We need 6th Sense to invest in CSE in future.

xmart · 1 We need 6th Sense to invest in CSE in future. Thu Mar 24, 2011 9:34 am

xmart

Senior Manager - Equity Analytics

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Join date : 2011-01-31
Location : Colombo

Market is being full of artificial controls. Brokers and SEC together with few HNWIs are having the power of control. since our market is small, any HNWI can bring or down any share irrespective of technical and fundamentals.

did anybody think DPL to 8 Rs to 134 Rs?
4 Rs REEF went to 100 Rs?
10 Rs PCH suddenly went to 30's.
ECL was appreciated from 17 to 32.
SPEN came 220 to 160.
JKH down to 260 from 340.
LFIN went down to 260 and now 380.( didn't consider split)

Technical and Fundamental can be safely apply to blue chips. because, high market capitalization, high number of shares. good percentage of foreign and institutional share holders.

to invest in other small cap and mid cap, we need 6th sense.

duke · 2 Re: We need 6th Sense to invest in CSE in future. Thu Mar 24, 2011 2:49 pm

duke

Senior Manager - Equity Analytics

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Join date : 2011-03-14

by looking at the colombo stock market i think buying so called fundamentally sound stocks is a waste of your money. fixed deposits will give you a better return. at the end of the year we could expect the the fundamentally sound stocks at the same price level. yeah you won't agree. but look at JKH was 300 last december. DIST is now 180s but it was in 160s when the market was going up in jan/feb even after slic decision and all. in another few weeks it may be back in the same level. but most of all fundamentally sound stocks break records going below the last recorded low all the time.