Tips for Investing

Posted on 02.13.07 by Afzal Adamjee @ 6:49 am    

Many people want to take advantage of the opportunity to invest as a way to supplement their income, but few people have the knowledge or the time to monitor stocks and they are reluctant to pay the high fees associated with full-service brokers.

As well, most people know that a diversified portfolio is the best-performing portfolio, but few people have the huge capital it takes to properly diversify a portfolio made up only of stocks.

One option for those people is to purchase mutual funds.

Best Cure for Hiccups?

Posted on 02.12.07 by Tanveer Sultan @ 2:49 pm    

“No matter how strong a bull may be, there is a time when it gets tired”, I said in my article “How Much Bull Can you Take”. My sentence reflected the market situation last week. (Behold, for my next trick I shall make Chirac disappear!) I mentioned that the bullish trend would continue and it is going to be a week of correction. It wasn’t exactly a correction of the magnitude I’m still expecting but it was definitely a hiccup that required more than a glass of water to abate. Though on the day market was a bit rough and the index showed fluctuation of about 175 points, Tuesday ended with a positive note. Correction, nevertheless, it was, in principle.

Analysts suggest caution as KSE touches 9-month high

Posted on 02.11.07 by StockPK Team @ 2:24 pm    

The outgoing week (February 06-09) is the seventh in sequence of closing the Karachi bourse on positive note. However, the process of much awaited technical correction was initiated on weekend.

KSE 100-Index moved ahead by another 255.01 points on week-on-week basis and closed above nine-month high record at 11,844.65 points despite of the bearish resistance it faced during week.

To calculate the future movement of the benchmark, it is worth mentioning here that 100-Index breached through 12,000 points on aggressive buying on Friday, but market failed to sustain this level. Corrections reversed the earlier gains after touching 12,047.72 points peak level this week.

Measuring Company Efficiency

Posted on 02.08.07 by StockPK Team @ 8:27 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.

Investing for all stages of life

Posted on 02.08.07 by Afzal Adamjee @ 12:03 pm    

“Even if you’re on the right track, “you’ll get run over if you just sit there”, said cowboy humorist Will Rogers. As an investor, you want to make progress. To succeed, you need to know:

1. Where you are headed, and;

2. What’s the best way to get ahead?

Your answers will change accordingly. It is true that nothing is constant in finance. The stock market moves up and down, interest rates rise and fall, mutual fund portfolio managers come and go. Most predictably, you get older. The right portfolio of investments when you’re 25 won’t be the right portfolio when you’re 45 with kids in college, or 65 and ready to retire.

Betting the Ranch: Risking Your Home to Buy Securities

Posted on 02.07.07 by StockPK Team @ 4:27 pm    

With a rising stock market, record low interest rates, and large gains in home value, some investors have taken out new mortgages, refinanced, or obtained line-of-credits secured by their homes for the specific purpose of investing in securities. The hope is that the investment will not only pay the mortgage, but also generate additional income. Unfortunately, it doesn’t always work out that way.

Investors who must rely on investment returns to make their mortgage payments could end up defaulting on their home loans if their investments decline and they are unable to meet their monthly mortgage payments. In short, investors who bet the ranch could lose it.

Small investors suffer losses due to lack of knowledge

Posted on 02.07.07 by StockPK Team @ 11:59 am    

There must be thousands of women with beautiful faces that have thought of going to Lahore and become an actress some end up as extras some in the notorious bazaar. The same is the case in Karachi, any person with a few thousand rupees to spare thinks of going to the stock market and become a big stock trader over night. Most end up broke.

There are more tales of ‘from riches to rags’ than of ‘from rags to riches’. Small investors coming to the bourse to stake their life earning in the equity bazaar must know that they might lose the whole amount in a wink of eye.

KSE MD Missing

Posted on 02.07.07 by StockPK Team @ 10:00 am    

The Securities and Exchange Commission of Pakistan (SECP) and the management of Karachi Stock Exchange have been trying to get in touch with KSE Managing Director M.A. Lodhi for the last six days.

According to informed sources Lodhi has become untraceable after learning of a decision by the KSE Board of Directors to remove him from his post after it had become clear that the systems at the Exchange are at variance with the regulations of SECP and the Exchange itself, and he is unable to manage the affairs according to the satisfaction of board of directors and the SECP. Lodhi has been at the helm for just over a year.

OGDCL – POST-GDR AND 2ND IPO

Posted on 02.06.07 by Tanveer Sultan @ 11:34 pm    

OGDCL was listed on GDR on December 18, 2006 at a price of US$ 1.89/share, which accounts approximately to Rs. 113.40 (the exchange rate being Rs. 60/US$ 1). Moreover, GoP also launched 20 million shares from its holdings in the company in what is a secondary public offering and what is termed a second IPO in mid-January of this year at a price of Rs. 110/share.

Market capitalization of the company currently is Rs. 588 billion. The share capital of the company is Rs. 43.01 billion divided into over 4.3 billion shares of Rs. 10 each. Out of the total shares, at just over 95% shares are held by GoP, the rest are with the general public. The public offering will marginally reduce GoP’s holdings in the company to 94.56%. Public holdings would increase 5.44%.

How Much Bull Can You Take?

Posted on 02.06.07 by Tanveer Sultan @ 12:27 pm    

Last week was another good one for the stock markets; KSE-100 index gained about 500 points. The bulls ran rampant. The trend which started mid-January continued. The index gained more than 1, 000 points overall straight away, without any correction. The index, which started rising mid-January, is now above 11, 500 points. TNA, people: Total Non-stop Action.