Reason behind these..

Hello Friends,

I would like to know the reason why some stocks that has given very good performance are still very much downtrend and sluggish. To take on with Nandan Exim
Vishal Exports
Andhra Petro

we could see these stocks very down.. but any reason behin these..
If there could be some reason we could save our friends in knowing the same.

Check out
1) Debt-Equity Ratio (probably high)
2) Promoter Holding (probably low)
3) Face Value (probably less than 10 => unnecessary splits since prices were already low)
4) Promoter reputation (probably not the best)

Regards,
Kalyan.

Can you tell a small description about these points... i donno the meaning of these terms..
it might also be useful for few others

1) See the company's balance sheet
2) See the company's share holding pattern
3) Need no explanation for that
4) Look at the track record of the promoters

If you want i will give you a detailed insight into these relating to the stocks you've mentioned.

Cheers!

Let me try looking at the sheet.. wil ask u if i got to know about that

Dear Yeomanly,

Stks like Nandan Exim may also be the victims of poor sectoral performance. Textiles haven't been amongst the best performing sectors (although the future outlook looks good). So if you are buying into textiles now go for the best companies like Raymonds, BRFL or even Alok Inds and leave the Nandan Exims for later, when the sectoral outlook becomes favourable.
Don't know much about Nandan but if it's predominantly into denims, then the future outlook may not be that bright since there is an oversupply of denim in global mkts. (Even larger denim companies like Arvind Mills are struggling with their margins). If it's into yarn then does it have a big enough capacity? 'Coz yarn is more of a volume game unlke fabrics & apparels which being value-adds command higher margins.
Also don't get into companies that are predominantly into synthetics as their raw materials are petro-derivatives & as such input cost pressure will rise with rising oil prices.
I'd also stay away from the oil & gas sector due to the same sectoral perceptions. Refinery margins should actually rise with rising oil prices but for public sector refineries the rise is more than offset by the subsidy burden placed on their shoulders.

Before buying into a company it's important to try & gauze it's future prospects (at least for the next couple of qtrs) & not by it's present/past performance alone. You don't need to arrive at an accurate estimate of it's future earnings, just a broad perspective of it's future prospects suffices in most cases (particularly if you're playing for the short term).

Sites like ICICIdirect provide comprehensive financial statements & other financial ratios in a compact format. You can make use of them. Also if you are a trader make use of Charts to time your Buy/Sell decisions better. If you want to know more about things like Debt/Equity ratio just Google it. Learning on your own is better than being taught. Use the forum for doubt clarification if any.

I am glad you've asked for reasons rather than just Buy/Sell advice. I'm sure you'll find them (& avoid mistakes in future) through greater study and application of your mind (your greatest weapon in anything - trading included!)

Wishing you the very best.

Regards,
Kalyan.