just finished searchind net.can't find the basic definition of bonus . is the net so unequipped or am i searching wrong?
mux
hey guys...hold on... instead of discussing all this phrase-o-logy, terms & talkin abt the best picks , v shud rather post more on building up our fundamentals...
PEG was a new learning for me too..... txs guys !!!
regd me:
i too am into the markets for some time ..... made a lot of money (started with a cap of 5000) in day trading.....then lost a lot... in all it had been a break even...
In the end my learning says tht if u r a beginner, do paper-deals for atleast a month & then go ahead... regularly read msgboard on moneycontrol.com & try to analyse them...
Also let us build our fundamentals first & then we can start guiding each other...
bye for now !!!
hey,
anyone interested in textile stocks? the sector is going to open in 2005 and all quotas will vanish then.india presently has a small share in world market and it is sure to benifit. so, how r arvind,raymonds and all textile companies?? i think quite cheap as their order book is sure to increase.
mux
hello Guys!
Its nice to read this interesting thread! I was reading thru the discussions and it gives me an impression that all gyaan givers here are techies ! But the argement of MF/ single investor was a nice one!
Thanks Snan and Photon for ur gyaan 
kanti: U bought HLL at 190 right? and u booked a good profit when u sold it at 205! so why r u worried ? and u dont have to worry abt the co. Even at 150, i am convinced that HLL is def a good pick (as snan said) over say 6-10 months.
I am FMCG analyst. Atleast fundamentally, the HLL lost its 'hot pick image' becoz
1. its Q-results on 31st dec were not encouraging! (immediately the investors begin to believe that the management did badly...blabla...and the scrip dropped.
2. The recent cut in its selling price. WIth the good rains this time, and the rural demand picking up, This move was deliberately done to increase the volume. I think its a good move in the current market.
very soon HLL is going to get back to the Value Buy slot! Its one scrip that u can retain for the good mgmnt and sound mktg and business strategy and ofcrs the rich dividends that r being declared!
Just wait for a lil time and m sure HLL wud do well again 😃
photon Says[. What happens on the company's books; snan might be able to answer.
On the books for bonus i ve already explained..
for stock split...
NOTHING HAPPENS !!!
Eg: -
Co. :- XYZ..
Resrves :- 20000
Paid up :- 20000
Once stock is split...
Reserves :- 20000
Paid Up : -20000
Stock split jus increases liquidity so tht more retail participation can be encouraged....
Why junta is gung ho bout bonus is tht the future wouold be arguably better (otherwise why wud the company reduce their reserves?).............
For stock split number of shares increases....so like in bonus issue, EPS decreases...theoretically it should decrease such tht total market cap remains constant...thts whr ur previous formula comes into picutre...
Market cap before split = say x*y
Market cap after split = 10x * y/10 ( say split in the ratio of 1:10).........
Real case: - Centurion bank...dunno the details ..but it was a stock split if i rem correctly...u can search around for the full study
Disclaimer :- I AM NOT CA...neither have i got formal Fin / Commerce studies /degrees...im jus ANOTHER engineer.....so dont sue me in case of mistakes !! :))
I agree with the paper deals concept...
I call them dummy transactions...
Go to icicidirect and register yourself...
start building a portfolio as if real money was involved...
After soem time, if you think you have done well(aka made some money 
) get into the market with a small amount(5000 would be good for starters) and then get on with the game!!!
Guys,
The best site to learn basics on FM and especially the Equity and Debt related fundaes is from www.investopedia.com. They have brilliant tutorials for every topic that u can think of in the financial sector. And also, they give good notes and practice for the US-CFA prog and the fav site of all analysts 
hey guys...hold on... instead of discussing all this phrase-o-logy, terms & talkin abt the best picks , v shud rather post more on building up our fundamentals...
I have been studying market superficially for past 1 year
But its been three months since I have been watchin market rather closely and want to dive into it full time.
I had started with technical analysis and then moved into fundamental analysis.
Now I feel I have enough background to buy after all one would never learn unless he tries to do stuff.
Ill suggest devote some time in understanding balance sheets, income statement and cash flows and how the market moves
Would be buying my first scrips from next week.
hey,
anyone interested in textile stocks? the sector is going to open in 2005 and all quotas will vanish then.india presently has a small share in world market and it is sure to benifit. so, how r arvind,raymonds and all textile companies?? i think quite cheap as their order book is sure to increase.
mux
u r right but the EU and America are still oppsing quotas they say china would be a big threat to even developing countries like india
So just wait nothing is finalized and here all the mills in bombay are closing there factories and selling the land to real estate ppl
I have not yet analyised the books of textile sector
would post about them later
cheers
😃
ps. Muks internet is well equiped , need to define ur search (what exactly u want , I may help u in locating the answer)
Regarding Bonus Declaration:
As Snan mentioned,
If
Share Capital 10000
Reserves 30000 (total funds belonging to Shareholders)= 40000
and then the bonus is 1:1, then
Share Capital 20000
Reserves 20000 (total still remains 40000)
However, it is imp because, it has the following implications for both the SH and the Co.:
1. An investor gets an extra share of the co at NO COST 😛 So if Infy is 6000, then u get another share of infy thats probably can b sold at 6000 too. it means a possibility of capital gains for the invesotr holding the scrip.
2. Probably the co. is trying to raise some high debt since its pooling in a lot into its equity funds from its reserves so that its financial ratios (DE ratio) and other ratios r nto a matter of concern when the debt fund is raised.
3. If the co. is following a 'Fixed Dividend Rate policy' say....10%, then on every share, it may have to declare the same 10%. So if the Co initially paid 10% of 10000 = 1000 as dividend, now it wud have to pay 10% of 20000 = 2000 as its dividend, whcih means CASH requiremtn is gona shoot up!
As Snan Mentioned,
Stock Splits are only to ensure more trading and more retail investor participation in the scrip.
If infy is at 6000 and i am an investor with 10000 to invest, and i am confident of infy to do welll and another sector stock say FMCG- ITC to do well, i can buy only 1 share of infy and then few shares of ITC.(putting ur eggs in diff baskets - diversifying my portfolio by investing in diff sector stocks to avoid sector specific risks)
However, with a stock split of Infy in 1:10 ratio, i cud probably buy more shares of Infy, a few of ITC and then invest the remainign money in another stock ( assuming that i invest in 5-6 shares of Infy after split). ---> Better participation (with little money i get a achance to invest in diff sectors, stocks diff cap stocks too...blabla)
Also the EPS of the stock drops due to the no. of outstanding shares increasing.
Before split,
PAT (Profit after tax) = 10,000
O/s Shares = 100
EPS = PAT/ Os Shares = 100
Now after Split,
PAT = 10,000
o/s Shares = 1000
EPS = 10
other than the participation factor and the EPS (declining in absolute terms) there is no big implication of a stock split
hey, anyone interested in textile stocks?
Would be buying my first scrips from next week.
regd invetsment.....
the market is at ~5900... may move up another 80 pts till elections...but thts it...... a big correction (i.e. reversal of trend) is expected in the days to come & SENSEX may slide by 500 pts in the coming 2-3 weeks... so my advice wud be don't invest any money right now... wait till correction happens...
regd textile my scrips are : Bhartiya international (a leather apparel company with pending walmart orders); Welspun India+Guj, mahavir spinning.....
there r a lot of sectors to invest (Banking & Oil) but again my advice is don't invest right now... though tempting it may b...
regd online trading:
don't start it with ICICI (personal advice) i'm already subscribed with them...here's a sneak into the service they provide
1. There servers are down at 9:55 in the moring at least once a week (esp when some key issue is getting listed).
2. The daily analysis (day trading n derivatives) comes after 11:00 AM when the stocks have already moved (in day trading if u have not made ur sell/buypostions with in first 10-15 mins .... forget it)
3. They charge the highest fees amongst trading sites.
4. The good points are u'll have a bank account which has the biggest network of ATM's amongst its peers & ur money with them is secure. These people won't run away even if they r into trouble (like the one they had last april when there was a rumour regd cash problem with icici)
But believe me u feel F****up when u cann't trade in the morning just bcose the A**H*** servers don't turn up.
HDFC, Sherkhan(they r still strugling with MCS), 5 paisa r more or less the same
..... go for kotaksecurities.com
Again all the above analysis is my personal opinion & i don't take any responsibility for any losses (real or virtual) u might accrue .....
Archana: gud analysis..... go n join SPJ-D ...u sure will rock after the course... (i hope ur finally opting for the course) i too feel the same regd infy ... its all hyped... no use buying the scrip right now...
ashish
ace_bubble wrote:
EU and US r lying and trying to pit us against china. buddy, we r a big producer of cotton which is a base ingredient whereas china imports. their only benifit is scale as they have large companies(we removed restrictions only in 2002).
well, if they come up with last minute hurdles, then there may be problems, otherwise there r none.
the mills u r mentioning r closed fr a long time.their owners r now unlocking the value in the property.it has nothing to do with WTO. they didn't closed in recent past.
thanx archana. that was a gr8 post. at least now i know that i was rt.
mux
u r right but the EU and America are still oppsing quotas they say china would be a big threat to even developing countries like india
So just wait nothing is finalized and here all the mills in bombay are closing there factories and selling the land to real estate ppl
EU and US r lying and trying to pit us against china. buddy, we r a big producer of cotton which is a base ingredient whereas china imports. their only benifit is scale as they have large companies(we removed restrictions only in 2002).
well, if they come up with last minute hurdles, then there may be problems, otherwise there r none.
the mills u r mentioning r closed fr a long time.their owners r now unlocking the value in the property.it has nothing to do with WTO. they didn't closed in recent past.
thanx archana. that was a gr8 post. at least now i know that i was rt.
mux
Hey post2ashish,
thanks so much ya for building my confidence! 😃
And thanks a million for writing to me on my SPJCM critical review.
I am convinced that if i did well in my course, my chances of making it ot an i-bank is not impossible.
Thanks a lot Ashish! :)
I have heard from my frineds that HDFC secs is good....and the local small brokers' trading services r better...even kotak is supposed to be good. I have probs 4ever with ICICI and Sharekhan! absolutely FRAUD!....at times i wonder if they do that deliberately!
FOR people who wanna start trading ONLINE
i jus signed up wit KOTAKSTREET.COM cos a fren advised me to go for it.....YES!!!!this is true that icici sux big time thats wat i've heard frm my fren...n U guys wud b surprised to kno ICICI site doesnt open when the MRKTS r goin NUTS eithr way UP or DOWN......even sharekhan doesnot hav a good name...
to trade on KOTAKSTREET u need a hdfc/citi/kotak bank/n some other bank i 4got whic 1
acc opening charges r
500 if u deposit 5000 initially
250 if u deposit 10000 initially
waived off if u deposit 20000+ initially
so u need to deposit atleast 5000 upfront wit kotak guys...this allows u to trade for 5000 X 4 =20,000 bucks on a T+2 basis(hope u guys kno wats dat!!!)
wat this means:if u giv 5000 upfront then u can buy shares worth 20000 but within 2 days u wud hav to pay 15000 diff.
so u can start tradin wit 5000 bux in ur KITTY n try to learn the ropes!!!
me doin a bit of research on moneycontrol.com these days.
n followin this thread too from now on........but not investin b4 i am convinced i shud!!!!!!
LAGE RAHO!!!!!!!
HDFC, Sherkhan(they r still strugling with MCS), 5 paisa r more or less the same
..... go for kotaksecurities.com
Ya kotak is good but charges are steep and they offer only NSE , correct me if i m wrong.
I did detailed analysis of online brokers
5 paisa is best - service wise, uptime, rates etc + now they offer BSE also
ICICI service is very very bad , so is sharekhans (my personal experience)
BTW I have 5 paisa
Quote:
Would be buying my first scrips from next week.
regd invetsment.....
the market is at ~5900... may move up another 80 pts till elections...but thts it...... a big correction (i.e. reversal of trend) is expected in the days to come & SENSEX may slide by 500 pts in the coming 2-3 weeks... so my advice wud be don't invest any money right now... wait till correction happens...
regd textile my scrips are : Bhartiya international (a leather apparel company with pending walmart orders); Welspun India+Guj, mahavir spinning.....
there r a lot of sectors to invest (Banking & Oil) but again my advice is don't invest right now... though tempting it may b...
upward downwards trend keep happening
and SENSEX is just a benchmark or mere 30 stocks , cant generalize whole bse on sensex
ace_bubble wrote: Quote:
u r right but the EU and America are still oppsing quotas they say china would be a big threat to even developing countries like india
So just wait nothing is finalized and here all the mills in bombay are closing there factories and selling the land to real estate ppl
EU and US r lying and trying to pit us against china. buddy, we r a big producer of cotton which is a base ingredient whereas china imports. their only benifit is scale as they have large companies(we removed restrictions only in 2002).
well, if they come up with last minute hurdles, then there may be problems, otherwise there r none.
the mills u r mentioning r closed fr a long time.their owners r now unlocking the value in the property.it has nothing to do with WTO. they didn't closed in recent past.
Key is that there would always be over valued and under valued scrips among close to 2000 scrips being traded at BSE
one just has to locate undervalued scrips and put money in them and once they are over valued sell .. so dont worry much about the market its all due to speculator Vs investor and commodity nature of the stocks ....
to succeed one has to be invester
u r spot on 😃
just wait a bit on textile as quota is to be removed by 2005 , look at the books of these companies and then invest
actually i have not yet analyised textile sector so cannot comment on that
cheers
😃
I have been following the markets for close to 10 months now..started investing last Oct..since then, made some money but more importantly learnt so many things about markets..the more i learn about them, the more i get fascinated by equities...
Coming to stock picks..my fav bet is MRPL, i have done extensive research on this one and by all means this is one stock which is bound to be a winner in the long run. From the moment ongc bought this co, the future's changed for mrpl. A sneak peek at wat's in store for mrpl: Its gonna record profits this year prolly will even pay dividend, has paid off its loans to the karnataka govt., ongc plans to go for vertical integration n obviously mrpl is gonna benefit hugely from this and most importantly if u look at the production capacity of mrpl it is almost equal to HPCL n greater than BPCL!!!! If mrpl leverages its capacity then, nothing can stop it. Moi bought is arnd 33 and am holding it for long term...in fact waiting for a correction in the market to buy more of this stock.
Archana: I booked a profit in HLL but i was thinking of re-entering it...with the top mgmt reshuffle..things are bound to improve at HLL...
I agree that Sensex is a collection of 30 stocks.
But the purpose of forming an index like Sensex or Nifty or even a PSUIndex/ Bankex etc etc IS DEFINITELY to track the market by benchmarking against the sensex or any specific relevant index.
If u go thru the bseindia.com, and the history of Sensex, u will realise that the SENSEX stocks r constantly reviewed and 'the optimum mix' is striken...say few mid caps...few large caps...diff sectors, diff price ranges...etc etc....Its basically supposed to give u a snapshot of the market. And ofcrs years later, the Nifty was made , very successful...a composition of 50 stocks.....risk is more diluted compared to the thirty.
and ofcrs v have the S&P500; and other indexes to benchmark the market performances!
BSE
Market Cap. = 250
Listed companies = 2000
% Market cap of top 3 companies (ONGC, Reliance, IOC) = 20% (50 bill $)
General trend of Holding Patterns:
Owners/Promoters (Govt., Business Groups, Individuals, Foreign promoters)
40%
FI (Mutual Funds, Indian Banks, Insurance cos.)
40%
FII (Hedge Funds, Foreign Banks and Govt. and Private bodies)
12% (In China this is 40% )
Indian Public (Me and you)
8%
NYSE
Market Cap. = 17000 bill $
Listed companies = 2800
% Market cap of top 3 companies (GE, Exxon, Pfizer) = 5% (850 bill $)
Owners/Promoters (Govt., Business Groups, Individuals, Foreign promoters)
5 %
FI (Mutual Funds, Indian Banks, Insurance cos.)
60%
Public (75% of American household own stocks)
35%
well this is my personal compiled data so there can be errors (please bring it to notice if u notice )
So this tells u y over stock markets is so volatile
Firstly our market value is patheic compared to NYSE
The market cap of top 10 American companies is more that whole of apna BSE
Top 3 companies contribute whooping 20% to total market cap, where as for NYSE its mere 5%. Thats y infy share rise would also boost the market value of completly unrelated steel stock.
Our market is not all that competitive reason mere 8% of stocks are owned by public like us as in US its 35%.
Our market is very volatile as it depends largely on FII's buying equity in india.
Promoters holding is very large 40% of BSE to 5% NYSE, which deters big shots like Warren Buffet (and me) to invest in india.
Overall players in BSE is far less then that of NYSE
So u can have an idea y things like IPO's, stock split bloats the value of share like anything as compare to stock traded at NYSE. Also roumours and news have more impact on our share values rather than the fundametals governing the share price.
People and stock experts please comment .. these are my personal views
cheers
😃
Market Cap. = 250
Listed companies = 2000
% Market cap of top 3 companies (ONGC, Reliance, IOC) = 20% (50 bill $)
General trend of Holding Patterns:
Owners/Promoters (Govt., Business Groups, Individuals, Foreign promoters)
40%
FI (Mutual Funds, Indian Banks, Insurance cos.)
40%
FII (Hedge Funds, Foreign Banks and Govt. and Private bodies)
12% (In China this is 40%
)Indian Public (Me and you)
8%
NYSE
Market Cap. = 17000 bill $
Listed companies = 2800
% Market cap of top 3 companies (GE, Exxon, Pfizer) = 5% (850 bill $)
Owners/Promoters (Govt., Business Groups, Individuals, Foreign promoters)
5 %
FI (Mutual Funds, Indian Banks, Insurance cos.)
60%
Public (75% of American household own stocks)
35%
well this is my personal compiled data so there can be errors (please bring it to notice if u notice
)So this tells u y over stock markets is so volatile
Firstly our market value is patheic compared to NYSE
The market cap of top 10 American companies is more that whole of apna BSE
Top 3 companies contribute whooping 20% to total market cap, where as for NYSE its mere 5%. Thats y infy share rise would also boost the market value of completly unrelated steel stock.
Our market is not all that competitive reason mere 8% of stocks are owned by public like us as in US its 35%.
Our market is very volatile as it depends largely on FII's buying equity in india.
Promoters holding is very large 40% of BSE to 5% NYSE, which deters big shots like Warren Buffet (and me
) to invest in india.Overall players in BSE is far less then that of NYSE
So u can have an idea y things like IPO's, stock split bloats the value of share like anything as compare to stock traded at NYSE. Also roumours and news have more impact on our share values rather than the fundametals governing the share price.
People and stock experts
please comment .. these are my personal views cheers
😃
wat bout AUTO ANCILLARIES???the next big thing.....in the yrs to come.
in fact this sector almost bound to deliver in the near future...some companies like SONA KOYO,SUNDARAM FASTNERS,BHARAT FORGE etc r tipped to shine in this sectr in the near future as the INDUSTRY is growing at a fast pace compounded annual growth rate of 20-25%.a lot of PHOREN cos r sourcing components frm them to cut costs....n more r comin.
COMMENTS??!!
P.S:i havent done much research on the INDIVIDUAL COMPANIES
wat bout AUTO ANCILLARIES???the next big thing.....in the yrs to come.
in fact this sector almost bound to deliver in the near future...some companies like SONA KOYO,SUNDARAM FASTNERS,BHARAT FORGE etc r tipped to shine in this sectr in the near future as the INDUSTRY is growing at a fast pace compounded annual growth rate of 20-25%.a lot of PHOREN cos r sourcing components frm them to cut costs....n more r comin.
COMMENTS??!!
P.S:i havent done much research on the INDIVIDUAL COMPANIES
I did some supeficial study on these stocks ..
there books are very strong ..
the reasons u have mentioned is all correct .. but now we are late in investing in them ..
smart ppl had already identified these stocks a year back.
Now they are quoting very high compared to their book value/per share
cheers
😃