely because it was suggested by a friend a few years ago. Only recently i have started using it a bit more frequently. Am i with the right broker?

Well these are the questions as of now. That is a bit list :-) Would love to get some experienced perspective.

Thank you

[noopster]

I'm an occasional poster on this thread but could not pass up an opportunity to dole out advice

Originally Posted by Dieselritzer

HI BHPians. I have recently got rid of a home loan and now i wish to invest in stocks. I do it every now and then but it is mostly basis recommendations from people whom i trust, and the amount is also not significantly big.

Good strategy. Go with it.

- Is there any course or classes in Mumbai where i can go and learn the fundamentals on trading

Am sure there is. In fact you will find fundamentals of investing online. The only rule you need is to know is "Buy low, sell high"

- In general, what is the % of money you'll invest in stocks out of the total investments you'll do? During my college days i learnt that Equity to Debt ration should be 100 - your age = Equity. I am 28 yr old, so 72% of what i invest should be in equity and the balance in Debt. Does this hold true?

Never find formulas, the answer lies within you! Your risk appetite is yours alone. I would advise striking the right balance between real estate (the only truly appreciating asset in the long term), debt/savings (low return but protects your capital) and equity (good way to beat inflation but also highly risky). There is a poll on this thread and most people seem to be in the 0-25% or 25-50% segments which should give you an idea.

- I have read horrid stories of people going bankrupt by losing a lot of money in trading, i personally do not know anyone with whom this has happened, but in general, why does this happen? Do we tend to get greedy and hold on to stocks far longer than required? What are the watch outs that a new trader like me so look out for?

It's all true. We all know someone or the other who made a killing in the market only to lose it all. Part of it is greed- you need to know when to exit. Sometimes you just lie to yourself. The stock dips and you think- hey maybe I can tide this out (or even buy some more to "average" it out). Then it dips some more and you're paralysed at the thought of losing so much money and don't realise you stand to lose even more. Finally you wisen up and by then it's at rock bottom and all you have a tale to tell your grandkids (or people in this thread!)

[m8002?]

Originally Posted by Dieselritzer

HI BHPians. I have recently got rid of a home loan and now i wish to invest in stocks..........

.......by losing a lot of money in trading, i personally do not know anyone withThat is a bit list :-) Would love to get some experienced perspective.

Thank you

Since you are a beginner, I would suggest to start a SIP in a good mutual fund. You can check "valueresearchonline" for rating on funds based on your risk appetite.

[SmartCat]

Originally Posted by Dieselritzer

HI BHPians. I have recently got rid of a home loan and now i wish to invest in stocks. I do it every now and then but it is mostly basis recommendations from people whom i trust, and the amount is also not significantly big.

A few tips for you:

1) Get into picking stocks ONLY if you are actually interested in learning something new. If your goal is to invest for a better future, take the mutual fund route. You might not necessarily become richer by picking stocks yourself, when compared to investing in mutual funds. If you want a CAR analogy - you can wax and polish your car yourself at home OR you can let professionals take care of it. You do the former only if you are interested in the process.

2) Once you are clear that you want to learn investing yourself, I'd strongly recommend you learn "INCOME INVESTING" (do a Google search). Here, you basically stick to old school and relatively safe stocks that give pay you dividends for holding on to them. Look for stocks that pay you atleast 4% on your invested capital (called dividend yield). Make sure the stock you pick has a consistent history of paying dividends.
This is great for both newbies and experienced investors because if you invest Rs. 1 Lac in a stock, you get a minimum of Rs. 4,000 per year - 4 percent - the same amount that you get when holding cash in savings account.

3) On you commit to investing in a stock, don't bother looking at market price. Care only about dividends you get every year. Even if the stock goes down 20%, it really doesn't matter to you - because you will have money in the bank at the end of the year. SELL the stock only if the company either stops paying dividend or reduces dividend drastically.

4) Maintain 50% in stocks and 50% in fixed deposits. But don't do that right away, not until you have enough experience with investing. Start with a fixed amount to invest per stock - maybe Rs. 10,000 or Rs. 1 Lac. You could try investing in one stock per month.

5) Read, read, read. Read Economic Times. Go to company websites and read annual reports.

6) Use www.moneycontrol.com to track your portfolio and www.screener.in to pick stocks.

7) Understand investing terms like Price to Equity Ratio, Price to Book Value, Market cap, Dividend Yield, Dividend Payout Ratio, Return on Equity, Debt to Equity Ratio. Use www.investopedia.com (like Wikipedia for investing )

[Dieselritzer]

Wow, these replies were quick. Thank you so much guys. Sorry i did not mention this, but i do invest in mutual funds and have been doing this since i started working back in 2008.

Real estate as an investment is a good option, but i am a salaried guy, and thus need loan to buy real estate. I have recently lost some money in this field (mainly interest that i paid), and partly because i hurried into the purchase without a detailed due diligence. But that is history now and i have learnt a few lessons.

Currently I don't have much responsibilities towards my family in a financial sense, thus i want to leverage this period and invest as much as i can.

I am thankful to you'll for the suggestions given. Hope the ups and downs in the market play out to be good in the end.

[S_U_N]

Indigo CEO says he is now looking to match the low fares offered by its rivals going forward.

Read more at: http://www.moneycontrol.com/news/bus...DATA_stockpage

Stock price has fallen quite a bit after this response.

CMP is around 800.

[ghodlur]

Originally Posted by Dieselritzer

but i do invest in mutual funds and have been doing this since i started working back in 2008.

Currently I don't have much responsibilities towards my family in a financial sense, thus i want to leverage this period and invest as much as i can.

It must be feeling great to be relieved of the home loan liability, isn't it?

Since you are already investing in MF's, suggest you continue doing so. Review and rebalance your portfolio annually but stick to the good MF's only. You can diversify based on your risk appetite, opt for Midcap & Small Cap MF's. Since you are still in the 30's (I assume), the max investment should be in equity.

I would not endorse Smartcat's suggestion of buying stocks who dole out dividends. My view is buy stocks of companies whose products are used on daily basis. For eg. buy stocks of consumer durables (Bata, Colgate, ITC etc), Future group, Home finance (LIC hsg etc). The demand for the products will always be there and stocks will appreciate over time. Do not try to time the market, buy blue chip stocks and forget about them for the next 3-4 years. The returns will be rewarding. My personal views Smartcat.

I hope you are well insured in terms of life and health. If not buy a pure term plan and a goof health plan but do not mix investments and insurance.

[S_U_N]

Originally Posted by ghodlur

... My view is buy stocks of companies whose products are used on daily basis. For eg. buy stocks of consumer durables (Bata, Colgate, ITC etc), Future group, Home finance (LIC hsg etc). The demand for the products will always be there and stocks will appreciate over time. Do not try to time the market, buy blue chip stocks and forget about them for the next 3-4 years. The returns will be rewarding. My personal views Smartcat.

Isn't it true that many mutual funds are already investing in those same 'blue chip' stocks?

So, for someone who is already investing in equities via MF, it does not make much sense to buy the shares of the same companies.
Instead if the same money is used to buy other stocks, wouldn't there be a better diversification?

How to avoid excessive exposure to a stock?
There is a new tool now on VR
https://www.valueresearchonline.com/....asp?str=31178

[Ragavsr]

Sugar stocks have all turned out to be jackpots.

I bought in Renuka Sugar at 13-14 levels and exited at 18.

Hold on . The big daddy of sugar stocks has been Uperganges Sugar. I entered at 60 and sold at 160. Again entered at 360 and sold at 503.

They have fallen to 370 now and I have a few holdings in the range of 380-468. Say about 5 lakh invested. Hope it bounces back.

Sugar stocks have fallen because of manipulation by big investors and the government. All big investors and fund managers are asking people to sell based on average Q1 results and in the process trying to pick up shares on the cheap. The government on the other hand is reigning in stock limits on mills.

Investment advisors are sometimes funny. They are comparing quarter to quarter instead of the same quarter last year.