[hothatchaway]

Originally Posted by SmartCat

Saving companies does not only help the rich - it eventually helps the poor and the working-class too over a period of time. Thanks to the intervention, unemployment will reduce from 25% to 5% in a couple of years.
with.

I am not sure the companies thus saved, in turn help bring the jobs back. The US government bailed many big financial institutions in 2008, it will be interesting to study how many jobs that were lost, actually came back. Of course one can argue that if a company goes bust, it can no longer employ anyone, but companies come and go in a free market, many of these companies also had poor practices which exposed them in times of crises, like FT has been now.

I think it's necessary to evaluate what criteria is used to bail out what companies. Some of these monies is better spent on social infrastructure which we lack.

[adimicra]

It's hard to imagine that the Nifty is very close to 10K today. I still think this is a bear market rally and there is no need to rush into it. People can just continue with their SIPs or wait for falls below 9000 to start deploying some cash.

For me, as my asset allocation was almost all equity, I did book some losses at 9K which brought down my allocation to 80%. Today, I sold some 10% of my holdings (negligible profit) so my equity allocation is down to 70% now. I plan to get it down to 60% over the year. I might be missing out on some rally but will give me much more peace of mind.

[avingodb]

The Reliance Industries news that came out today, is it positive or negative?

serious losses in core business and plunged profits on one hand and some success in diversification on the other hand. How should a small investor read it?

[alpha1]

Originally Posted by avingodb

The Reliance Industries news that came out today, is it positive or negative?

serious losses in core business and plunged profits on one hand and some success in diversification on the other hand. How should a small investor read it?

If you are talking about employee paycuts then as a share owners it is a good news for you.

If you are talking about numbers compared to last year then the future is uncertain because no one knows how long and how deep economic damage has happened and how fast we recover, but to be honest unless we human beings get over the dependence on oil, RIL will have a good market.

On rights issue: again a good move to reduce debt and the interest cost that is eating away the profits.

[CowlFlap]

Originally Posted by PGA

I think stock markets have decoupled themselves from the world around them. They do not seem to be underpinned with the financial performance of the economies or the organisations.

They have become creatures of their own. The only motive is making money and more money and more speculations. Even when the bubble is pricked it repairs its quickly unmindful and unlearnt from the happenings around it and goes about creating another bubble.

Stock markets are largely driven by speculation. Which is to say that what we see is much a reflection of what the participants are thinking and feeling. So what happens when a person takes a knock in his/her life? He/she can either sit down and sulk, a very dangerous proposition in an opportunistic world, or you can get up dust yourself and move on. That's what the market is doing. It will keep progressing despite gloom and doom all around, until it senses the onset of the next hit. Worse, if it keeps getting hit again and again, it gets so accustomed to being done in, cynicism sets in, and it just keeps going in one direction regardless of what happens. This is how we humans react, and if we can understand human psyche, it's not too difficult to decode the markets.

[PGA]

Originally Posted by SmartCat

.

Side effect: gap between rich and poor will widen.

Solution for that is MORE stringent regulations. For eg: companies should NOT be allowed to do buybacks ..

Thanks for explaining succinctly and putting things in perfect perspective.

Originally Posted by CowlFlap

Stock markets are largely driven by speculation.....This is how we humans react, and if we can understand human psyche, it's not too difficult to decode the markets.

In theory stock market is to look at long term economic situation pertaining to a company or a country and react accordingly. Sitting with a normal commodity trader in any mofussil town will make us appreciate his depth and foresight pertaining to his stock and trade. That is not what the stock market is displaying for some time now.

When we speak of market participants and their behaviour, and study tons about human behaviour we speak of individuals making explainable decisions, atleast majority of times. Stock market has stopped showing explainable behaviour long time ago. Today Market movers are participants with tons and tons of funds, they more or less move as a cohort. The only purpose is to make money for their clients at all costs, so some very strange logics get thrown in to move the markets either way and make money, anyways their careers depend on that. Thus, proving my hypothesis of decoupling in the long run as well and I feel this system is here to stay.

I think only way retail players can stick out there is as Smartcat brought out above, stick to your own speed and buy stock on valuations and hope that it catches some big guys fancy.

[wheelguy]

Breweries & Distilleries industry today, almost all the stocks were positive except for one company!

[sunilch]

Query for experts: Vedanta has announced delisting plans yesterday. What does that mean for the minority shareholders if they decided not to take the offer and remain as shareholders?

Lets say the share holder decides to sell the shares to someone else or back to the company few years later - How is the value decided then?


What is recommended approach here? Keep it or sell and exit immediately.

Vedanta has a good dividend track record but that may not continue in future once it delists.

[SmartCat]

Originally Posted by sunilch

Query for experts: Vedanta has announced delisting plans yesterday. What does that mean for the minority shareholders if they decided not to take the offer and remain as shareholders? Lets say the share holder decides to sell the shares to someone else or back to the company few years later - How is the value decided then? What is recommended approach here? Keep it or sell and exit immediately. Vedanta has a good dividend track record but that may not continue in future once it delists.

For delisting to happen, promoter shareholding has to go up over 90%. That is, a large percentage of minority shareholders have to tender their shares. At the offer price (Rs.89), I don't think any minority shareholder will give up their shares - especially because of its cheap valuation and high dividend yield. Moreover, many shareholders would have bought the shares at higher price (it was trading at Rs. 300 levels a few years back)

I intend to hold on to my Vedanta shares.

[sunilch]

Originally Posted by SmartCat

For delisting to happen, promoter shareholding has to go up over 90%. That is, a large percentage of minority shareholders have to tender their shares. At the offer price (Rs.89), I don't think any minority shareholder will give up their shares - especially because of its cheap valuation and high dividend yield. Moreover, many shareholders would have bought the shares at higher price (it was trading at Rs. 300 levels a few years back)

I intend to hold on to my Vedanta shares.

That is good to know that 90% holding is needed for delisting. This way I think they will only be able to marginally take the ownership a bit up from the current levels (approx. 51% I suppose).

Yes, in recent years the prices were high and hence many holders are still in red. And at 87.5 offer prices, I am expecting this buy back to fail

Let us see the response that it may get in coming days. If majority of the public float holders are not in favour of this, then the price will ramp up further I believe, thus making the offer price unattractive.

[sreedotk]

Since the last few discussions are about Vedanta, can any of you help me out.

I had a few shares of Sterlite industries which merged with Sesa Goa and then transformed to become Vedanta. (I am not sure of the timeline or course)

I am not able to do much with the Sterlite shares which are in my portfolio. I was under the impression that as and when companies merged/ got taken over the share swap would automatically happen and i did not have to do anything.

My Demat account still lists it as Sterlite (STEIND) . Can anyone guide me how to bring it to a format which may be tradable in future.

[joslicx]

Originally Posted by sreedotk

My Demat account still lists it as Sterlite (STEIND) . Can anyone guide me how to bring it to a format which may be tradable in future.

Write to or talk to the company secretary. They should be able to help you out. The contract details should be there on the investor relations page on their website.

[sunilch]

Originally Posted by sreedotk

Since the last few discussions are about Vedanta, can any of you help me out.

I had a few shares of Sterlite industries which merged with Sesa Goa and then transformed to become Vedanta. (I am not sure of the timeline or course)

I am not able to do much with the Sterlite shares which are in my portfolio. I was under the impression that as and when companies merged/ got taken over the share swap would automatically happen and i did not have to do anything.

My Demat account still lists it as Sterlite (STEIND) . Can anyone guide me how to bring it to a format which may be tradable in future.

Yes, you should have Vedanta only by now. Please write to the Investor Services department of the company with your details. They will be quick to act or guide you on how to fix this.

For Curiosity: Can you check and share the ISIN that you see in your statements?

[BaCkSeAtDrIVeR]

Originally Posted by sreedotk

My Demat account still lists it as Sterlite (STEIND) . Can anyone guide me how to bring it to a format which may be tradable in future.

That is strange. If your DP (errr... cant recall the terminology - DP is typically your stock broker) is NSDL, they send you a monthly CAS to your email. Check if it has any hints. Else, first talk to your brokers. Also, NSDL has an app (it is lousy till I login, which I cant for past year) which shows your holdings.

[sreedotk]

Originally Posted by sunilch

For Curiosity: Can you check and share the ISIN that you see in your statements?

Hi sunilch- I have attached the screenshot from my broker (IciciDirect's) Web portal . Thanks for your input

@joslicx and @BaCkSeAtDrIVer- Thanks for your input also , will try all the methods to see if i can get this recouped. Its not a big investment but Money is Money.

I also went and checked the details on my CAS report and it does not list this share on it.