Archive for November 14th, 2009

Points to Remember while Selling Stocks – Part 2

Hello Friends here we come up with an extension of our previous blog, “Points to Remember while Selling Stocks Part 1”.

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Points to Remember while Selling Stocks

Points to Remember while Selling Stocks

In previous Blog we had touched upon few points related to selling stock tips.

In this blog lets get to know more of valuable points in this regard.:)

Major points when to sell your stocks ( starting from 4th..three already being discussed in Blog 1)

4. Stock is Over Valued:

During bull market, high quality stocks appreciate value.

But more importantly, with so much hype around the stock, they are often set up for a fall.

Therefore, investor may use the strategy of selling them first and buy at lower price.

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5. Need Some Cash-

Certain unexpected circumstances may affect the time when to sell stock.

It is not wrong to sell stock to solve your financial emergency, especially the underperforming one.

However, it is advisable to have some emergency cash funds.

After all, basic investing rules is to start investing if you have enough money.

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6. A Change in Monetary Policy-

The Central Bank, RBI changes monetary policy if it perceives that inflation is heating up.

By raising interest rates, it contracts the money supply and slows down the financial system.

It is generally seen that stocks normally react negatively against the action, and some time markets become more volatile.

If you are not happy with this type of risk then you should move a portion of your portfolio into stocks that will not be as affected with such changes.

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7. A Company Suddenly Cuts Dividends or Lower Income Estimates-

This event should be investigated carefully before making any judgment to sell.

For good reason, the board of directors might want to retain more of their earnings for internal growth, rather than paying them out in dividends.

Sell a company’s stock if the performance is down.

Investors must never sell the stock of a fine company if its price goes either ways significantly – up or down.

Falling earnings margins and slowing earnings must be treated as a warning signal.

Lastly, I would like to say that always do your homework (Research) well while selling a company’s stock; you can use either the top-down approach or the bottom-up approach.

Markets are often full of rumors. You cannot make money in the market by acting on market rumors.

Always listen to the stories, but remember you should do your own research–and do it thoroughly.

Make your buy or sell decision based on your analysis of the company, not on what others tell you to do.

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Crop Forecasting – “Past – Present – Future Part 2″

Hello Friends here we come up with an extension of our previous blog, “Crop Forecasting – “Past – Present – Future Part 1”.

Crop Forecasting - “Past - Present – Future Part 2

Crop Forecasting - “Past - Present – Future Part 2

Here we would get to know of that what are the procedures of crop estimation survey and on what basis ,final estimates arrived at !

PROCEDURE

In India, the Directorate of Economics and Statistics (DES) releases estimates of area, production and yield in respect of principal crops of food grains, oilseeds, sugarcane, fibers and important commercial and horticulture crops.

DES estimates the crop production by multiplying the area estimates by corresponding yield estimates.

From the point of view of collection of area statistics, the States in the country are divided into three broad categories:

i. States and U.Ts. which have been cad-astrally surveyed and where area and land use statistics are built up as a part of the land records maintained by the revenue agencies (referred to as “Land Record States” or temporarily settled states).

ii. The states where area statistics are collected on the basis of sample surveys.

iii. In the hilly districts where no reporting agency had been functioning, the work of collection of Agricultural Statistics is entrusted with the village headmen of the reporting area.

The second most important component of production statistics is yield rates.

The yield estimates of major crops are obtained through analysis of Crop Cutting Experiments (CCE) conducted under scientifically designed General Crop Estimation Surveys (GCES).

The primary objective of GCES is to obtain fairly reliable estimates of average yield of principal food and non-food crops for each of state and UTs which are important from the point of view of crop production.

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BASIS OF FINAL FIGURES

Final estimates of production based on complete enumeration of area and yield through crop cutting experiments become available much after the crops are actually harvested.

However, the Government requires advance estimates of production for taking various policy decisions relating to pricing, marketing, export/import, distribution, etc.

The government releases four advance estimates of farm production across the year apart from making a final projection.

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First Adv. Estimates for Crop Production: Released

·The Government on 3rd November, 2009 released First Advance Estimates of production of major crops grown in the country.

The production figures of various crops are as follows in Million Tonnes (MT):

·Kharif Foodgrains – 96.63 MT

o Rice – 69.45 MT o Coarse Cereals – 22.76 MT o Maize – 12.61 MT o Jowar – 2.55 MT

o Bajra – 5.83 MT o Kharif Pulses – 4.42 MT o Tur – 2.47 MT o Urad – 0.88 MT

o Moong – 0.52 MT

·Kharif Oilseeds – 15.23 MT

o Soyabean – 8.93 MT o Groundnut – 4.53 MT

·Cotton – 23.66 million bales of 170 kg each.

·Jute & Mesta 10.24 million bales of 180 kg each

·Sugarcane – 249.48 MT

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The first advance estimates put the kharif foodgrains estimates for 2009-10 at 96.63 million tonnes (MT) as against 115.33 MT in the first advance estimate of 2008-09.

Estimated rice output is lowered by 13.8 million tonnes, total coarse cereals output by 4.6 million tonnes while that of pulses is down by 0.3 million tonnes.

The reason for lowering may be that the drought in about half the country has jeopardized the fate of most summer-sown crops.

The low crop estimates are expected to firm up prices & will further impact food prices for key farm commodities, fuelling food inflation higher,which are already witnessing new levels.