Nothing, but "Red Indians theory" works at CSE!

i agree

most of the people see there share and try to buy again at lower price..

but all the big ppl collect the share and run the market....

these poor ppl again buy and sell at lower.... without checking the fundamental reason..

why ppl not check PE, PBV, DY and invest the share ....

What is DY ?

ashoka1966 wrote:What is DY ?

Dividend Yield

Investors no longer try and prop up stocks run on credit, no longer keep on collecting those stocks, long term investors know the stocks which has the real growth potential. They know that rallies no longer consolidate due to new regulations on credit. Investors have identified shares which build on real funds that are both local and foreign. Do not collect stocks just because they trade very low due to clearance. Stocks slowly consolidate and stabilize can easily be picked up by careful observers..

The small investors weather like to buy the fundamental shares in the low price don't have enough money. Many with the loss in their portfolio. limited cash. So they are fed up. some cannot hold the money for long time due to various reason (when read the different topics by members we can see). Better not to buy on the Credit also. There is no holding power for many. But for the big investors they don't have any problem. They have enough cash flow. They must be enjoying on these days... buying shares in low value

factFINDER wrote:An interesting story of Red Indians.......


It was autumn, and the Red Indians asked their New Chief 'the winter is going to be cold or mild?' Since he was a Red Indian chief in a modern society, he couldn't tell what the weather was going to be.

Nevertheless, to be on the safe side, he replied to his Tribe that the
winter was indeed going to be cold and that the members of the village
should collect wood to be prepared.

But also being a practical leader, after several days he got an idea.
He went to the phone booth, called the National Weather Service and
asked 'Is the coming winter going to be cold?'

'It looks like this winter is going to be quite cold indeed,'the weather man Responded.

So the Chief went back to his people and told them to collect even
more wood. A week later, he called the National Weather Service again.
'Is it going to be a very cold winter?'

'Yes,' the man at National Weather Service again replied, 'It's
definitely going to be a very cold winter.'

The Chief again went back to his people and ordered them to collect
every scrap of wood they could find. Two weeks later, he called the
National Weather Service again. 'Are you absolutely sure that the
winter is going to be very cold?'

'Absolutely,' The Man replied. 'It's going to be one of the
coldest winters ever..''

'How can you be so sure?' the Chief asked.

The weatherman replied, 'The Red Indians are collecting wood like Crazy.'


This is how the Colombo Stock Markets works!!!
(in both increasing and declining stock prices, no one knows why but just follow othesr ....)

Just think .... many Red indian chiefs, fellow red indians and weather men are around us!!

100% true!

But, It is not new to CSE, the works here for months, if not years!

No expert trader/expert invester can predict this market, sameway that Red Indian chief couldn't predict the winter.

When it "made a mini-run" by manupulators, stocks start rising everybody rashed to BUY stocks, without having special reason. Then, investors are approaching the Stock Analyst/Advisors, they are comming to the picture and predicting that market is going to run - and recomend investors to BUY, like weather man did. Then, the investors again get rashed and BUY stocks like crazey dogs, as Stock Analyst/Advisors also confirmed the trend ..... market is going up more and more.

The inverse side is also true..... when it started a dip, investers are getting panic to SELL, Stock Analyst/Advisors are proudely present their predictions, and advise investors that the market is to fall more - better SELL and minimize the loss, (otherwise has to sell forcefully to clear debts). So, every body rushed to SELL stocks at any price and obviously market going down day by day, no body can stop the 'free fall' .....(this is what happeing these days at CSE)

If somebody very close to those Stock Analyst/Advisors, may ask the reason/how they predict that market that is going to fall more .... no dobut they will reply .... "Look, investors are selling stocks like crazy ... if the market is not going to fall more, do you think these investors will SELL stocks at these barganing prices?" ...

So, the predictions of the Stock Analyst/Advisors are correct ... the trend will be continued .... untill existing investors fedup and going out of the market.


So, ..... the CSE version of the story is not much diffrence from Red Indians!

Excellent one.

stumpy wrote:

ashoka1966 wrote:What is DY ?

Dividend Yield

Almost all the Sri Lankan investors have never considered "Dividend Yield" as an important factor.

[stumpy wrote:
ashoka1966 wrote:
What is DY ?

Dividend Yield ]

Thank you vary much stumpy.

good one FACTFINDER,+ you
i remember when i asked from broker abt KOTA when two days before the qtr results released,he sent me this msg
"sell off mate,you can buy back at low later"

+

factFINDER wrote:An interesting story of Red Indians.......


It was autumn, and the Red Indians asked their New Chief 'the winter is going to be cold or mild?' Since he was a Red Indian chief in a modern society, he couldn't tell what the weather was going to be.

Nevertheless, to be on the safe side, he replied to his Tribe that the
winter was indeed going to be cold and that the members of the village
should collect wood to be prepared.

But also being a practical leader, after several days he got an idea.
He went to the phone booth, called the National Weather Service and
asked 'Is the coming winter going to be cold?'

'It looks like this winter is going to be quite cold indeed,'the weather man Responded.

So the Chief went back to his people and told them to collect even
more wood. A week later, he called the National Weather Service again.
'Is it going to be a very cold winter?'

'Yes,' the man at National Weather Service again replied, 'It's
definitely going to be a very cold winter.'

The Chief again went back to his people and ordered them to collect
every scrap of wood they could find. Two weeks later, he called the
National Weather Service again. 'Are you absolutely sure that the
winter is going to be very cold?'

'Absolutely,' The Man replied. 'It's going to be one of the
coldest winters ever..''

'How can you be so sure?' the Chief asked.

The weatherman replied, 'The Red Indians are collecting wood like Crazy.'


This is how the Colombo Stock Markets works!!!
(in both increasing and declining stock prices, no one knows why but just follow othesr ....)

Just think .... many Red indian chiefs, fellow red indians and weather men are around us!!

Machang Maxa story. I guess thats how these buggers put the price band also ROFL.

Our mkt is even worse, atleast in the story they prepared for the worst, but for us in the market we dont know what will happen even on the next day, its being crushed to the max, the story is millions times better

I collect few stocks which are not declining...on a medium term basis without putting funds on risky counters……purely based on corporate earnings and historical charts…reliable and proven to be successful over decades…....

MoneyLover wrote:

factFINDER wrote:An interesting story of Red Indians.......


It was autumn, and the Red Indians asked their New Chief 'the winter is going to be cold or mild?' Since he was a Red Indian chief in a modern society, he couldn't tell what the weather was going to be.

Nevertheless, to be on the safe side, he replied to his Tribe that the
winter was indeed going to be cold and that the members of the village
should collect wood to be prepared.

But also being a practical leader, after several days he got an idea.
He went to the phone booth, called the National Weather Service and
asked 'Is the coming winter going to be cold?'

'It looks like this winter is going to be quite cold indeed,'the weather man Responded.

So the Chief went back to his people and told them to collect even
more wood. A week later, he called the National Weather Service again.
'Is it going to be a very cold winter?'

'Yes,' the man at National Weather Service again replied, 'It's
definitely going to be a very cold winter.'

The Chief again went back to his people and ordered them to collect
every scrap of wood they could find. Two weeks later, he called the
National Weather Service again. 'Are you absolutely sure that the
winter is going to be very cold?'

'Absolutely,' The Man replied. 'It's going to be one of the
coldest winters ever..''

'How can you be so sure?' the Chief asked.

The weatherman replied, 'The Red Indians are collecting wood like Crazy.'


This is how the Colombo Stock Markets works!!!
(in both increasing and declining stock prices, no one knows why but just follow othesr ....)

Just think .... many Red indian chiefs, fellow red indians and weather men are around us!!

100% true!

But, It is not new to CSE, the works here for months, if not years!

No expert trader/expert invester can predict this market, sameway that Red Indian chief couldn't predict the winter.

When it "made a mini-run" by manupulators, stocks start rising everybody rashed to BUY stocks, without having special reason. Then, investors are approaching the Stock Analyst/Advisors, they are comming to the picture and predicting that market is going to run - and recomend investors to BUY, like weather man did. Then, the investors again get rashed and BUY stocks like crazey dogs, as Stock Analyst/Advisors also confirmed the trend ..... market is going up more and more.

The inverse side is also true..... when it started a dip, investers are getting panic to SELL, Stock Analyst/Advisors are proudely present their predictions, and advise investors that the market is to fall more - better SELL and minimize the loss, (otherwise has to sell forcefully to clear debts). So, every body rushed to SELL stocks at any price and obviously market going down day by day, no body can stop the 'free fall' .....(this is what happeing these days at CSE)

If somebody very close to those Stock Analyst/Advisors, may ask the reason/how they predict that market that is going to fall more .... no dobut they will reply .... "Look, investors are selling stocks like crazy ... if the market is not going to fall more, do you think these investors will SELL stocks at these barganing prices?" ...

So, the predictions of the Stock Analyst/Advisors are correct ... the trend will be continued .... untill existing investors fedup and going out of the market.


So, ..... the CSE version of the story is not much diffrence from Red Indians!

@MoneyLover,
Thank you very muchbrought us the local version. You have done the CSE Version nicely!
Almost everybody buy and sell stocks, without knowing "why", but just follow what other do.
With this habbit it is very difficult to turn the market up.

UKboy wrote:

stumpy wrote:

ashoka1966 wrote:What is DY ?

Dividend Yield

Almost all the Sri Lankan investors have never considered "Dividend Yield" as an important factor.

One guy in this forum said ones me not to follow dividends but to capital gains. But I prefer to look at my investments in cash flow basis. So in my point of view the dividends are important.

Please comment this.....

manula wrote:The small investors weather like to buy the fundamental shares in the low price don't have enough money. Many with the loss in their portfolio. limited cash. So they are fed up. some cannot hold the money for long time due to various reason (when read the different topics by members we can see). Better not to buy on the Credit also. There is no holding power for many. But for the big investors they don't have any problem. They have enough cash flow. They must be enjoying on these days... buying shares in low value

In the Forums like this we get ideas of only one sector of the people. Those who can afford few laks to put in the shares and expect a return within lowest possible time are the 90% or more of the members. After investing the initial capital most of us continue buying using the return we get from selling appreciated shares. Usually we have no excess cash flow from other sources to continue buying in a situation like this.

The picture we get from almost all the comments is the suffering and frustration due to falling of the market.

We do not know what others who are different to us are thinking and doing now.

As you said, while we share our frustration here, they must be enjoying the situation and happily collecting the future gems at unexpected prices at the moment. Or, may be not. We do not get any feedback from them as they do not write in these forums. We do not know the real financial capability of them either good or bad. But, I am sure they visit here and use our comments to form their strategies.
I am sure in few years time there will be new millionaires who used this time period to form their base for the success.

sanjeewa88 wrote:

UKboy wrote:

stumpy wrote:

ashoka1966 wrote:What is DY ?

Dividend Yield

Almost all the Sri Lankan investors have never considered "Dividend Yield" as an important factor.

One guy in this forum said ones me not to follow dividends but to capital gains. But I prefer to look at my investments in cash flow basis. So in my point of view the dividends are important.

Please comment this.....

I think most of us think dividends as a gift we receive for holding on to shares for med-long term investments.. Dividend policies of companies even differ from company to company.

Sometimes if u buy shares near xd dates, u may find those are a bit high in price with added price for dividends hence ur total benefit would be stock selling price + dividend.. If u sell the share on XD with a loss what compensate that loss is the dividend..

So your thinking of assessing the investment on entire cash flow basis is equally a good strategy.

Please let me know where I can learn TA ( Technical Analysis ) / Chart Reading in Sri Lanka? In an Institute or Private basis? Thanks in advance

Chinwi wrote:

manula wrote:The small investors weather like to buy the fundamental shares in the low price don't have enough money. Many with the loss in their portfolio. limited cash. So they are fed up. some cannot hold the money for long time due to various reason (when read the different topics by members we can see). Better not to buy on the Credit also. There is no holding power for many. But for the big investors they don't have any problem. They have enough cash flow. They must be enjoying on these days... buying shares in low value

In the Forums like this we get ideas of only one sector of the people. Those who can afford few laks to put in the shares and expect a return within lowest possible time are the 90% or more of the members. After investing the initial capital most of us continue buying using the return we get from selling appreciated shares. Usually we have no excess cash flow from other sources to continue buying in a situation like this.

The picture we get from almost all the comments is the suffering and frustration due to falling of the market.

We do not know what others who are different to us are thinking and doing now.

As you said, while we share our frustration here, they must be enjoying the situation and happily collecting the future gems at unexpected prices at the moment. Or, may be not. We do not get any feedback from them as they do not write in these forums. We do not know the real financial capability of them either good or bad. But, I am sure they visit here and use our comments to form their strategies.
I am sure in few years time there will be new millionaires who used this time period to form their base for the success.

\

medium to long term investors collect when ever share prices drop , those are basic rules of a share market. is there anything wrong with that ?

This post is a good one not only for the Expert Section but also under Entertainment section as it is full of humer on traditional wisdom of red indians vs moderm Americans.

Good one.

K.Haputantri wrote:This post is a good one not only for the Expert Section but also under Entertainment section as it is full of humer on traditional wisdom of red indians vs moderm Americans.

I do agree with you.