So though I should note the below during bad times to add some Saline.
Sept Quarter for 2013 was one of the worst performing quarters by overall companies at CSE I have seen in recent years ( if we take YoY).
But within the dark cloud, there can be a silver lining that can become gold one day ( let not talk GOld now right?)
1) Most companies have grown their Revenue by large margin. But the on profits it does not show. This is due to lower consumer demand economy ( local and global) , higher loans and finance costs , exchange rate mismatches , restructuring and gold price drops. Ask your self this, if these companies are strong , in the future can the high revenue growth be translated to higher profit? If yes, ask which companies and stufy. This is the time.
2) During these bad times, some companies has shown exceptional profit. Great. But don;t get carried way with all of them thinking they are long term shares. Some may show cyclic profit and others due to capitalizing on current commodity prices.
3) Some Banks and Finance companies have grown considerably but they are showing flat or lower profit than last year. Note that many of these banks/companies might be suffering from adjusting to loans given at higher interest times and drop in gold prices. This can be temporary mismatch as long as the companies are strong. Look at their deposit and loan book growth, CB ratios and growth in income. Can they perform better in coming quarters?
4) Some Industries are hit severely by high energy and finance costs and lower consumer demand. With expected economic boom Government is shooting for ( thats why CB is cutting rates) which of these companies can prosper.
So during these bad times study and select these companies and all I can say is
" Dura ballana , langa no ballana" ( Look at long term result and not short term) . ( Advice given to Prince Deegayu )
Hint: No market will drop continuously and no market will rise continuously. So within shorter term market dropping a lot further or turning around for a rise has better probability as of now?
Further note :
* There are far too many companies still trading below NAV and PE of 10 with temprary profit hits
* If you cannot bare this market , then you are a short term trader and not an investor. So you have to adjust your strategies to that of a trader.
Better yet , invest in some Fixed deposits and debentures etc. Never put all your Money to CSE. Don;t put to CSE what you cannot loose.
Always have some short term and long term Money in bank.
* If you are long term investor, some shares prices are giving you maybe once in a life time opportunity thanks to panic sellers .
Be smart to identify them and do the needful.
Last edited by slstock on Mon Nov 18, 2013 1:27 pm; edited 1 time in total