India Bulls

#1
Hai,
This is my first post.
I m a student and started trading last month.
I bought 50 shares of India Bulls for 93.00 and
another 50 for 84.00.
The share seemed to recover a bit last week.
But, this week went down a lot currently at 73.
What should i do?
Thanks.

-Vishnu-
 
#2
Hi prasathvishnu

It seems you managed to purchase Indiabulls at its high.
Did you do any research before you went long in Indiabulls.
It was offered in IPO in the price band of rs.16-19.
It saw heavy volume activity during december where it touched a high of rs. 97.80.
This was due to news of Farallon Capital acquiring a 33% stake in Indiabulls Credit Services in which Indiabulls holds a majority stake.
Currently it is quoting at rs.73.80.
As per result declared year ended dec.04, EPS is rs. 2.37 meaning its PE is around 31
That is not considering dilution thru preference shares.
Take a look at this article
IndiaBulls-Bubble of 2004

Before initiating any position on any stock it is vital to research the fundamentals of the company. The growth prospects of the sector, the company (in this case primarily the brokerage business), company's postion in the sector, its financial statements etc.
Remember when you purchase a scrip you are paying to be part of its future i.e. the price which you pay today should co-relate/discount the future profitability of the company.
It is important that you understand the inherent value of the stock you are buying at market price.

If you are interested in learning to invest in stocks, read The Intelligent Investor by Benjamin Graham, the authority on security analysis.

Remember we are investors and not traders.
Regards!
 
#3
Good write up Trader9,

I got sucked into this vortex, but was able to get out because of strict stoploss discipline.

Greed to over my senses and I had to pay for it. My advise to most investors is not to chase stocks that have run away too much - too fast.
 
#4
The reading of the article Bubble of 2004 makes an interesting reading.

The valuations are far far stretched and can anyone highlight as to who are the big buyers / sellers in this scrip based on the delivery details.

The market cap of this share broker is probably more than the market cap of some Banks who have hundreds of Branches.

Is SEBI watching or will they act after the share price crashes?
 
#5
Hai trader9,
thanks for ur quick and encouraging reply.
yes, i must learn a lot b4 investing seriously.
i m looking for help for ppl like u in my learning curve.
then, is it good to hold Ind. Bulls? wat is the future at least after current correction
thanks again
-Vishnu-
 
#6
haii
i am not trying to make fun but see all fundamentalss
indiabulls is rs 600 now
:D

Hi prasathvishnu

It seems you managed to purchase Indiabulls at its high.
Did you do any research before you went long in Indiabulls.
It was offered in IPO in the price band of rs.16-19.
It saw heavy volume activity during december where it touched a high of rs. 97.80.
This was due to news of Farallon Capital acquiring a 33% stake in Indiabulls Credit Services in which Indiabulls holds a majority stake.
Currently it is quoting at rs.73.80.
As per result declared year ended dec.04, EPS is rs. 2.37 meaning its PE is around 31
That is not considering dilution thru preference shares.
Take a look at this article
IndiaBulls-Bubble of 2004

Before initiating any position on any stock it is vital to research the fundamentals of the company. The growth prospects of the sector, the company (in this case primarily the brokerage business), company's postion in the sector, its financial statements etc.
Remember when you purchase a scrip you are paying to be part of its future i.e. the price which you pay today should co-relate/discount the future profitability of the company.
It is important that you understand the inherent value of the stock you are buying at market price.

If you are interested in learning to invest in stocks, read The Intelligent Investor by Benjamin Graham, the authority on security analysis.

Remember we are investors and not traders.
Regards!
 

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