Did you observe?

sapumal · 1 Did you observe? Wed Apr 25, 2012 12:17 pm

sapumal

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Last 3,4 weeks
1. CTC, NEST, COMB, JKH was up
2. Buki, SLT,CARS, DIAL going down.

group 2 are the main contributors(Manipulators) for ASI during last few quarters. Now they have down or manipulated again ?
Group 1 companies had some fundamental run. All seen foreign investments and Nest,CTC future earnings in rupee terms seems to be good. It was difficult to keep low due to foreign purchases. Also saw heavy volumes.
Group 2 , didn't see heavy volumes are trading. But they dropped badly. Foreign activities are low in these companies.But ASI depends on them. Due to downturn of group 2 we didn't see green ASI for 3,4 weeks and it was remained 5400-5500.

hariesha · 2 Re: Did you observe? Wed Apr 25, 2012 12:29 pm

hariesha

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I think it's good to cash NEST and CTC now, rather than buying or holding.

sapumal · 3 Re: Did you observe? Wed Apr 25, 2012 1:19 pm

sapumal

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My personal idea is sell Group 1 except banks. Buy Group 2

Fresher · 4 Re: Did you observe? Wed Apr 25, 2012 8:50 pm

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NEST XD is somewhere in June, so it might come down in next few weeks. People these days buy shares immediately when a divident announcement comes irrespective of when the dividend is. The share has appreciated more than 3x the dividend, so some may get a capital gain buy selling now.

further, if NEST has this value due to its large dividend, CTC should trade somewhere closer to that price too.

taniya1111 · 5 Re: Did you observe? Wed Apr 25, 2012 9:38 pm

taniya1111

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npp wrote:NEST XD is somewhere in June, so it might come down in next few weeks. People these days buy shares immediately when a divident announcement comes irrespective of when the dividend is. The share has appreciated more than 3x the dividend, so some may get a capital gain buy selling now.

further, if NEST has this value due to its large dividend, CTC should trade somewhere closer to that price too.

I think you r wrong, At the moment foreign buyers are buying this share due to some reasons, Dividend is also a reason, they are not thinking only about this 47.50 dividend but also about future dividends few days ago we heard some good news about NEST ,Further depreciation of SLR is an another thing,
More importantly who buys a 1000 + share for the dividend blindly without knowing the XD date,

Fresher · 6 Re: Did you observe? Wed Apr 25, 2012 11:37 pm

Fresher

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taniya1111 wrote:

npp wrote:NEST XD is somewhere in June, so it might come down in next few weeks. People these days buy shares immediately when a divident announcement comes irrespective of when the dividend is. The share has appreciated more than 3x the dividend, so some may get a capital gain buy selling now.

further, if NEST has this value due to its large dividend, CTC should trade somewhere closer to that price too.

I think you r wrong, At the moment foreign buyers are buying this share due to some reasons, Dividend is also a reason, they are not thinking only about this 47.50 dividend but also about future dividends few days ago we heard some good news about NEST ,Further depreciation of SLR is an another thing,
More importantly who buys a 1000 + share for the dividend blindly without knowing the XD date,

I had no time to see who was buying. Buy not only on this occasion but on almost every occasion when a company announces a dividend, the price initially moves up by atleast the dividend amount. I'm not telling it should, but that's how some people respond! There have been instances where even non-performing stocks gained many rupees on the day of announcement of a dividend of few cents.

Another fact for high dividend is as a result of the depreciation, now the parent needs to take out more LKR compared to previous periods.

my point was,
CTC paid 34.60/- as dividends for FY2011. (5 dividends for the year). Yield as per present price is 5.08%. It would have been much higher earlier since it saw an appreciation recently.
NEST paid 47.50/- which is a 3.96% yield as per today's price. (was higher when it was announced)

It was wholly based on dividend that I laid my argument.

Further, like it was discussed earlier, with the new trading system, whether a share trades at 10/- or 100/- or 1000/- doesn't matter to the traders.

sapumal · 7 Re: Did you observe? Thu Apr 26, 2012 9:57 am

sapumal

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I don't know Nest is over valued or not.
But Nest Dividend is not the only reason. Recently they started big expand by acquiring and building new plants