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ABC of making money by INVESTING

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Member
Registered: Oct 2013
Posts: 7912
सेयरमा दीर्घकालीन लगानीकर्तालाई विभिन्न सहुलियत दिने अर्थ राज्यमन्त्रीको आश्वासन
http://www.nepalipaisa.com/NewsDetail.aspx/id/18153


अर्थ राज्यमन्त्री उदयशम्सेर राणाले पुँजी बजारमा दीर्घकालीन लगानीकर्ताालाई करलगायतका विषयमा सहुलियत दिन सरकार सकारात्मक रहेको बताएका छन्


2 month mantry, looks like he will regret after he is gone for not making any contribution.
Member
Registered: Oct 2013
Posts: 7912
:)
Member
Registered: Oct 2013
Posts: 7912
Alibaba (BABA) share in US increasing during last few days expecting higher than expected growth, they were expecting 48% while real is 52 around.
Its PE ratio is 50+.

-This is how international market works, expectation and reality.

But in Nepal, they talk about fundamentals- off season ha ha.

In nepal, MNBBL growth is 40% now and will be well above 50% in 4th qtr and Its PE ratio is just above 25. They say its down cause of fundamental- off season.

HA

-----------------------------------

Next year, if growth is above 50% of MNBBL, if current price dont increase, its PE ratio will fall far below 17.


While, majority of nepalese have american dream, while Indians say, its too easy to make money in NEpal, no wonder why?????

Nepalese dont respect bird in their hand, throw it away and chase after flying bird.
Member
Registered: Oct 2013
Posts: 7912
ब्याट्री पड्किएर अरबौं घाटा व्यहोरेको सामसङले ३.४ अर्ब डलर लाभांश बाँड्ने
Read more at http://www.bizshala.com/story/%E0%A4%AC%E0%A5%8D%E0%A4%AF%E0%A4%BE%E0%A4%9F%E0%A5%8D%E0%A4%B0%E0%A5%80#LZAY3tdWWxDG0uc8.99



outside Nepal they hardly distribute bonus. Its not bonus or right that makes money out of our money, its profit growth.
Member
Registered: Oct 2013
Posts: 7912
It usual situation In NEPse, Gundruk Ji. when there is major crash, whole companies crash, does not matter how great news the company publish.

May be you should take loan against MNBBL, it is no.1 for long term, I am going to keep it for at least 10 year.

I think, MNBBL will become the most expensive BFI in 3-5yr.

After it reach 2.5 billion capital, its dividend ratio could be bonus:cash=75:25 and still after giving huge bonus, I think its EPS will cross 70 in 3/4 year and with its EPS and growth it will become the most expensive BFI.

And with the entry of NRN, huge price.

So go for long term, get loan against MNBBL.

I am expecting MNBBL's capital will reach 10billion in around 7 year, and price more than 5K.

I am not worried about NEPSE and feeling great about future of MNBBL.

If you have money, keep adding MNBBL in every crash.

Until, profit growth of listed companies is above 10%, enjoy investing,

looks like even expert with decades of experience cant guess short term trend/price.

Good luck.
Member
Registered: Feb 2016
Posts: 60
Thanks for the analysis Rising Sun ji. Can you please elaborate on why MNBBL's share price got axed so badly after the bonus price adjustment? I bought it at 1130 thinking it was a good deal, and then it kept hitting negative circuit for three days straight. Why?
_______________
"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful"
Member
Registered: Oct 2013
Posts: 7912
PS-
There is this misunderstanding about right/bonus increasing capital gain and price do increasing is cause growth of company profit would prevent EPS fall so price would not decrease even after new capital is added.

And those trader thing, they made money cause of right/bonus.

Reality is, not, they made money cause of the growth not right/bonus, right/bonus are just illusion.

It takes a few year, before expanded business making good money, growth comes from present business.

Which means, business is growing as well as expanding.

Nepal is a great place to invest.

ENjoy investing.
Member
Registered: Oct 2013
Posts: 7912
Let's compare Nepal, US.

In US, their economy or business is not growing (except for few companies) that is why in US, when you invest, you have to compare your return from investment with return from bank deposit.

But in NEpal, growth of listed company is almost 50%, we dont give a damn about what the hell is interest rate of bank deposit.

That is why great investor like Jim Rogers constantly follow developing economy to invest in.
Member
Registered: Oct 2013
Posts: 7912
So does that mean, right share, bonus is worthless?

It depends, if company offer right and bonus share and use capital to expand then you will invest 100Rs and that added 100Rs will do business worth 2000Rs.

But, if company gives right and bonus and there is no expansion or no business growth then, right and bonus will be just a waste of money.


if you were getting 20Rs from 100Rs investment, and you add another 100Rs and you are still paid 20Rs for you 200Rs investment, then adding 100Rs would be foolish.

This is why I like MNBBL, this is why I have been recommending MNBBL even when it price went from 600 to 1600, cause its:

business is growing- those customers who took 100 loan now taking 150

, Company is expanding- It has been opening new branch.

That is why, I always suggest to invest 15-25% of your total investment in MNBBL.
Member
Registered: Oct 2013
Posts: 7912
....... The company like MNBBL, whose growth is huge, PE ratio should be 75-100. not 30.

In that case price will be - at least 2925Rs.

In this case return will be at least 325%, I am expecting this return after NRN enters the market.

So return every year will be around 70% for years and I am confident that in 10th year, growth of MNBBL will still be around 50%.

This is why I am a long term investor, not short term player (trader).

For me, MNBBL is the best company, but there are many great companies, In this down, market, I dont suggest to buy, but start buying after NEPSE reaches bottom (but where the hell is that bottom???)

But at least dont sell your sure, if you dont know where that bottom is.
Member
Registered: Oct 2013
Posts: 7912
Let's study Muktinath:

Current price: 900
EPS(after bonus and right): 30
PE ratio: 30

((((I believe Muktinath will keep on giving bonus even after it reach 2.5 arab capital cause its business is growing cause BFIs and Insurance have to increase their capital with growth in business.)))))



But let's suppose, MNBBL will only give cash after it reach capital plan.


In that case, this is what happens, it will give 22Rs. Is that all we will get if we invest in MNBBL 900Rs.

No, Dividend has never been the real or should i say, main income from INVESTMENT. The real income comes from capital gain, my fellow investors.

I believe, this year's income growth of MNBBL will be 80-100%. First qtr growth is 50% so, EPS/Income could still grow at least 30%

So,
Current price- 900
EPS- 30
PE ratio-30
Growth- 80% (30% should still grow)

Which means, return this year will be -( expected price-present price)-(1170-900)=270 + dividend 22=292Rs

So, return will be 32% not just 22Rs.

Like I said, we make money with the money we invest is from dividend and capital gain.


But that's not all....
:twisted:
Member
Registered: Oct 2013
Posts: 7912
How do you make money by buying shares of companies?? :lol:

There is ignorance going on in among badly informed unprofessional investors, traders in NEPSE, that from next year, BFIs will only give cash so return will be very less.

:twisted: :twisted: :twisted: :twisted: Truth is, right share, bonus are never the reason you make money out of share market.

It has always been growth.

For eg-

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