Doubt Relief !!
- Thread starter karthikmarar
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Sai said:
Hi,
I read a post on this forum some time back, and have been thinking about it since. I bring it back for discussions to the august forum.
When you put a stop loss on a particular script, it might close above the S/L level on particular day, but open much below the S/L level the following trading day. What is to be done in such cases? What precautions can one take to prevent this from happening?
I should tell about my background here. I am a NOVICE, my only knowledge of the share market is reading posts on traderji
Looking forward to your comments
Thanks and regards
I read a post on this forum some time back, and have been thinking about it since. I bring it back for discussions to the august forum.
When you put a stop loss on a particular script, it might close above the S/L level on particular day, but open much below the S/L level the following trading day. What is to be done in such cases? What precautions can one take to prevent this from happening?
I should tell about my background here. I am a NOVICE, my only knowledge of the share market is reading posts on traderji
Looking forward to your comments
Thanks and regards
There is nothing we can do if the stock gaps down below your S/L. It is part of the game. The very fact the stock gaps down indicates weakness and it will be wiser to excercise the stoploss even at a lower price. Most of us do encounter such situations.
Why the
Sai. In fact I would say that you are doing a wise thing. Education is first. Once you educate yourself you would not be paying a large tution Fees in terms losses as many uneducated novice trader do when they directly jump into the market. So educate yourself, start trading in small amounts and slowly widen you trading.Trading or even investing is not a simple game. The educated ones become much better investors and traders. So you are doing the right thing.. And in this forum don't hesitate to ask questions.. no question is stupid as long as you learn from it
Cheers
regards
Karthik
Hi Deependra
Looks like I am back on duty after a long vacation . Let us look at Lok housing first.
Since you wanted to know the future perspective let us look at the background and fundamentals.
Lok Housing has been a loss making company till recently and in the quarter ending March 2006 the company made a net profit of 22 Cr. The sales jumped 200% from 14 Cr in the previous quarter to 61 Cr. Also in April the company merges Lok shelters ltd with itself.
For the year ending 2006 march, the sales increased 86.6 Cr. from 34 Cr the previous year. The PAT was 22.2 Cr. compare to -.3 the previous year. The EPS shot up from 0.03 to 19
All these development saw the share move from double digit to Rs.660 !!.The company has not paid any dividend so far. In the current correction the share price fell to 314 which is more realistic at p/e multiple of about 16 times compared to a 33 times at the peak.
The construction sector was one of the sectors, which got badly hit during the correction.
The biggies of the construction sector including L&T , Gammon , IVRCL, Hindustan Const, etc got a hit of about 30%. The smaller ones like PBA infra, ERA Const. Etc got hit more that 40 to 50%. (maybe more today..The comparison I made yesterday)
The story for the Construction sector has not changed very much. The outlook for the next two years is still bright. However the construction stocks were very highly over valued. In my opinion when the correction does get over the biggies will be available at very good prices. I would recommend to go for good value picks and refrain from the small players especially one which just turned around. Also the floating stock is limited and the lack of liquidity make theme prone for manipulation which is evident from the way the stock was hitting the circuit so often. Also the company just turned around. Can it sustain the huge jump in profitability?
So I would suggest looking out the strong ones in the construction sectors. There are many at bargain prices. Wait a little to pick them.
We will look at your other query about Adani Exports soon.
Regards
Karthik
Looks like I am back on duty after a long vacation
. Let us look at Lok housing first.Since you wanted to know the future perspective let us look at the background and fundamentals.
Lok Housing has been a loss making company till recently and in the quarter ending March 2006 the company made a net profit of 22 Cr. The sales jumped 200% from 14 Cr in the previous quarter to 61 Cr. Also in April the company merges Lok shelters ltd with itself.
For the year ending 2006 march, the sales increased 86.6 Cr. from 34 Cr the previous year. The PAT was 22.2 Cr. compare to -.3 the previous year. The EPS shot up from 0.03 to 19
All these development saw the share move from double digit to Rs.660 !!.The company has not paid any dividend so far. In the current correction the share price fell to 314 which is more realistic at p/e multiple of about 16 times compared to a 33 times at the peak.
The construction sector was one of the sectors, which got badly hit during the correction.
The biggies of the construction sector including L&T , Gammon , IVRCL, Hindustan Const, etc got a hit of about 30%. The smaller ones like PBA infra, ERA Const. Etc got hit more that 40 to 50%. (maybe more today..The comparison I made yesterday)
The story for the Construction sector has not changed very much. The outlook for the next two years is still bright. However the construction stocks were very highly over valued. In my opinion when the correction does get over the biggies will be available at very good prices. I would recommend to go for good value picks and refrain from the small players especially one which just turned around. Also the floating stock is limited and the lack of liquidity make theme prone for manipulation which is evident from the way the stock was hitting the circuit so often. Also the company just turned around. Can it sustain the huge jump in profitability?
So I would suggest looking out the strong ones in the construction sectors. There are many at bargain prices. Wait a little to pick them.
We will look at your other query about Adani Exports soon.
Regards
Karthik
Hi deepndra
Here is my take on Adani Exports...
The Group's principal activity is to export agricultural commodities, textiles, gems and jewellery and fertilizer and raw materials. Agricultural commodities
The Group's subsidiaries are located in Mauritius, the U.A.E. and Singapore
The Company has posted a net profit of Rs 1183.40 million for the year ended March 31, 2006 (FY 05-06) as compared to Rs 1082.90 million for the year ended March 31, 2005 (FY 04-05). Total Revenue has decreased from Rs 135188.70 million in FY 04-05 to Rs 93392.60 million for FY 05-06.
Recently the company informed that it would get into real estate development business by utilising its land in Mumbai, Pune and Ahmedabad. The company also has large tracts of land in other small cities as well which it is planning to develop.
This report saw the stock shoot up to 182 from around 60. This stock was defying the downtrend in the market Then it fell to 142. Then reports that the company has closed one of the biggest real estate deals in mumbai bandra-kurla complex worth around 2250 Cr saw the stock rise again to 192 level. Then it dropped repeatedly hitting the lower circuit and formed a double top. Technically the stock looks very weak now. Even on Friday when the market has historic intraday rise the stock hit the lower circuit.
If the company is going to exploit its Land into real estate opportunities it would augur well for the future. I may be good pick on a long term. But ir may be available at much lower prices soon. Also it is a illiquid stock and very much operator driven. Small investors have to be careful with this one.
Hope this helps
regards
Karthik
Here is my take on Adani Exports...
The Group's principal activity is to export agricultural commodities, textiles, gems and jewellery and fertilizer and raw materials. Agricultural commodities
The Group's subsidiaries are located in Mauritius, the U.A.E. and Singapore
The Company has posted a net profit of Rs 1183.40 million for the year ended March 31, 2006 (FY 05-06) as compared to Rs 1082.90 million for the year ended March 31, 2005 (FY 04-05). Total Revenue has decreased from Rs 135188.70 million in FY 04-05 to Rs 93392.60 million for FY 05-06.
Recently the company informed that it would get into real estate development business by utilising its land in Mumbai, Pune and Ahmedabad. The company also has large tracts of land in other small cities as well which it is planning to develop.
This report saw the stock shoot up to 182 from around 60. This stock was defying the downtrend in the market Then it fell to 142. Then reports that the company has closed one of the biggest real estate deals in mumbai bandra-kurla complex worth around 2250 Cr saw the stock rise again to 192 level. Then it dropped repeatedly hitting the lower circuit and formed a double top. Technically the stock looks very weak now. Even on Friday when the market has historic intraday rise the stock hit the lower circuit.
If the company is going to exploit its Land into real estate opportunities it would augur well for the future. I may be good pick on a long term. But ir may be available at much lower prices soon. Also it is a illiquid stock and very much operator driven. Small investors have to be careful with this one.
Hope this helps
regards
Karthik
karthikmarar said:
Hi Sai
There is nothing we can do if the stock gaps down below your S/L. It is part of the game. The very fact the stock gaps down indicates weakness and it will be wiser to excercise the stoploss even at a lower price. Most of us do encounter such situations.
Why the Sai. In fact I would say that you are doing a wise thing. Education is first. Once you educate yourself you would not be paying a large tution Fees in terms losses as many uneducated novice trader do when they directly jump into the market. So educate yourself, start trading in small amounts and slowly widen you trading.Trading or even investing is not a simple game. The educated ones become much better investors and traders. So you are doing the right thing..
And in this forum don't hesitate to ask questions.. no question is stupid as long as you learn from it
Cheers
regards
Karthik
There is nothing we can do if the stock gaps down below your S/L. It is part of the game. The very fact the stock gaps down indicates weakness and it will be wiser to excercise the stoploss even at a lower price. Most of us do encounter such situations.
Why the
Sai. In fact I would say that you are doing a wise thing. Education is first. Once you educate yourself you would not be paying a large tution Fees in terms losses as many uneducated novice trader do when they directly jump into the market. So educate yourself, start trading in small amounts and slowly widen you trading.Trading or even investing is not a simple game. The educated ones become much better investors and traders. So you are doing the right thing.. And in this forum don't hesitate to ask questions.. no question is stupid as long as you learn from it
Cheers
regards
Karthik
Hi Karthik,
Read in the thread by Amit (http://www.traderji.com/46086-post3660.html) that "some of us also do the derivatives where there is money happening in this volatility". Could you please throw some light on this?
Thanks in advance
Sai
Read in the thread by Amit (http://www.traderji.com/46086-post3660.html) that "some of us also do the derivatives where there is money happening in this volatility". Could you please throw some light on this?
Thanks in advance
Sai
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