DS Wijesinghe wrote: ruwan326 wrote: DS Wijesinghe wrote: DS Wijesinghe wrote: Agape wrote:What about CINS -Hasnt this share given excellent returns ?
It has. An investor who bought CINS @ closing price of 2012 and selling after the 2018 Dividends would have earned a Compounded 17% Annual Rate of Return on the investment. Well above the bank FD rates during this perioid
Performance Summary of Ceylinco 2012-2017 | 2017 | 2012 | 5 year CAGR |
GWP | Rs. 34.6 Bn | Rs. 22.6 Bn | 9% |
NP after tax | Rs. 11.8 Bn | Rs. 2.1 Bn | 41% |
EPS | Rs. 437.06 | Rs. 74 | 43% |
NAVPS | Rs. 1428.9 | Rs. 525 | 22% |
DPS | Rs. 31.50 | Rs. 12.50 | 20% |
Note 1. :- CAGR- Compounded Annual Growth Rate
Note 2 :- 2017 NP After Tax & EPS are including
One Off surplus of Rs. 3.5 Bn
Example of an Investor buying 1,000 shares in 2012 @ closing price of Rs. 855/90 per share and Selling after receiving dividends in 2018 @ Rs. 1,750/- per sharePurchase Cost | Sales proceeds +Dividends | Compounded Annual rate of return on Investment |
Rs. 855,900/- | Rs. 1,867,000/- | 17% |
Medium to Long Term ConsiderationsSri Lanka's insurance penetration is far far below compared to many other countries in Asia and other developed nations. When the industry expands, as a giant in the industry Ceylinco should perform very well and reward their shareholders/investors handsomely in the medium to long term
Foreign Buying In Ceylinco Insurance, share up by Rs. 247/- CSE closed higher Wednesday with turnover propped up by block deals as foreign investors bought into Ceylinco Insurance while there was continued foreign selling in John Keells holdings (JKH), brokers said.
The All Share Price Index closed at 6,120.69, up 3.06 points (0.05%) while the more liquid SP SL20 index rose 26.15 points (0.80%) to close at 3,312.53. Turnover was Rs968 million.
Asia Securities said crossings or block deals accounted for 43% of turnover with two crossings each in Ceylinco Insurance and Sampath Bank and one in JKH.
Foreign investors were net buyers of Rs576 million worth of shares, with estimated net foreign buying highest in Ceylinco Insurance, which closed at Rs1,997.80, up Rs247 (14.11%).
Estimated net foreign selling was mainly in JKH which closed at Rs141, up Rs4.50 (3.30%).
We saw how blue chips fall apart.......... JKH,SAMP etc
So think twice before enter
Certainly not a good option for a short term trader/speculator/cheap promoter who is always in a mighty hurry to make a quick buck at the shortest time possible and the most within a quarter. A cheap promoter will buy penny stocks at a price and then try to move the price up by creating artificial hypes and then exit the stock after making quick money.
In other words Ruwan buys penny stocks @ 4/- or 5/50 and then highly promote the stocks to fellow form members to try and push the prices up and sell them back to other forum members at a higher price and make a quick buck. Other forum members would probably buy at higher prices, the price points which Ruwan will exit.
We all should invest in value stocks when they are under priced in any given market condition.
Also speculators and traders generally tend to make profits during bull markets(when the market is moving up) and not during bear markets(when the market is sluggish or going down)
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Investopedia
New York, NY
www.investopedia.com
Investing and trading are two very different methods of attempting to profit in the financial markets.
Investing
The goal of investing is to gradually build wealth over an extended period of time through the buying and holding of a portfolio of stocks, baskets of stocks, mutual funds, bonds and other investment instruments. Investors often enhance their profits through compounding, or reinvesting any profits and dividends into additional shares of stock. Investments are often held for a period of years, or even decades, taking advantage of perks like interest, dividends and stock splits along the way.
While markets inevitably fluctuate, investors will "ride out" the downtrends with the expectation that prices will rebound and any losses will eventually be recovered. Investors are typically more concerned with market fundamentals, such as price/earnings ratios and management forecasts.
Trading
Trading, on the other hand, involves the more frequent buying and selling of stock, commodities, currency pairs or other instruments, with the goal of generating returns that outperform buy-and-hold investing. While investors may be content with a 10% to 15% annual return, traders might seek a 10% return each month.
Trading profits are generated through buying at a lower price and selling at a higher price within a relatively short period of time. The reverse is also true: trading profits are made by selling at a higher price and buying to cover at a lower price (known as selling short) to profit in falling markets. Where buy-and-hold investors wait out less profitable positions, traders must make profits (or take losses) within a specified period of time, and often use a protective stop loss order to automatically close out losing positions at a predetermined price level. Traders often employ technical analysis tools, such as moving averages and stochastic oscillators, to find high-probability trading setups.
Trading Styles
A trader's "style" refers to the timeframe or holding period in which stocks, commodities or other trading instruments are bought and sold. Traders generally fall into one of four categories:
Position Trader - positions are held from months to years.
Swing Trader - positions are held from days to weeks.
Day Trader - positions are held throughout the day only with no overnight positions.
Scalp Trader - positions are held for seconds to minutes with no overnight positions.
Traders often choose their trading style based on factors including: account size, amount of time that can be dedicated to trading, level of trading experience, personality and risk tolerance.
Both investors and traders seek profits through market participation. In general, investors seek larger returns over an extended period through buying and holding. Traders, by contrast, take advantage of both rising and falling markets to enter and exit positions over a shorter time frame, taking smaller, more frequent profits.
Well, DS this part is for your consideration:D "Both investors and traders seek profits through market participation" not charity work