What to do with these stocks?

surfingminds · #21 4th March 2008, 06:43 PM

reality and bank the major infra stories are going down

I believe you can start DLF soon their would be interest cut in housing and reality will come to real values.

so don't put all your money you can start buying as it keeps going down. As infra construction will get more hit when people realise excuting huge projects has got fundamental risk.

If things become worse you can see more down side in reality but soon we will get a boosting with interest rate cuts atleast players involved in housing would benifit.

3dsmaxed · #22 4th March 2008, 07:13 PM

Quote:

Originally Posted by surfingminds

reality and bank the major infra stories are going down

I believe you can start DLF soon their would be interest cut in housing and reality will come to real values.

so don't put all your money you can start buying as it keeps going down. As infra construction will get more hit when people realise excuting huge projects has got fundamental risk.

If things become worse you can see more down side in reality but soon we will get a boosting with interest rate cuts atleast players involved in housing would benifit.

start DLF means?

no one is giving clear answer
Please guys i am not technical sound in terms of stocks
help me with better explanation
thanks a lot for ur suggestions

AmoghG · #23 4th March 2008, 07:15 PM

Quote:

Originally Posted by kkseal

There is a big demand supply gap in the area of railway wagons.

There's only one player in the private space (appart from IRCON - a PSU) who can undertake complete turnkey solutions for rly projects. (The booty for rly projects is some 65k crores)

An Indian company is the global leader in the area of anti-collision devices.

Ok enough bakbak

Texmaco, Kalindee...

kkseal · #24 4th March 2008, 10:12 PM

3dsmaxed,

Sorry i hadn't seen your first post Just assumed you wanted to make fresh investment.

My suggestion would be to get rid of Kajaria Ceramics. I haven't looked at the charts but the ceramics mkt is flooded with cheap chinese imports.

RELPOWER will give returns only in the very long term. Not much to be gained in the short term. However the bonus might give you some profit.

DLF is a hold. Averaging down has it's risks. To be on the safer side do as Uasish has suggested. Wait for the mkt & the stk to stabilize. And if you do decide to avg, keep in mind the mkts can go as low as 13k, so put in your money accordingly (like in SIP of mutual funds).

Regards,
Kalyan.

SavantGarde · #25 5th March 2008, 11:20 PM

3dsmaxed

Following Is What You Can Do

DLF

If You Can Buy Some Only Between 638-602

Kajaria

Buy Some To Average Only Between 20.90-19.45
But Not Advisable, At The Same Time Hang On To Them For A While To Exit Completely

RPOWER

You Should Have Sold It When They Announced The Bonus.
There Is Not Much You Can Do With But Wait

Happy & Safe Investing

SavantGarde

Quote:

Originally Posted by 3dsmaxed

start DLF means?

no one is giving clear answer
Please guys i am not technical sound in terms of stocks
help me with better explanation
thanks a lot for ur suggestions

parthiban_subramanian · #26 6th March 2008, 09:27 AM

Quote:

Originally Posted by 3dsmaxed

start DLF means?

no one is giving clear answer
Please guys i am not technical sound in terms of stocks
help me with better explanation
thanks a lot for ur suggestions

Hi Dear friend

I have been in Stock market for around some time and
my best advice for you is that

- Please be patient. Stock market ups and downs are not unusual.

- Please dont think that u can earn in quick time. The possible risk there
is that you will loose also in quick time. Ultimately , ur profil will get netted out

- Buy quality stocks at low prices and if you dont want to take risk
buy stocks with the followig criteria
- Note the CMP of the stock
- Check what is the 52 week High and Lows
- Check whether the CMP is at the lower end or at the higher
end (52 week high - 52 week low / 2 will give the average price)
if CMP is below avg price , it is in lower end
- Check whats the EPS (Earning per share) for that stock for
that last 3 quarters. this you can get can get from websites
like rediff money detailedly
- if the CMP / EPS (that is PE ratui) is around 12 to 25 and if the
sector is Auto , Power IT or Agriculture, it is a clear buy
- have a target price of around 30% to 40% of the CMP that you
buy. Once you reach that ,sell 50% of the stocks and wait
for the market reactions before you decide to sell the remaining
All above things are conservative and relatively safe approach which
am using for sometime

In Stock market, if you are more greedy , the risk is that you will loose more in a day. Just have a safe approacgh for some time and
then take risks

Thanks
Parthiban

3dsmaxed · #27 6th March 2008, 10:13 AM

Quote:

Originally Posted by parthiban_subramanian

Hi Dear friend

I have been in Stock market for around some time and
my best advice for you is that

- Please be patient. Stock market ups and downs are not unusual.

- Please dont think that u can earn in quick time. The possible risk there
is that you will loose also in quick time. Ultimately , ur profil will get netted out

Yeah i realised this by experiencing it. You are right

- Buy quality stocks at low prices and if you dont want to take risk
buy stocks with the followig criteria
- Note the CMP of the stock
- Check what is the 52 week High and Lows
- Check whether the CMP is at the lower end or at the higher
end (52 week high - 52 week low / 2 will give the average price)
if CMP is below avg price , it is in lower end
- Check whats the EPS (Earning per share) for that stock for
that last 3 quarters. this you can get can get from websites
like rediff money detailedly
- if the CMP / EPS (that is PE ratui) is around 12 to 25 and if the
sector is Auto , Power IT or Agriculture, it is a clear buy
- have a target price of around 30% to 40% of the CMP that you
buy. Once you reach that ,sell 50% of the stocks and wait
for the market reactions before you decide to sell the remaining
All above things are conservative and relatively safe approach which
am using for sometime

In Stock market, if you are more greedy , the risk is that you will loose more in a day. Just have a safe approacgh for some time and
then take risks

Thanks
Parthiban

Thanks sir for the info
Actually i am new to this business and to be frank got a little greedy when told about the experiences of share market by friends..so i got into it when reliance power IPO was to be launched.
i have a few questions in mind if u can answer please

1.) How to fix a target price in mind when buying a share and when buying a share how to do research on that. Because i used to read rediff money for this by using their charts and for eg kajaria ceramics was at 29.0 something when i saw it on rediff and it was shown as a hot stock. so i bought 1000 shares of it and in 5 days it came down to 26.5. I got panicked( which i think u r not supposed to do) and sold them at 26.5.so how to see what is a good stock , and what is the good price to buy it. and more importantly when to sell it.

2.) everyone here is saying equity is for long term. Also this months MONEY today issue explained very well that equities are for long term so what does long term mean? 6 months, 12 months or more. How to deide that?

3.) If i am earning 60000 a month how much should i invest in stocks in terms of long term investment

4.) what is the best option to do trading? i am using icici direct right now but its i minute behind the actual market price so its rare that i get the rpice of shares what i opted for

5.) is there any way to fix that thru ICICI direct? or should i go in for a better method to buy and sell shares

have few more questions in mind but will wait for these answers to ome :-)

Thanks Sir for your helpful suggestions. i am learning new things from you guys.

SavantGarde · #28 6th March 2008, 10:53 AM

3dsmaxed

1) Never Fear Making Mistakes, If It Is Any Solace To You, The Most Admired Investor Warren Buffet Has Also Confessed To Having Made Mistakes.

2) Get Rid Of ICICI Direct I Am Sure They Must Be Charging You Huge Brokerage.

3) 8-15 Months These Days Is Considered Long Term, Definitions Have Changed A Lot But You Are Free To Create Your Own.

Now For A Few Points On How To Accumulate & Sell Stocks

a) If You Have Shortlisted A List & Quantity Of Stocks To Buy, Then Divide The Stock Quantity Into 4 or 5 Parts, Left To Your Discretion

b) Buy The First Part At Whatever Your Initial Entry Price Maybe, Thereafter You Decide At What Prices You Want To Pickup Each Of The Remaining Parts. It Could Be Percentage Difference From Your Initial Entry (Advantage Of This Is You Haven't Exhausted Your Money & You Take Advantage Of The Downtrend Resulting In Lower Average For Acquistion)

Selling Provided You Are Not Planning On Selling On or After 366th Day Of The Buy Trade....Where Your Profit Would Be Taxfree

c) With Every Increase Of 10% In Price From Your First Entry You Sell 5% Of The Quantity (Advantage Being That You Don't Miss The Upmove & Rue The Fact That You Soldout Too Early)

d) Take It With A Pinch Of Salt Hot Tips Being Discussed Among Your Friends.

e) A Few Pointers On Stock Picking - Remain With Good Sectors & The Frontline Companies Of Those Sectors.

SavantGarde

Quote:

Originally Posted by 3dsmaxed

Thanks sir for the info
Actually i am new to this business and to be frank got a little greedy when told about the experiences of share market by friends..so i got into it when reliance power IPO was to be launched.
i have a few questions in mind if u can answer please

1.) How to fix a target price in mind when buying a share and when buying a share how to do research on that. Because i used to read rediff money for this by using their charts and for eg kajaria ceramics was at 29.0 something when i saw it on rediff and it was shown as a hot stock. so i bought 1000 shares of it and in 5 days it came down to 26.5. I got panicked( which i think u r not supposed to do) and sold them at 26.5.so how to see what is a good stock , and what is the good price to buy it. and more importantly when to sell it.

2.) everyone here is saying equity is for long term. Also this months MONEY today issue explained very well that equities are for long term so what does long term mean? 6 months, 12 months or more. How to deide that?

3.) If i am earning 60000 a month how much should i invest in stocks in terms of long term investment

4.) what is the best option to do trading? i am using icici direct right now but its i minute behind the actual market price so its rare that i get the rpice of shares what i opted for

5.) is there any way to fix that thru ICICI direct? or should i go in for a better method to buy and sell shares

have few more questions in mind but will wait for these answers to ome :-)

Thanks Sir for your helpful suggestions. i am learning new things from you guys.

3dsmaxed · #29 6th March 2008, 12:07 PM

Quote:

Originally Posted by SavantGarde

3dsmaxed

1) Never Fear Making Mistakes, If It Is Any Solace To You, The Most Admired Investor Warren Buffet Has Also Confessed To Having Made Mistakes.

2) Get Rid Of ICICI Direct I Am Sure They Must Be Charging You Huge Brokerage.
What should i use for trading then?

3) 8-15 Months These Days Is Considered Long Term, Definitions Have Changed A Lot But You Are Free To Create Your Own.

Now For A Few Points On How To Accumulate & Sell Stocks

a) If You Have Shortlisted A List & Quantity Of Stocks To Buy, Then Divide The Stock Quantity Into 4 or 5 Parts, Left To Your Discretion. that means that if i want to buy 100 shares of some company is hould divide it ion several parts like 20 30 40 10 etc..?

b) Buy The First Part At Whatever Your Initial Entry Price Maybe, u mean without worrying about the price? and enter at whatever market price is there? Thereafter You Decide At What Prices You Want To Pickup Each Of The Remaining Parts. u mean buyinf others if the prices go down or buying even if the prices go up It Could Be Percentage Difference From Your Initial Entry havent understood this? how to calculate percentage difference? (Advantage Of This Is You Haven't Exhausted Your Money & You Take Advantage Of The Downtrend Resulting In Lower Average For Acquistion)i think this line has too many technical terms for me:-( can u please put in simpler words

Selling Provided You Are Not Planning On Selling On or After 366th Day Of The Buy Trade....Where Your Profit Would Be Taxfree 366th day or 356th day? u mean because long term investments are tax free if more than an year? and if sell out completely and take out money from those shares completey now i have principal amount plus profit. How will i be taxed if i sell after an year. How will i be charged on principal + profit?

c) With Every Increase Of 10% In Price From Your First Entry You Sell 5% Of The Quantity. then it doesnt come under long term i guess if i sell at every 10% profit (Advantage Being That You Don't Miss The Upmove & Rue The Fact That You Soldout Too Early)

d) Take It With A Pinch Of Salt Hot Tips Being Discussed Among Your Friends.

e) A Few Pointers On Stock Picking - Remain With Good Sectors & The Frontline Companies Of Those Sectors.

SavantGarde

thanks for your lovely suggestions
keep them coming

Regards

SavantGarde · #30 6th March 2008, 01:13 PM

3dsmaxed,

1) In Terms Of Choosing A Brokerage You Will Need To Do Some Work On It & As A Suggestion I Can Only Suggest What Brokerage You Should Get

2) For Cash Market (For Buying & Selling Of Shares)
Ideal For Not A Very High Volume Investor or Trader Should Be 0.30% For Delivery & 0.03% Charged Only On One Side Of The Trade For Intraday Squareup (Meaning You Have Bought & Sold The Same Quantity Of Company 'A' On The Same Day)

3) For F&O (Futures & Options) (Meaning Derivatives Segment Of The Market)
Ideal Brokerage Would Be 0.03% For Delivery & The Same For Intraday Squareup Charged Only On One Side Of The Trade)

4) 4 or 5 Parts Implied Equal Parts (Meaning If You Wanted To Buy 100 Shares Of A Company - 4 Parts Would Mean 25 Shares To Be Bought At A Time or 5 Parts Would Mean 20 Shares At A Time.

5) Each Subsequent Purchase Would Be Lower Than The Previous Purchase (You Will Need To Exercise Your Judgement Here, It Could Be 5%, 8%, 10% Lower From Your Previous Purchase) It Is Quite Possible That Out Of Your Target Quantity Of 100 Shares You Have Managed 50 Shares & The Price Starts Moving Upwards, Normal Tendency Would be To Purchase In The Uptrend. Refrain From Doing So As A Beginner.

6) If Your First Part 25 Shares Was Bought @Rs.100 & You Have Decided To Buy The 2nd Part 10% Below, It Would Mean You Would Buy The 2nd Part Of 25 Shares @Rs.90....3rd Part @ 81 So On So Forth.

7) For Selling, Let's For Example Assume You Have Managed To Get Your Targeted Qty Of 100 Shares & Your 1st Part Was Bought At 100 Then You Would Sell 5 Shares (5% of 100) If The Price Reached 110 Which Is 10% Above Your Initial Entry....Later On Depending On The Movement Of Price You Could Even Sell 7% or 8% For Every Increase Of 10%

8) It Is 366th Day (1 Year + 1 Day) As Per IncomeTax Rule Governing The Securities Your Profit Is TaxFree For Long Term Capital Gains Tax For Securities.

9) If Your Investment Was Rs.1.0 Lakh & You Sell On or After 366th Day Your Shares For Rs.1.5 Lakh Which Means Net Profit Of Rs.50K You Would Not Be Required To Pay Any IncomeTax On The Profit.

10) Your Staggered Selling At Every 10% Rise Would Entirely Depend The Day & Date Of The Trade (Refer To Point 8 Above)

Hope I Have Managed To Clear Your Queries

Happy & Safe Investing

SavantGarde