Stock Ideas

[Ramesh]

Hello
What factors to consider when I want to buy shares of a caompany?

[Ideas]

The answer to this question is indeed very big one. Yet as a stock-picker in the public domain, I must try and answer it. Let me start by saying that there is no escaping from P/E ratios.
Let's begin with 'E', or earnings. A share in a company is a share in its earnings as long as the company exists (of course, if you sell the share, this entitlement passes to the new owner).
The dividend, or what the company pays you, is only a fraction of this earning since most companies retain much of their profit to finance further growth; but then that growth leads to greater earnings, in which you still hold a share. 'P', or price, is what the market is asking you to pay for this stream of earnings.
Clearly then, when buying a share, we should calculate whether its price is justified by what the company will earn in the future.

[stockexpert]

Lets say you have Rs 1000 and you want to buy a stock. Buy only worth rs 500 and if the stock goes down more than 20 percent buy with the other 500 rupees. Remember stock market can make you or break you.