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Showing posts from January, 2020

Power of Penny Stocks

 When it comes to the stocks with prices lower than $1 we call them as penny stocks, but in India any stock in the price range below Rs 10 is considered as Penny Stock.it could be of Rs 5, Rs 1 or even Rs 0.50 and Rs 0.05 depending upon the Market Capital and the Number of Stocks divided. In general Small or Micro business Companies issue Penny Stocks and people buy them with eager enthusiasm to quickly become Rich lets do some math. 1) You have Rs 5000 and you buy 50 shares of XYZ company at Rs 100/share and the price of the share rise by Rs 10 or by 10%, How much do you earn =50*10=500, Rs 500 maybe in a month or so. 2) You have Rs 5000 and you buy 50,000 shares of ABC at Rs 0.10 and within a month the price of each share increases only by 5 or 10 paisa, so how much return does it give, 50-100%. and you double your money in just a few months so now, you know the Power of Penny Stocks as to why they are so attractive, there have been many companies in Indian Stock markets ...

Success Stories #1(MRF)

The first Story we will talk about is from the Investment in MRF. This takes us back to 1990 and this story is what a classic example of Investment in a long term is about.  A man bought 10,000 shares of MRF in 1990 , held it till 2016 and now those  MRF shares have risen by over 14000% becoming the most expensive stock on Indian market indexes. MRF share price has touched over Rs 74,000-mark and is expected to reach even above Rs 80,000-level. Such performance is not the end for MRF, analysts are still optimistic on the share price considering the company's strong business portfolio.  Vijay Sarthy TS and Shubhranshu Mishra analysts at Anand Rathi said, "Given the decline in rubber costs and its continued higher revenue growth, MRF’s margin is expected to be better in coming quarters.  For the next two years, we expect competition in two-wheeler tyres to be keener. Nevertheless, the company will be able to maintain its market share,...

Investment During War #4

When the world falls into a major crisis like a war breakout or if we are moving towards an Economic Crisis, Stock Market Becomes Weak(Bullish). Lets consider the present ongoing Situation of 2020 between Iran & U.S.. After the first strike of US the Crude Oil Prices went 4% up in one day. This happened because Iran is a major Oil Producer in the world and with Iran going into a full fledged war with US means there will be less production of oil in Iran leading to less Oil Production in The World and that further means less energy, which will lead to less Production and Manufacturing which means less Growth,so there will be decrease in stock prices. But wait,there is more although i told you the stocks will lose their value,there is something that gains more value and gets expensive so what is it? Commodities,Like i already told you Oil Prices will go up, same ways many commodities like Gold,Silver,Crude. will keep going up that is why not just stocks it is also important to b...