finance@mydigonto

My Top Picks Now

Shawkat Haider — Sun, 12 Apr 2009 18:18:32 +0000

Top picks right now are banks. Fear of recession which has little to do with this market pulled down the price of banking sector and it has very low PE ratio. Anyone can take some profit from bank stocks now.

Energy stocks have good prospects too. Summit and DESCO will rise for priority of the govt. in energy sector. BextTex can be a good pick asBeximco group shares have risen significantly in recent times. Bextex has restarted their commercial production after massive renovation… possible london stock enlistment and merger with bex synthetics will move its price further, no matter it can declare dividend or not this year.

BSRM is a good stock and no wonder if it reaches 800-1000 mark soon for its good business and future expansion plan, along with adjustment with S Alam price… for Z category, the high risk high return segment,
Excelsior shoes can be a big gamble.. anyone can make 50% + return from this from today’s price of 58.

But don’t stick to Z group stocks coz DSE can delist any stock from this category, and DSE or SEC hardly has a strict policy or rules to follow.. they take decisions on ad hoc basis…. Never fall in love with such stocks and move fast if u have reasonable 10-20% margin… DSE is not the right place for genuine investors … it hardly follows any fundamentals… some big players/gamblers are always in control… anyway….use ur own judgement…

Fuwang food and Daffodilwill also give good return.

CNBC Videos on Investing in Bangladesh

admin — Sat, 28 Mar 2009 23:38:07 +0000

Aug. 15 2008
Investing in Bangladesh, with Lawrence Speidell, portfolio manager at Frontier Market Asset Management. Frontier asset management fund has Bangladesh as the single largest country in their portfolio.
http://www.cnbc.com/id/15840232?video=824749966&play=1

Apr. 24 2008
Africa, Central Asia, Vietnam & Bangladesh are some of the frontier markets that David Halpert, portfolio manager at Prince Street Capital Management has invested in.
http://www.cnbc.com/id/15840232?video=722504334&play=1

Stock picks for June 07

Shawkat Haider — Sun, 08 Mar 2009 04:09:25 +0000

DSE is now getting overheated. The bluechip shares are now being traded at a fair price but with the increasing investment in the market there is a rising gap between demand and supply of stocks which is even pushing the price of bad or risky stocks. The market is overwhelmed with the participation from institutions and foreign investors which play the dominant role for this bullish trend.

However, experience shows that foreigners always come to invest in such a market to take advantage of the volatility stemming from relatively less stringent regulation, lack of general investors’ knowledge on stock market and company fundamentals, speculative buy etc. If we look at the price trend in the current market, we can see that the market is not driven by fundamentals. That’s why prices of Z group or very weak shares are rising and already gone beyond reasonable PE ratio, although PE doesnt always indicate the health or prospects of a company. For good stocks like Square Pharma, Heidelberg or Desco, even much higher PE can justify buying these due to their huge prospects. Same is true for Rupali Bank whose current PE is exuberantly high, but once the handover is completed, it surely will justify buying. Historically our market is more focussed on banking, pharma and energy stocks.

Unfortunately mutual funds, which are always considered better and safer stocks in every stock market, are not much popular here and remain undervalued. In the banking sector, now people are investing increasingly in the stocks like UCBL, IFIC, Social Investment bank etc and price have doubled within the span of 5 months. These require more careful study and observation. People are buying these shares as these have small capital base and as per Bangladesh bank regulation they will have to increase that by issueing significant number of bonus or right shares. In the current context many new investors are not well aware of consequences of such increase of issued capital because with these increased capital base or shares the companies now take more liability and must improve their performance significantly to declare good dividends in the future. Investors must study these companies whether they are performing satisfactorily in line with such expansion. And one must remember what happened during 1996 crash. The price of many shares went beyond every reasonable limit and some were traded at a price as high as BDT 20000. So be more vigilant and see the fundamentals of companies before getting into this business.

My own list of top 5 stocks which may still be considered good BUY:
Square Pharma, AIMS mutual, MTBL, One Bank, Apex Tannery.
If the current trend persists, Heidelberg, DESCO, PowerGrid, NBL, EBL, 7th ICB, IFIC, Excelsior, UCBL will also jump significantly.