I require Help?

less buyers and less sellers just shows the lack of depth in the script which make the script vulnerable to extreme price movement (upper circuit in an uptrend and lower circuit in a downtrend) and in turn vulnerable to price manipulation.

whenever one invests the basis is to go for a liquid script. just think, if a theres no interest in a script when the sensex is at 10K what will be the volume when the sensex is in a bear grip.

Dear members,

I have a rather unrelated question.

If I buy (short sell) on margin with the intention of squaring off during the day, and if the stock hits the upper (lower) circuit during the day, will I be able to square off my position?

What will happen in this case? What price would I get?

Thanks in anticipation,

Pranay

in case you have bought and the script hits lower circuit then you have to take delivery.

but in case you short sell and the script hits upper circuit before you could square off, and you do not have any previous holding from which you can give delivery then you are in mess.

to settle the same the exchange initiates a procedure known as Acution in which the exchange will buy the script for you, and impose a penalty which is 5% in case of EQ series stocks.

Thanks jdm,

At what price does the exchange buy the scrip for me? It is the circuit price or some other price(in case of squaring off short sell through auction)?

And what happens if the case is reversed (short sold and then lower circuit is hit)? Does it have the same procedure?

Thanks,

Pranay

Auction price is the closing price preceding the auction trade date

refer to the link below for additional info
http://www.nseindia.com/content/nscc...qvalprices.htm

Thanks a ton jdm,

That clarified things completely.

Cheers,

Pranay

Bull's eye....thank you for that quick response

Dear Ahmed,
Whatever I have read about "intrinsic value" of share, I am writing here. I may be partially right and I may be wrong on some aspects. If I am wrong on any aspect, I give an open invitation to all members of this forum to correct the portions where I have gone wrong. My sources of information are very limited.

Calculation of intrinsic value of a share looks nice only as a concept and according to me it is neither practicable nor advisible for ordinary share traders like me. First the theory part.

Intrinsic value means, intrinsic value of the company. In simple terms, how much the company is really worth if you were asked to buy it outright today. That brings the question, how to value the company? Is it the value of its land, plant and machienary? Shall we include the raw materials, stocks in trade? What about the investments made by the company in other companies and other subsidieries? What about the debts owned to the company and debts owned by the company to others? Should we include all of them in our calculation? How do you value the brand value of the products that are sold by the company? Problems do not end here. If the company is in an expansion mode, how much the new project would contribute to the balance sheet of the company? I hope now you realise that these are the only sample questions posed by me on the topic. These questions make it clear that it not our cup of tea. So if you are able to arrive at the actual figure of the worth of the company, then you will have to divide it by the existing equity capital. That will give the actual value of the per share of the company as on today. But wait. Market is not discounting the past. Market is always the future growth. So you must be able to forcast the future growth as well in your calculations. After doing all these calculations, you will actually know what is the company really worth for and this figure must be equally divided by the equity capital. That is the intrinsic value of the share of that company. If the share is quoting below that intrinsic value, you are going to buy it. If it is quoting far above it, you are going to sell it.

Limitations with ordinary people like me are

(1) Except the annual reports we do not have any other information about the financials of the company especially its future plans.

(2) Most of the annual reports are window dressed. I suggest you to read notes prepared by the auditor on the accounts of the company in the annual report. You will know how much under provisioning is there. You will also get some idea as to how the profits have been infalted. Sometimes, these people make such a magic that even loss making company is shown as a profit making company.

(3) In some balance sheets, plants and machinaries are revalued so as to boost the reserves. However, in some balance sheets, they are valued at their cost minus depriciation.

(4) Land is usually valued at its acquisition cost. You may note that some of these companies have acquired very important places in cities long time ago. If they are still shown at their acquisition value, then it will be a gross understatement. Just to give a real life example, I am told that nearly 75% branches of Syndicate Bank are operating in their own premises (not in rented premises). Almost all of them were acquired several decades ago. You may verify this fact from the branch office of the Bank if you have one near you. You may see where these branches are located. Most of these branches, which I have seen are located in highly commercially valuable areas, that too in big cities. Even now also, these properties are shown at their acquisition cost in the balance sheet. I donot have a copy of balance sheet, if you have one, you may verify it. The real market value of these properties is worth far in excess of the share capital of Syndicate Bank. Now tell me, how do you value this?

What I am trying to point out is that there are very many variables in calculating the intrinsic value of the company. Further we are having our own limitaions also. I may value one asset at xxx rupees. But you may value it at yyy rupees. What I view as an excellent opportunity may be a foolish adventure in your opinion.

I hope I have not created more doubts in your mind than you originally had

Dear Ahmed,
Whatever I have read about "intrinsic value" of share, I am writing here. I may be partially right and I may be wrong on some aspects. If I am wrong on any aspect, I give an open invitation to all members of this forum to correct the portions where I have gone wrong. My sources of information are very limited.

Calculation of intrinsic value of a share looks nice only as a concept and according to me it is neither practicable nor advisible. First the theory part.

Intrinsic value means, intrinsic value of the company. In simple terms, how much the company is really worth if you were asked to buy it outright today. That brings the question, how to value the company? Is it the value of its land, plant and machienary? Shall we include the raw materials, stocks in trade? What about the investments made by the company in other companies and other subsidieries? What about the debts owned to the company and debts owned by the company to others? Should we include all of them in our calculation? How do you value the brand value of the products that are sold by the company? Problems do not end here. If the company is in an expansion mode, how much the new project would contribute to the balance sheet of the company? I hope now you realise that these are the only sample questions posed by me on the topic. These questions make it clear that it not our cup of tea. So if you are able to arrive at the actual figure of the worth of the company, then you will have to divide it by the existing equity capital. That will give the actual value of the per share of the company as on today. But wait. Market is not discounting the past. Market is always the future growth. So you must be able to forcast the future growth as well in your calculations. After doing all these calculations, you will actually know what is the company really worth for and this figure must be equally divided by the equity capital. That is the intrinsic value of the share of that company. If the share is quoting below that intrinsic value, you are going to buy it. If it is quoting far above it, you are going to sell it.

Limitations with ordinary people like me are

(1) Except the annual reports we do not have any other information about the financials of the company especially its future plans.

(2) Most of the annual reports are window dressed. I suggest you to read notes prepared by the auditor on the accounts of the company in the annual report. You will know how much under provisioning is there. You will also get some idea as to how the profits have been infalted. Sometimes, these people make such a magic that even loss making company is shown as a profit making company.

(3) In some balance sheets, plants and machinaries are revalued so as to boost the reserves. However, in some balance sheets, they are valued at their cost minus depriciation.

(4) Land is usually valued at its acquisition cost. You may note that some of these companies have acquired very important places in cities long time ago. If they are still shown at their acquisition value, then it will be a gross understatement. Just to give a real life example, I am told that nearly 75% branches of Syndicate Bank are operating in their own premises (not in rented premises). Almost all of them were acquired several decades ago. Even now also, these propeorties are shown at thier acquision cost in the balance sheet. I donot have a copy of balance sheet, if you have one, you may verify it. The real market value of these proerties is worth far in excess of the share capital of Syndicate Bank. Now tell me, how do you value this?

What I am trying to point out is that there are very many variables in calculating the intrinsic value of the company. Further we are having our own limitaions also. I may value one asset at xxx rupees. But you may value it at yyy rupees. What I view as an excellent opportunity may be a foolish adventure in your opinion.

I hope I have not created more doubts in your mind than you originally had

Hi all
Can any one please help me with the CEAT last traded price?

Although in the Ticker and other place the last traded price is being shown as 68.45.
But in my portfolio the market price is shown as 22.5

Also, it has been moved to Z Category from A category.
Would also appreciate, if you can lead me to the source of this information.

Hey, some one please help, is it normal?, or do I need to contact my broker to get a clarification. The number of shares in my DP account remains the same, only there price has reduced by 1/3. Was there some split?

Thanks in advance.

Best Regards
Coool.
ps..I had opened a new thread for it, which I think should be deleted. I will try to delete it myself.