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Showing posts from March, 2012

3 Ways to Survive a Bear Market

If you were hiking in the mountains and stopped in a small river for a drink only to look up and see a bear charging at you, what would you do? Our instinctual reaction in a life-threatening situation, such as being charged by a bear, is to run. But wilderness experts will tell you that instead of running from a bear, you should curl into a small ball. The moral of the story is that you can’t outrun a bear. And the same is true of metaphoric bears — a bear market, for example. Anyone who has invested in the past decade, and especially in the past five years, has seen what finance people call a "bear market". What is a bear market? In the most basic terms, it is exactly what it sounds like: a confluence of unfortunate factors that make the stock market a terrible, scary place to be, especially for inexperienced investors. Our instinctual response to a bear markets is the same as our reaction to a live bear — we want to run. We want to scramble and get out as soon as poss

NBCC IPO Review National Buildings Construction Corporation

National Buildings Construction Corporation NBCC is coming out with an IPO of 12,000,000 Equity Shares of Rs. 10 each by way of an offer for sale of Equity shares by GOI. The company, started in 1960, is one of the few public sector companies engaged in the business of (i) project management consultancy services for civil construction projects (PMC) (ii) civil infrastructure for power sector and (iii) real estate development. The company is headquartered in New Delhi and in addition has 10 regional / zonal offices across India. The projects undertaken by the Company are spread across 23 states and 1 union territory in India. Issue Details: Issue Open: Mar 22 - Mar 27, 2012. Issue Size: 12,000,000 Equity Shares of Rs. 10. Issue Price: Rs.90-Rs.106. Listing At: BSE, NSE. CARE Rating: 4 indicating above average fundamentals. A Discount of 5 % on the Offer Price shall be offered to Retail Bidders and Employees. Positives of the company: 1.Established brand name and reputation. 2.Operations

5 Mistakes to Avoid While Investing in Stocks

Due to availability of easy access to online trading, provided by many brokerage houses, investing and trading has been made easy. This is great, because it encourages more people to explore investing for themselves, rather than depending on mutual funds and portfolio management schemes (PMS). But the big question is, whether an investor would be able to do their own research, pick stocks, invest and make money? Yes, it is possible to be a successful investor and for that one needs to be aware of the common mistakes while investing. By avoiding these mistakes, their path to successful investing would be a smoother one. 1. Investing all the money in a single investment You should never put all your eggs in one basket. Investing 100% of your capital in a single stock or a sector is not a good move. Since, one particular stock or sector may under-perform the market, while the rest of the market moves up. One has to have a diversified portfolio of different sectors and stocks. Diversificat