illiquid Stock............

StockDJ · 1 illiquid Stock............ Tue Jun 16, 2015 4:57 pm

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illiquid Stock - what does it mean, please explain Smile

troy · 2 Re: illiquid Stock............ Tue Jun 16, 2015 5:28 pm

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illiquid stocks are stocks which do not trade often.( less liquid)

For example JKH is a liquid stock where as HASU is an illiquid.

StockDJ · 3 Re: illiquid Stock............ Tue Jun 16, 2015 5:40 pm

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troy wrote:illiquid stocks are stocks which do not trade often.( less liquid)

For example JKH is a liquid stock where as HASU is an illiquid.

Thank you sir for explaining

DammanBoy · 4 Re: illiquid Stock............ Tue Jun 16, 2015 5:44 pm

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Normally Illiquid means hard to convert into cash.
When there is lesser number of shares spread among few public shareholders you find it difficult to sell if you need cash and cannot find enough number of shares if you want to buy. Hence trading activity is very low.

In some companies main shareholders have over 90% of the shares with them. Normally they do not sell regularly to public. Those are called illiquid shares.

When very high % of shares in the market among many investors ( like FLCH) they rush to sell when price go up in small amount. Hence it is difficult to take the price upwards over certain limits. When little % of shares in the market (illiquid shares) sellers do not come such a way when price go up. we can see the prices appreciate in continuous manner in illiquid shares.

Big funds and big investors prefer liquid shares because they can buy and sell in big quantities .

bullseye · 5 Re: illiquid Stock............ Tue Jun 16, 2015 7:43 pm

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so how to identify illiquid shares?

jayathu · 6 Re: illiquid Stock............ Tue Jun 16, 2015 7:48 pm

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Hasu is not illiquid, look at there public holding. Illiquid stocks are shares like Morison where public holding is really little

Raj Rajaratnam · 7 Re: illiquid Stock............ Tue Jun 16, 2015 7:58 pm

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jayathu wrote:Hasu is not illiquid, look at there public holding. Illiquid stocks are shares like Morison where public holding is really little

Correct....
James Finlay is a typical example. Even the share price is 300. If you want to sell it now you can only sell it around 230.....

Gainer · 8 Re: illiquid Stock............ Tue Jun 16, 2015 8:04 pm

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Example:

SLND very illiquid stock and very small share capital.

Today went up 23% Price increase but no sellers.only 91 Shares traded today.

VALUEPICK · 9 Re: illiquid Stock............ Tue Jun 16, 2015 11:47 pm

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Those types of illiquid stocks also will become active and their liquidity will improve in the remaining stages of bull market. Volatility in some period creates opportunity for investors in bull market. Some stocks were illiquid in the past and now the have become active and their liquidity has increased dramatically. It is time to identify some winning stocks in this category as well.We find undervalue illiquid stocks in the banking and finance sector, tea plantation, diversify and production sector etc.

Yahapalanaya · 10 Re: illiquid Stock............ Wed Jun 17, 2015 12:11 am

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VALUEPICK wrote:Those types of illiquid stocks also will become active and their liquidity will improve in the remaining stages of bull market. Volatility in some period creates opportunity for investors in bull market. Some stocks were illiquid in the past and now the have become active and their liquidity has increased dramatically. It is time to identify some winning stocks in this category as well.We find undervalue illiquid stocks in the banking and finance sector, tea plantation, diversify and production sector etc.

Good example for illiquidity stock become liquidity stock.SFL.P & SFL.N

VALUEPICK · 11 Re: illiquid Stock............ Wed Jun 17, 2015 3:07 pm

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Yahapalanaya wrote:

VALUEPICK wrote:Those types of illiquid stocks also will become active and their liquidity will improve in the remaining stages of bull market. Volatility in some period creates opportunity for investors in bull market. Some stocks were illiquid in the past and now the have become active and their liquidity has increased dramatically. It is time to identify some winning stocks in this category as well.We find undervalue illiquid stocks in the banking and finance sector, tea plantation, diversify and production sector etc.

Good example for illiquidity stock become liquidity stock.SFL.P & SFL.N

Yes. In the remaining stages of bull market even illiquid stocks will go up and liquidity will improve dramatically.