The Lowdown On Stock Buybacks

Posted on 12.19.06 by StockPK Team @ 11:29 am    

When times are tough in the market, companies will often announce stock buyback programs. Why would a company want to buy back its own shares? What does this mean for shareholders?

Buyback Basics
A stock buyback, also known as a “share repurchase”, is a company’s plan to buy back its own shares from the marketplace. You can think of a buyback as a company investing in itself, using its cash to buy shares. The idea is simple: since a company can’t own itself, the buyback reduces the number of outstanding shares on the market.

Buybacks can be carried out in two ways:

The Ups And Downs Of Investing In Cyclical Stocks

Posted on 12.19.06 by StockPK Team @ 10:19 am    

Think of being on a Ferris wheel: one minute you’re on top of the world, the next you’re at the bottom - and eager to head back up again. Investing in cyclical companies is much the same, except the the time it takes to go up and down, known as a business cycle, can last years.

How The PEG Ratio Can Help Investors

Posted on 12.18.06 by StockPK Team @ 10:19 am    

The PEG (price/earnings to growth) ratio is a tool that can help investors find undervalued stocks. It’s not as well known as its cousins, the P/E and P/B ratios, but it is just as valuable. When used in conjunction with other ratios, it gives investors a perspective of how the market views a stock’s growth potential in relation to EPS growth.

Types Of EPS

Types Of EPS

Gertrude Stein said, “A rose is a rose is a rose,” but the same cannot be said about earnings per share (EPS).

While the math may be simple, there are many varieties of EPS being used these days, and investors must understand what each one represents if they’re to make informed investment decisions. For example, the EPS announced by the company may differ significantly from what is reported in the financial statements and in the headlines. As a result, a stock may appear over- or undervalued depending on the EPS being used. This article will define some of the varieties of EPS and discuss their pros and cons.

Pak Steel (PS) IPO under consideration

Posted on 12.15.06 by StockPK Team @ 1:14 pm    

Various options are now being considered for the privatisation of Pakistan Steel Mills (PS), which includes listing at the stock exchanges of the country, said Minister for Industries and Production Jehangir Khan Tareen on Thursday.

Speaking to reporters during his visit to the mills, he said the government would privatise the entity in phases, which could include initial public offering of 10 per cent shares. “The government will privatise the PS, but it is yet to be decided how it will be done,” he said.

Trading Psychology And Discipline

Posted on 12.15.06 by StockPK Team @ 9:00 am    

Your psychological mind set may play a larger role in your trading career than your chosen technique or any other details associated with your day-to-day practice. Indeed, discipline is just one attribute of trading psychology, but it just so happens to be the most important psychological factor that affects a trader’s success.

There are four components of discipline that I believe are absolutely essential to a successful career in trading:

Five Biggest Stock Market Myths

Posted on 12.15.06 by StockPK Team @ 2:43 am    

When fiascos like the Enron bankruptcy, auditing scandals and analysts’ conflict of interest occur, investor confidence can be at an all-time low. Many investors are wonder whether or not investing in stocks is worth all the hassle. At the same time, however, it’s important to keep a realistic view of the stock market. Regardless of the real problems, common myths about the stock market often arise. Here we go over these myths in order to bust them.

NA committee to take up KSE crash report

Posted on 12.13.06 by StockPK Team @ 12:24 pm    

The National Assembly’s standing committee on finance is going to reopen the issue of forensic report on last year’s stock exchange crash and discuss the delayed Anti-Money Laundering Bill, 2006, when it meets at the Parliament House here on Wednesday.

The Securities and Exchange Commission of Pakistan will brief the committee on sale/liquidation options for the Crescent Standard Investment Bank and the financial regularities committed there by the board of directors and other high-level officials.

The committee will also be briefed on the status of the over Rs22 billion tax refund scam in which some high-level officials of the Central Board of Revenue and a company are said to be involved.

Albarak Pakistan IPO planned

Posted on 12.12.06 by StockPK Team @ 2:31 pm    

Bahraini Islamic bank Albaraka is planning to float 25 percent of its unit in Pakistan to bring its capital to $100 million, the minimum for a Pakistani bank, an Albaraka official said on Monday.

“We are thinking of having an IPO in Pakistan and turning it (Albaraka Pakistan) around and making it an independent bank,” Albaraka General Manager Salah Zainalabedin told Reuters. “In Pakistan right now they (banking authorities) are looking at a minimum capital of $100 million so we will probably be looking at that size,” he added.

OGDC GDS over-allotment option used

Posted on 12.12.06 by StockPK Team @ 1:41 pm    

The Privatisation Commission (PC) on Monday announced that Citigroup, Goldman Sachs International and BMA Capital had exercised the over-allotment option and sold additional 53.294 million ordinary OGDCL shares in the form of Global Depository Shares (GDSs). This transaction completed the final element of institutional offering, said a PC statement.

Including the over-allotment option and retail offering, gross proceeds of the offer are expected to amount to Rs49,353 million ($811 million). The retail offer of 21.505 million shares to investors in Pakistan at a price of Rs110 per share will commence this month and is expected to complete within a few weeks thereafter.