1. Icici direct make revision of brokerage charges of stocks traded at Rs. 10.00 or below. Stocks trading at Rs. 10.00 or lower are popularly known as 'Penny stocks'.and from 1 July 2012 they charge very very high brokerage on penny stocks suppose you buy 10000 stocks of cals refinary than your trading amount is 0.25*10000=2500 but icici charge you brokerage of 0.05 per share it is 500 and also charge other statutory charges so you will pay near 530 brokerage on trade of 2500 this is more than 20 % brokerage rate and i wonder how stupid they are???
2.Earlier the brokerage on I-secure and I-saver was 0.55% and 0.75% on entire traded amount. However now the brokerage on stocks quoting up to RS. 10.00 would be levied at Rs. 0.05 per share. The total brokerage on such trade would be higher of Rs. 0.05 per share or Rs. 35.00, subject to maximum of Rs. 0.25 per share. All Statutory charges would be levied over and above the brokerage .
3.Further, Stocks trading at Rs.10.00 or lower are popularly known as Penny stocks.
when i ask them to reason of this killing brokerage they reply me "These stocks are generally of Small Cap. companies and are have higher risk associated with them.
Considering the potential risk, it is advisable that customers look at Large to Mid Cap. stocks. " i wonder to see this narrow minded reply.
4. The brokerage details are also available online on www.icicidirect.com under the brokerage link of customer service page.
For any further queries, you may contact our Customer care number on 022 28307777 for further assistance.
dis closer :- i am a customer of icici direct and just share my view on this high brokerage rate and i never wish to down reputation of company.
1. Paras Petrofils Limited is A Textile company it is incorporated on 20th March 1991 as public limited company.
2. paras petrofils is promoted by Mr. Devraj Jain, Mr. Kailash Chand Jain, Mr. Raghubir Singh Jain, Mr. Anand Kumar Jain, Mr. Ashok Kumar Jain & Mr. Des Raj Jain of Paras Group.
3.Face value of paras petrofils is 1 rupee and book value is 1.09 stock traded @0.31 per share.
4. Paras petrofils ltd factory is situated Surat.It is manufacturer of Nylon and polestar.
5.Year high and year low of paras petrofils ltd is 0.55 and 0.29.
6.Promoters holding 41.01%
7. paras petrofils ltd went to Public in January 1995 with Public Issue of Rs. 1725.71 Lacs, to set up the POY project with cost Rs. 2850.71 lacs having capacity of 5740 TPA.
8.In March, 1998 further paras petrofils ltd came up with its forward integration project of establishing Texturising plant with cost of Rs.552.70 lacs (with capacity of 3080 TPA).
9.In the year 2002 paras petrofils ltd undertook Expansion envisaging addition of 3325 TPA of Fully Drawn Yarn (FDY) to the existing capacity. Company was the Pioneer in Fully Drawn Production (FDY) production in India. Further in 2003, the company has increased its POY capacity by 16935 TPA.In the year 2004, the company has installed Gas based captive power -plant to reduce its power cost. ( source:- company website )
10. you may visit company website at www.paraspetrofils.com/
12. March 12 Net sell of Paras petrofils ltd is 28.57 cr and total number of shares is 33.42 cr so my estimated Net sell ( please not confuse with net profit this is a loss making company ) per year is 3.41 so i think if other things in company is ok than my price target in 1-2 year is 3 to 4 rupee per share if company make a turn around in profit.
11. So i buy 7400 share of paras petrofils ltd at 10.08.12 it is my discloser also that paras petrofils ltd is in my personal holding.
Penny stocks are like a scrap because most of companies which stock traded at such a low price are sick units. So choosing a sound penny stock is difficult job.
Today i tell you some of my criteria to choose a good penny stock for this blog and my own investment.
i follow these rules strictly for investing in a penny share:-
1. It year high/ year low ratio is not more than 2( two). for understanding this concept read
http://www.maheshkaushik.com/2012/04/how-to-choose-stock-for-investment.html
2. It promoters holding is must be more than 20 % and promoters not reduce there holdings in last one year
3. It market price is less than ONE YEAR NET REVENUE PER SHARE and net sells or net revenue is not nil .
4. No recent stock spilt or bonus issue activity in last 3 year. because in most of stock spilt and bonus stock not move near 3-5 year.
5. No bulk deals in last 2 year.
Most of popular penny stocks like cals refineries birla cotsyn sgn telecom gv films sanra media etc not full fill these criteria.
I scan many penny companies per day for this blog and my own investment and if find any companies on these criteria than post it on this blog.
So just start following this blog for results of my penny stocks scanning on these rules.
