Tuesday, June 30, 2009

P/E in stock market

P/E is used to define that a stock is over price or under price. for example our index P/E is near about 12 so if you buy a stock which P/E is higher then 12 then it show you are too optimistic about that Company future and you pay its more then 12 year earnings for one share.
i think you understand means of P/E i again explain for you if a share earn 10 rupees in a year and it traded in 120 in market then it P/E is 120/10=12 it show share is fairly priced but if you buy a share which P/E is 80-500 then it clearly show you are gambling in the market and more chance to loose your money.
so buy stocks only 8-16 P/E less then 8 P/E stock are also danger because it show market is undervalued these stock and some thing is wrong with share because market is always right

Sunday, June 21, 2009

mercator lines limited stock for trading


How do you find the stock of Mercator Lines Limited? Is the current stock price is over value or still there is a scope of booking some profit keeping in mind the investment period of 1-2 years. ask by shri tapan ansal by mail

1. Mercator lines is a trading stock with 62.04 percent public shareholding and promoter hold only 37.96 percent of share. Therefore, where public holding is high there are no chance to fundamentally high move in this type of share only trading move is there.
2. EPS of Mercator lines is 15.96 in March 2009 and it discount it market price 59 to P/E multiple of near about 3.5
3
. Due to Mercator line low P/E and unique business model we think this share is advisable to investment but also remember that face value of Mercator line is rs 1
4.we think if you invest in this stock please book your profit to every move because it is a trading stock see price data of mercator line since 1994 you self understood that why I give you advise book your profit on every move
Yearly High Lows
Year High Low
1994 60.00 12.50
1995 42.50 18.20
1996 21.00 6.60
1997 12.25 5.50
1998 9.00 6.00
1999 46.75 6.00
2000 62.10 10.65
2001 17.10 10.50
2002 38.25 12.25
2003 271.00 18.50
2004 977.70 206.00
2005 935.00 78.55
2006 156.00 27.60
2007 160.80 31.25
2008 184.95 22.35
5. This is a high volatile stock so if your stock move 30 percent then book your ten percent holding and if stock down 30 percent then buy 10 percent stock. I give you an example you buy 300 shares at the rate of 60 and share goes to 78 then sell 30 stock and at 96 again sell 30 stock and 114 again sell 30 so you are able to take full advantage to trading run

Tuesday, June 16, 2009

IKF TECHNOLOGY:UPDATE

Our respected reader shri anil vishwakarma read our article about ikf technology in this link http://sharegenius.blogspot.com/2009/06/ikf-technologyonly-speculation.html
And sent us a site link http://www.indianstocksnews.com/2008/11/ikf-technologies.html
That contain a very bullish prayer of ikf technology and they ask that is it right or wrong?Anil Vishwakarma
Therefore, our reply is1.Theses news is right but they not direct related to ikf technology. They related to a separate company ikf green field limited which are wholly Owen subsidiary of ikf technology limited (this company is not listed)
2.for proof please visit this site http://www.ikfgreenfuel.com/
3.and promoters of parental company sell their 85 percent holding to Indian people for proof please visit this link http://www.bseindia.com/shareholding/shareholdingPattern_60.asp?scripcd=532414&qtrid=61
4.so we are still mention our view in our article http://sharegenius.blogspot.com/2009/06/ikf-technologyonly-speculation.html

Friday, June 12, 2009

IKF TECHNOLOGY:ONLY SPECULATION ?


Sir I would like to know about south india based company IKF TECH. It is said that it will become multibagger in next 3 year. Is it true? -ASK BY SHRI ANIL VISHWAKARMA BY MAIL

1. Ikf technology is a small software company which face value is 1 rupee per share
2. If you want to visit IKF technology site then please go to http://www.ikf-technologies.com/
3. Indian oil limited is a client of IKF technology
4. IKF Technologies Ltd. is Public Limited Company incorporated in the year of 2000 with the main objective of promoting IT, ITES, Telecom and Alternative Energy Resources across the Globe.
5. IKF Technologies has an Onshore Development Center at Germany, US, and an Offshore Development Center in Noida, India. The development centers have modern and well-equipped infrastructure.
6. Promoters hold only 14.43 percent stake in this company and general public hold 69.35 percent stake so it is a very very bad sign and it clearly identifies that this is an operator driven penny stock, which speculate, based on operator rumors and no fundamental sport in this stock.
7. So we advise our investor (read disclaimer before investing and remember our view is negative in this stock) that it is possible this share give you a decent return on speculation basis but this is not a good stock. So only high risk profile and speculator can enter this stock other small and medium investor please do not invest in this stock

Wednesday, June 10, 2009

WILL THE SENSEX TOUCH 18000 POINTS?

HELLO SIR.MY QUESTION IS WILL THE SENSEX TOUCH 18000 POINTS. WILL THE BULLISH MARKET WILL CONTINUE? - ask by satya from e-mail

Ok, we want to educate our investor about index. Index like sensex is made from 30 shares but there are a major contribution of infosys and reliance so when these two shares is rise up for 50-60 rupees then index is easily up for 400 points.
You see this pattern in last 2 days. There are a 750 points jump in sensex but most of investors have no return to there portfolio because mid cap and small cap not perform in last 2 days.
Therefore, we think index is not a point for smart investor. Now I give clear answer of your question
I am not sure that index will touch 18000 in near future but I give you some example for your concept about index
1. When sensex is 6000 then arvind is 140 but when sensex is 18000 then arvind is 46
2. When sensex is 5500 then OBC is 450 but when sensex is 21000 then it 200 only
3. When sensex is 21000, mmtc is 450 but when it come down to 14000 then mmtc is 52000.
So what you think about index?

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