How to choose a stock that will work for you

How to select a good stock for investment?  If you know the answer you will be reaping all profits and no loss. There are several methods of selecting a good stock . The history of the company, its geographical location, position or rank of the company in the respective industry, its financials, the promoters and their holding percentage all are important while choosing a company’s shares.

 Investment Analysis Portfolio Management Solutions ManualHistory of the company includes, when it was originated, has it recovered from the initial teething troubles, is its products maintain standard quality well accepted by the market etc. Geographical location is important because any political turmoil or disturbance can adversely affect its progress. Besides knowing the condition of a particular industry in which the company functions, its rank in it also is very important. A strong company in a weak industry is ideal selection since when industry progresses, it gets outside support and our selected candidate is sure to gain much. When considering the financials, we may thoroughly study its balance sheets for the current as well as preceding years.  We should look into its operating profit, margin, earning per share, PE ratio and also its book value representing its reserve.  Also examine its dividend and bonus records to ascertain viability of holding it for a considerable period of time.  Never touch a share if its trading volume in the stock exchange is very poor since we may get locked up to its holding unable to dispose it at time of our need. Finally, the role of promoters is also very important, as they are the persons who distribute benefits to the shareholders. Their percentage of holding also is to be considered as a low percentage makes them vulnerable and prospective candidate for take over.

 Hence what is wrong in selecting shares of a company, which pays more dividend than bank interest, provided it satisfies all other criteria explained above? A proper study is therefore a must before selecting a company’s share and adding it to our portfolio.

Investment, shift to silver

Gold reserves its prime position owing to its history and background and its price has soared irrationally based on sentiments.  Silver too was appreciating but largely based on its supply and demand condition. In the year 2007, the price of one ounce of gold was around $600, which reached @1250 today.  But silver rose to $19 from $15 for corresponding period. It proves that sentiments played a larger role in the case of gold to double its price owing to recession and credit crisis.  People started accumulating gold as a hedge against value erosion of their wealth.

 Now to think about the future, whether the sentiment- run rally would continue in case of gold or will there be any shift towards silver is a matter of great debate. Silver too has a history like gold in preserving wealth of nations. But silver is scarce than gold as its supply is only one third of latter. Its use in solar cells and nano-technology increases its industrial importance. It is widely used in fabrication, for making utensils and for ornaments. It is poor man’s gold and the affordability further increases its demand. Silver is gradually appreciating by its true value and its demand exceeds supply. There is a growing demand among emerging economies especially China to triple its silver holding. But unfortunately, there is no proportionate effort to enhance its supply; the result being a condition of demand always exceeding supply.  Hence, to summarize, silver is likely to remain a star performer and it may even outsmart gold in future.

Stock Market ideas.

Everyone enters stock market with an idea of making profit.  But how many are making it.  Only quite a few lucky people make it.  Many have burned their fingers and lost their fortune by investing in stock market.  It may be because they entered an area without proper strategy and their emotions overtook their decisions.  The important key to success is that one should stick on to ones own strategy and should not deviate from the path even when they make initial losses.

Shares, as everyone knows is the riskiest form of investment.  Shareholders are the owners of the company and in case of making loss or liquidation they stand to lose.  So while investing in shares, one should consider the track record of promoters, the dividend paying history, its book value, price equity ratio and the balance sheet of the company for the preceding years.  Without studying any of these if anyone purchases the scrip based on its performance in the market and rumors, there is every chance, that the purchaser may make loses.  All who enter the market knows the above-described rules. But with sudden spurt of emotions one forgets all these and enters into a contract.  Playing with emotion is gambling and not an investment method at all. One should clearly understand his niche before starting. Whether he is aiming at short term or long-term investment. A day trader’s strategy cannot be applied to a long-term investor. 

Topic for a blog

I was drifting like a rudderless ship in the cyber ocean searching to find  an ideal blog.  I checked blogs belonging to my contacts. I read blogs categorized as blogs of note.  I  doubt whether some of them  can even be called blog since they do not convey any message to the reader. From the commercial point of view and  terms of internet business online, any thing which attracts traffic gets qualified. But the pertinent point is whether these blogs do any service to any body other than the writers themselves.
The content is to be impressive and generate some interest in the reader. If possible, let it convey some message or guidelines to the reader, chosen out of experiences of the blogger.  These are purely my opinion. Do you think otherwise?

entrepreneurship

Every enterprise is started with four basics namely land, capital,labor and organizational skill. But the governing factor is ideas and initiative. Without ideas and initiatives all four factors become irrelevant and no enterprise come into existence. In fact, if ideas and initiatives are there the four factors will follow and the enterprise can be made successful. Ideas without initiatives will only help day dreaming and one can travel to any extend without achieving any result. A search into track record of any successful company will reveal the role of ideas and initiatives in its formation and success.  So where from these ideas and initiative arise. It is through understanding basic nature of an industry and the progress one can make in the field. One has to be a student always analyzing the trends to select right area, proper accumulation of assets and arrangement of proper qualified working hands with organizational skills. So a successful entrepreneur should always be alert  to be up-to-date  on his subject business. 

Integration of IT with other branches of Science & Technology.

It is very important to have sufficient interaction between a computer scientist and others in different fields of their science. Proper knowledge and functioning of the system will only deliver results as tasks are awarded to computers to undertake procedures of scientific research and analysis. So any scientist unaware of the technicalities and functioning of the computer system may not achieve  his target  due to lack of integration of both the branches of  science. E books available are a source to overcome this difficulty. The older generation of scientific community who are not well versed with the complexities of computer system should spend their pass time on E books to make them up to date on development  in the field of  IT.

Bi-cycle riding

Search Amazon.com for bicycleBi-cycle has been an invention ever made by man with all benefits and no loss at all. Bi-cycle is a very convenient mode of transport for covering short distances which is fuel saving and generating necessary cardiac vascular exercise for the rider. No tread meal or any other exercise is a substitute to it. Early morning ride is much advantageous and rider will surely regulate his blood pressure. It is equally good for controlling diabetes and to keep good health.
Governments world wide should propagate this mode of transportation with a view to save huge amounts spent on fuel account and also to control green house effect due to  carbon dioxide . By way of encouragement there should be duty exemption on this item and also subsidy on purchase if possible. More and more fashionable designs should evolve to attract young people and pathways should be reserved for bi-cycle riders  adjacent to the motor road allowing free and uninterrupted vehicle movements and  to avoid traffic accidents.

tvpuram: Preview "Bi-cycle riding"

tvpuram: Preview "Bi-cycle riding"

Necessity is the mother of invention. But where is the father?

IT is predominant in the fields of technology &science and all other wings of science is playing second fiddle to it. There is a crazy trend among the young intelligent and bright generation to follow the mass and seek shelter in IT field. It is similar to over enthusiasm shown in cricket sidelining all other sports.As a result most of the crying  needs of our generation by way of inventions remain unfulfilled. We for example need more inventions at this stage to improve our energy generating methods substituting all hazardous and nonviable methods of fossil fuels, nuclear, hydroelectric, wind, solar  etc. Our predecessors  were more brilliant to utilize their energy diversified and in a more intelligent way suiting the needs of the society, as we are today enjoying the fruits  of  it. So if there is concentration only in the field of IT and utilizing all our resources on it, not encouraging other fields as well, it will have a telling effect on the coming generations retarding the pace of progress of the civilizations.

marriage institution in America

What is happening to marriage as an institution in America. Mates of pretty long years of union say 40 to 50 are contemplating for split. Why? has the institution lost all its charm, or the candidates still maintain hopes for another trial and error even when they have crossed their ages productive level, say 60 and above. One has to scientifically examine the causes for such an ailment to the society. Is it an absence of a mentor, absence of moralistic and spiritual guides or reduced role of religion creating problems. When life becomes more self oriented caring little for others such things may occur. However, when people of repute like former Vice-president does it, the matter is more serious.

all that glitters

Gold prices are reaching rooftops.As we believe in economics the prices are determined by supply and demand. Demand in case of gold is ever increasing and never showing any decrease. The reason is unreliability on any of those man made instruments for protection and security. The plight of US Dollar during recession and fear that it may follow the way of Ruble, the loss of values of credit instruments, real estates and what not all lead to search for a secure investment and finally rests on accumulating yellow metal. When nations too followed individual trends, there was no stopping for gold prices. As everything which goes up has to fall down as per natures law, what would happen when the price starts to fall. Can anyone imagine a situation where gold is cheaper than silver ?Hence, the conclusion is, nothing is sure for men and only alternative  is to follow the trend.

expertise

Experts are persons who met failure many times before they succeed. But once they become experts they forget their past so quickly and get annoyed with novice. Seldom do they realize their expertise is not going to stand for long as time is moving fast and the requirements also changes. So to upkeep the status they have to make efforts to reorient by following changed trends. How do you know? sometimes better ideas come from novice.

Hazardous use and throw practice

The recent trend in consumer articles  is use and throw. But the throwing part makes the situation complex. where to throw? on neighbor's property, public road or on most unsuitable  locations like beaches, streams, waterfalls and lakes places of tourist attraction. Waste disposal is a major problem faced by local authorities especially when it is not biodegradable. What will happen to the electronic and nuclear wastes accumulated day by day will become a very serious problem unless we find a nonhazardous way of its disposal.