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PrashantS
Senior Member
Joined: 14/Oct/2006
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Posts: 1294
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   Posted: 07/Dec/2006 at 9:24pm |
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Basantji is all busy with the baby........no investing strategies for sometime
Edited by PrashantS - 07/Dec/2006 at 9:25pm
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vnstks
Newbie
Joined: 25/Sep/2006
Online Status: Offline
Posts: 39
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Posted: 08/Dec/2006 at 12:50pm |
Is Essar shipping worth buying at these levels (33) ?
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vishal.sahay
Senior Member
Joined: 29/Oct/2006
Location: India
Online Status: Offline
Posts: 205
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Posted: 09/Dec/2006 at 3:09pm |
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Could anyone tell me how do we calculate the price of stock when its ex-right? Is it same like we do in bonus or some other principle is used for discovering the price of stock.
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Vishal
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 09/Dec/2006 at 3:39pm |
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(Market price before ex rights + Price at which Rights is being offered)/ (original stock + Shares entitled) = sounds a bit complex but it isn't just that I had to put down the formula makes it look a bit weird
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
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Posts: 6675
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Posted: 09/Dec/2006 at 5:57pm |
Basant, I beleive the numerator needs to be modified a bit.Market Price has to be multiplied by the no. of shares originally held and rights price has to be multiplied by no. of shares entitled. The whole thing then should be divided by Original shares and rights entitled on them.
Correct me, if wrong
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 09/Dec/2006 at 6:13pm |
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Yes, that depends on the ratio. Sure.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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nikhil090
Senior Member
Joined: 06/Nov/2006
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Posts: 1344
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Posted: 09/Dec/2006 at 7:25pm |
Originally posted by nikhil090
Hi,
I have observed in bulk deal section in ET that most bulk deals are entered by the same person/entities in which they buy/sell same quantities of a share at almost same price. Why do they do that? Does it have any significance for small investors? |
Would request any idea about these bulk deals. thanks
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nikhil090
Senior Member
Joined: 06/Nov/2006
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Posts: 1344
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Posted: 09/Dec/2006 at 7:29pm |
Originally posted by nikhil090
I will just present my analysis on ABC bearings for your inputs. This is a 45 yr old company which rapidly increased sales in 1993-94 period but fell on terrible times in 96-97 due to very high d/e ratio and reducing demand. The company suffered another loss in 2000-01. However since 2003, the company has come back pretty significantly. They have managed to increase their sales consistently, main tain profitability at 20% levels, improved ROE significantly (currently in excess of 30%), reduced debt/equity to 0.8, and have been pretty conservative. In 2005-6, they paid dividend of 40%. In this year, they have already done EPS of 9 Rs/sh, expected to close at EPS of 18/sh, going by the current trends. At current market price of 160, it is less than 9 times. The company is expected to grow at 25% (PEG of less than 0.5) after undertaking capacity expansion in 2006 funded by debt (no equity dilution in last 5-6 years). It appears a value cum growth buy at this price. market cap at @185 Cr.
The industry leader SKF has an exceptional 2006 so far. Sales have increased by 80% while net profitabilty has increased by 30% over last year. In 2005 they had an extra gain of 30cr because of othe income. The company is going to be 6 times the size of ABC and is roughly available at 18-19 times Dec 2006 earnings. market cap at 1500-1600 cr. No guesses about growth of SKF... |
Dear Basantjee,
Would request your inputs on this methodology and whether these investments make good sense?..
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