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Lord Jesus Christ Says...

For what shall it profit a man, if he gain the whole world, and suffer the loss of his soul? Jesus Christ

25 Jul 2015

FREQUENTLY ASKED QUESTIONS (3)

             
 
Hi Friends,     
.
Hedging against  Inflation:  The rate of return should ensure a cover against inflation to protect against a rise in prices and fall in the purchasing value of money. The rate of return should be higher than the rate of inflation; otherwise, the investor will experience loss in real terms.     


Staving tax: Tax is unavoidable.  Different income levels and investment options attract different tax rates.  The tax rate may vary with the period of investments for a specific option. Certain investments offer tax incentives.  The investor tries to minimize the tax out flow and maximize tax return.      


 Market Analysis: The stock market mirrors the general economic scenario.  The growth in gross domestic product and inflation is reflected in stock prices.  Recession in the economy results in a bear market.  Stock prices may fluctuate in the short run but in the long run, they move in trends, i.e., either upwards or downwards.  The investor can fix his entry and exit points through technical analysis.    


  Long position:  You buy 100 shares of Reliance Industries.  Then you decide to exist your position.  So you sell your 100 shares, it means closed your long position, getting rid of your shares.     



 Short position:  Selling something you don’t currently own short position.   


  Company analysis and capital appreciation:  The purpose of company analysis is to help the investors make better decisions.  The Company’s earnings, profitability, operating efficiency, capital structure and management have to be screened.  These factors have a direct bearing on stock prices and investors returns.  The appreciation of stock value is a function of the performance of the Company. A  Company with a high product market share is able to create wealth for investors in the form of capital appreciation.     


 Future Value:  The future value of securities can be estimated by using a simple statistical technique like trend analysis.  The analysis of the historical behavior of price enables the investor to predict the future value.     


 Diversification:  The main objective of diversification is the reduction of risk in the form of loss of capital and income.  A diversified portfolio is comparatively less risky than holding a single portfolio.     


 Market intermediaries:  A wide range if market intermediaries participate in the primary and secondary markets, Merchant bankers, clearing and settling  houses, credit rating agencies, depositories, debentures, trustees, banks and brokers act as market intermediaries at various levels.
  

Stock Derivatives:  A stock derivative is an investment whose value is derived from the value of one or more underlying securities.  It can be bonds stocks, stock indices etc.  Common examples of derivative instrument are futures and options.


Thanking you,                                                                             see you later.

24 Jul 2015

BENEFITS OF MUTUAL FUND

Hi friends, Benefits of MF-


1) Portfolio Diversification.2) Professional Management.3) Flexibility to meet your needs and goals.4) Convenient Administration.5) Return Potential.6) Low Costs.7) Liquidity.8) Transparency.9) Flexibility.10) Choice of Scheme.11) Well regulated.


Thaningyou,                                                       see you later. 

SHARE BROKER / YES OR NO.

Hi friends, Most investors, particularly newcomers, tend to rely heavily on their stock brokers for investment information and advice. Though stock brokers can be valuable sources of information, their advice must be taken with a pinch of salt. There are several reasons for this.


1)      Stock brokers are too close to market to be in a position to give really good advice. Their proximity to the market and their daily contact with a wide range of speculators, traders and investors makes them particularly vulnerable to rumours, tips and so-called insider information. This naturally influences whatever investment advice they give.


2)      Also stockbrokers’ advice generally tends to be in the nature of reflex action to spot news and daily share price fluctuations.  They are very rarely able to sit back and take an objective bird’s-eye view of broad economic and industrial trends.  As a result, their advice tends to be heavily slated in favour of the speculator and short-term trader in shares.


3)      Stockbrokers are generally overworked and busy men.  They get very little time for study and analysis, and for sober reflection on current economic industrial and market trends.  The very nature of their work prevents them from undertaking in-depth investment research.  As a consequence their advice tends to be superficial and is rarely backed by solid research and reasoning.


4)      A stockbroker’s livelihood depends upon the commissions he earns from buying and selling shares.  Therefore, his natural inclination is to give advice for short-term investments.  This is another reason why you can rarely get good solid long-term investment advice from stockbrokers.


5)      The stockbroker’s main function is to buy and sell shares on your behalf.  He is primarily an agent and not an investment analyst or adviser.  You should use him as a valuable source of investment information, particularly on current market trends and prevailing market opinions, but avoid taking his investment advice at face value.  Always cross-check and re-examine his advice before acting on it.  You follow none, but you learn from everyone.  Take your own decision and think positively.


6)      God Bless You,                                        See you later. 

23 Jul 2015

ADOR WELDING.

Hi, Friends,  Ador Welding Limited :-  As a pioneer of welding products, AWL has strived since 1951 to service Indian Industry and the global market with the finest range of welding consumables and equipment, they ensure the highest level of customer satisfaction via their “State of the art”manufacturing plants, knowledge d based centers of excellence and  a comprehensive sales and distribution net work.  AWL has also made large investment of Project Engineering business.  AWL is a total solutions provider offering an update suite of welding and cutting consumables, Power sources and accessories besides a full package of soft skills and knowledge development for welding and fabrication excellence


.AWL  is the business of providing software & hardware solutions for Metal joining, Project Engineering and Energy Management. Their mission is to continually improve their technologies, products and services to meet their customers’expectations, allowing them to proper as a business provide enhanced value through equitable business partnership and thus ensure reasonable returns to their shareholders.


Their major export market includes South Africa, Malaysia, Singapore, Saudi Arabia, Kuwait & UAE.  Group Companies:-  JB Advani & Coy.(P) Ltd., Ador Fontech Ltd., Ador Power ton Ltd., Ador Multi products Ltd.


FINANCIALS:-  Equity Capital  Rs.13.60 Cr.  ,  Share Price Rs.296/-,  Market Cap  Rs.401.15,  PE – 12.39,  Book Value Rs.150.02,  Div.50%,  EPS – 23.80,  Face Value Rs.10/-,  Industry PE – 24.89,  Reserve excluding Revaluation Reserve Rs.190.41cr.  Total Sales Income in cr. for the period from 2011-2015:-  295.48,  340.91,  364.17,  368.92,  & 384.94.  Net Profit in cr. for the period 2011-2015:-  25.69,  20.89,  19.08,  4.23  & 32.37.  Bonus History:  1996 -  1:2,  Dividend – 2007 – 2015 regularly paid.


Management efficiency-  Return on Equity – 15.86%,  Return on Assets 11.60% ,  Return on Capital employed – 7.93%,  Gross Profit Margin – 4.34%,  Operating Profit Margin – 7.57%,  Net Profit Margin – 8.40%,  Debit Equity Ratio – 0.08%,  Cash flow to Long Term Debt – 0.01%.


Shareholding Pattern:- Promoters – 56.32,  General Public – 22.07,  NBFC/Mutual Fund – 16.09,  Foreign NRI – 3.12,  Other Companies – 1.64, Foreign Promoters – 0.36,  Others – 0.36,  Foreign Institutions – 0.03.


AWL Key Products/Revenue Segments include Electrodes which contributed to Rs.160 Cr. to Sales  Value (41.50% of total sales), Wires & Flexes which contributed Rs.111.09 Cr. to Sales Value (28.85% of Total Sales) ,Spares/Equipment which contributed to Rs.61.31 crore to Sales Value (15.92% of total sales) , Engineering & Projects which contributed to Rs.41.93 Cr. to sales value (10.89%of total sales), Welding Accessories which contributed to Rs.6.73 Cr. to Sales Value (1.74% of total sales), Service income which contributed to Rs.2.82 Cr. to Sales value (0.73% of total sales), Other operating revenue which contributed Rs.1.06 Cr. to sales value (0.27% of total sales) for the year ending 31.03.2015.


For the  quarter ended 31.03.2015 the  company has reported a standalone sales of Rs.135.91 Cr. up 56.92% from last quarter sales of Rs.86.61 Cr. and up 10.66% from last year same quarter sales of Rs.122.82 Cr.  Company has reported net profit after tax - Rs.8.73 Cr. in last quarter.The share is trading in reasonable PE but industry PE is different. Therefore chances are there for capital appreciation including Share split,  expecting in the near future. Long term investors may look into this company.


Good luck.                                                           See you later.

22 Jul 2015

LARGEST SUPPLY CHAIN SOLUTION PROVIDER

Hi, Friends,    Redington (I) Ltd., commencing its Indian operations in 1993, is today positioned as the largest supply chain solution provider in emerging market.  As a group, Redington is present in India, Middle  East, Africa, Turkey, Srilanka, Bangladesh and CIS Countries.


Redington provide end-to-end supply chain solutions for all categories of information's Technology products (PCs, PC Building Blocks, Networking, Software and enterprise solution Products) and Consumer and Lifestyle Products (Telecom, Digitallife style products entertainment products and digital Printing Machines) to over hundred international Brands and relationship with major brands have been for years.


With its Corporate Office in Chennai, it has 56 sales locations.  Seventy owned service centers and 292 Partner Service Centers across India.  In addition through its subsidiaries both in India and Overseas, Redington has 78 sales offices, 104 warehouses and 109 own service centers and 310 partner centers.  A team comprising of over 2200 highly skilled and committed professionals, helps the company to deliver its products and services to  every corner of the country. The team is supported  by Robust IT & Communication Infrastructure connecting all the locations of the Company and a state of the art  ERP and e-commerce back-bone.  Redington has built its business on very strong ethical and commercial fundamentals which has not only helped it to consistently exceed the industry growth rate, but has enabled to firmly establish it as the “Partner of Choice”with most of its vendors and business partner.  A compounded annual growth rate of more than 50% over the past 20 years has enabled Redington generate a revenue of over Rs.12,021.38 doing fiscal 2014-2015 underlining the very strong foundation and prudent practices on which the Company’s business parties have been built.


The IT & Telecom Industry continues to witness increased intelligence & complexity in new generation products,  and in India , the Industry is now penetrating the small towns and villages very rapidly.  Taken together, these factors have made Pan-India after sales service vital, not just for the success of new product launches, but also fir the sustenance of growth of brands in the Indian Market, here  comes the name Redington (I) Ltd.They have also stepped in warehousing and logistics.  Its   expansion into Logistics Services has been enabled by the establishment of ADC and a foray               into 3rd party Logistics (3 PL).



FINANCIALS:- Equity Capital – 79.94 Cr., Share Price Rs.100-50,  Face Value of share Rs.2/-,  Listed the shares in BSE and  NSE dt. 15-02-2007,  Market Cap. Rs.4149.44,  PE – 22.81,  Book Value Rs.34.04,  Dividend – 95%,  Industry PE – 26.54,  EPS – 4.55, Dividend yield 1.83%,  Reserve excluding revaluation reserve 1280.63.  Total income in crore for the period from 2011-2015:  8322.73, 9840.40,  10409.67,  11256.62,  & 12021.38.  Net Profit in crore for the period from 2011 to 2015 :  128.44,  156.81,  171.37,  299.79 and 181.96.  Public Issue in February 2007, Shareholding Pattern on 31.3.2015:  Promoters – 13.33,  Mutual Fund – 12.64,  FIS/FPIS – 39.39,  Corporate Bodies – 5.89,  Indian Public – 2.63,  NRI/NRI Director/Foreign Nationals Investors – 26.06,  Others – 0.06.This is a very good share for long term investment. Share trading at PE 22.81 but industry PE is 26.54 , Try your luck


Thanking you,                                                       see you later.

21 Jul 2015

OIL AND GAS DRILLING

Hi, Friends,   Deep Industries Ltd., started in the year 1991 with a primary objective of catering the every increasing demand for oil and gas industry.  Since its inception, Deep Industries Limited has been serving the industry in various segments with the foremost being providing Air and Natural Gas Compressor Services on Chartered hire basis where in Company commands a healthy market position and is also the first company in India to offer such services.


In the year 2006 Company successfully diversified itself in providing work over & Drilling Rig Services on chartered hire basis.  Currently Company holds a strong  fleet of onshore work over four Drilling Rigs ranging from 150 HP to 1500 HP.  Currently Deep Industries Limited is a well diversified oil & gas company with business interest in Air, Natural Gas Compression Services, work over & Drilling Rig Services and Oil & Gas Exploration and production.  They are having various onshore Oil & Natural Gas blocks , Coal Bed Methane Blocks awarded under different rounds of NELP and CBM building.  Deep Industries Limited has also been awarded one Onshore Coal Bed Beathane Block in Indonesia.  The Company has grown up to be a “One Stop Solution”provider for every need in Oil & Gas field operations by catering various equipment and services under rental and chartered hire-basis.


FINANCIALS:-  Share Price – Rs.122.50 , F/Value of share – Rs.10/-, EPS – Rs.7.27, P/E Rs.17/68, Market Capitalization – Rs.376-82 Cr., Book Value Rs.72.88, Industry PE – 49.61.  Total consolidated sales in crore  from 2009 – 2014 -      33.50, 35.34, 49.37, 60.45, 65.27 and 90.78.  Total Net Profit  in Cr.from the  year 2009 – 2014 7.61, 14.36, 11.85, 11.97, 12.16 & 19.99.  Share holding Pattern – Indian Promoters – 68.13%, Bank Financial Institution & FIS – 0.29%, Private Co-operative Bodies – 8.30, NRI/OCB – 0.28% Others 1.43%, General Public – 21.56%.


Company’s share is quoting Price Rs.122.50/- i.e. PE 17.68 but Industry PE is 49.61.  Hence chances are there to increase price in the coming years.  Try your luck.


Thankingnyou,                                                                       See you later.  

20 Jul 2015

SEE THE DIFFERENCE

Please see the statement of difference of price recommended in this blog.


1)      Aurobindho Pharma dated 14.6.2015 Rs. 1180 price as on 20.7.2015 Rs 770- ( ex Bonus ) Difference Rs. +360-
2)      Astra Microtech Ltd dated 15.6.2015 Rs. 98/- price as on 20.7.2015 Rs. 128.6/- difference Rs +30.60/-
3)      Wonderla Holidays Ltd dated 16.6.2015 Rs. 251/- price as on 20.7.2015 Rs. 269/- difference +18/-
4)      CCL Products Ltd dated 18.6.2015 Rs.182/- price as on 20.7.2015 Rs.193.50/- difference +11.50/-
5)      Akzo nobel India dated 20.6.2015 Rs 1269/- price as on 20.7.2015 Rs, 1323/- difference +54/-
6)      E clerx services dated 22.6.2015 Rs. 1452/- price as on 20.7.2015 Rs. 1472/- difference +20/-
7)      Talwalker fitness dated 23.6.2015 Rs. 318.50/- price as on 20.7.2015 299/- difference _ 19.5/-
8)      Kipt technology dated 24.6.2015 Rs. 99.50/- price as on 20.7.2015 111.65/- difference +12.15/-
9)      Markson Pharma dated. 25.6.2015 Rs.58/- price as on 20.7.2015 89015/- difference +31.05/-
10)   Sharada corp chem dated 26.6.2015 Rs. 331/- price as on 20.7.2015 Rs.352/- difference +21/-
11)   Fiem Ltd dated 28.6.2015 Rs.594/- price as on 20.7.2015 Rs. 624/- difference +30/-
12)    Timken Ltd. Dated 29.6.2015 Rs. 562/- price as on 20.7.2015 Rs.581/- difference +19/-
13)   Info edge (I) ltd dated 01.7.2015 Rs.872/- price as on 20.7.2015 Rs.870/- difference_02/-
14)   Weizmann Forex Ltd. Dated 2.7.2015 Rs.262/- price as on 20.7.2015 Rs300/- difference +38/-
15)   KRBL Ltd dated 5.7.2015 Rs172/- price as on 20.7.2015 Rs168/- difference _04/-
16)   D link i ltd dated 6.7.2015 Rs 220/- price as on 20.7.2015 Rs 232/- difference Rs12/-
17)   Speciality restaurant dated 9.7.2015 Rs.140/- price as on 20.7.2014 Rs.142/- difference Rs +02/-
18)   True house education dated 12.7.2015 Rs 420/- price as on 20.7.2015 Rs 457/- difference +37/-
19)   Anuh Pharma dated 14.7.2015 Rs 938.5 price as on 20.7.2015 Rs995/- difference Rs+56.50/-
20)   Vrinchi technologies ltd. Dated 16.7.2015 Rs. 21.8 price as on 20.7.2015 Rs 25.10/- difference+3.30/-(still high ceiling)


Thanking you,                                            see you later.

SHARE TRADERS- YOUR DOUBT CLEARED.

Hi, Friends

1)       What is Technical Analysis?  Technical Analysis is the study of Market action, primarily through the use of charts for the purpose of forecasting future trends.  It is an art of identifying trend changes at an early stage and to maintain an investment posture until the weight of evidence indicates  that trend has  reversed.  Technical analysis is the science of recording, in geographical form the actual history of trading in a certain stock or in the averages and then deducting from that pictured history the probable future trend.


2)      What are the four fears that a trader fears most?(i)                 Fear of being wrong.(ii)                Fear of loosing money.(iii)               Fear of missing out.(iv)              Fear of leaving money on table.(v)                Fear of short money when unnecessarily lost on speculation, but money required at the time of buy when market conditions improve.  He may be only a viewer when all are buying in a good market, as his pocket is empty.


3)      What is the worst that can happen to a trader?  The worst that can happen is when a trader places too much importance on his present trade so much, so as to make it a life and death issue (overexposure).  Most traders place too much significance and meaning on each trade making it difficult to cut losses or admit they are wrong.


4)      What is the best trading style recommended for traders?  Every trader has his own style of trading.  Some traders take a buy and sell positions as per their subjective style, i.e. , with a combination of a lot of factors like fundamentals, tips, graphs etc.  But it is better a technical trading for all traders who have been giving losses or are not making profit.


5)      Can  I expect 100% return on my investment in a year?  Ninety percent you may get this return but only after exercising a lot of control over your greed and fear.  You will have to work on a  proper system and trade on it and believe in yourself.  To start with it is better, you to play in just options only ie buy calls when the trend is up and buy puts when the trend is down.  Also remember that to achieve 90% return per year chances are equally strong that you lose your entire capital if you make more than one or two mistakes, say of not cutting your trades when they are going in a loss.


6)      I don’t know whether I am a short term trader or a long term trader:-  We follow technically and only go on holding a stock in delivery till the trend of cash stocks is up.  But the moment trend of stock market when the trend is up, we again buy the stock through it might come expensive next time but who knows if it had to  fall further from where we sold.


7)      Why do I get tension some times which trading?  Tension  mainly when you are over trading and have no rules and stop losses.  You are trading with borrowed on interest money, wife ornaments pledged money, if you are a cashier you have in tension to trade with  Company’s money etc., are reasons for tension.  So refer to trading rules.


Thanking you,      see you later                                                                              .   

19 Jul 2015

SUCCESSFUL APPLICATION OF BUY AND HOLD STRATAGY

The successful application of the buy and hold strategy depends upon the initial selection of the shares. Therefore, it is very important for you to select your shares after careful research, analysis and study. Select only those companies which are well managed, technologically advanced and which have drawn up massive long term expansion-cum diversification plans. The buy and hold investment strategy will work best only with such companies. Secondly, do not put all your money into one company. Diversify by investing in at least ten companies operating in different industries. Thirdly, diversify over time also. Do not invest all your money at one time. Spread your investments over about six months to one year. In this way, you will be able to bring down your average investment costs and avoid the danger of investing at a time when the market is at one of its peaks. Fourthly, give your investment time to produce results. Don’t expect instant results.. Don’t get nervous or upset by unexpected short term market fluctuations and don’t let them provoke you into hastily restructuring or altering your original investment portfolio. Remember you are long term buy-and-hold investor and therefore keep your long term investment goals constantly in the forefront of your mind. Keep your mind on the long term cycles and ignore the sporadic ups and downs.


Wish you all success.                                                           See you later.