God and Teacher are different

Rajesh Sharma

God and Teacher are different
Warren Buffet is a great person, wonderful investor and a philanthropist of grade EXCELLENT. I respect him. However, we, small investors of an underdeveloped Nepali market, could hardly learn from him. The whole platform is different between US and Nepal. The power of money, capacity, wealth and knowledge between Buffet and us is beyond comparison. The time and rules of the game are different. Hence, respecting him and saluting him are okay but learning from him and following him are in question. We could better learn from small investors of India, perhaps.

NTC's floated capital

Rajesh Sharma

NTC's  floated capital
"The government of Nepal is set to launch the country’s largest ever initial public offering (IPO) next week when its sells 15 million shares in national PTO Nepal Telecom (NT), equivalent to a 10% stake in the company, for at least NPR9 billion (USD138.3 million). The state has set a minimum price of NPR600 per share, representing a face value of NPR100 and a premium of NPR500 per share. The IPO will last for 35 days and no individual or organisation will be allowed to buy more than 5,000 shares. The state-controlled operator has already sold 7.5 million shares, or 5% of the company, to employees."

https://www.telegeography.com/.../nepal-to-launch-nt-ipo.../.
Hence, total floated shares are 15 million + 7.5 million, which is total 225 Corer shares. The amount to be 2.25 corer X 100 = 2.25 Arab. This is about 15% (10% + 5%) of Telecom's total capital. Please friends, correct me, if I have made some calculation errors.
N. B. The applicants paid minimum Rs 600 in premium, means it is real paid is more than 9 Arab and the employees paid Rs 90 only per share, which 67 Corer. Therefore, money payment wise, this is the biggest IPO.

Rumor in the market

Rajesh Sharma

Yes, in Nepali market, rumor works as business strategy for trading. Unfortunate but true. But for investment, it has not much relevance.

A book on share market in Hindi

Rajesh Sharma

For friends, who might have difficulty in English, this could be an option. I have not seen this book in Nepali book stores, could be available in Delhi or could be ordered online, but from India only, perhaps.
Stock Market Mein Safal Hone Ke Tips
Author Ashu Dutt
ISBN 9789350832905
No. Of Pages 130
Edition 2013
Format Paperback
Language Hindi
Price 100
- See more at: http://www.booksforyou.co.in/…/Stock-Market-Mein-Safal-Hone…

स्टॉक मार्केट में सफल होने के टिप्स - आशु दत
इस पुस्तक की विशेषताये:

- अपना नुकसान रोके और जीत के चौके लगाये
- निवेश में आम गलतियो से बचना सीखे
- अपने नुकसान को लाभ में बदले
- जब आप नुकसान उठा रहे हो तो उस पर नियंत्रण बनाये
- कुछ स्टॉक्स से ही भारी मुनाफा कमाये

वित्त्य मार्केट के गुरु आशु दत, जिन्हे शेर मार्केट का अतुलनिया ज्ञान है, उन्होने कई दशको की मेहनत के बाद यह ख्याति अर्जित की है।
- See more at: http://www.booksforyou.co.in/…/Stock-Market-Mein-Safal-Hone…

Stock Market Mein Safal Hone Ke Tips | Books For You

Books For You offers book Stock Market Mein Safal Hone Ke Tips

booksforyou.co.in

Sponsored news, articles, comments and analysis in Nepali share market

Rajesh Sharma

Many Nepali web portals, blogs and discussion forums are full of sponsored news, articles, comments and analysis. Hence, if we lack the capacity of a flamingo (Raj Hans) that could differentiate milk from milk mixed water, we may suffer heavily. Therefore, we should enhance our ability to analyze critically.

NRB's probable policy intervention regarding MFIs' dividend

Rajesh Sharma

NRB's probable policy intervention regarding MFIs' dividend

Micro-finance companies are patronized entities and are getting cheap fund from the banks as per NRB policy arrangement. Hence, they have higher vulnerability.

The second important factor is that they provide mostly collateral free loan and this is a great strength of them. But this is a weakness too as the default cases may rise due to several local factors such as failed micro-enterprises, political thugs borrow the money and so and so.

Hence, those who put money in MFIs should have a higher risk absorption capacity.

Right now, not only in Nepal, also in other countries, the interest MFIs charge has become an issue of debate as it is quite high.

The supporters of MFIs' higher rate plead that the money lenders may charge even more. However, this logic sounds strange in two counts. 1. The money MFIs cater is a drop in the ocean of credit need of the poor. And, many people have to go to money lender anyway, if so. 2. The dividend they are distributing is higher than the outright commercial ventures and they get this money from the poor. Me, a well enough individual and promoters several times well off than me are rightful persons/companies to get the value added by the people (borrowers of MFIs) who are in much disadvantaged situation? This ethical dimension also needs to be addressed by the policy makers. Therefore, I think, we should see this phenomenon in larger perspective.

My comment on Sudip Ojha ji's post on Share Bazar Kurakani.

No CDS yet! BT is still the reason.

Rajesh Sharma

Many officials working as regulators do share trading. Some prominent officials of NRB are at the fore front followed by SEBON and Beema Samiti. Some official working as operators do share trading. The officials of NEPSE and CDSC belong to this category. Some influential brokers do share trading. Normally, some big traders do share trading  using third party's, small traders', money in collaboration with brokers. If CDS implemented, their traditional modes operandi of BT trading shall have to go. Hence, they put obstacles in one or other way.

This sounds the sole reason behind the delay now. We are living in an anarchic environment. Hence, we should follow some discipline. Some tips mentioned below hopefully could help us.

1. Let's assume that for a long time, say a year or two, CDS would not be implemented. What should we do? We should go for long term investment that is for 3 to 5 years or beyond.

2. If we like to do trading, we should closely watch what the large BT holders are doing. Inside information and floor sheets are key to such watch. If they buy, let's buy and if they sell, let's sell. Trading without knowing the trend and trading without following the trend may be a loss making business.

3. For investment, fundamental analysis and company selection are key to succeed and for trading inside information, both that of companies and BTwalas, and keeping track with trend are key to be successful in this anarchic situation. Technical analysis and understanding common investors behavior would help but with limitation.

Note: the analysis presentation above is my qualitative assessment and not substantiated by  quantitative data. Hence, please read this simply as opinion.