y is the value of these stocks depreciating. #KOTA closing is 45.50.. i dont c y its going down.. whats the reason for this..
whats you alls idea guys...
thanks...
9 replies, MarketWatch 9 Mar 10posted by mission, 8 Mar 10
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reply from rohit, 8 Mar 10
Hi mission
Kota support looks like around 42-39 band it has seen a vertical rise so profit booking is normal.
Thanks
Rohit
reply from mission, 8 Mar 10
thanks rohit... but does #KOTA have the potential to rise again. i thought it wil hit the all time high of 73 since rubber and tea prices are on the rise.
Also Rohit i bought #CERA (Lanka Ceramics) at an average cost of 77.. but im concerned whether i bought expensive and also the price now is 70.25.(giving me heart attacks.... lol)
and also i have concerns that investors are leaving cse in the back of high intrest rates.
thanks....
reply from rohit, 8 Mar 10
Hi Mission
#CERA still has the momentum, I am not sure what made you buy at 77 as far as stock averaging is concerned it should be done only at some support points.
If you have bought for day trading which looks most likely in this situation then you should have exited the very day or buying or at most the next day. If you have bought for long term with some calculations in mind then why should you panic because of 10% move on the down side when in CSE stocks move upto 78% in a day. :)
Thanks
Rohit
reply from mission, 8 Mar 10
Ya Rohit my broker told me to buy at that price (77) and the broker said it can be sold in 7 days like for about 84.. nothing to do with long term.. but since the developments in infrastruture in sri lanka might lead this stock to perform better in the mid term thats what i feel...
thanks Rohit...
Market volatility is very common now. Unlike in the past we will have more and more volatility in all typed of markets in the future.
Stocks will not go straight up and down. Patience is important for some stocks.
Some stocks take time to appreciate. Some will take more than one year.
Just because they went above Rs.70/- we cannot expect it will go above again. Some times, it can go above Rs.100/- Sometimes it will go above 60. Sometimes it will reach to Rs.55/-. We cannot predict the market in the short run. We have to follow stocks for a considerable period.
Future earnings are very important.
reply from MarketWatch, 9 Mar 10
Hi Mission
Now Both #KOTA and # CERA are doing well. Both are not overvalued Isn’t it? Kota will announce good results in the next quarter.
So do not worry much. You must worry when they have extended P/E ratios and if they are overvalued.
It will take sometimes to see infrastructure developments, construction and road developments in the north and east.
Therefore we have to wait at least two years to see strong balance sheets is some subgroups such as cement etc. Some hotels will take time to repair their balance sheets. We have to be selective in hotels sector.
We can see gradual growth in following areas first.
Agri-Food sector
Transportation
Hotel and travel sector
I forgot to mention Plantation sector. They also will announce good results.
Then banking sector also will benefit.
In the long run, many sectors will benefit such as cement, ceramic, cable, production etc.
We can see next direction of the market at the end of this year
reply from mission, 9 Mar 10
thanks marketwatch for ur insights... but what is troubling me is #CERA (Lanka ceramics) bought it at 77... now its 69.. and really whats happening to the cse.. its going negative.,, next time i will not blindly listen to my broker... opportunity cost is that i cant invest in #KHL. regreting so very badly....
thanks.
reply from MarketWatch, 9 Mar 10
Hi Suran
Stocks never go straight up and down. In addition, we should have some time horizon as well.
It is true BALA made a loss last quarter due to wage adjustments. However, they will make strong profit in the next quarter.
On valuation and future earnings, both #BALA and #BFL should go up. Remember #BALA has the lowest debt among plantations companies and even during higher interest environment and during bad period they will do better than their competitors will.
ATL has improved lot when compare with corresponding last year. They have reduced losses considerably. I think they will make profit in the long run. I do not know much about their investments. They have some investments in Vidu lanka Power Company and Stafford Hotels.
Any stock can go up suddenly. For example GRAN was trading around Rs.12/- then suddenly it went up to Rs.19/-
Market is not 100% efficient. Some players can make havoc in the market. Any stock can go up at any time.
Therefore, even in major trend we must be careful in some occasions. If we can identify that future
Hi Mission I have noticed average investors never buy in pullbacks and when market is sluggish. If we want to buy some stocks, we have to follow those stocks for a while.
Globally some brokers want to trade as they want. . We must never allow that to happen.
Once we learn the market, we can identify market direction, pullbacks, break outs, strong bull trend, down markets etc.
I repeatedly told in this forum not to listen to other people’s tips and to do some homework before they buy them. Do not change your investment strategy.
I can remember once one member here posted question. Is it good to buy #BFL at Rs.20/- and BALA around Rs.22/-.
I said before you buy any stocks to study the sector and to follow the stock. Again, I told another member to buy 100 shares each to study why it is going up and down.
Please use the forum for topics related to 'investments' only, be responsible when posting and replying to posts and respect other people's views. Thank you!
