High vs. Low Priced Stocks – What Delivers Better Returns?
A few days back I received this Question – “Is it better to choose low priced stocks over high priced ones?” To elaborate on the question – do low priced stocks have a better chance of multiplying faster than shares that are already priced very high? Think of a share trading at Rs. 10 vs. […]
How Are Stock Prices Determined?
Today I will try to answer a question which I received from one of our subscribers. Vijay asked – “How are stock prices determined? I mean, why would a stock like Bosch trade at Rs. 26000+ while Noida Toll Bridge would trade at Rs. 35? Does it purely depend on how many shares are ‘in […]
Best Fixed Income Investment Options in India
I have lost count of the number of queries I have received about the best fixed income investment options. I have refrained from writing about this mostly because I firmly believe that “nobody ever became a millionaire by investing in fixed deposits”. Yet, people get fascinated by 8% over 7.75%. If you are used to investing […]
How to Find the Most Volatile Stocks?
What is Volatility? Volatility in the context of stock markets is the amount of price change which a stock experiences over a given period of time (i.e. breadth or the difference between high-low). Put differently, if the price stays relatively stable, the stock has low volatility. A highly volatile stock is one which moves randomly in […]
Draft Red Herring Prospectus (DRHP) and the IPO Procedure in India
I have long been convinced that not more than 0.1% of retail investors look at the (Draft Red Herring) Prospectus (the DRHP) before applying for shares in an IPO. As a lawyer (and an Attorney) who spent 6 years drafting these documents, this has never been a happy realisation. I wrote things which nobody liked to read. This […]
National Aluminium Company Limited (NALCO) – Stock Buzz
National Aluminium Company Limited (“NALCO” or the “Company“) is engaged in the production and sale of alumina and aluminum products primarily in India. NACL is primarily involved in bauxite mining, alumina refining, aluminum smelting and casting, and power generation activities. The Company’s products include aluminum metal products, including ingots, such as sows, alloy wire rods, […]
How Many Stocks Should an Ideal Stock Portfolio Have?
This is possibly the most open ended question about stock investing and has no correct answer. Honestly, there is no rule here. I had written a post on this sometime back where I said, personally, I never try to own more than 5 stocks. That works for me. In fact, if you calculate the return of […]
Best Managed Companies in India
A manager may be sitting on one of the most innovative idea, he could have found a way to cut his cost to zero and achieve potentially unlimited profitability; if he is a cheat, you will lose money by betting on him. For years, successful investors have paid the highest amount of attention on […]
Promoter under ICDR Regulations And Company’s Act – Legal provisions
I cannot count the number of times I have spotted people confusing between directors, promoters and management. Even read articles in national newspapers with the wrong classification. I believe that there are 2 reasons for this. First, often the same person(s) act in all these capacities. Second, mostly these articles are written by journalists and […]
Transcorp International Limited – Stock Buzz
UPDATE: 1 JUNE 2016: NOTE: THE BELOW STOCK WAS SPLIT 10:2 ON 10 MAY 2016. EFFECTIVELY IF YOU BOUGHT 1 STOCK AS OF THE DATE OF THIS REPORT, YOU WILL TODAY HAVE 5 STOCKS IN THE COMPANY. Transcorp International Limited (“Transcorp” or the “Company”) specializes in providing foreign exchange and inward remittance services in India. The Company offers […]