SL Equity Guide BLOG

The Diversified Finance sector in CSE under new classification is not reflecting the true sector PE due to the inclusion of number of non relevant companies. Therefore I have selected 19 finance stocks that are matching with the business in principle and calculated the "Cluster PE" based on the same company list to compare the relative (over) / under valuation of the different stocks based on the calculated cluster PE.  The below chart demonstrate the calculation mechanism of the said cluster PE for diversified finance companies. By using the above showed cluster PE I have calculated the individual PEs of 16 finance companies as of 30th June based on trailing 4 quarter EPS basis. Then I have compared the PEs with the established cluster PE and list down the undervalued shares based on the highest degree of undervaluation as per below chart. I believe the above calculation will help you to identify the relative valuations of each finance sector stock and make it easy to take i...

 New DVP System of CSE DVP stand for Delivery Vs Payment. SEC together with CSE is planning to introduce this to minimize the risk of default in settlement though nothing of such serious issues occurred previously so far. This DVP system is prevailing in all developed markets as well as emerging equity markets and by doing so SEC is planning to upgrade the status of CSE to an emerging equity market thereby attracting more foreign investments to the CSE. Some investors have very confused minds on this new method and some are scared of a blood bath in the market next week. I am advising my viewers that there is nothing negative in this system and will not affect any functionality of current system. Even under the DVP system anyone can buy any stock and sell at any time. The cash payment on the purchases will happen as usual T+3 time frame. Anyone can do day trades. Anyone can use margin trading and anyone can use broker credit as usual. Anyone can claim the dividend as long as they...