hahahaha....if i can take the liberty of furthering your observation on TAUs, listen and watch the nautankilal to make the best among the good choices...........we do need a revolution and these people like nautankilal must be given a royal treatment which the people of kolkata know best to do-public lynching.........they will be all cash at the bottom of the market and all stocks at the top of the market...........and to top it all, they will be so confident as if they can chart out the future of the stock by looking at the danda lakeer as if the palmist does by looking at the lines on the palm. TA works well if you are looking very neutrally but the CNBC's analysts are all traders themselves so they get screwed up in all their observation. I beleive the best money is not made by following the trend but by abandoning an overheated trend at the most opportune time, either ways. And thats where gauging sentiment comes in very very handy. For then its all instinct, nothing else. It was really painful for me to abandon Infy at 2037 after having doubled my investment in about a year's time and my dad was really annoyed with me but then I was starting to feel very very uncomfortable with that. I also abandoned larsen at 1700 odd levels ( a part though) and again abandoned at 2356 and will again abandon it for somehow I am not comfortable holding on to it....too much talking going on to give me any sense of comfort.

what will be your advise to a person who has bought a particular stock at say 500 and now if thats 350.

Originally posted by Vivek Sukhani Funds are truly unlimited?????? What does it mean??????   Smartcat sir, a good yielding stock seldom falls like ninepins during a crash. True, there may be exceptions like Varun but that company has a different issue altogether. But with stocks which dont carry much of a yield, the bottom may be quite inconceivable. Yield mongers provide a bottom as they start pumping in case the stocks fall huge and thereby form a bottom but with stocks which simply rely upon some business model and growth potential etc., in case the sentiment deteriorates no bottom is bottom for them. Sentiment very rarely impacts yielding stocks for those who get into them are absolute ruthless people who understand nothing but dividends. Now when such people enter the stock they are there for long term simply because dividend mongers cant trade daily as dividends are received after a year's period in most of the cases. Capital gains to us is a very accidental income, something which rarely bothers us for even if i sell for a gain chances are I will reinvest a major part back into another high yielding stock of the moment.....so for me the only thing is delta dividend with every transaction..... and somehow by the grace of Lord Almighty, I have very rarely got nervous or had my sentiment cracked because of the stock price's crash.....   Coming to fundamentals being good or bad, its all about P/E assignment, and nothing else and P/E assignment is also a very vague thing....no God in this world has said a PEG of 1 is fair and a stock cannot stay above or below a PEG of 1.....most of the companies I am into are growing wonderfully well and will also do well in the coming years but market doesnt take note of it.....AND THIS TO ME IS AN OPPORTUNITY. Also by being opposite of the market I will never get mired in the sentiment stuff, for I am never with the sentiment so even if it cracks, it wont matter to me.....   The moot reason why I initiated this discussion was how to tackle the menace of sentiment crack.....the worst symptom of the sentiment crack happens when the 52 week high starts to look the all time high for the future. At that moment how to play the game....by making a very big average so as to bring the acquisition cost down so that you can book out on any intermittent rally or to just make a paw by paw entry....?????

Vivekbhai,
I am guessing his discussion has been initiated by you for academic purposes since you would never face such a situation based on your style of investing ie. dividend yields, as shared by you (points in bold above )  ie. lower the market prices dip, the more juicy the yields on your target stock gets assuming that the fundamentals remaining constant.  Thus it is in your interest for the sentiment to crack. A desirable situation and certainly not a menace . I am not sure if you are providing and answer or asking a question. Hamari es duvidha ko suljahiye.
Thanks








Edited by Mohan - 16/Sep/2007 at 7:22am

.......he is tracking rupee dollar as a housewife tracks the retail price of potato....