Purchasing Of Shares -1st Time

suranga.oshadi · 1 Purchasing Of Shares -1st Time Tue Dec 09, 2014 11:38 am

suranga.oshadi

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Dear Friends

I am new to this field and , today 1st time i have BOUGHT Renuka agri foods (100) and PIRAMAL GLASS CEYLON (100)

What are your suggestion , Kindly Advice...

Thushara Ayya · 2 Re: Purchasing Of Shares -1st Time Tue Dec 09, 2014 11:52 am

Thushara Ayya

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RAL is not a bad counter. First learn through the charts...

suranga.oshadi · 3 Re: Purchasing Of Shares -1st Time Tue Dec 09, 2014 1:08 pm

suranga.oshadi

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Dear Thushara

Thanks for your comment .. can u brief more about chart, any pdf, or learning me trials

Ernie Tissera · 4 Re: Purchasing Of Shares -1st Time Tue Dec 09, 2014 2:09 pm

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Suranga - Before you buy any share study the following as an initial step:

Earth: The Price-to-Book Ratio (P/B)
Made for glass-half-empty people, the price-to-book (P/B) ratio represents the value of the company if it is torn up and sold today. This is useful to know because many companies in mature industries falter in terms of growth but can still be a good value based on their assets. The book value usually includes equipment, buildings, land and anything else that can be sold, including stock holdings and bonds. With purely financial firms, the book value can fluctuate with the market as these stocks tend to have a portfolio of assets that goes up and down in value. Industrial companies tend to have a book value based more in physical assets, which depreciate year after year according to accounting rules. In either case, a low P/B ratio can protect you - but only if it's accurate. This means an investor has to look deeper into the actual assets making up the ratio. (For more on this, see Digging Into Book Value.)
Fire: Price-to-Earnings Ratio (P/E)
The price to earnings (P/E) ratio is possibly the most scrutinized of all the ratios. If sudden increases in a stock's price are the sizzle, then the P/E ratio is the steak. A stock can go up in value without significant earnings increases, but the P/E ratio is what decides if it can stay up. Without earnings to back up the price, a stock will eventually fall back down.
The reason for this is simple: a P/E ratio can be thought of as how long a stock will take to pay back your investment if there is no change in the business. A stock trading at $20 per share with earning of $2 per share has a P/E ratio of 10, which is sometimes seen as meaning that you'll make your money back in 10 years if nothing changes. The reason stocks tend to have high P/E ratios is that investors try to predict which stocks will enjoy progressively larger earnings. An investor may buy a stock with a P/E ratio of 30 if he or she thinks it will double its earnings every year (shortening the payoff period significantly). If this fails to happen, then the stock will fall back down to a more reasonable P/E ratio. If the stock does manage to double earnings, then it will likely continue to trade at a high P/E ratio. You should only compare P/E ratios between companies in similar industries and markets. (If these numbers have you in the dark, these easy calculations should help light the way, see How To Find P/E And PEG Ratios.)

suranga.oshadi · 5 Re: Purchasing Of Shares -1st Time Tue Dec 09, 2014 2:43 pm

suranga.oshadi

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many thanks.....

chinthaka22 · 6 Re: Purchasing Of Shares -1st Time Tue Dec 09, 2014 3:58 pm

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ah. i also remember my 1st investment . It was also 400of
Glas shares. Ral is also a good share and both pay dividends and are good shares for a starter like you

NZ BOY · 7 Re: Purchasing Of Shares -1st Time Tue Dec 09, 2014 4:20 pm

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suranga.oshadi wrote:Dear Friends

I am new to this field and , today 1st time i have BOUGHT Renuka agri foods (100) and PIRAMAL GLASS CEYLON (100)

What are your suggestion , Kindly Advice...

Both shares good