Investing in IPOs – Valuation or the Share Price?
Lately, I have been getting some questions on investing in IPOs. This morning, it just occurred to me that despite working on IPOs and drafting offer documents for 5 years of my life, I have not written a single post about it. Just goes to show how much you ignore things that you know the […]
A Simple Rule to Calculate Fair Value of Stock
Updated on 27 December 2016 On 1 December 2016, Sunil Hitech issued 10:1 stock split and 1:1 bonus issue shares. For the purpose of this article, consider Sunil Hitech price as 20 times of its current market price. If you have been reading my posts or of any other fundamental stock analyst, you would have noticed […]
Real Estate Investment Trusts (REITs) in India
REITs – Meaning Real estate as an investment option is mostly unaffordable for most Indian retail investors. The Real Estate Investment Trusts (REITs) announced in the Union Budget 2014–15 enable investors to collectively invest in commercial properties and earn a profit from such investments. At the same time, REITs provide an alternative funding channel for […]
Private, Public and Public Listed Companies
Private Companies: As the name suggests, companies which are owned by a small, private group of people or entities – company’s founders, management or a group of private investors. Transfer of shareholding is restricted unless agreed to by all the shareholders. What is a public Limited Company in India? Public Companies: Public companies are owned by […]
10 Emerging Market Risks – India Focused
Economists and analysts across the board believe that the Indian economy has entered a 5 – 10 year bull market phase. What if at all should hold you back from investing in India. The risks mentioned below are generic in nature and apply equally to both, direct investments (FDI) and secondary market investments (mostly FIIs): […]
Emerging Markets: In India, Stock Investing Finds Renewed Zeal
What is an Emerging Market? While there is no universally accepted definition for the term ‘emerging market or an emerging economy’, many economists and agencies have defined the term(s) based on certain characteristics which are common to most classifications. By any measure, an emerging economy will have 3 things: (i) Rising Gross Domestic Product (GDP) – While countries […]
Sector Rotation in Share Market
A few days back someone, allegedly from one of the most reputed financial newspaper called me for my views on cement stocks. It was a cold call but at least inspiring that I had reached a point where my views were sought by the media. His question was simple – Going forward, what is your […]
Timing The Stock Market: Right Time to Buy & Sell
I think whoever said – spend time in the market instead of timing the stock market, must not have started investing at the peak of the year 2008. I for one have always agreed that if you buy good stocks and hold on to them for a long period of time, you will make a […]
Should you buy more to average share price if it goes down?
We all do it, or at least have done it at some point of time or the other. Average share price – Average your buying price by purchasing more shares at a price lower than your original purchase price. In an ideal world, you should of course be buying stocks where you see value. In other […]
What You Need to Learn about Investing in Penny Stocks
As per Securities & Exchange Commission (SEC), U.S.A, Penny Stocks are generally stocks issued by small companies which trade at less than $5 per share. In India, the words ‘penny stocks’ are not defined anywhere but are usually associated with stocks which trade for very little value and mostly below Rs 10. Is it a […]