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Money Thread

Discussion in 'Hangout' started by Bala, Sep 23, 2010.

  1. J Ravi

    J Ravi Esperto

    Messages:
    2,293
    Bangalore
    Coal India IPO is going to open on 18 Oct 2010. I am going to apply for it using my Axis Bank online ASBA [Application supported by blocked amount]. I have advised my children to follow suit. Almost all Government PSU IPOs are doing extremely well barring a few like NHPC.
  2. amogh

    amogh Staff Member Janitor

    Messages:
    1,377
    Pune
    Grande Punto 1.3
    Yes !! I think I will subscribe for Coal India IPO as well.

    And I bought NHPC from the open market. Did not subscribe for the IPO. I do think NHPC will give returns over the long term (3-5 years)
  3. Vroom

    Vroom Amatore

    Messages:
    234
    Mumbai
    I invest too, but there are a couple of things:

    1. If you have invested in decent companies / verticals, you can still be with the market growth / growth of the economy 8%-9%
    2. The question is how do you beat this number and go higher with investments (I mean direct into stocks and not with a MF). I do look at the PE ratio, EPS and whole lot of that jazz. What do you guys look at when you invest directly in stocks specifically to outgrow the organic returns?
  4. amogh

    amogh Staff Member Janitor

    Messages:
    1,377
    Pune
    Grande Punto 1.3
    I look at the business model, board of directors, website. I don't get into much of technical analysis (although I am professionally trained to do that). I look at the fundamentals : where the business fits in the value chain, who are its customers, what is the quality of customers, quality of competition, the outlook for the customer's business etc etc

    For example : have you seen stocks of companies who are suppliers to Maruti Suzuki & Tata Motors ? The auto segment in India has boomed : which in turn has helped these suppliers grow.

    I had suggested Shriram Transport Finance Company to a lot of my friends (I had bought it in single digits : I am poor you see) purely on the basis of fundamentals. It was simple : the company had NO competition. Just look at the way it has outperformed the sensex.
  5. Vroom

    Vroom Amatore

    Messages:
    234
    Mumbai
    I followed the other route (technical analysis) in a couple of stocks - Hexaware Technologies and Navneet publications. Their PE ratios compared their friends in the same vertical were lubriciously low. I have received a return of 51% and around 29% respectively with these 2 stocks, in around 5 months time. Ofcourse like Warren Buffet says, you got to look historically at stocks and see what their bonus / dividend ratio have been.

    Simple advice from Warren Buffet: ::O

    Rule 1: Plan such that you never lose money in the stock market
    Rule 2: Do not forget Rule 1

    Cheers,
    Vroom
  6. J Ravi

    J Ravi Esperto

    Messages:
    2,293
    Bangalore
    A few minutes back, I applied online for 400 shares of Coal India IPO through my Axis Bank saving account under ASBA at cut-off price of Rs 245 each. As the response from the RII category is very muted, I am sure of full and firm allotment.
  7. For Retail category (equally applicable for other categories too), its always last minute rush. I am sure that on the last day COAL India IPO will be oversubscribed N times. And also for that reason, the allotment will be fractional for all in retail category.
    Hence I applied for max possible in retail. Keeping the fingers crossed now.;) I am IN for long term, hence not worried of listing gains. STIll STill I would like to see it list @ a good premium and continue the RUN thereafter...!
  8. amogh

    amogh Staff Member Janitor

    Messages:
    1,377
    Pune
    Grande Punto 1.3
    Ok : allow me to be a spoil sport. But I do think Coal India will go below its IPO price even if it lists at a premium.

    This is just my gut feeling.
  9. J Ravi

    J Ravi Esperto

    Messages:
    2,293
    Bangalore
    ^By chance, if the market price goes below issue price, then I shall start accumulating it so that its average price becomes less.
  10. Exactly.! That IS the right strategy for such a good company like Coal India. (applies to any other fundamentally strong company). If price goes down due to short term volatilities or market sentiments, those are the best moments to buy more of the good stocks so that you average-out the prices.

    On new listed stocks there are chances that it may go below listing price because public sentiments go for a roller coaster ride soon after listing. Again, better informed institutions/investors help a lot in pushing the price up in issues LIKE THIS.

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