SJVN:31 is in a symmetrical triangle bottom support Res:32. No big reward, no wonder,
this is purely a study material, because, I found huge volume movement in these stock,
interested to know what is happening here. this stock is fundamentally a weak one and not advising any trade here.
this is purely a study material, because, I found huge volume movement in these stock,
interested to know what is happening here. this stock is fundamentally a weak one and not advising any trade here.
Ok I will see that. Initially I mentioned that is it is a vast subject, and I agree that I know very few things about it. But that few things give me a perspective, most of the time very correctly.
You didn’t notice one question I raised. “why stock price couldn't make even a 100% in a long 5 years.”
In long term, the stock prices of a fundamentally strong company tend to appreciate, thereby creating wealth for its investors. It is called the ABSOLUTE RETURN or annual yield. SJVN 2012 price was 18 and 2017 top was 36.here (36/18)-1 x100= 100% gain. Right? Here in CAGR factors ,the time component which we had ignored, when we computed the absolute return it will be{ (36/18) ^(1/5year)-1= 14.86 % ie:a 5 year cagr 15% only. Giving you an outlook, at a 20% CAGR the investor would double his money in roughly about 3.5 years aprox:
One can do a fundamental analysis by Understanding the basic financial data, knowing
the businesses with respect to the industry in which it operates and Basic arithmetic operations.
But that is not enough, to understand the degree of its strength and weakness.
An average ROE of Indian companies stand around 15%. I personally prefer to invest in companies that have an ROE greater than 20%. So I said SJVN is fundamentally weak. Now how much you think that weakness is, the mater here.
My dear friend, if it was so easy maths, then I would not have to spend this much time to reveal the essence. Out of 100 such values and subdivision we talk about FEW things here. Dividend is another story. We will talk later.