What do you expect from a company which has never given any cash returns ? Cash returns from the company reflect upon the financial health of the company. Also the promoters have very negligible stake. Mutual funds do not have any holding in the company. Outwardly not much can be expected from the company. At that time you expected returns from the appreciation of the stock, not from the company. The stock selection has to be based on both. When the market revives this stock too may appreciate w.r.t. price, how much and when cannot be predictable....

The stock Kansai Nerolac has generally no good trading volumes, but may not harm if held for longer term, if it holds well at current price I am planning to average down if possible. How do you find my decision ? ...

Thanks. I think, not sure, generally one decides on support levels from the past, today`s or near future`s conditions may not match with those of the past, obviously earlier support levels may not hold good, so when one sells the gain or loss is done with, re-entry into the stock at a desirable price is a matter of chance or probability i.e. the uncertainty prevails. Also the funds are required to be retained or allocated for the re-entry, not taking the benefit of other opportunities i.e. reduced flexibility. As you have said, good shares should remain for long term, shares with insufficient earnings can be sold as far as possible at whatever profit, hopeless stocks can be disposed off even with loss though not desirable. Thanks again. ...

Truly gains of the future from a buy back is a far cry. Do bears really gain in this kind of falling market ? Selling a stock with whatever profit and then later buying the same stock at a lower price may be gainful. However selling a stock incurring immediate loss with the hope of a probability of some gain later may not always be of benefit. can the strategy work in the present bearish market ?...

Thanks. Patni Computers too are currently executing their buy back program. I think, can`t say exactly, when a company does the buy back of shares, the number of paid up equity shares reduces, so there could be probability of better EPS. Also since the buy back is at lower prices, the out go of funds from the reserves is less, obviously the book value of shares could also be better. I had meant that in subsequent times directly or indirectly shareholders could benefit from such developments. It is just my guess. ...

I was thinking of averaging down. However realized that presently none of the stocks, practically all are not able to arrest the downfall. When the price situation stabilizes may try some averaging down. ...

Everybody`s portfolios are down. Individuals, HNIs, MFs, institutions, promoters, companies etc. whoever it be. No body is spared, be it very rich with surplus funds or less rich, expert or a mediocre, experienced or new to the market. Very rich, experts, experienced can tide over such situations. For others gains could be with pain or even only some pain. I cannot guess about those who are reckless at the market. The current market situation has affected practically everybody, probably without any exception. The companies who are executing their buy back programs might be buying at much lower prices, however the benefit goes to the company and in turn to individual shareholders, that may be possible. ...

Thanks to you as well....

I am sorry, I do not track this share....

It could benefit only if u r sure of the support level of a share otherwise not. All shares hv fallen substantially and not necessary tht you can re enter these shares at a still lower level, if u sell them now. So it is better to hold for LT only for good quality shares. Shares whose earning potential is not there, can be disposed off....

Of course as a result of buy back of shares, no. of shares get reduced to the extent of shares extinguished, Eps gets increased and that would be good for shareholders. However, this has its affect only when the market sentiments are better and not in todays market where nobody wants to buy a share fearing further downside in their prices....

Yes you are absolutely right. Wealth of all investors has eroded by 40-60% in most of the cases. In the present circumstances, no buy back will benefit any shareholders as company can get any number of shares it wants under its buy back. Great Offshore is one such example....

That is how manipulators block the entry/exit in a script. Investors of Rohit (me too) should be considered lucky that it is in 5% circuit limit. Otherwise it could have gone down to Rs.50 levels in the current mayhem. Strategy depends on your entry level. If you are entering for the first time then I would suggest buy 25% of your target number and watch out the price movements Regards, Sri...

And when the market is falling 5-10%, let us also not expect that market will spare anyone....