Nomination & Election

Recicash · 1 Nomination & Election Fri Jul 03, 2015 10:44 am

Recicash

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My past experience, nomination/election periods foreign selling, market stagnate or come down is normal. Now the situation is very bad , BLUE having many problems, MR, fractions, Who next PM, partners, MR contest another symbol? etc. Firstly we have to wait and see nomination end. Secondly after nomination until election day meetings,canvasing, preference voting, party member clashes, if MR in contest different party? own party member clashes, we don't know what will happen, we seen, all these past our elections. So we can't expect market go up that is normal, I think time for buyer's market, share price may come down, buy you can sell after election next day, Index will be 8000.

VALUEPICK · 2 Re: Nomination & Election Fri Jul 03, 2015 11:13 am

VALUEPICK

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It is time to spend some time to pick tomorrow’s winners. Stock prices already have factored to few bad news. But there are lot of good news as well. Some stock prices are at the rock bottom. This is one of the markets which have more value. Even Chinese investors may come to Colombo bourse.

peacockman · 3 Re: Nomination & Election Fri Jul 03, 2015 3:53 pm

peacockman

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VALUEPICK wrote:
....... Some stock prices are at the rock bottom. This is one of the markets which have more value........

Dear VP,
Could you suggest us the stocks like this.....?
All of the Forum Members would be thankful to you!

VALUEPICK · 4 Re: Nomination & Election Sat Jul 04, 2015 1:25 am

VALUEPICK

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You have idea about some rock bottom stocks as you have uploaded some 52 weeks low stocks. We have to be very careful buying these stocks. If their fundamentals are not going to improve then we should ignore them. However still they can go up in bull markets when other stocks become overpriced. Some can end up with more than 10 baggers in the mid and long term. For example in the past both KAHA and BOGA were in rock bottom and were trading Below Rs.3. Now they are trading above Rs.30.

In the plantation sector MASK is in the rock bottom now.

Before buying any stock we need to do some home work. For example if we want to buy tea stocks we should have some idea about following

We should see rising tea prices in every tea auction and fetching tea prices above the cost of production
Mid and long term outlook in the industry and its trend
Ability to generate cash in the future etc.
General Market situation and stages of market

Currently I consider TPL as the best managed tea company in the tea sector. On valuation MPRH is more attractive than SUN, WATA, KAHA, MASK and BOPL now. BOPL is more attractive than WATA, KAHA and KOTA.

There are other rock bottom stocks. They don’t have any fixed assets as well and we cannot expect any recovery as they have become mature industries.

Another one is FLCH. Even stocks such as HAPU and UDPL closer to bottom.

Just because they are in rock bottom we should not buy those stocks. We need to identity their prospects, value and future earnings.

Again not all rock bottom stocks will recover in same manner.

On the other hand some outstanding stocks will break 52 week again and again when it combines with strong fundamentals, technical, momentum, future earnings and strong outlook. In some situation, it is not too high to buy stocks. Similarly it is not too low to sell stocks. We cannot make profits all the time. Loss making is also part of this process.

Intelligent investors are accumulating stocks taking advantage of current market situation. We should see active period in the coming weeks. It is time to identify future winners.

Good luck!

peacockman · 5 Re: Nomination & Election Sat Jul 04, 2015 12:50 pm

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VALUEPICK wrote:.......... We cannot make profits all the time. Loss making is also part of this process.

Intelligent investors are accumulating stocks taking advantage of current market situation. We should see active period in the coming weeks. It is time to identify future winners.

Good luck!

Well said Dear V.P !

VALUEPICK · 6 Re: Nomination & Election Sat Jul 04, 2015 3:47 pm

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Good news:

Smooth transfer of power in Sri-Lanka whoever wins?

Dissolution of parliament and having election within the short period (by next month everything is over)

Permanent government will be there after election (Already some can analyse election results. I already have my estimation)

We should see priority in the following sectors such as health and education, Agriculture and food sector including plantations, export and infrastructure development etc after election. Therefore stocks in those areas will have bright future.

Now it is very closer to general election. We may see some minor volatility but we should see active market period from next week onwards.

These are the sectors to watch next.

Food and food related stocks including number one hot beverages in Sri-Lanka (Tea stocks related)
Health care
Utilities

Out of above three, some food companies have great value and strong outlook than others. Food stocks are ideal for all types of economic and political situations and market situations.