What if SEC don't change anything?

Genting · 1 What if SEC don't change anything? Sun Aug 07, 2011 5:46 pm

Genting

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If SEC don't listen to brokers appeal, what will happen to CSE?
I think it may shed another 100 points, but won't go bellow 6500.
If it hits 6500, PER becomes <20, it will make a haven for bargain hunters.
Any comments?

Tiger · 2 Re: What if SEC don't change anything? Sun Aug 07, 2011 6:09 pm

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Why do you think PER <20 is cheap? Question

Do you have any comparative PE from around the world? or do you have crash time market PE ratios which had prevailed in other developed markets as a guide.

invest-abc · 3 Re: What if SEC don't change anything? Sun Aug 07, 2011 6:12 pm

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Genting wrote:If SEC don't listen to brokers appeal, what will happen to CSE?

I think it may shed another 100 points, but won't go bellow 6500.

If it hits 6500, PER becomes <20, it will make a haven for bargain hunters.

Any comments?

What ever the outcome of the meetings, all I want is the decision to come early as possible so that we dnt have the burden of uncertainty.

Genting · 4 Re: What if SEC don't change anything? Sun Aug 07, 2011 6:16 pm

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Tiger wrote:Why do you think PER <20 is cheap?

Do you have any comparative PE from around the world? or do you have crash time market PE ratios which had prevailed in other developed markets as a guide.

http://forum.srilankaequity.com/t7735-cses-per-hits-21#52709

mohith · 5 Re: What if SEC don't change anything? Sun Aug 07, 2011 6:21 pm

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ane manda sec,hurry up take quick actions without burning our fuses plz......

duke · 6 Re: What if SEC don't change anything? Sun Aug 07, 2011 6:26 pm

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If the CSE was at a bargain then foreigners would be flocking in here. When the Japanese stock market went down after the tsunami, foreign funds were rushing in to buy stocks. Did it ever happen in CSE?

If the SEC changes the rules for the (?) time again or does not change anything, it won't have any effect on the market other than a temporary rise by the retailer traders. Broker firms are already giving out credit. E.g. Capital Trust

The broker appeal to the SEC is to 'can you let us, the brokers, make more profits even at the risk of putting the whole financial system in danger'.

Aamiable · 7 Re: What if SEC don't change anything? Sun Aug 07, 2011 6:33 pm

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SEC might act in such a way to help and safeguard more investments…......free market forces can then be operated without restrictions … in the mean time they might take measures to prevent formation of a credit bubble and subsequent collapse of stock market….... whats the point in having a fake credit buble upward trend ...if there are no credit ....what ever the gains afterwards would be solid… .... Smile

Last edited by Aamiable on Sun Aug 07, 2011 6:34 pm; edited 1 time in total

Tiger · 8 Re: What if SEC don't change anything? Sun Aug 07, 2011 6:34 pm

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Genting wrote:

Tiger wrote:Why do you think PER <20 is cheap?

Do you have any comparative PE from around the world? or do you have crash time market PE ratios which had prevailed in other developed markets as a guide.

http://forum.srilankaequity.com/t7735-cses-per-hits-21#52709

Thanks for pointing it.

Yes your point is correct however those counters flying with very high PEs will have to come down or companies has to post good results. OW I dont see any reason why such counters would be trading at such high multiples. Nobody is going to invest in a high PE company without a solid reason, country PE is just a guide.
Cheap counters with sound fundermentals will definitely catch interest of investors while overvalued counters will reach its desired level when actual results are released in 2011.

Aamiable · 9 Re: What if SEC don't change anything? Sun Aug 07, 2011 6:37 pm

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What ever the shares get actual investments woud perform well...

mark · 10 Re: What if SEC don't change anything? Sun Aug 07, 2011 7:01 pm

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Genting wrote:If SEC don't listen to brokers appeal, what will happen to CSE?

I think it may shed another 100 points, but won't go bellow 6500.

If it hits 6500, PER becomes <20, it will make a haven for bargain hunters.

Any comments?

guys not only credit problem,there is another big one to consider,its non other than emerging economic crisis in world,USA debt etc

so better to be aware of your investments Rolling Eyes

Genting · 11 Re: What if SEC don't change anything? Sun Aug 07, 2011 8:18 pm

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mark wrote:

guys not only credit problem,there is another big one to consider,its non other than emerging economic crisis in world,USA debt etc

so better to be aware of your investments

Dubai stock market has tumbled 6+% and trading was stopped temporally.
Economists from G20 will be having an emergency conference call today
S&P has been blamed on inflating figures by $ 2Trillion wrt US debt.
.....

The CSE fall on Friday was mainly due foreign funds pulling out. But in latter part it recovered and there was some amount of foreign funds came in.

I think CSE will be stable on Monday and Tuesday due to SEC and brokers meeting...

I'm keeping my fingers crossed ....

Last edited by Genting on Sun Aug 07, 2011 9:34 pm; edited 1 time in total (Reason for editing : Isreal -> dubai)

amibroker · 12 Re: What if SEC don't change anything? Sun Aug 07, 2011 10:09 pm

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mark wrote:

Genting wrote:If SEC don't listen to brokers appeal, what will happen to CSE?

I think it may shed another 100 points, but won't go bellow 6500.

If it hits 6500, PER becomes <20, it will make a haven for bargain hunters.

Any comments?

guys not only credit problem,there is another big one to consider,its non other than emerging economic crisis in world,USA debt etc

so better to be aware of your investments

I totally agree, world economic crisis will have very high impact on CSE... what ever the SEC decision on credit....