The IBM Ad says “STOP TALKING-START DOING”-the only mantra for economy revival.
The govt. is taking advantage of the crisis for the political mileage and asking the industry to go for price cut that can reflect in votes as the public can perceive the difference and can feel the comfort.
The economy is good when compare with the world top economies but our dependence on investment is also high even though our internal consumption is strong and the scope for infrastructure is huge.
The backing sector is crumbling with the bad news of rising bad debts and the MFs are facing the pressure from “the weight of redeem” as the uncertainty is enlarging
The Nifty finally closed at 2635 level, a clear bounce in the world indices can propel our Nifty to scale high other wise it will live like a laggard for next two quarters. The Nifty shall try to bounce back to 2860 level then it may confirm the recent bottom is the low for the rest of the year but the news flow and the govt. attempts are not favouring.
The Nifty now has to cross the immediate resistance at 2800-2810. this can be achieved incase RIL can bounce back to cross the resistance at 1189-93 level and can send positive feelers if it can trade above 1225 level, Bharti above 685-90 level, ONGC above 720 level. The ITC, REL infra, HUL and DLF will add their support. The INFY, TCS, Wipro are now neutral and the banking major SBI is seriously under bear grip, so is the financial sector.
Wednesday, November 19, 2008
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By Kristina Cooke and Dan Burns
NEW YORK (Reuters) - One hundred and one.
No, that's not Dalmatians but the number of stocks in the U.S. benchmark S&P 500 index now trading for less than $10 a share.
In fact, $10 would get you 10 shares of online broker E*Trade (ETFC.O: Quote, Profile, Research, Stock Buzz), now the cheapest stock in the index at 98 cents a share. At the other end of this low-ball spectrum you can get a small slice of the garbage business with a share of Allied Waste (AW.N: Quote, Profile, Research, Stock Buzz) at $9.90.
In between lies a raft of household names, many formerly held up as blue chips, including Citigroup (C.N: Quote, Profile, Research, Stock Buzz) ($6.40), Alcoa (AA.N: Quote, Profile, Research, Stock Buzz) ($8.16), Xerox (XRX.N: Quote, Profile, Research, Stock Buzz) ($5.58), Motorola (MOT.N: Quote, Profile, Research, Stock Buzz) ($3.44), Starbucks (SBUX.O: Quote, Profile, Research, Stock Buzz) ($7.97) and Yahoo (YHOO.O: Quote, Profile, Research, Stock Buzz) ($9.14), not to mention beleaguered automakers Ford Motor (F.N: Quote, Profile, Research, Stock Buzz) ($1.26) and General Motors (GM.N: Quote, Profile, Research, Stock Buzz) ($2.79).
In all, the group makes up the greatest number of sub-$10 stocks in the index in at least 28 years, said Howard Silverblatt, senior index analyst at Standard & Poor's.
In fact, Silverblatt said it could be the most in the post-World-War II era, though he cautioned that his data reaches only as far back as 1980.
"This is definitely unusual," he said. "I think you'd have to go back as far as the 1940s, when $10 was worth more to see a similar number," he said.
According to S&P data, 101 is almost double the 59 companies with share prices below $10 in October 2001 when the dotcom meltdown was in full swing and almost triple the 35 sub-$10 stocks in October 1987.
Ten dollars is more than just a psychological barrier. Some institutional investors cannot invest in shares below $10 and some bond contracts require companies above that level.
Some other gloomy facts: only five S&P 500 companies had share prices of more than $100 on Wednesday.
So far this year, the S&P 500 has plunged 45 percent. It is now worth just over $7 trillion, the index's lowest collective market value in 11 years.
Twenty-five stocks, or five percent of the index, don't make the $1 billion mark in market cap, and just 11 exceed the $100 billion level.
In fact, a third of the entire index is not even qualified to be in the index -- 186 stocks have market caps under $4 billion, the minimum value for consideration for S&P 500 membership.
(Reporting by Kristina Cooke and Dan Burns)
Excellant job work. This is a clasical example to under stand The "old-age" stocks now no longer goldage to hold. The Octogenarians advice the young and live in the laurels of history as guiding priciples of achievements.
The emerging markets learn and advance, as their energy to excel is huge.
But the experiences are very important to plan for the future. Keep pasting/linking.
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