Why DFCC/COMB/SAMP not moving

wikum100 · 1 Why DFCC/COMB/SAMP not moving Thu Dec 01, 2011 8:29 pm

wikum100

Senior Manager - Equity Analytics

Posts : 303
Equity Stars : 5241
Reputation : 15
Join date : 2011-01-28

why those bank shares not moving despite the maket is green and with good fundamentals ?

Rajaraam · 2 Re: Why DFCC/COMB/SAMP not moving Thu Dec 01, 2011 8:45 pm

Rajaraam

Vice President - Equity Analytics

Posts : 1208
Equity Stars : 6050
Reputation : 113
Join date : 2011-07-01

wikum100 wrote:why those bank shares not moving despite the maket is green and with good fundamentals ?

Fundamentally strong shares are not moving every day. It takes reasonable time to move and you can't expect a big jump within a short period. Those shares are good for ppl who like to be an investor of a perticular company.However in the long run such investors will be rewarded without any doubt.(by way of appriciation of share price/Dividends/Bonus shares/Rights etc.)
If someone expect significant price movements of shares daily he/she has to deal with short term popular shares (so called CRAPS)and he/she can make good profit If carefully and wiselyhandle such shares as a trader or short term investor. In my PF I have both.

rijayasooriya · 3 Re: Why DFCC/COMB/SAMP not moving Thu Dec 01, 2011 8:55 pm

rijayasooriya

Senior Vice President - Equity Analytics

Posts : 1827
Equity Stars : 6820
Reputation : 134
Join date : 2011-05-25
Location : Matara

Those shares are not usually subjected to manipulation.So the growth is bit slow but usually sustainable.
But when craps are on a rally fundamentals may go down as some investers dump those shares for quick bucks.

insidertrader · 4 Re: Why DFCC/COMB/SAMP not moving Thu Dec 01, 2011 8:56 pm

insidertrader

Manager - Equity Analytics

Posts : 196
Equity Stars : 5004
Reputation : 36
Join date : 2011-06-04

They're not junk but they're not cheap either. The word fundamental is sorely misused. When companies like these went down people cried fundamentals are going down. They were going down because they were expensive. They can be good companies but they may not be undervalued if not overvalued. They should be good for investment in the long term. But I think some of them may end up at the same price levels again next year.
Check the last 4 - 8 quarters and check if they have sold anything. Even for companies which have very low PE ratios they have probably sold something big.
Why they're not moving is probably because these companies are highly liquid and they have a huge market capitalization. So they're difficult to manipulate. So ones you see going up in the last few days are the ones big players play with.

Gaja · 5 Re: Why DFCC/COMB/SAMP not moving Thu Dec 01, 2011 10:31 pm

Gaja

Associate Director - Equity Analytics

Posts : 3127
Equity Stars : 9690
Reputation : 260
Join date : 2011-01-27
Age : 40
Location : Colombo

insidertrader wrote:They're not junk but they're not cheap either. The word fundamental is sorely misused. When companies like these went down people cried fundamentals are going down. They were going down because they were expensive. They can be good companies but they may not be undervalued if not overvalued. They should be good for investment in the long term. But I think some of them may end up at the same price levels again next year.
Check the last 4 - 8 quarters and check if they have sold anything. Even for companies which have very low PE ratios they have probably sold something big.
Why they're not moving is probably because these companies are highly liquid and they have a huge market capitalization. So they're difficult to manipulate. So ones you see going up in the last few days are the ones big players play with.

Well friend valuing a stock has lots of methods and some shares cannot be by simple methods and i found an interesting line on the above code here i copy again and hope you will not object to it

"They should be good for investment in the long term. But I think some of them may end up at the same price levels again next year."

Like you exactly mentioned i have 2 company shares which i bought at the same price in Later Part of 2009 and still the prices are remaining same but i have more than 100% Capital Gain plus good dividends even in a previous comment i mentioned those 2 shares as well