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Shares to Avoid - Page 2 Vote_lcap68%Shares to Avoid - Page 2 Vote_rcap 68% [ 178 ]
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FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » Shares to Avoid

Shares to Avoid

+21
roshan1039
heshan1997
ChooBoy
cseguide
Hewagak
wbslstocks
Teller
samaritan
ruwan326
Quibit
troy
warna123
EquityChamp
soileconomy
Harry82
bullseye
nis2010
vic19
SLBOY
Yahapalanaya
roshana7549
25 posters

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21Shares to Avoid - Page 2 Empty Re: Shares to Avoid Tue Oct 13, 2015 8:38 am

warna123


Stock Trader
Troy.Dont get your post about HDFC as promotion.(Anyhow I have).You have included sources,calculations etc.Always we appreciate those kind of posts with valuable informations

22Shares to Avoid - Page 2 Empty Re: Shares to Avoid Tue Oct 13, 2015 9:10 am

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
The dark side of social media is that within seconds anything can be blown out of proportion and taken out of context. It is very difficult not to get swept up in it all” -Nicola Formichetti

Internet penetration in Sri Lanka has been increasing rapidly during the last few years. According to the Central Bank of Sri Lanka, the total Internet connections grew by 68.4 percent during 2014. As a result, social media has become a powerful and persuasive mode of communication. It has influenced our lives in all possible forms, including financial decision-making. Today’s article will focus on the nexus between social media and the local capital market. This is a formidable aspect that cannot be ignored if we are to maintain efficient markets.

What is social media?
Social media is a form of communication, a countless array of Internet-based tools and platforms that increase and enhance the sharing of information. This form of media transfers texts, photos, audio, video, etc. There is a myriad of social media platforms and it is important to brief ourselves on each of these types before we proceed with the discussion. (See Table 1)

Is social media a necessary evil?
One could not undermine the role of social media in shaping capital markets. It facilitates the quick exchange of information. One could argue that it creates a level playing field. Even investors who live in the outskirts of Colombo will be able to grasp the latest developments in the market. These developments do not necessarily have to be limited to the performance of the market. It could entail material information on investment decisions of high-net-worth investors, performance of companies, managerial decisions made by companies/stockbroker firms, professional networking, etc. This will enable investors to have a close watch on information and make required changes to maintain a profitable portfolio. When access to information is increased, an efficient price discovery mechanism could be expected. Social media also acts as a portal for discussion on vital topics. They can be rich in factual information and enable their readers to grow in knowledge.

Is social media a double-edged sword?
The distinct difference between social media and print/electronic media is that the former encapsulates vital informal information that is at times not verified. This enables us to question the credibility of the information shared.

The credibility of information released through social media is subjected to heavy criticism.  A majority of social media is interactive and allows visitors to leave comments and even to chat with each other. This allows them to share whatever they feel without verifying the information. They do not have a fiduciary duty to the information they share. In such a situation, there is a possibility of sharing incorrect and inaccurate information. The market could be distorted if investment decisions are based on incorrect information.

It is observed that investor blogs play a decisive role in shaping investment decisions of local investors. Blogs can be an ideal platform for the investor community to discuss about the market. These blogs can also be used to evaluate market sentiments. However, many engage themselves in these blogs without a proper understanding on the functions of these web-based modes of communication. Anyone who becomes a member can share their views, information and predictions. In most cases, they use fake names in order to remain unanimous. At times it acts as a platform to exchange gossip. In such a context, it is easy for certain users to misuse these blogs. They can use it as a tool to misguide other investors in order to achieve their goals. Thus, it is important for investors to be vigilant when they are on social media.

Given in Figure 1 are extracts from various investor blogs in Sri Lanka. The names (user and the company) have been changed to maintain confidentiality.

How do people misuse social media?
Here are a few examples of the types of schemes you should be on the lookout for when using social media:

‘Pump-and-dumps’ and market manipulations
‘Pump-and-dump’ schemes may involve advertising a company’s stock through false and misleading statements on social media. These false claims could be made by urging readers to buy a stock quickly or to sell before the price goes down. Often the promoters will claim to have ‘inside’ information about the stock. At times they may be company insiders or paid promoters who gain by selling their shares after the stock price is ‘pumped’ up by the buying trend they create. Once these insiders ‘dump’ their shares and stop hyping the stock, the price typically falls and the innocent investors lose their money.

 Fraud using ‘research opinions’
Usually you will come across research material when using social media. However, we should not forget that there can be a few isolated cases. In such situations, we might have to question the credibility of research opinions. Usually these opinions would lack reasoning but claim to be independent and unbiased recommendations.

Moving on, let’s move on to a practical aspect of what we discussed. There are ample examples from Sri Lanka to demonstrate how social media was manipulated by a few to achieve their hidden motives. Yet, the article will focus on foreign examples due to various technical reasons.
(See Box)

What can you do to shield yourself from social media?
Pragmatic investors cannot by any means refrain from using social media when investing. However, they can be vigilant about certain situations and thereby evade the dark side of social media. The key to shielding yourself is to be an educated investor.  

Never invest hastily even if it seems attractive. Always check the credibility of the information.

Think twice if it sounds too good to be true. These messages are used to persuade investors to invest in stocks and push the price up. When you receive investment information through social media, verify the identity of the underlying source. Look for slight variations in the sender’s account name, profile, email address, screen name or other signs that might give signals about the intention of the sender.

Be cautious of unsolicited offers to invest. If you see a new post on a blog, a tweet mentioning you, a direct message or a Facebook message regarding a so-called investment opportunity, you should exercise extreme caution.

If it is a blog, verify the details of the administrator. Ideally the contact details of the administrator should be visible. If the administrator refrains from publishing contact details, a reasonable doubt arises about the credibility of the blog.

There is a higher possibility that recommendations that lack analysis can be a fraud. When recommendations are given on a hearsay basis make sure you verify the details. Even if the person is often seen in the blog or social sharing website, be sure to check out everything he says. Be aware that the person telling you about the investment may have been fooled into believing that the investment is genuine.

Be watchful of what is shared by new entrants. As you are aware, some may use social media to impersonate a popular market participant. For example, they may set up an account name and profile to mimic a particular company, high-net-worth investor, prominent investment advisor or securities research firm. It is also noticed that some who give false information on social media (blogs) are new to that particular mode of social media. They might enter the relevant social media, misguide investors and be silent for some time. Thus, it is always best to pay attention to the history of these people and analyse the type of information they share.

As responsible inventors, it is also important for the investors to refrain from blindly sharing information that you hear from others without verifying the information. At times you might support the hidden agendas of certain unethical market participants.      

In conclusion, it is appropriate to restate that individuals are not liable for the information disseminated through social media. In most cases, it is impossible to even identify these individuals. Thus, investors should use social media with caution, if not fraudsters might manipulate it to attain their personal investment goals.

- See more at: http://www.dailymirror.lk/90899/social-media-and-the-sri-lankan-stock-market#sthash.80Yy2ES6.dpuf

23Shares to Avoid - Page 2 Empty Re: Shares to Avoid Tue Oct 13, 2015 1:14 pm

roshana7549


Manager - Equity Analytics
Manager - Equity Analytics
@roshana7549 wrote:It seems day by day this forum becoming a place for Manipulators, Fake Multiple account holders etc,
Recent incident was, using multiple fake accounts MGT Share was promoted this morning…

This is a small attempt to protect the innocent investors from the Manipulators.
 
How to Identify Fake recommendations


1)      Usually these are in the form of “One sentence advices “, this is the most common way of promoting a share in this forum.

Ex – XXX share will hit this price level tomorrow (without justifying the reason)
 
Never ever Jump into these shares since after few days of promotion these share prices can come down drastically.
 
2)Recommendations given without proper analysis or information.

Always ask for more information by questioning until you get satisfactory answer, if promoter failed to provide info or answer your questions , do not buy that share without a proper analysis…
 
3)If information provided by the promoter does not seem correct, Verify those  information by an independent source (Ex – CSE website for Financial reports), or ask for the source of the information.

 
At the end of the day, this is your hard earned money, therefore do not allow anybody else to control your investment decisions… Always ask for the reason from the promoter or Information Host.

 

I hope these information is useful specially to Newcomers to safeguard their money from the manipulators, So happy trading and investing… Very Happy


Nice to see many people providing their feedback on this topic and good discussion is being built..

Now the next step is to put these points into practice, I have seen few members were actually adopting this strategy and asking questions from Topic holders... 

Bottom line is if you promote any share, you should be able to justify your Recommendations with adequate information for the user......

24Shares to Avoid - Page 2 Empty Shares to Avoid Wed Jul 11, 2018 1:58 pm

ruwan326


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
1. KAPI
For the year ended 31 March 2018, MTD Walkers’ revenue was Rs. 16.1 billion, up by 20 per cent from the last corresponding year but the group reported a loss of Rs. 511 million in the fourth quarter with an annual loss of Rs. 2.8 billion.

25Shares to Avoid - Page 2 Empty Re: Shares to Avoid Wed Jul 18, 2018 11:04 am

ruwan326


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
2.DPL

Players playing, same goes for GREG 


Financial Summary



For the fiscal year ended 31 March 2018, Dankotuwa Porcelain Ltd revenues decreased 12% to LKR2.08B. Net income decreased 97% to LKR4.1M. Revenues reflect a decrease in demand for the Company's products and services due to unfavorable market conditions. Net income also reflects Administrative Expenses increase of 45% to LKR310.5M (expense), Distribution Expenses increase of 13% to LKR238.2M (expense).

https://www.investing.com/equities/dankotuwa-porcelain-financial-summary

26Shares to Avoid - Page 2 Empty Re: Shares to Avoid Wed Jul 18, 2018 11:09 am

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
3.TFC

Financial Summary


 



For the fiscal year ended 31 March 2018, The Finance Company PLC interest income decreased 1% to LKR3.35B. Net interest loss after loan loss provision increased from LKR605.8M to LKR1.43B. Net loss increased 74% to LKR2.26B. Net interest income after loan loss provision reflects decrease in interest earning assets and increase in interest bearing liabilities. Higher net loss reflects Interest Expenses increase of 14% to LKR4.31B (expense).

27Shares to Avoid - Page 2 Empty Re: Shares to Avoid Wed Jul 18, 2018 12:31 pm

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
4.OFEQ


Financial Summary


For the fiscal year ended 31 March 2018, Office Equipment PLC revenues decreased 23% to LKR78.3M. Net income decreased 66% to LKR1.3M. Revenues reflect a decrease in demand for the Company's products and services due to unfavorable market conditions. Net income also reflects Administration Expenses increase of 14% to LKR34.5M (expense). Basic Earnings per Share excluding Extraordinary Items decreased from LKR4.57 to LKR1.57.


https://www.investing.com/equities/office-equipment-financial-summary

28Shares to Avoid - Page 2 Empty Re: Shares to Avoid Wed Jul 18, 2018 1:43 pm

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
5.KZOO


Financial Summary


For the fiscal year ended 31 March 2018, Renuka Capital PLC revenues decreased 79% to LKR2.4M. Net income applicable to common stockholders totaled LKR463.6M vs. loss of LKR14.8M. Revenues reflect a decrease in demand for the Company's products and services due to unfavorable market conditions. Net Income reflects Administration Expenses decrease of 80% to LKR4.2M (expense).


https://www.investing.com/equities/kalamazoo-systems-financial-summary

29Shares to Avoid - Page 2 Empty Re: Shares to Avoid Thu Aug 16, 2018 7:48 am

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@ruwan326 wrote:1. KAPI
For the year ended 31 March 2018, MTD Walkers’ revenue was Rs. 16.1 billion, up by 20 per cent from the last corresponding year but the group reported a loss of Rs. 511 million in the fourth quarter with an annual loss of Rs. 2.8 billion.
scratch scratch scratch

30Shares to Avoid - Page 2 Empty Re: Shares to Avoid Thu Aug 16, 2018 8:59 am

samaritan


Moderator
Moderator
Now its not about shares to avoid. In my opinion its best to avoid CSE.


_________________




The biggest risk in life is not taking any risk at all.

31Shares to Avoid - Page 2 Empty Re: Shares to Avoid Thu Aug 16, 2018 11:01 am

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
6.LCEM

Can not provide QR until trading suspension notice comes for last couple of years....

ENFORCEMENT ACTION IN TERMS OF CSE LISTING RULES:NOTIFICATION RE.TRADING SUSPENSION

https://cdn.cse.lk/cmt/uploadAnnounceFiles/4471534396115_675.pdf

32Shares to Avoid - Page 2 Empty SCRAPS up.... Fri Oct 11, 2019 12:22 pm

Teller

Teller
Moderator
Moderator
Its a tragedy , manipulation shares are up again . Investors are going to burn their hands again and again ,shares like CITH,CITK,REEF,EMER,ACAP ,etc...what can you expect from those in near future???? Thats the main reason 2/3 in loss side as Retail investors.

Mithooshan likes this post

33Shares to Avoid - Page 2 Empty Re: Shares to Avoid Fri Oct 11, 2019 12:45 pm

wbslstocks


Stock Analytic
Stock Analytic
Regulators are sleeping 😴

34Shares to Avoid - Page 2 Empty Re: Shares to Avoid Fri Oct 11, 2019 1:05 pm

Hewagak


Senior Equity Analytic
Senior Equity Analytic
@Teller wrote:Its a tragedy  , manipulation shares are up again . Investors are going to burn their hands again and again  ,shares like CITH,CITK,REEF,EMER,ACAP ,etc...what can you expect from those in near future???? Thats the main reason 2/3 in loss side as Retail investors.
Kind of Manipulation also need for a market. Otherwise market in sleeping mood. Investors should buy the correct shares not crap shares.

35Shares to Avoid - Page 2 Empty shares should not touch now Sat Apr 18, 2020 8:27 pm

cseguide

cseguide
Vice President - Equity Analytics
Vice President - Equity Analytics
I think the following industries and sectors should not touch for some time. These sectors may negatively impact the corona outbreak.
Tourism sector-- no tourist is coming for some time. And lack of local tourists as well.
Motor trade company- importation of vehicle for 3 months.
What else

36Shares to Avoid - Page 2 Empty Re: Shares to Avoid Sat Apr 18, 2020 8:33 pm

ChooBoy


Manager - Equity Analytics
Manager - Equity Analytics
Stay out of hotels. Motor vehicle prices are likely to go up due import restriction and rupee depreciation. Spare part business will flourish.

37Shares to Avoid - Page 2 Empty Re: Shares to Avoid Sun Apr 19, 2020 12:23 am

heshan1997


Equity Analytic
Equity Analytic
Thoughts on banking and insurance sector ?

38Shares to Avoid - Page 2 Empty Re: Shares to Avoid Sun Apr 19, 2020 7:54 am

cseguide

cseguide
Vice President - Equity Analytics
Vice President - Equity Analytics
@heshan1997 wrote:Thoughts on banking and insurance sector ?
better to avoid banking and finance sector shares because when all economic activities get affected, that will negatively affect the banking sector. But for the insurance sector outlook is not bad. only a few negative points such as new vehicle registration very low, economic downturn etc. but overall not bad.

39Shares to Avoid - Page 2 Empty Re: Shares to Avoid Sun Apr 19, 2020 10:17 am

roshan1039


Moderator
Moderator
Stay away from market and observe for sometime, sudden pickups may not sustainable due to heavy selling

40Shares to Avoid - Page 2 Empty Re: Shares to Avoid Sun Apr 19, 2020 1:23 pm

EquityPlus


Equity Analytic
Equity Analytic
Despite the fact that there may be a slight downturn in the Banking sector due to the overall adverse impact on the economy, I would say that current share price of established banks such as Sampath, Commercial, NDB etc. is still attractive due to the following reasons. Their current share price is traded at a lower value compared to NBV per share and this is not due to their underperformance, but mainly pertaining to the overall downturn of the economy and the stock market as a whole. Therefore, my personal belief is that it's a good time to collect those shares. For instance, SAMP in a range os Rs. 105 to 110 and COMB in a range of Rs. 50-55.

This is my personal view. Please suggest your ideas

41Shares to Avoid - Page 2 Empty Re: Shares to Avoid Sun Apr 19, 2020 1:23 pm

EquityPlus


Equity Analytic
Equity Analytic
Despite the fact that there may be a slight downturn in the Banking sector due to the overall adverse impact on the economy, I would say that current share price of established banks such as Sampath, Commercial, NDB etc. is still attractive due to the following reasons. Their current share price is traded at a lower value compared to NBV per share and this is not due to their underperformance, but mainly pertaining to the overall downturn of the economy and the stock market as a whole. Therefore, my personal belief is that it's a good time to collect those shares. For instance, SAMP in a range os Rs. 105 to 110 and COMB in a range of Rs. 50-55.

This is my personal view. Please suggest your ideas

42Shares to Avoid - Page 2 Empty Re: Shares to Avoid Sun Apr 19, 2020 2:49 pm

cseguide

cseguide
Vice President - Equity Analytics
Vice President - Equity Analytics
@EquityPlus wrote:Despite the fact that there may be a slight downturn in the Banking sector due to the overall adverse impact on the economy, I would say that current share price of established banks such as Sampath, Commercial, NDB etc. is still attractive due to the following reasons. Their current share price is traded at a lower value compared to NBV per share and this is not due to their underperformance, but mainly pertaining to the overall downturn of the economy and the stock market as a whole. Therefore, my personal belief is that it's a good time to collect those shares. For instance, SAMP in a range os Rs. 105 to 110 and COMB in a range of Rs. 50-55.

This is my personal view. Please suggest your ideas
your all prediction is compare to the past and current earning and current net asset value. But we have to consider its future earning to decide whether it is undervalud or not. I think this is a very unpredictable senario and we have to wait some time to decide the real impact of corona impacts on banking and economic sector.

43Shares to Avoid - Page 2 Empty Re: Shares to Avoid Mon Oct 26, 2020 10:41 am

Accountant

Accountant
Equity Analytic
Equity Analytic
@soileconomy wrote:Timely post.it is very dissapointing to note some few senior members are doing unethical promotions.
intersting.

Trollhunter likes this post

44Shares to Avoid - Page 2 Empty Re: Shares to Avoid Mon Oct 26, 2020 10:56 am

glad


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Will the prices of Banks go down further and how far? I liked Banks for the dividends they paid, and now that may not be coming for sometime. Their NAV may increase and as you suggest can give a strong portfolio in the future.

judecroos likes this post

45Shares to Avoid - Page 2 Empty avoid sharez Fri Dec 04, 2020 7:30 am

Dilendra23


Senior Equity Analytic
Senior Equity Analytic
@glad wrote:Will the prices of Banks go down further and how far? I liked Banks for the dividends they paid, and now that may not be coming for sometime. Their NAV may increase and as you suggest can give a strong portfolio in the future.
hold on to the banks not worth selling now....
try new poultry production , manufacturing and power shares

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