Born
in Dublin, Ireland, in 1856, George Bernard Shaw grew to become one of
Great Britain’s greatest and most controversial playwrights. Shaw’s
father, a corn merchant, was an alcoholic and therefore there was very
little money to spend on George’s education. George went to local
schools but never went to university and was largely self-taught.
He
was also a co-founder of the London School of Economics, won the Nobel
Prize in Literature in 1925 and an Academy Award for Best Adapted
Screenplay (Pygmalion) in 1938.
G. Bernard Shaw had quite a bit
to say during his lifetime, so here are 10 of his many quotes and what
we, as traders, can learn from
1. Beware of false knowledge; it is more dangerous than ignorance.
Don’t
believe everything you find on the Internet. There are thousands of
trading related websites out there and many of them are created by
people who know little or nothing about what they’re talking about or –
worse – what they want you to buy. Remember to always do your due
diligence. In trading, delusion costs you time and money.2. Everything happens to everybody sooner or later if there is time enough.
Patience
is very important. Don’t expect to achieve your goals in just a few
weeks or months. It takes time and dedication to learn what you need to
know in order to survive the market.
3. He who can, does. He who cannot, teaches.
It’s
no secret that most traders fail and quit trading relatively fast. We
should accept the fact that trading is not for everyone. Kind of like
politics, burglary, pest control, high-rise window washing, surgery,
quantitative engineering etc. – just insert other dangerous, high skill
requiring or even disgusting jobs that only a few people are able to do.Will
you be one of those to quit trading someday? Here is a good exit plan
for those who eventually accept the fact that trading is not for them:
Did you learn a lot of things about trading, although it didn't work
out, but can be helpful for some people? – Then write a book or a
trading course and sell it :)
4. Man can climb to the highest summits, but he cannot dwell there long
There
are cycles everywhere. Being successful is a cycle which, sooner or
later – or on a long enough timeline – always comes to an end. Enjoy it
and do good things while it lasts.
5. People who say it cannot be done should not interrupt those who are doing it.
If
you finally find something that works for you and you enjoy what you
do, don’t let other people tell you that you are doing it wrong.
6. Success does not consist in never making mistakes but in never making the same one a second time.
What
are your biggest trading mistakes? Do you remember them? It’s always a
good idea to write them down on a list and check that list on a regular
basis. Try to find patterns as there’s often a tight relation between
smaller mistakes – resulting in trading mistakes of greater magnitude.
7. The minority is sometimes right; the majority always wrong.
More
than 90% of traders lose and that’s a fact. Do you believe that doing
exactly the same things they do, trading exactly the same way they
trade, expecting the same thing they expect – will make you one of the
few that are successful? Then you are most likely wrong.
8. We must always think about things, and we must think about things as they are, not as they are said to be.
Details
matter, but try to see the forest for the trees. Don’t let the gigantic
river of news, opinions, rumours influence your beliefs, plans and
strategies.
9. If you have an apple and I have an apple and we
exchange these apples then you and I will still each have one apple.
But if you have an idea and I have an idea and we exchange these ideas,
then each of us will have two ideas.
Unless you found the “holy
grail of trading”, it’s a good idea to share information with others.
Sometimes many small ideas equal a big one.
10. Progress is impossible without change, and those who cannot change their minds cannot change anything
Always adapt: understand new market dynamics and be ready to go with the flow.Source: http://www.innerfx.com/
Stock Statistics
Tuesday, April 15, 2014
Monday, April 14, 2014
Are you interested in investing in an IPO?
The Colombo Stock Exchange (CSE) witnessed an increase in Initial Public
Offerings (IPOs) since the beginning of the year as a result of the
incentives given by the budget for the year 2014 and the prudent
measures taken by market stakeholders.
The current trend attracts many investors to the market. These investors will be able to maximize opportunities only if they make informed decisions. They should refrain from making unwise decisions as done in the past. Hence, this article will give out some useful tips when investing.
Seek — and secure — objective research
It’s not as easy as you might think to find good objective information or research on a private company on the cusp of going public, yet doing so is absolutely essential.
Start by scouring the web for information on the company — particularly any details regarding financing as well as past and current press releases. They can inform you of any news, research or analysis of your IPO, the anticipated price for the offering and perhaps even how the company’s major executives and shareholders have been buying and selling their stocks.
There are still other firms that specialize in performing in-depth IPO researching and reporting. They may charge a nominal fee for this extra information but ensuring you’re well-informed on your prospective IPO is often worth the extra expense. By performing good research, you’ll be able to determine whether your IPO is a stable company, or if it’s just being over-hyped.
It’s also a good idea to take a look at the health of the overall sector in which the company you’re interested in belongs to (e.g., manufacturing, information technology, health care, bank finance and insurance, hotels and travels, etc.). For example, if you’re considering an IPO in the manufacturing sector but that particular sector hasn’t been faring well, you may want to reconsider.
Read and understand the prospectus
For most people, thoroughly reading their investment prospectus can seem nothing more than a tedious — if not entirely soporific — endeavour they’d rather not undertake. Investing in stocks, however, and particularly investing in IPOs, requires that you do more than just skim the prospectus — you must read it from cover to cover. While the material may be a bit dry, the information contained within the prospectus such as the company’s opportunities/risks and how the funds the IPO raises are proposed to be used is invaluable.
Highlighted below are some of the sections of an IPO prospectus that an investor should consider.
Watch out for lock-up period
Lock-up agreements are legally binding documents that prevent existing shareholders from selling any shares of stock for a specified period of time. The problem is, when lockups expire all the insiders are permitted to sell their stock. The result is a rush of people trying to sell their stock to realize their profit. This excess supply can put severe downward pressure on the stock price.
Evaluate the offering price
The company and the investment bank make the decision on where to set the offering price. It is important to understand that the offering price is determined by a mix of market conditions, analysis and the company’s performance. Competing interests affect the determination of the offering price.
From the perspective of the company offering its shares in the IPO, the higher the offering price, the more capital the company can raise.
Under-pricing an IPO creates a discount for the initial investors and increase the quantity of shares applied for. This in turn could once again generate more capital to the company. Under-pricing may also affect how much, if at all, the stock’s price rises on its first trading day. If there is a large increase, or ‘bump’, from the offering price during the initial trading, the underwriter’s client-investors may be satisfied because the value of their investment will have increased. However, the company may be unsatisfied in that case, as it might have been able to sell its shares at a higher initial offering price and thereby raise more capital.
All of the foregoing factor into the determination of the offering price. Whether you have an opportunity to participate directly in an IPO or are buying shares in the open market, it is important to realize that the offering price reflects a negotiated estimate as to the value of the company. The offering price may bear little relationship to the trading price of the securities and it is not uncommon for the closing price of the shares shortly after the IPO to be well above or below the offering price.
Bottom line
Successful companies go public but it is difficult to sift through and find the investments with the most potential. Just keep in mind that when it comes to dealing with the IPO market an informed investor is likely to perform much better than one who is not.
www.dailymirror.lk
The current trend attracts many investors to the market. These investors will be able to maximize opportunities only if they make informed decisions. They should refrain from making unwise decisions as done in the past. Hence, this article will give out some useful tips when investing.
Seek — and secure — objective research
It’s not as easy as you might think to find good objective information or research on a private company on the cusp of going public, yet doing so is absolutely essential.
Start by scouring the web for information on the company — particularly any details regarding financing as well as past and current press releases. They can inform you of any news, research or analysis of your IPO, the anticipated price for the offering and perhaps even how the company’s major executives and shareholders have been buying and selling their stocks.
There are still other firms that specialize in performing in-depth IPO researching and reporting. They may charge a nominal fee for this extra information but ensuring you’re well-informed on your prospective IPO is often worth the extra expense. By performing good research, you’ll be able to determine whether your IPO is a stable company, or if it’s just being over-hyped.
It’s also a good idea to take a look at the health of the overall sector in which the company you’re interested in belongs to (e.g., manufacturing, information technology, health care, bank finance and insurance, hotels and travels, etc.). For example, if you’re considering an IPO in the manufacturing sector but that particular sector hasn’t been faring well, you may want to reconsider.
Read and understand the prospectus
For most people, thoroughly reading their investment prospectus can seem nothing more than a tedious — if not entirely soporific — endeavour they’d rather not undertake. Investing in stocks, however, and particularly investing in IPOs, requires that you do more than just skim the prospectus — you must read it from cover to cover. While the material may be a bit dry, the information contained within the prospectus such as the company’s opportunities/risks and how the funds the IPO raises are proposed to be used is invaluable.
Highlighted below are some of the sections of an IPO prospectus that an investor should consider.
-
Legal proceedings disclose the significant litigation involving the company.
-
Management’s discussion and analysis gives the management an
opportunity to discuss in narrative form the management’s perspective on
the company’s financial condition, changes in financial condition and
results of operations. This narrative section should provide investors
with information to help them understand how and why the company’s
financial results have changed over the time period covered by the
financial statements and factors that management thinks might affect the
company’s future financial condition or operating results.
-
Dilution illustrates the usually significant disparity between the
price that investors are paying for shares in the company’s IPO to both
the book value of such shares and the average price paid by the existing
shareholders that include founders, officers and early investors.
-
Use of proceeds specifies what the company plans to do with the money it raises in the offering.
-
Prospectus summary briefly summarizes information that is disclosed in
greater detail throughout the prospectus, including the company’s
business, strategy, plans for using the funds raised in the IPO,
financial condition and as well as the terms of the IPO itself.
-
Risk factors identify risks that the company’s management feels could
significantly impact the company’s business, operations or performance
or an investment in the securities being offered.
-
Dividend policy describes the company’s history of paying and possibly its plans to pay, dividends to shareholders.
-
Selected financial data discloses certain key financial and other data
in a summarized column format. The information and presentation can
highlight significant trends in the company’s financial condition and
results of operations. Companies are generally required to disclose
selected financial data for the past years. You should also study the
projected accounting figures in the prospectus carefully. If the IPO’s
future earnings projections look too good to be true, well, that just
might be the case. This is perhaps one of the biggest red flags you
should look for when performing your research.
-
Business describes the company’s lines of business, its principal
products or services and their markets, any significant suppliers and
customers on whom the company’s business depends and its competitive
landscape and principal methods of competition. This section may also
provide information regarding the relative contribution to the company’s
financial results from different significant lines of business or
operations in foreign countries.
- The management offers biographical information regarding the directors and executive officers of the company.
Watch out for lock-up period
Lock-up agreements are legally binding documents that prevent existing shareholders from selling any shares of stock for a specified period of time. The problem is, when lockups expire all the insiders are permitted to sell their stock. The result is a rush of people trying to sell their stock to realize their profit. This excess supply can put severe downward pressure on the stock price.
Evaluate the offering price
The company and the investment bank make the decision on where to set the offering price. It is important to understand that the offering price is determined by a mix of market conditions, analysis and the company’s performance. Competing interests affect the determination of the offering price.
From the perspective of the company offering its shares in the IPO, the higher the offering price, the more capital the company can raise.
Under-pricing an IPO creates a discount for the initial investors and increase the quantity of shares applied for. This in turn could once again generate more capital to the company. Under-pricing may also affect how much, if at all, the stock’s price rises on its first trading day. If there is a large increase, or ‘bump’, from the offering price during the initial trading, the underwriter’s client-investors may be satisfied because the value of their investment will have increased. However, the company may be unsatisfied in that case, as it might have been able to sell its shares at a higher initial offering price and thereby raise more capital.
All of the foregoing factor into the determination of the offering price. Whether you have an opportunity to participate directly in an IPO or are buying shares in the open market, it is important to realize that the offering price reflects a negotiated estimate as to the value of the company. The offering price may bear little relationship to the trading price of the securities and it is not uncommon for the closing price of the shares shortly after the IPO to be well above or below the offering price.
Bottom line
Successful companies go public but it is difficult to sift through and find the investments with the most potential. Just keep in mind that when it comes to dealing with the IPO market an informed investor is likely to perform much better than one who is not.
www.dailymirror.lk
Thursday, April 3, 2014
CEAT invests Rs. 600 million more on radials
CEAT Kelani Holdings (Pvt) Ltd.
which produces almost half of Sri Lanka’s tyre requirements invested Rs.
600 million to establish a new factory for producing radial tyres.
This new factory is adjoining the existing CEAT Kelani manufacturing complex in Kelaniya. The company says that this would enable it to develop its tyres with the CEAT brand name for the local as well as export markets.
With production in this factory beginning from April 2014, the capacity of CEAT Kelani Holdings to produce CEAT radial tyres would increase by 70 percent, from 23,000 tyres per month to 39,000 per month.
CEAT which is the leader in Sri Lanka’s radial and commercial tyre market, produces nearly 50 percent of Sri Lanka’s tyre requirements from the second quarter of 2013-14. From the nearly 1450 metric tons of tyres produced by CEAT Kelani Holdings, some 500 metric tons are exported to markets in many countries including South Asia, the Middle East, Africa etc.
www.adaderanabiz.lk
This new factory is adjoining the existing CEAT Kelani manufacturing complex in Kelaniya. The company says that this would enable it to develop its tyres with the CEAT brand name for the local as well as export markets.
With production in this factory beginning from April 2014, the capacity of CEAT Kelani Holdings to produce CEAT radial tyres would increase by 70 percent, from 23,000 tyres per month to 39,000 per month.
CEAT which is the leader in Sri Lanka’s radial and commercial tyre market, produces nearly 50 percent of Sri Lanka’s tyre requirements from the second quarter of 2013-14. From the nearly 1450 metric tons of tyres produced by CEAT Kelani Holdings, some 500 metric tons are exported to markets in many countries including South Asia, the Middle East, Africa etc.
www.adaderanabiz.lk
Wednesday, April 2, 2014
විදේශීය බැල්ම වැඩිවේ. අද කොටස් පොළේ රැළි මෙන්න!
අද කොටස් වෙළඳ පොළ ගනුදෙනු පහළ
ගියද විශේෂයෙන්ම කැපී පෙනුනේ විදේශීය ආයෝජකයින් විසින් රුපියල් මිලියන 853
ක් වටිනා ශුද්ධ කොටස් මිලදීගැනීමක් කිරීමයි.
මේ අනුව, අද විදේශීය ආයෝජකයින් විසින් රුපියල් මිලියන 1033 ක් වටිනා කොටස් මිලදීගත් අතර රුපියල් මිලියන 180 ක් වටිනා කොටස් විකිණීම කළේය.
දිනයේ වෙළඳ පොළ ක්රියාකාරීත්වයට විදේශීය ආයෝජකයින්ගේ සහභාගීත්වය සියයට 31 කි.
අද සමස්ත මිල දර්ශකය ඒකක 2.95 කින් ඉහළ ගොස් ඒකක 6,004.78 ක් වෙද්දී එස් ඇන්ඩ් පී මිල දර්ශකය ඒකක 17.96 කින් පහළ ගොස් ඒකක 3,281.94 ක් විය. පිරිවැටුම රුපියල් මිලියන 1946.8 කි.
අද ගිවිසගත් කොටස් ගනුදෙනු හතරක් වාර්තා වූ අතර විශාලතම ගිවිසගත් කොටස් ගනුදෙනුව සිදුවූයේ සිට්රස් ලෙෂර් සමාගමේයි. මෙහිදී, එකක් රුපියල් 15.50 ක් වන කොටස් මිලියන 25.66 ක් ගනුදෙනු විය.
මීට අමතරව, චෙව්රන් ලුබ්රිකන්ට් සමාගමේ කොටස් මිලියන 0.11 ක් කොටසක් රුපියල් 272 ක් බැගින්ද, හැටන් නැෂනල් බැංකුවේ කොටස් මිලියන 0.3 ක් කොටසක් රුපියල් 152.50 ක් බැගින්ද, ජෝන් කීල්ස් හෝල්ඩින්ග්ස් කොටස් මිලියන 0.22 ක් කොටසක් රුපියල් 235 ක් බැගින්ද ගිවිසගත් ගනුදෙනු ලෙස හුවමාරු විය.
අද දිනයේදී ජෝන් කීල්ස් කොටසක් රුපියල් 1.20 කින් ඉහළ ගොස් රුපියල් 233.50 ක් වෙද්දී, ශ්රී ලංකා ටෙලිකොම් කොටසක් රුපියල් 1.60 කින් ඉහළ ගොස් රුපියල් 47.00 ක්ද, සොෆ්ට් ලොජික් හොල්ඩින්ග්ස් කොටසක් රුපියල් 1.30 කින් ඉහළ ගොස් රුපියල් 12.10 ක්ද වූ අතර වැඩිපුරම කොටස් ගනුදෙනුවීම සිදුවූයේ සිට්රස් ලෙෂර් සමාගමේයි. එම ප්රමාණය කොටස් මිලියන 25.7 කි. මේ අතර, සොෆ්ට් ලොජික් හෝල්ඩින්ග්ස් කොටස් මිලියන 20.4 ක්ද ගනුදෙනු වී තිබේ.
වැඩිම ශුද්ධ විදේශීය කොටස් මිලදී ගැනීමක් සිදුවූ සමාගම බවට පත් වෙමින් විදේශිකයින් විසින් ජෝන් කීල්ස් හෝල්ඩින්ග්ස් සමාගමේ රුපියල් මිලියන 802.7 ක කොටස් මිලදී ගෙන තිබෙන අතර හැටන් නැෂනල් බැංකුවේ විදේශිකයින් මිලදීගෙන තිබෙන කොටස් ප්රමාණයේ වටිනාකම රුපියල් මිලියන 47 කි.
විදේශිකයින් වැඩිපුර කොටස් විකුණා දැමූ සමාගමක් ලෙස හේමාස් හෝල්ඩින්ග්ස් සඳහන් කළ හැකි අතර එහි ශුද්ධ විකුණුම් ප්රමාණයේ වටිනාකම රුපියල් මිලියන 23.7 කි.
අද බුකිට් ඩාරා කොටසක් රුපියල් මිලියන 39.80 කින් පහළ ගොස් රුපියල් 560 ක් වෙද්දී ලයන් බෘවරි කොටසක් රුපියල් 19 කින් පහළ ගොස් රුපියල් 362 ක්ද ලංකා දුම්කොළ සමාගමේ කොටසක් රුපියල් 7.90 කින් පහළ ගොස් රුපියල් 106.10 ක්ද වී ඇත.
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මේ අනුව, අද විදේශීය ආයෝජකයින් විසින් රුපියල් මිලියන 1033 ක් වටිනා කොටස් මිලදීගත් අතර රුපියල් මිලියන 180 ක් වටිනා කොටස් විකිණීම කළේය.
දිනයේ වෙළඳ පොළ ක්රියාකාරීත්වයට විදේශීය ආයෝජකයින්ගේ සහභාගීත්වය සියයට 31 කි.
අද සමස්ත මිල දර්ශකය ඒකක 2.95 කින් ඉහළ ගොස් ඒකක 6,004.78 ක් වෙද්දී එස් ඇන්ඩ් පී මිල දර්ශකය ඒකක 17.96 කින් පහළ ගොස් ඒකක 3,281.94 ක් විය. පිරිවැටුම රුපියල් මිලියන 1946.8 කි.
අද ගිවිසගත් කොටස් ගනුදෙනු හතරක් වාර්තා වූ අතර විශාලතම ගිවිසගත් කොටස් ගනුදෙනුව සිදුවූයේ සිට්රස් ලෙෂර් සමාගමේයි. මෙහිදී, එකක් රුපියල් 15.50 ක් වන කොටස් මිලියන 25.66 ක් ගනුදෙනු විය.
මීට අමතරව, චෙව්රන් ලුබ්රිකන්ට් සමාගමේ කොටස් මිලියන 0.11 ක් කොටසක් රුපියල් 272 ක් බැගින්ද, හැටන් නැෂනල් බැංකුවේ කොටස් මිලියන 0.3 ක් කොටසක් රුපියල් 152.50 ක් බැගින්ද, ජෝන් කීල්ස් හෝල්ඩින්ග්ස් කොටස් මිලියන 0.22 ක් කොටසක් රුපියල් 235 ක් බැගින්ද ගිවිසගත් ගනුදෙනු ලෙස හුවමාරු විය.
අද දිනයේදී ජෝන් කීල්ස් කොටසක් රුපියල් 1.20 කින් ඉහළ ගොස් රුපියල් 233.50 ක් වෙද්දී, ශ්රී ලංකා ටෙලිකොම් කොටසක් රුපියල් 1.60 කින් ඉහළ ගොස් රුපියල් 47.00 ක්ද, සොෆ්ට් ලොජික් හොල්ඩින්ග්ස් කොටසක් රුපියල් 1.30 කින් ඉහළ ගොස් රුපියල් 12.10 ක්ද වූ අතර වැඩිපුරම කොටස් ගනුදෙනුවීම සිදුවූයේ සිට්රස් ලෙෂර් සමාගමේයි. එම ප්රමාණය කොටස් මිලියන 25.7 කි. මේ අතර, සොෆ්ට් ලොජික් හෝල්ඩින්ග්ස් කොටස් මිලියන 20.4 ක්ද ගනුදෙනු වී තිබේ.
වැඩිම ශුද්ධ විදේශීය කොටස් මිලදී ගැනීමක් සිදුවූ සමාගම බවට පත් වෙමින් විදේශිකයින් විසින් ජෝන් කීල්ස් හෝල්ඩින්ග්ස් සමාගමේ රුපියල් මිලියන 802.7 ක කොටස් මිලදී ගෙන තිබෙන අතර හැටන් නැෂනල් බැංකුවේ විදේශිකයින් මිලදීගෙන තිබෙන කොටස් ප්රමාණයේ වටිනාකම රුපියල් මිලියන 47 කි.
විදේශිකයින් වැඩිපුර කොටස් විකුණා දැමූ සමාගමක් ලෙස හේමාස් හෝල්ඩින්ග්ස් සඳහන් කළ හැකි අතර එහි ශුද්ධ විකුණුම් ප්රමාණයේ වටිනාකම රුපියල් මිලියන 23.7 කි.
අද බුකිට් ඩාරා කොටසක් රුපියල් මිලියන 39.80 කින් පහළ ගොස් රුපියල් 560 ක් වෙද්දී ලයන් බෘවරි කොටසක් රුපියල් 19 කින් පහළ ගොස් රුපියල් 362 ක්ද ලංකා දුම්කොළ සමාගමේ කොටසක් රුපියල් 7.90 කින් පහළ ගොස් රුපියල් 106.10 ක්ද වී ඇත.
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