Suggested Reading – September 21, 2009
Blogosphere is an interesting place where you find various bloggers expressing their viewpoints. I am listing some of the articles that I enjoyed reading.
- High dividend yield scrips surged 147% a year
- Building a smarter portfolio with IVRC
- Competency required to invest in stock market
- ETF a simple and power investment tool
- Why there are no new value ideas?
- Watch out for high dividend yield stocks
These are some diverse set of articles from fellow bloggers and business magazines. I hope you enjoy reading all or some of these interesting posts.
Hello sir,
.One more basic query regarding the p/b ratio.
I have started evaluating companies more on the basis of fundamentals,and given trading a break (for now
Now Book value by simple definition means the amount shareholders can and will get if a company is liquidated immediately.So shouldn’t p/b ratio of all companies be >1 ?? meaning that market would price the stock at least equal to its guaranteed sum which will be returned.Now maybe because of sentiment like in Oct crash many stocks went below 1 just bcz of panic.I did monitor some then and now most are trading comfortable above 1.
But still some like MTNL(0.6),videocon(0.8) trade below 1.So considering the other fundas like p/e debt /equity,sector … is decent are such stocks screaming to get noticed.How useful is p/b in general and in particular when below 1.
Thanks
Saif
Any parameter as a standalone should never be used to make a decision. This applies to P/B ratio also. It needs to be viewed in conjunction with other parameter like you mentioned. yes, market volatility, perception, or something fishy is what brings these below book value.
Note: price is a “present term” i.e. it is in real time. But the book value that you find in websites or annual reports are trailing values.
Best Wishes,
Thanks for the reply Sir,will look up more and get back.