[bluevolt]

ICICI giving bonus shares in the ratio of 1:10.

I bought ICICI share at 319 yesterday, today it is showing at 292 with no news of stock crashing by almost 20 rupees. It is due to the bonus share what is applicable from today?

Will I also get bonus share as I made the order yesterday?

[fordday]

Originally Posted by bluevolt

ICICI giving bonus shares in the ratio of 1:10.

I bought ICICI share at 319 yesterday, today it is showing at 292 with no news of stock crashing by almost 20 rupees. It is due to the bonus share what is applicable from today?

Will I also get bonus share as I made the order yesterday?

Yes, it went down because of the bonus. Market cap of the company remains same but number of shares increased, so the share value dropped proportionately. This may not happen in every case.

You will get the bonus shares.

[hserus]

Hathway seems to have gone IPO and every single stock trading site is pushing it now. They are a decent ISP (I love 150 Mbps consistently fast connections) and do have a wide reach beyond just Gujarat and Mumbai where they started, might be worth a look?

[SmartCat]

Originally Posted by shetty_rohan

I would consider myself as long term contrarian investor.

Me too! This is the sectoral breakup of my contra portfolio -

IT - 15%
Pharma - 5%
Commodities - 15% (Energy, mining, metals)
Textiles - 10%

Since most of stocks are already overpriced(close to all time highs), I am looking for the value buys which will not drastically reduce in case of a crash.

I think this is incorrect assumption. Value buys will fall along with the markets. You should buy value stocks because markets will eventually discover the story, and give you a big spike in returns.

Long time back(around in 2013), I had bought Sonata Software at Rs 20(because of low p/e, low p/b, good dividend), and sold it at Rs 24. Now it is Rs 154.

You can still buy Sonata Software at current market prices. It's a deep value stock when you look at its financial parameters. However, remember that it has sector headwinds since it is an IT stock, and you need to be patient with your investment. But hey, you get paid 5% tax free every year in the form of dividends.

Only fly in the ointment is their issues with the income tax department. They have raised a tax demand of Rs. 200 crores or Rs. 300 crores (read the annual report for more details). But management is confident that the High Court will side with the company.

Currently, I am accumulating Sun Pharma and BSE. Do let me know your opinion on this. .

Sun Pharma slashing dividend payout ratio to 5% from 15% is big red flag. Implies management is not confident about its future cash flows and business. Hold on to your existing Sun Pharma stocks, but stop accumulating. Read the FY17 annual report when it comes out.

I'm keeping an eye on BSE, but not buying it yet. At around 25% lower price, I find value in the company. It's fundamentals are improving - they have surpassed NSE in currency derivatives trading.

http://economictimes.indiatimes.com/...w/59099303.cms

[DieselFan]

Originally Posted by fordday

Yes, it went down because of the bonus. Market cap of the company remains same but number of shares increased, so the share value dropped proportionately. This may not happen in every case.

Yes the prices do go down proportionately each and every single time. In my last 17 years of investing I am yet to experience a share price not going down after a bonus being issued (Ex-Bonus).

[bluevolt]

Originally Posted by fordday

Yes, it went down because of the bonus. Market cap of the company remains same but number of shares increased, so the share value dropped proportionately. This may not happen in every case.

You will get the bonus shares.

But prices going down is actually a loss? Isn't it?

I bought it for 319 and I was planning to sell it for 340 in coming months. But now it will take time to even out the equation and may or may not reach the 319 mark in coming time. How I am going to recover my money in this case. The bonus share I am getting is actually not equal to the unrealized loss that my demat account is currently showing.

Or I am missing something somewhere!

[joslicx]

Originally Posted by bluevolt

Will I also get bonus share as I made the order yesterday?

For any event there is a record date. You should check what was the record date for eligibility for the bonus shares in your case. You would be eligible for bonus if you had the shares in your demat account on the record date.

Just know that the shares actually come to your demat account in t+2 days (ie. if you placed an order on date 't' then you will have them in your account by date t+2).

[fordday]

Originally Posted by bluevolt

But prices going down is actually a loss? Isn't it?

I bought it for 319 and I was planning to sell it for 340 in coming months. But now it will take time to even out the equation and may or may not reach the 319 mark in coming time. How I am going to recover my money in this case. The bonus share I am getting is actually not equal to the unrealized loss that my demat account is currently showing.

Or I am missing something somewhere!

For every 10 ICICI Bank share you will be given 1 more share. And there is a dividend of Rs 2.50 for every share. This will, sort of, make up your loss, though may not be completely.

Hold it for sometime and your will see losses turn to profits.

[shetty_rohan]

Originally Posted by smartcat

Me too! This is the sectoral breakup of my contra portfolio -
...
I think this is incorrect assumption. Value buys will fall along with the markets.
...
You can still buy Sonata Software at current market prices.
...
I'm keeping an eye on BSE
...

Thanks smartcat. I really appreciate you taking the time to answer my questions.

[Stratosphere]

CDSL IPO was oversubscribed 169 times. Looks really difficult to get an allotment now. If anyone does get allotted, he'll be treating his friends all the way to the bank.😂

[akhil_007]

Whats up with Kitex Garments? It was hovering around 400+ few days back and today it has tanked like crazy (around 288). Is it a good time to accumulate and cut the losses and sell it now?

PS: Their Board Meeting has been announced and its on Jun 23 2017

[Latheesh]

Originally Posted by akhil_007

Whats up with Kitex Garments? It was hovering around 400+ few days back and today it has tanked like crazy (around 288). Is it a good time to accumulate and cut the losses and sell it now?

PS: Their Board Meeting has been announced and its on Jun 23 2017

It did not tank, but went up. Fall in price is due to bonus share. You get 2 bonus shares for every 5 shares you hold.

[vinit.merchant]

Originally Posted by Stratosphere

CDSL IPO was oversubscribed 169 times. Looks really difficult to get an allotment now. If anyone does get allotted, he'll be treating his friends all the way to the bank.😂

Even though overall the subscription was 169 times, retail was subscribed around 21.69 times, so that leaves one with an approx 5% probability of allotment.
HNI on the other hand was oversubscribed something like 583 times.
So, net net, chances of allotment here are better than Dmart in the retail segment.

[Stratosphere]

While the CDSL IPO has seen tremendous response, the Hathaway IPO was only subscribed for 0.26%. The swings of our markets are unimaginable. What is the forum's outlook on the Hathaway IPO ?

[Abeer]

Originally Posted by Latheesh

It did not tank, but went up. Fall in price is due to bonus share. You get 2 bonus shares for every 5 shares you hold.

It is down to 288 today.