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Lord Jesus Christ Says...

The thief cometh not, but for to steal, and to kill, and to destroy: I am come that they might have life, and that they might have it more abundantly. I am the good shepherd: the good shepherd giveth his life for the sheep.

29 Oct 2017

SHARE MARKET-- TIPS TO BUY SHARE


Hi friends, If you have a promising growth share in mind, and you are only looking for an opportune moment and price for buying it, then the best time to do so would be around the middle of its accounting year. Suppose a company’s accounting year ends on 31st December, then the best time to buy its shares would be around June. This is the time when most investors and stock market operators lose interest in the share. The enthusiasm aroused by the previous years working result wanes, dividends have been distributed and there is nothing to look forward to except the current years working results, which appear too distant to arouse much excitement. This is the best time for picking up the share at a relatively low price- it may even close to its lowest recorded price of the year.


Share price usually record a sharp rise just before an expansion project of a company goes into commercial production. If you are a buyer, then you should do your buying a month or so before this happens. On the other hand, if you are a seller you should sell a couple of months after the plant goes into commercial production so that you can take full advantage of that price rise.


 Companies often issue press-release about their expansion plans, diversification plans, plans to issue better-selling new products, rising order book position and proposals to issue bonus shares, right shares, and right convert able debentures etc. News of this nature has bullish effect on share prices. Therefore, if you want to buy shares in such a company, do not delay placing a buy order with your broker. Ideally it would be best if you buy the shares on the same day as the news item first appeared in the news papers. The same rule should be followed when companies release their half yearly working results to the press, indicating improved performance.


Buying a share immediately on receiving a favourable news item is a good timing decision. It works most of the time. But it is even better, if you can buy in anticipation of a favourable news item or in anticipation of a favourable market development. For example, it is always better to buy a share in anticipation of a liberal bonus or rights issue rather than immediately after the news announcement of such issue.


Keep a watch on the performance of similar companies operating in the same industry group? For example if Ceat and MRF announce favourable operating results, then the chances are that other Tyre companies will also come out with improved performances. Use this information to improve the timing of your purchase decisions by buying shares of those Tyre companies in anticipation of an improved performance. In this way you can substantially improve your investment performance by staying ahead of, and outrunning the crowd.


Wish you good luck.                                                         See you later.

1 comment:

  1. You are sharing useful information for us. I learn more new information from your post. write a paper The tips are of share market is very useful for me. Thanks for sharing precious information.

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