Whether you’re a beginner or a long-time investor, one question always matters:
“Is this stock worth buying right now?”
To answer that, you need to understand a few key concepts and look at the company’s health, the stock’s price behavior, and your own investment goals.
💸 Discount Price, Latest Price & Issuance Type: What Do They Mean?
Before buying, understand these terms — they affect how good a deal you’re really getting.
✅ Discount Price
Offered during IPOs, rights issues, or private placements.
It’s often lower than the current market price to attract investors — but not always a bargain.
👉 Example: If the market price is BDT 30 and the IPO price is BDT 25, that’s a BDT 5 discount.
✅ Latest Price
The current trading price of the stock on the Dhaka Stock Exchange (DSE).
This is what buyers and sellers agree on in real time.
✅ Issuance Types
- Public Offering (IPO): Open to all investors via BO accounts
- Private Placement: Offered to select institutional or high-net-worth investors
- Rights Issue: Offered to existing shareholders — you can buy more shares, often at a discounted rate
🧠 Tip: Don’t assume a discounted price is always a good deal. Check the company’s real value first.
🔍 Step 1: Analyze the Company’s Fundamentals
The stock price is just the surface. Look underneath — at the company itself.
🧾 Earnings & Revenue
Is the company making profits? Are its sales growing year to year?
Example: Square Pharma shows consistent growth and healthy margins — that’s a good sign.
🏭 Industry Position
Is it a market leader or just following others?
Sectors like banking, telecom, and pharma tend to reward top players more.
👨💼 Management Team
Are they experienced? Have they delivered solid results in the past?
Look for annual reports, interviews, and historical performance.
🌏 Economic Conditions
Will inflation, interest rates, or BDT/USD currency shifts affect the company?
Export-heavy businesses (like RMG or pharma) are sensitive to global demand and currency trends.
📈 Step 2: Use Technical Analysis (It’s Easier Than It Sounds)
Technical analysis helps you understand how the stock price is behaving, even if the fundamentals are strong.
✅ Moving Averages (SMA/EMA)
These show trends over time. If the price is consistently above the 50-day average, it’s usually a good sign.
✅ Trading Volume
Is more money flowing into the stock recently? Higher volume means more interest.
✅ Support & Resistance
- Support: A price where the stock tends to bounce back
- Resistance: A price where it struggles to go higher
👉 Use this to time your entry or avoid buying at the peak.
⚖️ Step 3: Assess Risk and Reward
Ask yourself:
- Are you okay with price ups and downs in the short term?
- Is this your only stock or part of a bigger portfolio?
- Are you buying for growth, dividends, or long-term value?
✅ Bonus Tip: Some DSE stocks like GP or United Power offer good dividends. Factor that into your total return, not just the share price.
✅ Quick Checklist Before You Buy a Stock
- 🔍 Is the current price attractive vs. discount price or historical average?
- 📊 Do the fundamentals look strong (earnings, position, leadership)?
- 🧭 What do technical charts and volume trends show?
- 💼 Does this fit your risk tolerance and financial plan?
- 🎯 Are you diversified enough, or are you betting everything on one stock?
💬 Questions from Investors
Q: Should I always buy at a discount price?
A: Not always. A discount might mean the company is struggling or investor interest is low. Compare with the market price and company outlook.
Q: What if the stock is dropping?
A: It depends. If the company is healthy and the drop is temporary, it could be a buying opportunity. If there’s bad news behind the fall, stay cautious.
Q: How do I know if a company’s management is trustworthy?
A: Check their track record. Look for consistent results, clear communication, and how they handled past challenges.
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