enter at your own risk, the days have gone when people buy the stock at the face value of10 in a public issue and enjoy the 10 to 15 % of dividend. Now even at public issue they are priced at 10 to 50 times or even more . How to judge them ? no govt. agency helps the retailer to find the facts, actually such public issues should be rated by some Govt agencies. And that rating must go with the ad. for public issue.
They hide facts and even authorities handling them are fooled by them , hundreds and thousands companies they shine for some period and then they fell below any expectations and their market price is hardly 5 to 10% of their public issue. Further their companies like ICSA which shined on for some years on false facts and now the share which was once sold for 600 now ranging between 3 to 5, what is the solution with the small retailer?
with my 40 & odd years experience, I can tell that do not be wedded to any share - be it Unilever, P & G etc. Buy for long term, generally for 3 years based on strong financials and if gain is acceptable to you, even if it is short term (
wait till all the big brokers sell their shares in all weak counters , wait till FII's take their money by selling blue chip shares, wait till you small retailers go paupers in the market and fall in irrecoverable cycle ...... advise to small retailers please sell as soon as they say do not panic that is starting point you need to act .
Re: do not panic
by Dhruveshwar Nath on Sep 07, 2015 03:23 PM
Purchasing share is like purchasing partnership in a company.In a business where I can see my profits in course of time will become almost 100% of investment or my dividend yield will be well over 20to25% after 3-4 years,I will go ahead and buy. The price has got to go up. If interest yield over a period of time is reduced to 3% will you have any other option but to invest in equity
Re: Re: do not panic
by Manian on Sep 07, 2015 03:40 PM
In spite of all the projections, the stock prices in indian context is still priced high. The risk element in falling market is very high for retail investors for the simple reason when they come to know the damage is done and they are the people who bear the brunt of it either through direct investment or mutual fund and all big brokers and FII knows when to stop the loss or to exit with profit. Answering your question on interest yield droping to 3% is it advisable to go below cost by equity investment or to live with 3% yield ( an exaggerated situation) or just park it in govt bonds or bank even if it is SB account. It is a wake up call for retail investors and turbulent days are ahead and indian stock market is not that strong to withstand the onslaught of International downturn.
Re: Re: Re: do not panic
by nilesh trivedi on Sep 07, 2015 05:50 PM
Investing in real estate is the best. but even in this area one needs to study a lot, since selling it off may b difficult
wait till all the big brokers sell their shares in all weak counters , wait till FII's take their money by selling blue chip shares, wait till you small retailers go paupers in the market and fall in irrecoverable cycle ...... advise to small retailers please sell as soon as they say do not panic that is starting point you need to act .
wait till all the big brokers sell their shares in all weak counters , wait till FII's take their money by selling blue chip shares, wait till you small retailers go paupers in the market and fall in irrecoverable cycle ...... advise to small retailers please sell as soon as they say do not panic that is starting point you need to act .
Re: Re: do not panic
by Manian on Sep 07, 2015 06:36 PM
We may elaborate a bit. I see lot of small investors who go on daily settlement and in a market of this nature they will burn there fingers. Second type of investors who borrow and invest and force to hold because of drop in the market. Ulimately they will end up loosing more than what they gain over a period of one or two years. Third type of investors who have surplus money and who can invest and sleep over it for a period of say 5 to 7 years and definitely there will be cycle of upswing where they can make profit but it will not be huge but little better than other bank fd's. But the question is how many have such wherewithal to hold it for such a long time. The market indications are such a cyclone or Tsunami is in offing better take precaution it does not mean mankind will have extinction it is only to protect especially the gullible small time investors who with borrowed money or with little savings are brain washed to invest in markets without really understanding indepth ( even those who understand indepth cannot swim in tsunami) and would struggle. It is a word of caution that you should be very judicious in entering into market or to keep your plan at bay till tsunami gets over.
