We always say do your own analysis before buying even a single share. Well only time will make you a better investor, till then you are a gambler by the way I got only200 LCEM shares and I can wait 10 yearsDS Wijesinghe wrote:I can understand some experts getting dragged in to this debate but pardon me, I find it difficult to understand the necessity to predict very short term price movements which could encourage high speculators to trade and either make big money or make big losses. That is not prudent long term investing but gambling.
When Investing even in 100 shares of Lanka Cement do it with the intention of keeping those shares for a minimum of 5 years. Nothing less.
You need to do a thorough check about the stock before you commit to buy a stock and Ask yourself
1.Do I like their product Cement and how can I keep myself aware of the cement industry from time to time, like the retail price increases, new factories, etc.. IF YOU PERSONALLY DONT LIKE CEMENt AND HATE THE INDUSTRY DON’T TOUCH THE SHARE. Not even if experts recommend.
2. Check the financials for at least past 5 years on revenue, profitability, ROE, NAVPS, DPS. There should be a minimum of 10% growth year on year. If Lanka Cement fails at least in one area on these measurements FORGET LANKA CEMENT ALLTOGETHER. Let the speculators trade until the company is turned around or closed down. Keep your hard earned money out of companies like these.
No need to do anymore tests if the above 2 checks fail.
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