Friday, October 14, 2005

Peter Lynch

One Up On Wall Street--Click To Buy

Peter Lynch .

Born: United States in 1944

Most Famous For: The rise of the Fidelity Magellan Fund and popular investment books

Quote:"I think you have to learn that there's a company behind every stock, and that there's only one real reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.”

Peter Lynch is one of the most successful fund managers in America, that was able to consistently deliver high returns to investors, year after year

According to Valueline, "a $10,000 investment into Magellan in 1978 and then adding $100 per month, would add up to over $1 million, in 20 years!" While at the helm of Magellan, Lynch achieved an average annual return of 29% a year.

Book: One Up On Wall Street : How To Use What You Already Know To Make Money In The Market.Click Below to Buy.

One Up On Wall Street--Click To Buy

Sir John Templeton.

Faithful Finances 101--Click To Buy

Sir John Templeton.

Born: Winchester, Tennessee in 1912

Most Famous For: Beginning a Wall Street career in 1937, Templeton created some of the world's largest and most successful international investment funds.

Quote:"You have the most powerful weapons on earth — love and prayer.”

Termed "arguably the greatest global stock picker of the century" by Money Magazine (Jan. 1999), he sold his various Templeton funds in 1992 to the Franklin Group for $440 million.

Templeton is a true pioneer of the global mutual fund industry. He has led the charge for teaching investors to explore the world for great investments. Investing overseas was virtually unheard of until investors caught on to Templeton's strategy. Today, the Templeton Group's combined assets exceed $25 billion.

Book:Faithful Finances 101: From the Poverty of Fear and Greed to the Riches of Spiritual Investing .Click Below to Buy.

Faithful Finances 101--Click To Buy

Midcap stocks one should buy

Time and again midcap stocks have proved to have more strenght then the Blue chip's.

As of now following are the Midcap stocks one should buy:

1)Aztec Software.
2)MphasiS BFL.

Analyst's see a strong earnings momentum in the midcap technology stocks.

I have myself bought Aztec Software@Rs.150.

For the latest prices of these and all other stocks go to:
Live sensex Update

The World's Greatest Investors

Becoming a successful investor takes education, patience and maybe even a little luck.

Historically, the market has returned a solid 12% per year on average.Listed Below are the greatws investors of the world.Each one has dramatically exceeded market performance. They have all made a fortune off their success but, more importantly, so have the millions of people who invested with them:

1)Warren Buffett
2)John Bogle
3)Peter Lynch
4)Julian Robertson
5)Michael Steinhardt
6)George Soros
7)John Templeton

In the articles following this one i would state their profile and their famous books.

Best Books -The Interpretation of Financial Statements

The Interpretation of Financial Statements--Click To Buy

"This book is designed to enable you to read financial statement intelligently..."

This guide to understanding financial documents provides bankers, business people, and investors with the framework to succeed in the trading community.


"Graham ranks as this century's (and perhaps history's) most important thinker on applied portfolio investment."----John Train.

The Interpretation of Financial Statements--Click To Buy

Best Books-Common Stocks and Uncommon Profits

Common Stocks and Uncommon Profits and Other Writings---Click To Buy

"This is among the most beloved investment books of all times, among the bestselling of classic investment books, and now forty-five years old..."

Philip Fisher is one of the most prominent and important financial thinkers in history. In this book, he examines the fifteen qualities of an excellent business. When this approach is coupled with Graham's "value" method, it can be a very powerful thing.

Common Stocks and Uncommon Profits and Other Writings---Click To Buy

Ratio Analysis

The price-to-earnings ratio (P/E) is probably the most widely used, and thus misused investing ratio.

One should Compare Apples to Apples and not apples to orange:

Different industries have different average P/E ratios. So when you compare P/E ratios it has to be with respect to the industry standards.You cannot compare P/E ratios of HLL and Infosys as the profile of both the companies is
completely different.

Also one has to check the trend of the P/E ratio of company over the years. With out the considersation of above stated scenarios its foolish to analyse an investment option with the use to P/E ratio.

Also the price-to-earnings ratio is a useful measure, but it must be used with many other metrics to accurately assess a company's worth.

P/E ratio-Negative...

A stock can have a negative price-to-earnings ratio (P/E), but it is very unlikely that you will ever see it reported. Although negative P/E ratios are mathematically possible, they generally aren't accepted in the financial community and are considered to be invalid or just not applicable. I'll explain why this is.

A company whose stock has a negative P/E ratio is not making money: earnings at the company are negative, which means the company is losing money on the shareholder's investment in the company.

To calculate the P/E ratio, you divide the market price per share of a company's stock by the company's earnings per share. A company's earnings per share are calculated by subtracting the total value of all dividends paid to preferred shareholders from the company's net income and dividing the difference by the average outstanding shares over the time period for which the ratio is being applied.

In any case, if the company's net income or EPS figures are negative, these losses may be indicated mathematically by a negative P/E ratio for a certain period of time. Negative EPS numbers are usually reported as "not applicable" for quarters in which a company reported a loss.

Thursday, October 13, 2005

Learn What Trend Trading Really Is

Here's a simple question-what is trading? To answer, perhaps not so simply, we first need to understand what trading is NOT. Trading isn't about buying the fanciest chart, hanging on to something because it is a good buy, or feeling good about yourself because you can go to a cocktail party and relate to what everyone else is saying. Trading is about making money, period.

There are software systems that create pretty colors and tell you which stocks are safe to buy because they have moved a certain way in the past. If one particular stock has been going up and up and up, a trend follower concludes that the stock should continue moving UP! However, in order to follow a stock's true potential progress, would you rather wait for a computer program, or be actively and directly involved in its ascent?

Picture an apple in the center of a room, surrounded by 10 traders. Consider for a moment, each trader buying the apple until everyone has owned it. What is that apple worth? It is worth ONLY what someone will pay for it. Person #1 buys the apple for $1 and takes a bite. Person #2 then pays $2 for the same apple and takes another bite. Person #3 pays $3, and so on until finally, the last person takes that final bite. Yes, the apple is STILL worth only what the next person will pay for it-no more, and certainly no less. The only person left to sell it to is the one who walked into the room an hour late, looks at the apple's past price history, consults his software that says the smelly apple has had a great price performance, and determines that it's a worthwhile buy. That is precisely the definition of trend trading.

Make no mistake, successful trading is about you versus the guy sitting next to you with the pretty software. Don't waist your time trading with charts, spend your time leaning how the futures market really work.

About The Author
Carter Matzinger

Ezzone Trading is the author of "What the Stock Trading Seminars DON’T tell you!" We have developed a software to support people in trading futures successfully. Visit our site to find out more. or

Metal stocks weigh down sensex to 3-week low

Tracking a weak global trend, the Bombay Stock Exchange's benchmark Sensex today nose-dived by 163.66 points to touch a three-week low as foregign funds off-loaded part of their holdings.
The 30-share Sensitive Index fell 163.66 points at 8,376.90, the lowest since September 23 and the second wide-based National Stock Exchange lost 52.25 points at 2,537.30. Nifty futures for October delivery slid 56.10 points at 253.

Marketmen said the change in the trend was noticed on the back of reports that a possible rise in inflation rate tomorrow.

They said India's inflation rate might possibly accelerate to a two-month high after the government raised fuel prices, increasing the cost of transporting farm and factory goods.

The market experienced a crash like situation at the fag-end with most of the metal stocks melting fast, pulling the metal segment index down by 233.84 at 6,246.55 followed by the bank index by 106.88 points at 4,807.61.

The market was on a down-path after drugmaker Ranbaxy Lab lost a legal challenge that would have otherwise allowed it to sell a generic version of the world's best-selling drug in the overseas markets.

The High Court in London on Wednesday rejected Ranbaxy's challenge on Pfizer Inc.'s patent on Lipitor, in a setback to the Indian company's plans to release a generic version of the cholesterol treating medicine.

Ranbaxy is pursuing a US legal challenge on the drug, which had global sales of almost 11 billion dollar in 2004 and almost 21 per cent of US-based Pfizer's annual revenue.

Technical analysis

Sensex is reacting from the peak of 8809 and had hit a low of 8382. The bottom has not been found it. The technical chart shows that a retraction can take the index down to 8353/8212 and 8071 levels. Right now the stochastic indicator shows the potential for short-term recovery while the KST indicator for long term investment is still in the red. One will have to wait out this consolidation keeping the above retracement points in mind.

How to make a crore in the stock market

My mom is a better investor than Mr X," is what a friend commented the other day. Mr X happens to be the Chief Investment Officer of a reputed mutual fund.

And in what way was her mother better?

Apparently, my friend's dad had given her and her mother some money and told them to invest it. My friend bought the units of a mutual fund (the one whose fund manager she was criticising) while her mother invested in some shares.

Her mother ended up with a higher return than she did. Hence the conclusion.

What my friend fails to realise is that in this bull run, everyone's mother would have made money. So this one-time fortunate investment in a stock does not make her a savvy investor, despite what the family thinks.

The essence of a good investor is one who not only knows how to ride a bull market but also a bear one.

I wonder by how much her fund units would fall in value when (and if) the stock market crashed. And when that happens, I would also like to see the value of her mother's investment.

What's scary is that individuals who have never set foot in the stock market want to suddenly dive in. I'm not suggesting that you ignore the stock market. All I am saying is that you should probably not enter directly if you not sure of your footing.

Click To read full article

FUTURES & OPTIONS: No money? 1

OPTION - This is different from ‘Future’.

You have to pay premium price of only one ‘Lot’. For example, for Tata Motors’ one ‘Lot’ (100 shares) you have to pay the premium of Rs 20 or Rs 25 for each share as the case may be.

That means if you pay only Rs 2000 then 100 shares of Tata Motors (which is quoted at Rs 558 in the market) is yours.

From share to share the premium amount also differs.

According to the market graph your premium will also correspondingly either decrease or increase. What you have paid - (Rs 20) might become Rs 15 or it might increase to Rs 70.

For example, the premium you pay for a share at Rs 20 when it becomes Rs 22 your overall increase for a ‘Lot’ is Rs 200. So you will be aware of the loss in advance.

You can buy and sell using this route. This is what’s called ‘Put’ (Sell) and ‘Call’ (buy) option in the market.

MORE IN NSE - F&O business in Bombay Stock Exchange is low compared to National Stock Exchange--Rs 2,600 crore worth of trade in BSE and Rs 15,000 crore in NSE in this segment.

KEEP IT IN MIND - In share market you should always call the decisive shots. Never bite more than what you can chew!

DERIVATIVES This system was evolved in the Seventies. To bring in a semblance of order in the share market this was introduced in the capital market by the US Stock Exchange.

It became popular only in 1980’s.

CASH Vs F&O - In cash market if the value of share you purchase falls, you can still wait and make up provided you have the holding capacity and patience. In F&O there is no commodity and so the question of holding any shares does not exist.

In cash market you have to remit the cash the next day after you buy. In ‘Futures’ you have to pay only 20 percent of the value.

And, in Option, it’s enough if you pay the premium. Cash is risky. Future is riskier, but returns are higher.

Option - Risk and profit are equally low.


BEWARE: According to the ups and downs in the market the debit and credit of your account also changes. If there is a fall of Rs 50 per share from the date of purchase you have to give Rs 50x100=5,000.

Likewise the profit also is calculated. On the last Thursday of every month, your account must be closed.

On the appointed day of settlement, in case of profit you get the cheque and in case of loss you end up paying. Trade without commodity!

An ordinary investor cannot buy even one share of giants like Infosys. Such ordinary investors also can go for 100 shares in this case. After introduction of this system the share market business has gone up by leaps and bounds, says Ravikumar, a prominent operator with a securities firm.

But mind you, in this system the profit or loss may be pretty high.


FUTURES: This is an agreement between the seller and buyer. The seller will not be having the commodity with him.

The one who buys will not get the commodity. The one who made profit gets cash and the one who lost, of course, pays up.

In all online trading there is provision for F&O trading division. In cash market you can call for shares according to your pocket strength.

In Futures that is not the case. This is called as ‘Lot’ here. One lot is equal to 100 shares (this lot depends on the share value in the open market and differs from share to share, for example - One lot of Infosys means 100 shares.

You have to buy according to the ‘Lot’ system. In case the Infosys share value were to come down in ‘Future’ you can sell it off.

Suppose the current market price of one Infosys share is Rs 2,600. If you want to buy 100 Infosys shares you will have to shell out Rs 2,60,000.

But in case of ‘Future’ you have to pay only 10 to 12 percent of the market price. That means if you pay Rs 26,000 the 100 Infosys share lot is yours.

Sensex down 62 points at 8,478

The Sensex is now down 62 points at 8,478.

The Nifty is down 23 points at 2,566.

Gainers: Cipla, ICICI Bank, ITC, HDFC.

Losers: Infosys, TCS, Wipro, Maruti, HLL, HLL, Tata Motors, RIL, ONGC.

Sensex @ 1202 hrs

The Sensex has again slipped into the red, it is now down 42 points at 8,499.

The Nifty is down 17 points at 2,573.

Gainers: SBI, Cipla, HDFC, ICICI Bank, ITC

Losers: Infosys, TCS, Wipro, Maruti, HLL, HLL, Tata Motors

Stock markets down in morning session - Business News

The stock markets opened lower this morning despite the annoucement of good second quarter results by software majors like Infosys and TCS.
The Bombay Stock Exchange (BSE) Sensitive index (Sensex) opened 20 points lower at 8,520.48 compared to Tuesday's close of 8,540.56.

It was trading at 8,518 at 1157 hrs, lower by 22 points.

The BSE Health care index was down by 1.66 per cent, the BSE IT and TECk indices were also down by 1.15 per cent and one per cent respectively.

The indices gained this morning are the BSE FMCG index by 1.15 per cent, BSE Midcap index is up by 0.73 per cent and BSE Smallcap index is up by 0.58 per cent.

The negative sentiments in the market is likely due to the foreign instituional investors (FIIs) turning net sellers on Monday by 291.20 crores.

The National Stock Exchange (NSE) S&P CNX Nifty also opened lower at 2,584.40 points compared to its last close at 2,589.55. The Nifty was trading at 2,576.90 at 1052 hrs, lower by 13 points.

The rise in crude oil prices, hovering around at US 64 dollars per barrel compared to lower level of USD 61-62 for the past few day, is also keeping the market sentiments down this morning.

The top losers this morning were pharma majors like Ranbaxy Laboratories and Dr Reddy's Lab. Others included Infosys Tech, Tata Steel, Bharti Tele, ONGC, Hero Honda, Wipro, Satyam and HDFC Bank.

The top gainers this morning were ITC, ICICI Bank, Gujarat Ambuja Cements, Relinace Energy, SBI, ACC, Maruti, HDFC and Reliance Industries.

Pantaloon to allot 4 lakh warrants on pref basis

Pantaloon Retail (India) Ltd on Thursday said that it would allot 4,08,165 shares as warrants on a preferential basis.

The warrants holders will have the option to acquire, for every warrant, one fully paid up equity share within 18 months from the date of allotment as per SEBI guidelines, the company informed the Bombay Stock Exchange.

Sanwaria Agro to split equity shares

Sanwaria Agro Oils Ltd, an agro-based company engaged in solvent extraction, on Thursday said that it would split equity shares of the company.

The board of directors have approved the splitting of equity shares from the present Rs 5 paid up per share to Rs 2 each, the company informed the Bombay Stock Exchange.

The amazing story of Jignesh Shah and MCX

The meeting with Jignesh Shah, managing director, Multi Commodity Exchange of India, is scheduled for 4 p.m., and begins at five past. The man is not just prompt, he makes spending 90 minutes with a journalist seem like no effort at all. (He is extremely media friendly and projects an impeccable corporate image.)

This, despite him telling me later that he works a 15-hour day, and I suspect they are often longer. There's enough hyperactivity in the commodity markets to justify it.

Trading volumes in commodity futures surpassed capital market futures in August for the first time in the history of domestic derivatives, and average daily trading volumes have crossed the Rs 10,000 crore (Rs 100 billion) mark. MCX is in the thick of it.

Click to read full article

Wednesday, October 12, 2005

Markets closed for Dussehra

All wholesale commodity markets, including bullion, metal, chemical and steel remained close on Wednesday on account of "Dussehra".

The Bombay Stock Exchange and National Stock Exchange also closed for the festival and would reopen on Thursday.

The retailer shops and local markets which opened in the morning, pulled down their shutters this afternoon to celebrate the festival.

Tuesday, October 11, 2005

IT index up 1.66%, outpaces Sensex

After remaining laggards in the Sensex rally, IT stocks on Tuesday made a U turn after Infosys beat market expectations on its second quarter results.

The Bombay Stock Exchange’s, BSE IT index gained 1.66% at 3,287.99 points, outpacing Sensex gain of 0.67 % which closed at 8,540.56 points.
In tandem, both Wipro and Satyam Computers gained over 1% to Rs 398.25 and Rs 599.10, respectively. Both the companies will announce their results on October 19.

NR to step down as exec chairman in ’06

Chief mentor and executive chairman of Infosys NR Narayana Murthy is set to retire as executive chairman in August, 2006, the month in which he turns 60, said Nandan Nilekani, managing director and CEO, in an investor teleconference.

Markets in bear grip, Sensex down by over 30 points at 8,446

The markets are down again this morning with most of the Bombay Stock Exchange (BSE) indices down.
The BSE Sensitive Index (Sensex) was trading 38 points lower at 1138 hrs at 8,446 points compared to yesterday's close at 8,483 points.

Infosys technologies was trading at Rs 2,666 with gains of Rs 43.55 as the companies declare their Q2 results. The other blue chips leading this morning were Cipla, NTPC, ONGC, Satyam and Wipro.

All other blue chips on BSE 30-index were trading lower. There was also slide in the major midcap shares this morning.

The National Stock Exchange (NSE) S&P CNX Nifty index too was down by 10 points at 2,556 at 1138 hrs.

With crude prices seemed to have stabilised around USD 62 per barrel at the New York Mercantile Exchange (NYMEX), there is no panic signal for the markets as the stable oil prices will support the markets at the lower level.

Monday, October 10, 2005

Infosys projects 31 percent growth in 2005-06

Technology bellwether Infosys Technologies Ltd. has again upped its guidance for 2005-06, projecting 31 percent growth in the fiscal.
In a notification to the stock exchanges here Tuesday, the company said its consolidated income for the year is expected to be Rs.93.61-93.83 billion under the Indian GAAP (generally accepted accounting principles).

The company's income during the October-December third quarter of the current fiscal is expected to be Rs.24.43-24.52 billion, a year-on-year growth of 30.25-30.73 percent.

Similarly, the earnings per share (EPS) for the complete year are expected to be Rs.89.40, a YoY increase of 29.38 percent.

Under US GAAP, consolidated revenue for the entire fiscal is estimated to grow 34.42 per cent.

Consolidated earnings per American Depositary Share (ADS) is estimated to be about $2.05, a YoY increase of 30.6 percent.

For the third quarter, gross income is expected to be in the range of $556-558 million, a YoY growth of 31.50 per cent. Earnings per ADS is likely to be $0.53, an increase of 26.19 per cent.

J&K Bank up on performance hopes

Despite the devastation caused by the earthquake in the State, the Jammu & Kashmir Bank stock rose on Monday.

The stock closed at Rs 457.70, up 3.04 per cent with a volume of 61,545 shares on the Bombay Stock Exchange.

Dealers said that the rise in the stock price was in anticipation of good financial performance expected for the September quarter. Dealers said that last year, the bank performance was affected due to fall in treasury income and provision of bad debts.

The talk is that both these factors would not affect the company's performance in the current fiscal. The bank's decision to spread its business outside the State is also seen as positive.

Yes Bank board approves increase in FII limit to 49 pc

Yes Bank Ltd today raised the foreign instituional investors' (FII) limit in the bank to 49 per cent from the existing 24 per cent, during the meeting of the board of directors of the company today.

The bank also raised the NRI limit to 24 per cent from the existing ten per cent during the same meeting, the bank informed the Bombay Stock Exchange (BSE).

The proposal is subject to the approval of the shareholders at the company's general meeting.

Sensex up 23 points in pull-back rally in early trade

The Bombay Stock Exchange benchmrk 30-share index (sensex) today rallied smartly during the morning trading even as investors adopted a cautious approach ahead of announcements of second quarter results by corporates.

The sensex opened on a promising mote at 8516.44 as against Friday's close of 8491.56 and later surged up to a high of 8564.85 before being quoted at 8514.65 at 10:30 a.m., up by 23.09 points over the last close.

Key stocks attracted fairly good buying interest in a pull-back rally after a three-day slide, brokers said, adding, "Prices, however, met with resistance at higher levels due to profit booking by operators and retailers."
With fears of withdrawal by foreign institutional investors (FIIs), which reported net sales in the past week and a slowdown by mutual funds, operators and retailers seemed to be cautious ahead of announcements of corporate results from tomorrow onwards, brokers noted.

The market is likely to react negatively if the second quarter results fall short of investors expectations, a leading broker said.

Sunday, October 09, 2005

Best buy in next week (share market- BSE)

My Stock Tips for next week:

Best buy's:

ITC @ 115-119
PTC @ 49
IDFC @ 62-65
VIDEOCON @ 76-82


Other medium Terms Buys (6 months):

IPCL @ 230-240

All the best.