Unitech

[Agilent]

Hi

P/E ratio means Price of the stock to its earning Ratio. It indicates how much money will be earned for every rupee. A High PE indicates low earning thereby denoting weakness.

Stocks tend to go towards low PE.

pankaj

Pankaj
You have made two highly debatable ( and potentially misleading) statements ... can u pl elaborate

Statement 1 : Are u implying, for instance, that Infy and TCS , each with PEs >30 (generally) are weak in some way ... or weak because of (implied) low EPS ??

Statement 2 : What does this mean ...can u illustrate , or give some theoretical perspective?


AGILENT

 

[pkjha30]

Pankaj
You have made two highly debatable ( and potentially misleading) statements ... can u pl elaborate

Statement 1 : Are u implying, for instance, that Infy and TCS , each with PEs >30 (generally) are weak in some way ... or weak because of (implied) low EPS ??

Statement 2 : What does this mean ...can u illustrate , or give some theoretical perspective?


AGILENT

Hi

Your statements highlight the potential danger of taking statement out of context and imputing meaning more than what is implied and also quoting individual instances for a general idea. There are many penny stocks whose PE will give you shock of life but do you mean to say they are on par with infy or tcs or better as pe is higher.

Higher pe can also denote higher confidence or higher level of manipulation etc.

Secondly , PE measures the ratio so from PE one can not get eps or cmp what one can get is earning per rupee invested and that makes comparison easy. If EPS increases then naturally pe tends to fall and then prices either have already compensated for forward pe or will compensate for any decrease in pe.

In this correction all the time I heard from many that PE is high and needs to be lower. That implies that higher pe is unsustainable in absence of forseable future growth . Any artificial inlfation of prices without commensurate eps is weakness.


There are may good postings here, if necessary, you may read those. But anything out of context is misleading

Pankaj

 

[Agilent]

Hi


Secondly , PE measures the ratio so from PE one can not get eps or cmp what one can get is earning per rupee invested and that makes comparison easy. If EPS increases then naturally pe tends to fall and then prices either have already compensated for forward pe or will compensate for any decrease in pe.

Pankaj

Absolutely Pankaj, you can't generalise about PEs .. in different contexts high PEs can be either v good , or a sign of possible weakness (like the penny stock example u gave)

Meanwhile, can u pl clarify what u mean by this phrase (in red) ... I mean how is that different from EPS (or is it a variant of EPS .. in which case its merely the denominator of the PE multiple ...

AGILENT

 

[ppatodia]

Hi,

I am sorry to barge into the conceptual discussions.

I have been tracking Unitech since the last 5 years - its movement has been really pronounced over the last 7-8 months.

One of the reasons that I have been able to explain is that the value of the stock is in its value of land that it holds and therefore a future value of what it can be sold at. Unitech also won a very large project in Noida which has bossted its stock value.

Another reason for the growth in this share is that the promoter has been consistently buying out the public shareholding.

Hope this helps.

Cheers

Piyush

 

[pkjha30]

Absolutely Pankaj, you can't generalise about PEs .. in different contexts high PEs can be either v good , or a sign of possible weakness (like the penny stock example u gave)

Meanwhile, can u pl clarify what u mean by this phrase (in red) ... I mean how is that different from EPS (or is it a variant of EPS .. in which case its merely the denominator of the PE multiple ...

AGILENT

I am glad that you know the danger of quoting out of context.

Regarding , red statement, it could have been put otherwise also. number of rupee spent to get one rupee earning. or alternatively if you spend one rupee then how much earning you get. That is the basic idea behind pe I suppose.Just a way to look at the thing.
Pankaj

 

[shrinivas]

just a moment...sorry to disturb you all here...PK, you already are aware of my huge losses.....
I've today picked up good volume of SBI at 735.50....what is you outlook on this for 9-10 months.....
please answer here or on my thread jokes humours and shayaris..

completely do you survey on p/e etc etc
I would be adding up balrampur and bajaj hindustan soon to my kitty...

any comments on them ????

ganeshhity

 

[jdm]

Hi,

I am sorry to barge into the conceptual discussions.

I have been tracking Unitech since the last 5 years - its movement has been really pronounced over the last 7-8 months.

One of the reasons that I have been able to explain is that the value of the stock is in its value of land that it holds and therefore a future value of what it can be sold at. Unitech also won a very large project in Noida which has bossted its stock value.

Another reason for the growth in this share is that the promoter has been consistently buying out the public shareholding.

Hope this helps.

Cheers

Piyush

with Rs.12.49 crore as paid up capital its an easy prey for price manupulation. this is perticularly evident when one looks at the 'promoters holding' and 'person acting in concert'. maybe circular trading to jack up volumes.

and as for promoters buying, they have started selling. nse data says it all

promoters shareholding pattern

as on....................31.3.2006........31.12.2005......30.9.2005.......30.6.2005

Indian promoters.........45.17................45.15..............42.54...........42.54

person acting in..........15.11................15.29.............17.93...........17.96
concert

total.........................60.28.................60.46.............60.47..........60.50

no foreign promoters.
source: nseindia.com


by the way piyush are you only tracking or have put in your money.

cheers,
jdm.

 

[pkjha30]

just a moment...sorry to disturb you all here...PK, you already are aware of my huge losses.....
I've today picked up good volume of SBI at 735.50....what is you outlook on this for 9-10 months.....
please answer here or on my thread jokes humours and shayaris..

completely do you survey on p/e etc etc
I would be adding up balrampur and bajaj hindustan soon to my kitty...

any comments on them ????

ganeshhity

Hi ganesh


Personally SBI is a stock much liked by me. Though I am not in it. By 07 end it should be in much higher range. I think downside possiblity is limited. We might see some mergers which would drive its prices up.Margin pressure will be there but it is one which has huge Govt bussiness nobody else can fathom.

Have a look at the attachments. Price doesn't show strength. Banks will be under pressure but I think SBI should be able to go beyond its peak on the strength of merger news. You could have picked up at little lower price had you waited for a week. But have no fear. This is a stock with destiny. Infy of Banks.

The other two stocks are in sugar sector. It was very hot till last year. Still some thing may be left in it. Sugar prices will be firm. Ethanol story will come to India. It is already picking up in USA and we will follow soon. Sugar stock will get benefitted. Large players will be better. Bajaj and Balramput both are fine. Most of the positives are built in its prices except ethanol story.

If you are serious about covering your losses go for infy pre- bonus. In 10 months time you will have double or almost double. Outlook is very very strong and I think it will prove to be microsoft of India.

I think you are in MTNL. Stick with that . It will get to 200 then quit on weakness unless you get some other indication.

Ganesh I don't screen stocks for finding good ones. As my investment limit is not much so I go for max 7 stocks with three sectors at most. Holding period is of two types. One year and three years. Remember my story of stock. I am still with it and 105% annualised profit after being down a little(84%). I have time till this year end.

I suppose next year we will hear more about Infrastructure, real estate, constructions, airports FMCG power capital goods oil exploration.

You can screen some of it on the basis of some of the following factors.
1.P/E ratio and P/B ratio:

2.Price-to-Sales Ratio:

3.Earnings growth:

4.Return on Equity:

5.Strong cash flow

6.Debt/Equity ratio.

Most of the details are available on you trader's website. ICICI does it.
Moneycontrol has. Some other website also will have it.

Just a layman's view.
Pankaj

 

[pkjha30]

with Rs.12.49 crore as paid up capital its an easy prey for price manupulation. this is perticularly evident when one looks at the 'promoters holding' and 'person acting in concert'. maybe circular trading to jack up volumes.

and as for promoters buying, they have started selling. nse data says it all

promoters shareholding pattern

as on....................31.3.2006........31.12.2005......30.9.2005.......30.6.2005

Indian promoters.........45.17................45.15..............42.54...........42.54

person acting in..........15.11................15.29.............17.93...........17.96
concert

total.........................60.28.................60.46.............60.47..........60.50

no foreign promoters.
source: nseindia.com


by the way piyush are you only tracking or have put in your money.

cheers,
jdm.

Hi Jdm

See the unitech chart. It has all the hallmark of manipulation.Its website is sparse in giving information lacks depth. They can't invent one.
Pankaj

 

[jdm]

hi pankaj,
even discussing about such companies is an insult to ones intellect.

wonder wheres that piyush.

cheers,
jdm.