Another collection day???

ndnk · 1 Another collection day??? Mon Mar 21, 2011 8:05 am

ndnk

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what do u think,,,, will today be an another collection day? If credit clearing continues it shud happen,,, Actually how do we know when this credit clearing happens??????

Can we assume like this???? Today market is green,,, so there is no much credit clearing,,,, and ppl enter the market thinking that market will go up further... They buy for credit,,,, then in another 3-5 days market is comming down,,,,, Very Happy

Max · 2 Re: Another collection day??? Mon Mar 21, 2011 9:08 am

Max

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Hi,

My Prediction is the Market will be green Initially alien

, So that the remaining Margins maybe cleared onto retailers for no loss, And then Market will become dull albino

as the day proceeds, As retailers who make the market green might run out of steam.... Suspect

Just my 2 cents Smile

I hope I am wrong and the market starts a bull run, as my portfolio is sooooo red Very Happy

Aamiable · 3 Re: Another collection day??? Mon Mar 21, 2011 2:52 pm

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Volumes are picking up, good opportunity for the medium term investors.

StocksWatch · 4 Re: Another collection day??? Mon Mar 21, 2011 8:10 pm

StocksWatch

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As expected, we had a red day today. But I see vey few posts today about the red market. Looks like people are fed up talking about red markets these days. However, the situation is ideal for the bargain hunters...and we can see collection going on with many attractive counters.

Academic · 5 My bag is full Mon Mar 21, 2011 11:40 pm

Academic

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This is just to share with you all that I fished hunting today (as my bag is almost full). As the volume is growing, value per transaction is increasing, number of transactions is decreasing and number of positive contributors is increasing, I guess we are at the trough of the wave.

To accommodate any unexpected drops/opportunities, I preserved 10% my buying power. Though I do not want to promote my hand picks, to share with you my thoughts, this time I invested mainly in businesses with high fixed cost (high operating leverage) as the economy is recovering, the sky is the limit for their profit!

Slstock · 6 Re: Another collection day??? Tue Mar 22, 2011 12:18 am

Slstock

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Academic wrote:
This is just to share with you all that I fished hunting today (as my bag is almost full). As the volume is growing, value per transaction is increasing, number of transactions is decreasing and number of positive contributors is increasing, I guess we are at the trough of the wave.

To accommodate any unexpected drops/opportunities, I preserved 10% my buying power. Though I do not want to promote my hand picks, to share with you my thoughts, this time I invested mainly in businesses with high fixed cost (high operating leverage) as the economy is recovering, the sky is the limit for their profit!

Hmm... your observation should not go unnoticed. There should be a few more days of volatility I guess before any big boom.

"Though I do not want to promote my hand picks, to share with you my thoughts, this time I invested mainly in businesses with high fixed cost (high operating leverage) as the economy is recovering".
No harm mentioning what these shares are if you like . There is a difference in mentioning and promoting. I have yet to see you do that so no problem.

mark · 7 Re: Another collection day??? Tue Mar 22, 2011 12:18 am

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many shares are at base values,which support fundamentals..........,and also which are oversold............they arranging their base to next run start from April onwards............
intelligent players are collecting................ Smile

whichever stock came down rapidly,have a chance to re appreciate to it's real values sooner than later............... Smile

just a thought.......... Cool

Academic · 8 Re: Another collection day??? Tue Mar 22, 2011 11:08 am

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Academic wrote:
This is just to share with you all that I fished hunting today (as my bag is almost full). As the volume is growing, value per transaction is increasing, number of transactions is decreasing and number of positive contributors is increasing, I guess we are at the trough of the wave.

To accommodate any unexpected drops/opportunities, I preserved 10% my buying power. Though I do not want to promote my hand picks, to share with you my thoughts, this time I invested mainly in businesses with high fixed cost (high operating leverage) as the economy is recovering, the sky is the limit for their profit!

These are some of my thoughts, not facts. It is natural, some of you may not agree with me. It is highly possible that I be wrong.

Slstock · 9 Re: Another collection day??? Tue Mar 22, 2011 11:11 am

Slstock

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Academic wrote:

Academic wrote:
This is just to share with you all that I fished hunting today (as my bag is almost full). As the volume is growing, value per transaction is increasing, number of transactions is decreasing and number of positive contributors is increasing, I guess we are at the trough of the wave.

To accommodate any unexpected drops/opportunities, I preserved 10% my buying power. Though I do not want to promote my hand picks, to share with you my thoughts, this time I invested mainly in businesses with high fixed cost (high operating leverage) as the economy is recovering, the sky is the limit for their profit!

These are some of my thoughts, not facts. It is natural, some of you may not agree with me. It is highly possible that I be wrong.

Academic:
Would you mind elaborating on this further?

"this time I invested mainly in businesses with high fixed cost (high operating leverage) as the economy is recovering"

Academic · 10 Re: Another collection day??? Tue Mar 22, 2011 1:35 pm

Academic

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slstock wrote:

Academic wrote:

Academic wrote:
This is just to share with you all that I fished hunting today (as my bag is almost full). As the volume is growing, value per transaction is increasing, number of transactions is decreasing and number of positive contributors is increasing, I guess we are at the trough of the wave.

To accommodate any unexpected drops/opportunities, I preserved 10% my buying power. Though I do not want to promote my hand picks, to share with you my thoughts, this time I invested mainly in businesses with high fixed cost (high operating leverage) as the economy is recovering, the sky is the limit for their profit!

These are some of my thoughts, not facts. It is natural, some of you may not agree with me. It is highly possible that I be wrong.

Academic:
Would you mind elaborating on this further?

"this time I invested mainly in businesses with high fixed cost (high operating leverage) as the economy is recovering"

Total cost of any entity broadly consist variable and fixed costs. Fixed cost does not change as number of units produced change. Sri Lanka (Ceylon) Electricity Board (CEB) is a good example. Whether they produced electricity or not they have to maintain huge staff, reservoirs and other precautionary activities. Thus, even CEB stopped producing electricity they continue to incur those costs.

On the other hand if they are operating at 50% capacity and increased the operating level to 90% does not increase their cost much and their profit increases as far as income from a unit produced is higher that additional (variable) cost of a unit.
Other examples for this kind of businesses are

# Constructing facilities and renting out them
# Manufacturing organizations which require large capital investments.

As SL economy was not performing well, many such high fixed cost industries had to pay for substantial amount of their revenue for fixed operating expenses. So they reported loses. But if those companies start getting new businesses they can retain large portion of their income as cost does not increase as units produced increases.

IMHO, the prime way to identify those businesses is that they have low P/B with less or small negative earnings with positive future outlook. Further , second type can be identified easily as they are operating as monopoly of near monopoly (competitors can't easily enter since the fixed cost is high).

Hope this may help you.

StocksWatch · 11 Re: Another collection day??? Tue Mar 22, 2011 3:39 pm

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mark wrote:many shares are at base values,which support fundamentals..........,and also which are oversold............they arranging their base to next run start from April onwards............
intelligent players are collecting................
whichever stock came down rapidly,have a chance to re appreciate to it's real values sooner than later...............
just a thought..........

Totally agreed.

Slstock · 12 Re: Another collection day??? Thu Mar 31, 2011 4:05 pm

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Good explanation Academic. Rep for you.

StocksWatch · 13 Re: Another collection day??? Fri Apr 01, 2011 3:47 am

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@ Academic - Thanks for your nice explanation. + Rep from me too. Could you also please give some examples for companies with high operating leverage and positive outlook according to your opinion? This may help me to study further on this subject.

Soundchips · 14 Re: Another collection day??? Fri Apr 01, 2011 8:28 am

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StocksWatch wrote:

mark wrote:many shares are at base values,which support fundamentals..........,and also which are oversold............they arranging their base to next run start from April onwards............
intelligent players are collecting................
whichever stock came down rapidly,have a chance to re appreciate to it's real values sooner than later...............
just a thought..........

Totally agreed.

Thanks , since yesterday I collected few blue chips

Aamiable · 15 Re: Another collection day??? Fri Apr 01, 2011 12:14 pm

Aamiable

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Soundchips wrote:

StocksWatch wrote:

mark wrote:many shares are at base values,which support fundamentals..........,and also which are oversold............they arranging their base to next run start from April onwards............
intelligent players are collecting................
whichever stock came down rapidly,have a chance to re appreciate to it's real values sooner than later...............
just a thought..........

Totally agreed.

Thanks , since yesterday I collected few blue chips