f you don;t believe me look at some Fin sector shares, certain manufacturing shares, and a certain plantation share( a sector which every one is skeptical about now.) Even the Motor sector is neglected largely and is undervalued . People sold their shares over too much panic. Do you think these companies are
going to go bankrupt or earn 10% of what they earned last year?
The foriegners are still going for larger cap companies which have not appreciated that much. ( COMB, DIST JKH etc)But just think what will happen if they start collecting in big quantities some other quality shares. I see early indications of such in the likes of Diversified conglomerate which is trading in the penny stock category thanks to a bad move to make it over liquid. Some companies have easily the potential to pay 10% dividend of current share price in the future. Some already have.
Share like CTC and NEST have over appreciated as they we high dividend yielding shares and illiquid. But now there are other share which can give higher dividend return.
Some penny stocks if properly managed within the next 5 years have the potential multiply value by 5 folds. We have discussed them before but again ;ook at below IPO, below NAV shares.
Even more importantly some share will appreciate from time to time for no apparent reason to the novice. Some share will give trading opportunities just by following the market trend. Some good share may pull back in red days . Will we see it as negative factor or positive chance for the future? It depends on you. But note many shares have corrected in value or over corrected right now from the top. Even shares like BUKI which was at Rs 1600 one time is at Rs 750 today. ( still have room to correct). Look what happened to LOLC. There are many more examples.
Share market is also a mental game. Now in this great bear trend share don't appreciate blindly like in those days where every tom, dick and harry of a share appreciated due to over optimism, manipulation and greed.
This market is now for the smart. This is the time to pick shares after smart thinking . Time have gone for blindly picking shares. Certain share will have the tendency to go up in price when the bull starts? which are those shares. ( That being said time again will come that a blind share will go up in price thanks to market cycles and human mentality)
Still investor confidence if less due to volatility in interest rates , micro and macro factors . Bargain hunter now are going to win in the future . I have a feeling world economies are going to bounce back slowly within this year( that is if you believe that world has a tendency to balance out the kinks over time if one see it as a optimistic place).
Is Sri Lankan companies that bad as CSE is reflecting? Time to analyze , think and invest smartly. Not in huge chunks as sudden price drops can still happen thanks to weak mentalities.
We can make ASI to go back to 4500 or to even less if we want to. But we are giving a selected few ( people) even more potential to grow richer if we all contribute to drop the index down further.
Some people are going to laugh with 50-200 capital gains with time! Is this the time to go all out and buy. No. Like I said buy in small chunks . Investment strategies have been discussed in this forum several times.
Make your own strategy , identify your plays, invest smart, have patience and sometimes we need to go against the crowd to win in the future.
Good luck.