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hit2710
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Joined: 15/Jun/2009
Location: India
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Posts: 4013
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   Posted: 11/Feb/2010 at 7:52pm |
Originally posted by tejas.k
i was looking for cheap price stock because you get more number of shares. and if it clicks, the returns will be substantial. if it doest, then still u wont lose much.
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One has to get out of this mentality bcos if the stock goes to zero, loss is 100% in both cases
This theory had some logic in times of fixed lots of shares. Now with lot size of only 1, it doesn't make any difference.
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Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.
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tejas.k
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Joined: 07/Dec/2009
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Posted: 11/Feb/2010 at 11:19pm |
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thanks hitesh
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Bhupan
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Joined: 22/Jun/2009
Location: India
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Posts: 241
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Posted: 11/Feb/2010 at 1:09am |
Originally posted by hit2710
Originally posted by tejas.k
hi all,can we list some stocks that are available at less than 100 rs and have the potential to grow in the long term?
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There is a similar thread started by samir arora titled stocks cheaper than a pack of cigarettes, which basically covers the stocks you mention.
Regards,
Hitesh. |
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ash7979
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Joined: 19/May/2010
Location: India
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Posts: 324
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Posted: 30/Nov/2010 at 11:28pm |
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Basantji,
what are your views on HDFC warrants??
HDFC has come out with its warrants issue in aug 2009 at price of 275 & these warrants will get matured in aug 2012(http://www.moneycontrol.com/news/market-outlook/buy-hdfc-warrants3-yr-horizon-hsbc-invst-sec_416732.html) & after that
these warrants can be converted to HDFC stock by paying 3000 Rs (Rs 600 due to 1:5 stock split)...As HDFC stock has got splited into 1:5 so as its warrants...
so these warrants also got splited in ratio of 1:5 and now quoting at 167 (its already 3.5 beggar from its offer price)...
Now HDFc's stock price is around 700 and Price we have to pay in aug 2012 is 767 (167+600), so we are getting a HDFC stock in 767 in aug 2012,while paying ONLY
167 Now...
So whats are your view on this?? can we take Long term bet on this??? can we expect price of HDFC stock at least 1500 in aug 2012, if yes than its Win-Win situation
because at the time of maturity if HDFC stock trades at 1500 then warrant price should be close to 900 (1500-600)...safely assume 800 (lets leave 100
Rs for buyer of warrant:))...so still 167 to 800 is almost 5 bagger???
Is above mentioned scenario possible or I am missing something ??
Edited by ash7979 - 30/Nov/2010 at 11:42pm
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Fear can hold you prisoner. Hope can set you free....
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basant
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Posted: 30/Nov/2010 at 4:15am |
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Its a leveraged play and works like a call option.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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nav_1996
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Posted: 01/Dec/2010 at 3:17pm |
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Some dangerous assumptions here. Under normal circumstances HDFC can not double from here in 20 months. 30% appreciation under normal conditions more reasonable.
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ash7979
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Joined: 19/May/2010
Location: India
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Posted: 01/Dec/2010 at 3:32pm |
Originally posted by nav_1996
Some dangerous assumptions here. Under normal circumstances HDFC can not double from here in 20 months. 30% appreciation under normal conditions more reasonable. |
Thanks for pointing this out.. Break even point for this would be 767 (600+167)...do, if HDFC goes above 767 after 20 months, then you will make money with paying ONLY 167 upfront...So, this seems to be good leveraged play on HDFC, if one feel HDFC at least can cross 767 in aug 2012...
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Fear can hold you prisoner. Hope can set you free....
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nav_1996
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Joined: 08/Sep/2006
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Posted: 01/Dec/2010 at 3:57pm |
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You can look for correction to enter the warrants. I did at around 80 (adjusted for split) couple of months back.
My strategy:
Don't bet huge assuming that you need to pay only 167 today. Assume how much you would buy if you had to pay 767. Buy warrants for 167 (or lesser if correction happens) and put remaining 600 in high yield deposit/liquid fund for 20 months (will earn you around 12%). Use that amount for exercising warrnats in Aug 2012.
But that is conservative me. Never loose money :)
Aggressive investors may have different opinion.
Edited by nav_1996 - 01/Dec/2010 at 3:59pm
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