Team-BHP > Shifting gears


View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs. 305 33.78%
26 - 50% -- I have a few stocks. 398 44.08%
51 - 75% -- I'm an active trader. 136 15.06%
76 - 100% -- Hey, I'm an i-banker!!! 64 7.09%
Voters: 903. You may not vote on this poll

Reply
 
Thread Tools Search this Thread
Old 24th September 2020, 16:26   #4426
Senior - BHPian
 
Join Date: Jun 2007
Location: Kochi
Posts: 2,349
Thanked: 394 Times
Default

Quote:
Originally Posted by avishar View Post
A fallout of Mistry - Tata feud? And how is Tata Sons planning to pay to buy that stake? The group's financial position isn't that great.
Unless a way was there, Tatas would not have made the offer.

Yes the SP family owns more in %terms in many Tata concerns than the Tata family themselves. 3 decades back, one of those pink papers had a story on this and Tata Steel was the primary example.

While SP group has extensive expertise in engineering and civil construction, I find it amusing that it is the Tatas who have bagged the contract for building the new Parliament building.

On an unrelated note, the new SEBI norms on margin have become an absolute pain for me.

I dont do day trading, BTST or derivatives. Just buy and hold. Or an occasional switch. (Buy X and sell Y) or a churn (sell X and buy it back few days later - this is for capital gains tax planning) Till now, the DP holdings with a dividend yield in 6 digits was used as a margin. Payment for purchases were made same or next day. This gave me a flexibility like in, say I intend to buy N nos shares and finding that prices are lower than I expected, I end up buying 30 or 50% more.

Now, this is not possible. I either need to create a pledge for margin funding, or pay up hard cash. But I am allowed 20% - 40% (depends on the scrip) margin for intra day or BTST. For delivery based purchases, the margin is 100%. Tgere is no such problem with sell transactions since the sell quantity is already there in the depository.

I find this crazy. And speculation oriented.

I guess this is outcome of the Karvy fiasco. But a broker can still give delivery instructions using the PoA. And avoiding the PoA system is illogical coz that would take us back to multiple actions / DP instructions for a client transaction.

So, either create a charge or make multiple payments, is the only option before me.

Anybody else in this situation?
BaCkSeAtDrIVeR is online now   (1) Thanks
Old 24th September 2020, 17:59   #4427
Senior - BHPian
 
adimicra's Avatar
 
Join Date: Jul 2010
Location: Hyderabad
Posts: 1,899
Thanked: 1,633 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by avishar View Post
TCS has taken a nose-dive, along with other Tata stocks.

A fallout of Mistry - Tata feud? And how is Tata Sons planning to pay to buy that stake? The group's financial position isn't that great.
I am not an expert in stock market but as a thumb rule, a bluechip consistent high performing company like TCS should be picked up any long term investor after a 10% fall. I bought some today, will buy more if it falls more.

On another note, my investment in Bharti airtel is almost at 18% loss. Any suggestions on whether to hold/sell/buy more? I bought with an investment horizon of 2-3 years or more.
adimicra is offline   (1) Thanks
Old 3rd October 2020, 11:43   #4428
BHPian
 
venkikewl's Avatar
 
Join Date: Jun 2014
Location: Hyderabad
Posts: 85
Thanked: 51 Times
Default Re: Do you play the stock market

My parents have an account in Karvy which is down, now looking for alternatives to transfer shares and trading. The person in charge in karvy is suggesting Motilal Oswal, but I do use Zerodha, so wanted to check with experts here which one is better out of these.

Mod Note : Please avoid typing with excessive dots.........like................this.

Thanks

Last edited by Sheel : 3rd October 2020 at 14:55. Reason: Mod note attached.
venkikewl is offline  
Old 3rd October 2020, 12:14   #4429
Team-BHP Support
 
Join Date: Feb 2004
Location: Bangalore
Posts: 13,908
Thanked: 19,348 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by adimicra View Post
I am not an expert in stock market but as a thumb rule, a bluechip consistent high performing company like TCS should be picked up any long term investor after a 10% fall. I bought some today, will buy more if it falls more.

On another note, my investment in Bharti airtel is almost at 18% loss. Any suggestions on whether to hold/sell/buy more? I bought with an investment horizon of 2-3 years or more.
TCS valuation is still a bit high but dont expect to outperform the market. As for Bharti Airtel. Their net debt is high - gearing is near to 160%. Cashfow has been poor over past couple of years partially due to capex costs although it is slowly improving. If you need growth, move on!
ajmat is offline  
Old 3rd October 2020, 14:35   #4430
Newbie
 
Join Date: Mar 2019
Location: Bangalore
Posts: 6
Thanked: Once
Default

Anyone aware why RELIANCE is selling its stake in retail now? Should investors be worried about too much stake sale? What's the reading between the lines here ?
princex is offline  
Old 3rd October 2020, 18:31   #4431
Senior - BHPian
 
Join Date: Jun 2007
Location: Kochi
Posts: 2,349
Thanked: 394 Times
Default

Quote:
Originally Posted by princex View Post
Anyone aware why RELIANCE is selling its stake in retail now? Should investors be worried about too much stake sale? What's the reading between the lines here ?
It is a disease widespread among humans, called "makehaywhilesunshines-itis". With discreetionary and recreational spending down, there is simply too much money with those who have no need to borrow. Some went in for IPOs, Ambani went in for private placement.

My only concern is a replay of Ramesh Chouhan (now Bisleri, founder of Thumbsup / Limca brands).
BaCkSeAtDrIVeR is online now  
Old 4th October 2020, 10:56   #4432
BHPian
 
whitewing's Avatar
 
Join Date: Oct 2012
Location: Bangalore
Posts: 223
Thanked: 279 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by princex View Post
Anyone aware why RELIANCE is selling its stake in retail now? Should investors be worried about too much stake sale? What's the reading between the lines here ?
They are monetizing the investments made and if the money is used in retiring debt all the more better isn't it? In the article shared, do look up the heading "b. Reliance Retail is going to raise money through private equity investors"
https://the-ken.com/the-nutgraf/the-...liance-retail/

Quote:
Originally Posted by BaCkSeAtDrIVeR View Post
It is a disease widespread among humans, called "makehaywhilesunshines-itis". With discreetionary and recreational spending down, there is simply too much money with those who have no need to borrow. Some went in for IPOs, Ambani went in for private placement.

My only concern is a replay of Ramesh Chouhan (now Bisleri, founder of Thumbsup / Limca brands).
Knowing how Reliance has been able to align or get the rules aligned, unlikely they get into a position where they sell out. The above article from The Ken gives a good perspective from the regulatory view point.
whitewing is offline   (1) Thanks
Old 7th October 2020, 00:30   #4433
Newbie
 
Join Date: Sep 2020
Location: Kollam/Kuwait
Posts: 9
Thanked: 12 Times
Default

Note from Support: Post fixed. There are multiple grammatical errors & typos in your posts. Please run a spell-check before posting. Thanks!


Quote:
Originally Posted by venkikewl View Post
My parents have an account in Karvy which is down, now looking for alternatives to transfer shares and trading. The person in charge in karvy is suggesting Motilal Oswal, but I do use Zerodha, so wanted to check with experts here which one is better out of these.
Motilal Oswal is a full service broker, whereas Zeroda is a discount broker. Zerodha has a higher customer rating and less brokerage while Motilal Oswal have high brokerage; you will also get stock tips from Motilal Oswal. My choice is stick with market leader (Zerodha).

Quote:
Originally Posted by adimicra View Post
On another note, my investment in Bharti Airtel is almost at 18% loss. Any suggestions on whether to hold/sell/buy more? I bought with an investment horizon of 2-3 years or more.
Bharati Airtel have good support at 430 level and all bad news are already hit. We can expect a up movement from now onward if NIFTY is supporting.

Last edited by aah78 : 8th October 2020 at 02:03. Reason: Posts merged. Sse note.
abnormalspirit is offline   (1) Thanks
Old 12th October 2020, 11:08   #4434
BHPian
 
K_Drive's Avatar
 
Join Date: Jun 2019
Location: Kochi - PKD
Posts: 99
Thanked: 323 Times
Default Re: Do you play the stock market

Any suggestions regarding petroleum marketing companies HPCL and BPCL? Since government extended the deadline for bidding for privatization of BPCL, the stock prices has been going down. I'm having itch to average these shares. Are they worth for long term investments?
K_Drive is offline  
Old 12th October 2020, 11:36   #4435
Team-BHP Support
 
SmartCat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 4,984
Thanked: 25,713 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by K_Drive View Post
Any suggestions regarding petroleum marketing companies HPCL and BPCL? Since government extended the deadline for bidding for privatization of BPCL, the stock prices has been going down. I'm having itch to average these shares. Are they worth for long term investments?
If your itch is because of its low price to book value and high dividend yield, you can average down the stock prices. However, if you are in it for disinvestment, then its a bad idea.

Of the two, HPCL offers better value.
SmartCat is online now   (1) Thanks
Old 12th October 2020, 13:04   #4436
BHPian
 
K_Drive's Avatar
 
Join Date: Jun 2019
Location: Kochi - PKD
Posts: 99
Thanked: 323 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by SmartCat View Post
If your itch is because of its low price to book value and high dividend yield, you can average down the stock prices. However, if you are in it for disinvestment, then its a bad idea.
I'm holding HPCL(33% loss) and BPCL(21% loss). Initially I added these stocks to my portfolio as a long term dividend yielding stocks. However, because of current disinvestment plans and uncertainty over long term of petroleum marketing companies, I'm afraid of averaging. Do I have any other options than averaging?
K_Drive is offline  
Old 12th October 2020, 13:08   #4437
Team-BHP Support
 
SmartCat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 4,984
Thanked: 25,713 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by K_Drive View Post
uncertainty over long term of petroleum marketing companies, I'm afraid of averaging. Do I have any other options than averaging?
Don't average then. Just hold on to the stocks and collect the dividends, which is probably more than what you are getting in bank fixed deposits.

There is nothing wrong with long term prospects of oil marketing companies. Mainstream usage of EVs in India is decades away. Both private & PSU refineries plans for expansion (new production capacity) are on track.
SmartCat is online now   (2) Thanks
Old 13th October 2020, 08:14   #4438
BHPian
 
hari_rama's Avatar
 
Join Date: Feb 2006
Location: Trichur
Posts: 263
Thanked: 3 Times
Default Re: Do you play the stock market

Guys, need some guidance on Vedanta.

With delisting being a failure, why is price falling? There is still a counter offer option open right?

I have few shares at minimal loss now. At this falling rate is it logical to enter further?
hari_rama is offline  
Old 13th October 2020, 11:10   #4439
Senior - BHPian
 
Join Date: Jun 2007
Location: Kochi
Posts: 2,349
Thanked: 394 Times
Default

Quote:
Originally Posted by hari_rama View Post
Guys, need some guidance on Vedanta.

With delisting being a failure, why is price falling? There is still a counter offer option open right?
If the promoters have enough money to run an entity of this size this on their own, why should puny you and me invest in it?

The announcement to delisting was a shock for me. It indicated (especially in the context of delisting of group entities from London stock exchange) unwillingness to share profits with share holders. The listed India entity was also having high turnover at the helm - with CEOs changing frequently (as per news teports). I felt it better to exit and stay away. YMMV.

If my memory is correct, the buy back price was far less than 52 wk pre-covid high, far less than book value and book value itself was written down once buy back was announced. In the USA, the SEC may have intervened, or there would have been a slew of class-action suits. I still have not got over the shock and fury, though all I lost this time had made real huge profits some years back) was a couple of thousand. So, treat this as a rant, and not as level headed advice.
BaCkSeAtDrIVeR is online now   (1) Thanks
Old 13th October 2020, 11:25   #4440
Team-BHP Support
 
SmartCat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 4,984
Thanked: 25,713 Times
Default Re: Do you play the stock market

Quote:
Originally Posted by hari_rama View Post
Guys, need some guidance on Vedanta.
With delisting being a failure, why is price falling? There is still a counter offer option open right?
A bunch of speculators bought Vedanta at lower price, hoping that delisting price would be much higher than that. Now since they don't want to be left holding the baby, they are bailing out of the stock. Counter offer from promoters is unlikely because LIC chief said they will sell only if offer price is Rs. 300 or so.

Quote:
I have few shares at minimal loss now. At this falling rate is it logical to enter further?
Only if you like the business, valuations and dividends. If you are waiting for higher delisting price, then it does not make sense to buy more.

Quote:
Originally Posted by BaCkSeAtDrIVeR View Post
The announcement to delisting was a shock for me. If my memory is correct, the buy back price was far less than 52 wk pre-covid high, far less than book value and book value itself was written down once buy back was announced. I still have not got over the shock and fury
Yes, promoter actions have left a bad taste in the mouth for many long term shareholders.
SmartCat is online now  
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright 2000 - 2020, Team-BHP.com
Proudly powered by E2E Networks