Measuring Company Efficiency

Posted on 11.30.06 by StockPK Team @ 1:09 pm    

Analyzing a company’s inventories and receivables is a reliable means of helping to determine whether it is a good investment play or not. Companies stay efficient and competitive by keeping inventory levels down and speeding up collection of what they are owed. In this article, we’ll take you through the process step by step.

Getting Goods Off the Shelf

As an investor, you want to know if a company has too much money tied up in its inventory. Companies have limited funds available to invest in inventory - they can’t stock a lifetime supply of every item. To generate the cash to pay bills and return a profit, they must sell the merchandise they have purchased from suppliers. Inventory turnover measures how quickly the company is moving merchandise through the warehouse to customers.

KSE Notice: Implementation of Risk Management System (RMS)

Posted on 11.29.06 by StockPK Team @ 3:29 pm    

KSE Managemenet has issued a notice for implementation of Risk Management system (RMS). It lists the changes identified in RMS as approved by the KSE Board of Directors and SECP.

Senate body asks SECP to avoid crash

Posted on 11.29.06 by StockPK Team @ 12:18 pm    

The Senate Standing Committee on Finance, Revenue and Statistics has directed the SECP to regulate strictly and vigilantly so that eventualities like the stock market crash of March-2005 could be avoided in future.

The Committee, which met at the Parliament House on Tuesday under the chairmanship of Senator Ahmed Ali, directed the SECP to plug the loopholes in the system, protect the interest of small and medium investors and watch the activities of banks and brokers in the stock market.

This is the only way to ensure that the capital markets would perform their essential function of supporting the industry, it observed.

Investing: The Art Of Making Your Money Work For You

Posted on 11.28.06 by StockPK Team @ 5:57 pm    

There is a lot to know about investing. It all depends on what type of investing you are interested in as well. There are many different types of investment options out there. So what is investing, specifically?

Digging Deeper: The Mutual-Fund Prospectus

Posted on 11.27.06 by StockPK Team @ 12:59 am    

As a mutual-fund investor, you’ve probably heard over and over again that you should always consult a mutual fund’s prospectus before handing over your money. It’s also no secret, however, that the size of this document and the type of information inside can be hard to tackle. But don’t be too overwhelmed. Here is a guide to what a prospectus is, why it is important and what items should be central to your considerations.

KSE March 2005 Crash: SECP Forensic Investigation Report

At the request of the Securities and Exchange Commission of Pakistan (“SECP”), Diligence USA, LLC (“Diligence”) conducted a forensic examination of certain alleged manipulative and/or illicit activities related to the stock market events of March 2005, as
transacted on the Karachi Stock Exchange (“KSE”). The primary allegations examined related to the withdrawal of regulated COT (“Carry Over Transaction” financing, also known as “Carry Over Trade” or Badla financing) and in-house Badla, wash trades, and
violations of Clause 3(b) of the Regulations Governing Futures Contracts (exceeding the Rs 50 million reporting threshold).

Human error adds 84 points to fall

Posted on 11.21.06 by StockPK Team @ 11:14 am    

Human error caused a technical fault in trading software (KATS) at KSE following Arif Habib Securities bonus announcement. The fault contributed 84.11 points to the total decline of 275.21 points in 100-Index on Monday, The news learnt.

KSE press statement added that Arif Habib Securities Limited (AHSL), a component of KSE-100 Index had announced a 122.22 per cent bonus at the time of sending their financial results for the quarter ended September 30, 2006. The book closure for determination of the entitlement of this bonus issue was notified from November 20 to November 26, 2006.

The Secret of Reduced Margin Spreads

Posted on 11.19.06 by StockPK Team @ 11:00 am    

One of the best kept secrets in trading is that of reduced margin spreads. You cannot name a trading method that provides more safety or a greater return on margin than does a reduced margin spread, while also being one of the least time- consuming ways to trade. Have you ever asked yourself why it is that many of the largest, most powerful traders trade spreads? I’m going to show you why!

WHAT IS A REDUCED MARGIN SPREAD?

CresBank gets Rs6bn from Saudi investors

Posted on 11.18.06 by StockPK Team @ 11:20 pm    

Board of Directors of CresBank has approved foreign equity investment of Rs6 billion and it is expected the injection of this amount will help in strengthening and widening the business activities of the bank.

CresBank on Friday officially communicated the brief decision of the board of directors to the three stock exchanges of the country.

It said “the board of directors of Crescent Commercial Bank Ltd (CCBL) in its 31st meeting held on 17th November, 2006, after deliberating on definitive investment propositions from a number of potential investors approved an investment of Rs6 billion in the bank from a premier financial institution from Saudi Arabia. This investment is subject to appropriate regulatory approvals and execution of definitive agreements.”

Companies penalised for law violation

Posted on 11.18.06 by StockPK Team @ 10:14 pm    

The Securities and Exchange Commission of Pakistan (SECP) has imposed an aggregate penalty of Rs10 million on Clearshore Ltd, its directors and directors of Ahmed Spinning Mills Limited (ASML) for violation of Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance, 2002.

The directors of ASML, acting in concert with Clearshore, disposed of the company’s investment in shares of United Sugar Mills Limited (USML) to Clearshore at a price of Rs16 per share. Subsequently, the Clearshore’s holding in USML was sold off at a price of Rs333 per share, thus depriving the ASML’s shareholders of their rightful share of Rs213.425 million.