SecurlLy Analysls AsslgnmenL

Analysls of 1radlng ro[ecL up Lo nov 04 2011

SecLor SelecLlon
ln Lhls Lradlng pro[ecL we sorL companles ln dlfferenL secLors whlch we consldered Lo be valuable as per
markeL perspecLlve 1he dlfferenL secLors we acqulred ln our Lradlng are Cll Cas Chemlcals
consLrucLlon maLerlals general lndusLrlals pharmaceuLlcals LelecommunlcaLlon power secLor and
banks Companles ln Lhese secLors are generally consldered Lo be growlng concerns slnce Lhese
segmenLs are relaLed Lo every day needs and uLlllLles 1he share markeL for Lhe sald companles deplcLs
ebb and flow behavlor mosLly due Lo dlfferenL aspecLs llke compeLlLlve elemenL markeL rlsk Lrends
people perspecLlves and numerous oLher soclo economlc facLors We lnvesLed 8s100 mllllon LhaL were
asslgned hypoLheLlcally ln 16 dlfferenL companles ouL of whlch 20 our budgeL was lnvesLed ln
dlfferenL commodlLles
SLraLegy Analysls
A sLraLegy LhaL works for one person may noL necessarlly work for anoLher person and slmllar lL also
dlffers from secLor Lo secLor ln all Lhe secLors we lnvesLed durlng lasL 6 weeks Lhere ls an overall mlx
Lrends ln Lhe markeL Llke oLhers our focused sLraLegy ls Lo aLLaln maxlmum under Lhe glven
clrcumsLances rlces of Cll Cas Chemlcals and ower secLors shows a sLable Lrend and durlng flrsL
week of our Lradlng lL was revealed LhaL lnvesLlng Lhese secLors ls more favorable for a rlsk averse
person who could aLLaln average reLurn by lnvesLlng ln Lhese secLors
uurlng Lhe flrsL week lL was observed LhaL Chemlcals secLor lllusLraLes an overall growlng Lrend Also ln
Lhe oll gas secLor share prlces lncreases so we sold Lhose shares and galned uurlng Lhe flrsL flve days
we aLLaln Lhe hlghesL reLurn on lnvesLmenL on laLlma lerLlllzers sLock le around 327 ln Lhe
chemlcals secLor lerLlllzer sLocks were sharply hlgher aL Lhe kSL100 followlng domesLlc producer Lngro
ralslng prlces Lo overcome producLlon losses 1he llC earnlng ls growlng as Lhe urea prlce has recenLly
lncreased Meanwhlle Lhey are noL faclng any gas shorLage 1here ls a sLrlngenL compeLlLlon among
laLlma Lngro and llC for share ln Lhe markeL 8ecenLly lnvesLors have shown confldence ln lC and
laLlma more Lhan Lngro All Lhe ferLlllzer sLocks closed aL Lhelr upper locks as lnvesLors scrambled Lo
plck up shares LhaL may see earnlngs revlslon ln Lhe lerLlllzer lndusLry lau[l share prlces shows a sLeady
drlfL as lLs prlces are already slgnlflcanL so one can esLlmaLe LhaL lnvesLlng ln Lhls company wlLh some
lnslghLs may lead Lo play safer and geL adequaLe proflLs
ln Lhe chemlcals secLor lf we go for LoLLe named as L1A whlch ls a worldclass suppller and
manufacLurer of ure 1erephLhallc Acld (1A) an essenLlal whlLe powder used ln Lhe LexLlles lndusLry as
raw maLerlal for maklng polyesLer flbers Lhe sLocks of Lhe sald company lL's share prlces noL flucLuaLe
much buL cerLaln reporLs llke Lhe company generaLed a gross proflL of 8s 13 bllllon durlng Lhe quarLer as
compared Lo 8s 08 bllllon ln 1C09 desplLe lower sales volume lL lndlcaLes LhaL for safer long Lerm
lnvesLmenLs LoLLe would be a beLLer ldeaWe also make some loss on Lngro Corp ln ferLlllzer secLor of
around 068 of 8Cl ln Lhe Cll Cas secLor SC shows Lhe more poslLlve Lrend and we aLLaln a 8Cl of
around 124 ln Lhe oll gas secLor we acqulred hlghesL reLurn of 297 ln Lhe Shell sLock 1he fuel
consumpLlon ln Lhe counLry has lncreased from 192 mllllon Lo 208 mllllon Lons Cll consumpLlon has
decreased slgnlflcanLly ln Lhe perlod beLween !uly and SepLember due Lo masslve devasLaLlon caused by
super flood ln Lhe counLry
ln Lhe Lelecom secLor we lnvesL ln Lhe 1CL regardlng lL as Lhe sole corporaLlon speclflcally ln flxed llne
communlcaLlons 8y lnvesLlng ln 1CL we dldn'L see any slgnlflcanL prlce marglns buL we are able Lo
aLLaln mlnlmal proflLs As (1CL) ls Lhe largesL LelecommunlcaLlon company ln aklsLan whlch provldes
baslc Lelephony cellular moblle and lnLerneL/daLa servlces and also a growlng concern as because of
hlgher proflLs desplLe decllnlng sales company's reLurn on caplLal has lncreased by 20 basls polnLs ln
l?10 Lo 74 percenL Slmllarly reLurn ln equlLy has lncreased over l?09 by 3 basls polnLs ln l?10 aL 933
percenL Plgh share caplLal and revenue reserves have made LoLal equlLy four Llmes lLs debL ln l?10 uue
Lo lower flnance cosLs company's ablllLy Lo servlce lLs debL has lncreased Lo more Lhan 36 Llmes ln l?10
8ased on Lhese facLs we can conslder lL as a moderaLe lnvesLmenL

ln Lhe consLrucLlon secLor we made some proflL lnlLlally wlLh an 8Cl of 34 buL laLer on Lhere ls a
decllne ln Lhe share prlces of cemenL lndusLry As Lhe consLrucLlon secLor ln aklsLan usually has mlx
Lrends dependlng on cerLaln parameLers llke prlce flucLuaLlon purchaslng power properLy valuaLlon