Showing posts with label Stocks. Show all posts
Showing posts with label Stocks. Show all posts

Tuesday, May 30, 2017

Know 3 Ways How You Can Lose All of Your Money in the Stock Market!

No one invests in the stock market to lose money. Yet it often seems like the people who lose their shirts outnumber those who strike it rich. While there's no guaranteed way to prevent losing money in the market, recognizing these three common blunders can save your portfolio from a lot of pain.

Fear and greed are said to be the two emotions that drive most investing decisions, and following either of them can lead you to lose all of your money. While it's not easy to be devoid of all emotion when putting your money in the stock market, reining them in can help keep you from losing your shirt.

With that in mind, here are three common mistakes many investors make, both those new to investing as well as some old salts who have been through a few market cycles. Although there's no guarantee you won't suffer losses on a stock, recognizing these forced emotional errors can help you minimize the pain your portfolio experiences.


1. Day-trading (or even frequent trading)
Jumping in and out of stocks trying to time entry and exit points is a sure-fire way to lose your money, which is why you'll find there are few if any day-traders who have a long-term record of success.

There is a certain allure to the "easy money" that comes from buying and selling stocks as they twitch higher and lower, but in reality, it's a (small-f) fool's errand. It's hard enough to figure out what a stock will do five or 10 years down the road, let alone how it's going to react tomorrow or 15 minutes from now -- or three seconds from now! Yet day-traders are flitting from one position to the next, racking up transactional costs and hoping each trade wins.

It's just not easy to successfully make winning bets like that time after time. Yet beyond day-trading, even moving in and out of positions over days or weeks isn't any easier. It gives the impression that you know the precise time to buy in or sell out, but actually, you almost always miss the top or bottom, and a stock runs away from you.

There's a reason the most successful investors -- Buffett, Lynch, Klarman, and more -- are long-term buy-and-hold types. It doesn't mean they never sell, it's just that the times they do are few and far between. You'd be better off emulating their strategies than trying to time a stock.

2. Playing penny stocks
Along with buy-and-hold, the investing legends don't invest in penny stocks, and the reason is simple: It's because they are losing propositions. While here and there you may be able to find one company that makes good on its promise, the vast majority of times, you're going to wind up on the losing side of the coin toss.

There are a few reasons for this. Penny stocks are so tiny, they tend to be very thinly traded, which makes them ripe for manipulation. They also tend to be built on "ideas," but have few ways of achieving them. They tout they're turning themselves into the next Microsoft or Wal-Mart, but often, their promoters are just seizing on the latest hot idea -- lithium batteries, solar power, rare earth minerals, gold mining, etc. -- and they're trying to churn up interest in the stock to get the price to jump, so they can bail out and reap a windfall while you're left holding essentially worthless paper.

Sure, controlling thousands of shares for a relatively paltry investment is exciting, and if they only run up a few nickels in value, you've got a terrific score. Unfortunately, few penny stocks do that without being some pump-and-dump scheme. Ultimately, this isn't investing, but gambling, and the odds of winning are worse than going to a casino.

3. Using margin
Leveraging an investment by taking on debt in a bid to amplify a stock's return can be a powerful tool in the right hands, but like credit card debt that can quickly mire a person in a lifetime of servitude to paying it off, using margin is generally a losing bet.

It's not that margin is a complicated or sophisticated tool. It's actually very easy. Too easy, in fact. You're taking a loan out on the value of your portfolio and using the proceeds to buy stock. Yet because it is so easy to misuse, it should only be employed sparingly, if at all.

The problem is, in a rising market like the one we're currently enjoying, it's easy to think you're an investing genius, and all your picks will do well. Tapping into margin to enhance your returns is only good until the next nasty downturn, and then buying stocks on margin can become quite painful.

All it takes is just one stock you've margined to the max to drop in value -- and it doesn't even have to fall all that far -- and you can be faced with the dreaded margin call: Either put more money into your account immediately, or face having your portfolio sold off to make up the difference.

Debt can be good. A mortgage, for example, can be an appropriate use of debt. But taking out a second mortgage and using the funds to go gamble in Las Vegas would be a misuse, and that is essentially what buying stocks on margin is. Picking good stocks with good businesses that are trading at reasonable valuations, and then holding them through thick and thin, will usually provide you with superior returns so you don't need to finance your portfolio with dangerous debt.

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, the Motley Fool Stock Advisor, has tripled the market.

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now...and Wal-Mart wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Source: MSN/Money -

Monday, May 29, 2017

Why every investor should hold dividend stocks!

Video by CNBC
A company dividend is one of the cornerstones of capitalism. When a company is cash-flow positive for a reasonable length of time, it gives management an opportunity to reward shareholders for their loyalty in the form of a dividend.

Some investors may wonder why investing in dividend stocks is often considered an essential part of holding a long-term diversified portfolio. After all, is receiving a few cents per share really much to get excited about? Investing in dividend stocks goes way beyond just the dividend element of the company.

"Dividend-paying stocks can be an important component in an investor's portfolio, providing income, the potential for appreciation and diversification benefits that may reduce portfolio volatility," says Dan Kern, chief investment officer and president of Advisor Partners, an asset management firm in Walnut Creek, California.

It's that potential for price appreciation that can sometimes be lost on investors who only concentrate on seeking dividends. Yet the reason dividends are being paid is because a company's earnings can support it, which in turn means the company's stock price likely has been rising over time.

Kern also points out the importance of dividend stocks for retired investors. "They face the dual challenges of low interest rates and longer life expectancies. Dividend stocks can help with both challenges by providing a mix of income and capital appreciation," Kern says.

Kern also cautions against the trap many income investors fall into: buying stocks just because the dividend yield is high. "Too many investors flock to high-yielding stocks with dividends that may not be sustainable. We think a focus on sustainable dividends across sectors is the more effective approach to dividend investing," Kern says.

And yet sustainable dividend stocks generally don't boast very high payouts. What does a company signal when it pays a more modest dividend?

"We are in a generational low-yielding environment," says Linda Duessel, senior equity strategist at Federated Investors in Pittsburgh. "To simply seek high-yielding stocks could lead you to invest in riskier companies. We like quality high yield."

Steve Berg, CFO of O.penVAPE and a former managing director at Wells Fargo and UBS, points out what a more modest dividend may signal about a company. "A low payout could indicate the company's decision to retain more capital toward business development instead of stockholder payout, which could lead to future growth. As for the dividend itself, every percentage counts, and 4 percent still offers a spread nearly twice what is available on 10-year U.S. Treasury rates," Berg says.

Once an investor is paid a dividend, he is left with an interesting choice. Should he take the money and run, or reinvest the dividend back into the company's stock, or into some other stock? Much depends on why the investor chose the dividend stock in the first place.

"It's not always desirable to reinvest dividends," Kern says. "In many cases, clients rely on the dividend income for personal financial purposes. In other cases, it may make sense to redeploy dividend payments into portions of the portfolio that are underweight relative to the investor's target allocation. Part of the beauty of dividends is the flexibility they provide to the investor."

Duessel says it depends on whether the investor needs the cash. Retired investors often rely on dividends to supplement their income. "Perhaps you need cash, and in that case, you may not want to reinvest. If not, however, reinvesting dividends and owning shares of successful companies is a great way to build wealth over the long term," Duessel says.

Berg offers caution on reinvesting dividends: "It is not in your best interest if you're not overly optimistic about the company's future performance. While this doesn't equate to withdrawing investment from a company, the reinvestment of dividends should be reserved for when you have a specific reason for doing so beyond its convenience."

There's also the question of reinvesting dividends if a company is too successful. Many times, a company's share prices may have soared far beyond what the stock's intrinsic value truly is, or it may be relatively expensive compared with its peers or the market. So what sectors currently seem to offer stocks that are not overvalued and which also pay dividends?

Kern likes the financial sector. "Banks have made meaningful progress repairing their balance sheets and are benefiting from moderately improved economic conditions. Current valuations appear reasonable given the outlook for interest rates and the economy. We're less optimistic about sectors such as telecommunications and utilities, which both face challenges sustaining the current level of dividend payments," Kern says.

But Duessel says utilities are strong dividend stocks. "We currently also favor sectors that are less cyclical, such as utilities, which can serve as a helpful 'bond surrogate' for investors," Duessel says. However, she also says there is compelling value in technology.

Berg suggests looking at consumer discretionary stocks, which have seen improvement as the economy has improved, and consumers spend more money on items that go beyond basic household staples.

Of all the dividend stocks in the market, the ones that often get the most attention are the so-called "dividend aristocrats." Many managers place a lot of faith in these companies, as they have increased their dividend every year for at least 25 consecutive years.

Duessel is high on technology as being the source for future dividend aristocrats. "The technology sector currently is the place to find names of large-cap companies that are raising dividends. These are companies that are sitting on a lot of cash and have eschewed dividends for decades, so the sector is ripe with dividend opportunities," Duessel says.

Source: MSN/Money -2017 U.S. News & World Report

Sunday, May 14, 2017

Buy And Hold: Be An Investing Expert Like Warren Buffett

Warren Buffett made the buy-and-hold strategy famous in investing. And while some investors in today's fast-moving markets believe the technique is outdated and no longer useful, the data tells another story. The investment company run by Buffett, Berkshire Hathaway (BRK.A, BRK.B), still acquires stocks using a long-term philosophy to buy and hold stocks.


There's no indication that the strategy has stopped working: Berkshire's stock price has soared 131 percent in the last 10 years, doubling the 65 percent return of the Standard & Poor's 500 index.

It's not easy, but if you follow the following nine steps you can buy and hold stocks, too.
Source: MSN Money

Thursday, April 6, 2017

Unlocking Secrets Of Rich: ONE Thing That RICH People Buy That Poor and ...

This intriguing narrative text video is over 700,000 views and counting on YOUTUBE, and it's not at all what you think... Keep an open mind, you are about to be very surprised...your life won't be same again!


It’s so simple but so important that when I finally understood it, it changed my life forever. 

I'm going to open your eyes and show you exactly what I mean, and you’ll see why the rich get richer, the poor get poorer, and the middle class are getting squeezed out.

The wealthy buy ASSETS. These assets pay them money, which they use to buy MORE assets which makes them MORE money. The ASSETS make them money instead of their TIME.
  • The poor by STUFF
  • The middle class buy LIABILITIES 
  • The wealthy buy ASSETS
Preferably businesses that PAY YOU money then take that money and buy another asset that produces more money.
Republished for Awareness, Information and Knowledge!

Saturday, March 25, 2017

A Case for Share Auction : Why to Choose?

Initial public offerings (IPO), right shares, bonus shares and buying shares in the secondary market are quite prevalent in the Nepalese market. But a majority of general investors who invest aren’t aware of another kind of investment vehicle- SHARE AUCTION. Hence, only seasoned investors who keep track of these anomalies gain from investing in this novel approach.


What is a share Auction?

There are two instances when institutions undertake auctions.
  • Offloading the institution’s current holdings
  1. This type of auction happens when institutions have shares of other institutions and want to sell these shares for profit booking or for compliance issues.
Example: To comply with the central bank’s directive that all BFIs give up cross holdings in other BFIs, Rastriya Banijya Bank Limited had called a tender to divest 56.52 lakh units of promoter shares of Nepal Investment Bank Limited and 1.96 lakh units of promoter shares of Nepal Awas Finance Limited.
  • Auction of the unsubscribed right shares
  1. When institutions need to inject additional capital, they issue right shares which can only be applied by the existing shareholders of that company. Disinterest of the current shareholders, unavailability of funds or unawareness of the current shareholders about the right issuance might lead to a fraction these shares being unclaimed. The shares that aren’t subscribed (unclaimed) for are then called for auction to the regular investors/public (who may or may not be the institutions current shareholders).
Example: Life Insurance Corporation (Nepal) Ltd. recently issued 1,012,500 right shares of which 35,468 units were unclaimed by its “current” shareholders which were then called for auction to the general public.

HOW can I apply?

Applying to unclaimed shares is quite similar to applying for IPOs.
  • Get the forms from institution undertaking the auction, usually an Issue Manager.
  • Fill the forms and deposit the entire amount equivalent to the applied shares in the bank or submit a good for payment check.
  • Usually auctions only open for a short period and after which the unclaimed shares are allotted to the highest bidders. Auction of right shares follows the regular bidding process; whoever bids the highest price gets the shares he/she has applied for. In case, two or more bidders applied for the shares at an equal rate then they are allocated shares proportionate to their applied shares. The bidders who weren’t allotted any shares are refunded their entire amount.

WHY should I apply?

Applying for auctions can have a few advantages.
  • Funds are only frozen for a few days (roughly 15 days) as opposed to 120 days in IPOs.
  • These shares are listed in a few weeks (depends on the Issue Manager) and can be traded allowing for quicker turnover of funds. This period is significantly shorter than IPO’s.
  • Since the investor is purchasing shares directly from the institution, they don’t have to pay broker and Security Board Nepal (SEBON) commission.
  • In our market acquiring big blocks of certain shares is difficult ; but share auctions give investors an opportunity to acquire these shares in huge chunks.
Source: Nepal Stock

Sunday, February 19, 2017

How Much to Bid for Agriculture Bank (ADBL) in Auction?

Agricultural Development Bank Limited (ADBL) had issued right shares in the ratio 2:1 from Kartik 3 to Mangsir 7, 2073. In this issue period, 1 in 5 shares was not subscribed by the shareholders. ADBL is auctioning these unsold 19,68,575 units right shares to the general public at a premium price. The main question here lies: how much to bid in the ADBL auction?

At more than 19.68 lakh units shares worth more than Rs 19.68 crore in paid up value, this is the largest auction of unclaimed right shares of any company in Nepal. If the recent trend in cutoff prices of unclaimed right shares is taken into account, ADBL is expected to earn a good Rs 40-50 crores+ in premium.


Basis for bidding on unclaimed right shares
Investors interested in acquiring unclaimed shares normally should bid less than the market price. While there are some who might bid above the current market price, sensible investors always bid less than the market price. The logic here is simple: why spend more money in auction when you can get the same number of shares in the stock market for a lower price?

What does the cutoff price trend show?
Bidders typically look at the market price on the second last day of the auction when establishing base for the bid amount per share. Trend shows that the cutoff price is normally 10-20% less than the market price on the last day.

Let’s take a look at the recent auctions:
Cutoff price for development banks are far lower than for commercial banks. This means that interested bidders might get away with bidding more than 20% lower than the last closing price. The highest difference between market price and cutoff price for a commercial bank was for Prime Commercial Bank at 10.66%.

When Machapuchchhre Bank Limited (MBL) auctioned its 2,33,983.79 units ordinary right share to the general public, its cut off stood at Rs 525. The last trading price of Machapuchchhre Bank, a day before the bid opening day stood at Rs 560.

Likewise, Laxmi Bank Limited (LBL) had auctioned its 186,462 units ordinary right shares to the general public. The cut off price for the auction was set at Rs. 477.60 whereas the last trading price, a day before the bid opening day stood at Rs 517. When Sunrise Bank Limited (SRBL) auctioned its 1,66,248 units ordinary shares, the cut off price stood at Rs 426. The last trading price of shares of Sunrise Bank, a day before the bid opening was at Rs 452.

Less than 10% difference between the cutoff price and last traded price is seen in case of commercial banks.

Will the number of shares and maximum limit make a difference?
ADBL is auctioning 19.68 lakh units shares. In a sense, this can be seen as a mini-IPO or mini-FPO. Further, maximum cap of 10,000 units per application has been set for the auction. In the earlier week, the price of ADBL stock was also declining.

How much to bid?
The auction closes on Falgun 12 (February 23, 2017). It will be sensible to bid around 10-15% less than the last traded price of ADBL on Falgun 11. For example, if the closing price of ADBL on Falgun 11 will be Rs 450, it is recommended to bid around Rs 380 to Rs 400. Similarly, if the closing price of ADBL on Falgun 11 will be Rs 400, we can bid around Rs 340 to Rs 360.

Source: sharesansar

Monday, December 5, 2016

10 Steps to Becoming a Stock Market Millionaire !

Investing in the stock market is a way to make more than just a little extra cash. In fact, with the right approach and the right skills, investing even a little in the stock market can put you on the road to earning millions. Becoming a stock market millionaire isn’t an easy task and it isn’t a feat that will happen overnight, but it is possible as proven by several of my students like Tim G. and Michael G. If you want to become a stock market millionaire then here are 10 of the most proven tips to reaching your goals, and the earnings you have always wanted.



Video source: Timothy Sykes

Tuesday, November 22, 2016

अस्थिर सेयर बजारको बीचमा लगानीकर्ताहरुले अब के गर्ने ?

अहिले बजार एकदम अस्थिर भएकाले केही समय पर्ख र हेरको अबस्थाम रहनु नै उचित देख्छु । जब बजार सम्हालिएर स्थिर हुन्छ, राम्रो, बलियो र भबिष्यमा धेरै प्रतिफल दिन सक्ने, धेरै मूल्य घटेर सस्तिएको सेयरहरुमा लगानी गर्नु बेश हुने ठान्दछु । अहिले हतारिएर राम्रो कम्पनीको सेयर बेच्नलाई भने बन्दै गर्नुपर्छ ।



Source: arthatantra

Friday, November 4, 2016

यदि तपाई धितोपत्रमा लगानी गर्दै हुनुहुन्छ भने लगानी गर्नु अघि निम्न कुराहरुमा ध्यान दिनुहोस् ।

यदि तपाई धितोपत्र (सेयर, ऋणपत्र, सामूहिक लगानी योजनाको ईकाई आदि) मा लगानी गर्दै हुनुहुन्छ भने लगानी गर्नु अघि निम्न कुराहरुमा विशेष ध्यान दिनुहोस् ।

१. धितोपत्र बजारमा समय समयमा उतारचढाव आउन सक्ने भएकोले धितोपत्रमा लगानी गर्दा उपयुक्त सूचना लिई संयमित तथा विवेकशील भएर मात्र लगानीको निर्णय लिनुहोस् ।

२. धितोपत्रमा गरिने लगानीमा प्रतिफल तथा जोखिम दुवै हुने हुँदा हल्ला, अनावश्यक प्रचार प्रसार वा कसैको बहकाउमा नलागी बजार तथा कम्पनीको बास्तविक बस्तुस्थिति बुझेर आफ्नो स्वविवेकमा नै लगानी सम्बन्धी निर्णय गर्नुहोस् । साथै आफ्नो जोखिम बहन गर्न सक्ने क्षमताको मूल्याकंन समेत गर्नुहोस् ।



Thursday, November 3, 2016

तयार हुनुहोस्, माइक्रोफाइनान्सले ल्याउँदैछ १२० प्रतिशत हकप्रद सेयर !

काठमाण्डौ। एनएमबी माइक्रोफाइनान्स वित्तीय संस्था लिमिटेडले मंसिर ६ गतेबाट हकप्रद सेयर जारी गर्ने भएको छ। कम्पनीले जारी गर्ने सेयर पुस १० गतेसम्म भर्न पाइन्छ। कम्पनीले १०० रुपैयाँ अंकित दरको सेयर हालको चुक्ता पुँजीको १२० प्रतिशत जारी गर्न लागेको हो। लगानीकर्ताले १० सेयर बराबर १२ सेयर भर्न पाउँछन्।



Source: arthatantra

Monday, October 24, 2016

सेयर बजारको ओरालो यात्राकावीच लगानीकर्ताले कस्ता कम्पनी छान्ने ?

साताको दोस्रो दिन पनि सेयर बजारमा दोहोरो अंकको गिरावट आएपछि लगानीकर्ताले केही आशलाग्दा कम्पनीहरुमा आफ्नो लगानी एकत्रित गर्र्नुपर्ने आबश्यकता खट्किएको छ । प्रथम त्रैमासको बित्तीय बिबरण आउने क्रम जारी रहँदा उल्लेखनीय रुपमा पूँजी बृद्धि गरेर पनि खुद नाफा बृद्धिको संन्तुलन कायम गरेका कम्पनीहरुमा लगानीकर्ताको बढी ध्यान जानुपर्नेमा जोड दिईएको छ ।


Source: merolagani

Monday, October 17, 2016

गत आर्थिक वर्षको कमाईबाट लगानीकर्तालाई विकास बैंकले कति गरे बोनस प्रस्ताव ?

गत आर्थिक वर्षको कमाईबाट लगानीकर्तालाई प्रतिफल बितरणको प्रस्ताव गर्ने क्रममा २७ वटा विकास बैंकहरुले बोनस प्रस्ताव गरेका छन् । पूँजी वृद्धिको चटारोमा रहेका विकास बैंकहरुले लगानीकर्तालाई दिने प्रतिफलको प्रस्ताव न्युनतम पौने आठ प्रतिशतदेखि ३४ प्रतिशत रहेको छ ।


Source: merolagani

थाहा पाइराख्नुहोस्, नौ कम्पनीले ल्याउँदैछन् ९६ लाखभन्दा बढी कित्ता साधारण सेयर (आईपीओ) !

काठमाण्डौं । विभिन्न नौ कम्पनीले छिट्टै करिब ९६ करोड १४ लाख सात हजार रुपैयाँ बराबरको ९६ लाख १४ हजार सात सय ८९ कित्ता साधारण सेयर (आईपीओ) निष्कासन गर्ने योजना सार्वजनिक गरेका छन् । दसैंपछि लगानीकर्ताले यो मूल्य बराबरको सेयरमा लगानी गर्न पाउने भएका छन् ।




Source: arthatantra

Monday, October 10, 2016

यी कम्पनीहरुको आउँदैछ १० करोड भन्दा बढी कित्ता नयाँ शेयर (हेरौं कुन–कुन कम्पनी) ।

काठमाडौं, असोज २४ । चालु आर्थिक वर्षमा बैंक तथा वित्तीय संस्था साथै जलविद्युत कम्पनीहरु गरी लगानीकर्ताले विभिन्न ३१ कम्पनीमा लगानी गर्न पाउने भएका छन् । यी विभिन्न्न ९ कम्पनीले ६९ करोड २८ लाख ३६ हजार रुपैयाँ बराबरको ६९ लाख २८ हजार ३ सय ६० कित्ता साधारण शेयर निष्काशन गर्ने भएका छन् । त्यस्तै नेपाल लाइफ इन्स्योरेन्स र नेपाल एसबीआई बैंकले फर्दर पब्लिक अफरिङ एफपिओ निष्काशन गर्ने भएका छन् ।



Source: aarthiknews

Sunday, October 9, 2016

आउँदैछ नयाँ बिमा ऐन, जीवन बिमाको ४ र निर्जिवनको ५ अर्ब चुक्तापूँजीको प्रस्ताव ।

काठमाण्डौ । बिमा कम्पनीको हालको चुक्तापूँजीलाई २० गुणासम्म बढाउने प्रस्तावसहितको नयाँ बिमा ऐनको मस्यौदा अगाडि बढेको छ ।

यति धेरै चुक्तापूँजी वृद्धिको प्रावधानसहितको मस्यौदामाथि अर्थमन्त्रालयमा छलफल सुरु भएको हो ।


Insurance
Source: bizshala

Sunday, October 2, 2016

वाणिज्य बैंक र बिमामा लगानीकर्ताको थुप्रो ।

बीओकेएल, ज्योति र कुमारीले पैसा छापे, निर्धन उत्थानका सेयरधनी हिस्स ।

काठमाण्डौ । साताको पहिलो कारोबार दिन आइतबार वाणिज्य बैंक र बिमामा लगानीकर्ता थुप्रिएका छन् । यी दुई समूहमा बढेको अचाक्ली आकर्षणले समग्र पूँजीबजार परिसूचक(नेप्से) दोहोरो अंकले उक्लिएको छ भने कारोबार रकम पनि बढेको छ । 

विश्लेषकहरुले बजारमा खरीदको चाप बढ्दै गएको आइतबारको बुलिस बजारले देखाएको दाबी गरेका छन् । उनीहरुले असोज मसान्तमा तिर्नुपर्ने ब्याज र दशैंतिहार खर्चको जोहो लगानीकर्ताले गरिसकेका कारण अब आउँदा दिनमा समेत बिक्रीको भन्दा खरीदकै चाप बढी हुने बताएका छन । विश्लेषकहरुका अनुसार पछिल्लो समय लगानीकर्ताले छानी छानी लगानी गरेका छन् र राम्रा तथा ठूला कम्पनीको सेयरमा ह्वात्तै आकर्षण बढेको छ ।


Market Up
Source: bizshala

Saturday, October 1, 2016

Investing Basics: Stocks



Introduce yourself to the basics of stocks—from learning what they are and how to evaluate them, to identifying when to buy and sell them.

Republished for Education, Information & Knowledge!

Source: Investools

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