tag:blogger.com,1999:blog-28128040621130612572011-12-29T10:11:30.722+05:30TO EDUCATE, ENTERTAIN, ENRICHMahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.comBlogger561100tag:blogger.com,1999:blog-2812804062113061257.post-55255535466773032152008-09-30T10:19:00.005+05:302008-09-30T12:23:56.979+05:30

The sub-prime crisis is well and truly upon us. Institutions once considered infallible are toppling like nine pins. The key question is how badly will India be affected by this problem and are we showing the classical signs of a knee jerk recation?The sub-prime crisis is of American and European origin and Indian markets are down much more than these markets even though directly we are the least

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com11tag:blogger.com,1999:blog-2812804062113061257.post-24276470844118022042008-09-25T14:16:00.003+05:302008-09-25T14:41:39.161+05:30

A pertinent comment on my last post about the feasibility of retiring on Rs.1 crore of savings, came from Manish. He raised the issue of whether Rs.75,000 per month of expenses is a realistic figure for someone preparing to retire on 1 cr.I have considered the hypothetical figure of Rs.75000 per month of expenses inclusive of EMI payments on house, car etc. Secondly and more importantly the

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com1tag:blogger.com,1999:blog-2812804062113061257.post-22053582756160623892008-09-24T15:15:00.004+05:302008-09-24T15:29:36.467+05:30

As more and more people are thinking of taking an early retirement, being sick of the hassles of participating in a never ending rat race, it automatically begs the question " what can be a sufficient corpus for retirement?" In this post I've tried to examine the feasibility of a couple with two kids retiring on their grand savings of Rs.1 crore.Certain assumptions have been made in order to

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com12tag:blogger.com,1999:blog-2812804062113061257.post-75090987820186776132008-09-17T11:50:00.001+05:302008-09-17T11:50:01.762+05:30

  Stock markets have done it yet again. They have managed to spread panic in the minds of not only traders but also longer term investors. People are worried about their investments and whether a further erosion of capital is on the cards. Frankly I don't know and I suspect neither does anyone else. But the fact remains that we are structurally in one of our strongest economic cycles ever and a

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com1tag:blogger.com,1999:blog-2812804062113061257.post-60676229086931598862008-09-10T14:11:00.002+05:302008-09-10T14:26:20.684+05:30

Since a larger agricultural output would result in more money in rural hands, Banks would stand to gain from this phenomenon in several ways. A higher rural income would translate into higher consumption of consumer durables like motorcycles, television sets and other white goods. This would in turn set off an increase in demand for loans from banks and other institutions. With banks being

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com0tag:blogger.com,1999:blog-2812804062113061257.post-11395882324002146982008-09-03T14:11:00.001+05:302008-09-03T14:11:54.189+05:30

Fertiliser stocks have been largely shunned by investors, with some speculators intermittently trying to perk them up. Though these stocks are available at reasonable valuations and most of them offer great dividend yields, sensible longer term investors have been keeping away from them due to continued Government interference in the sector and lack of free pricing power.Though the sector looks

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com1tag:blogger.com,1999:blog-2812804062113061257.post-56732531323061982182008-09-01T13:37:00.002+05:302008-09-01T13:41:07.476+05:30

Agro Chemical stocks are likely to be the biggest beneficiaries of the upsurge in agricultural commodity prices. Since these products are directly used by farmers in their operations and there is no Government interference in the sector, companies in this line of business can command good pricing power.It makes sense to focus on companies involved in the crop protection business as well as in

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com3tag:blogger.com,1999:blog-2812804062113061257.post-25823489843365728472008-08-30T10:20:00.004+05:302008-08-30T11:20:20.742+05:30

Since FMCG companies are expected to be major beneficiaries of the growth in rural incomes it makes sense to focus on those companies which look to conciously increase their rural footprint. ITC is one such company in my opinion. In this post, I shall concentrate on the business prospects only and ignore the financials.ITC operates in various segments and has a diversified product profile.1.

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com3tag:blogger.com,1999:blog-2812804062113061257.post-64881887168751129912008-08-28T16:13:00.001+05:302008-08-28T16:13:39.319+05:30

Sectors having a dependence on agriculture could be outperformers to watch out for. With the rise in prices of global agro commodities, the Indian farmer tends to benefit to a large extent. This increased income in the rural hands could play a large role in driving consumption patterns across the space. Some of the sectors which stand to gain from this effect are:FMCG : FMCG companies could

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com4tag:blogger.com,1999:blog-2812804062113061257.post-40594112154007423902008-08-26T15:16:00.001+05:302008-08-26T15:16:54.872+05:30

Infosys' takeover of Axon for approximately 3300 cr signifies a major change in mindset of India's best software company. This shift augurs well for shareholders of Infosys, since not only is it getting an increased presence in the European markets, it is also cementing its position in the field of business consulting. The valuation also looks fair at 20 times Axon's last year earnings and less

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com2tag:blogger.com,1999:blog-2812804062113061257.post-85412626188358564252008-08-25T18:20:00.001+05:302008-08-25T18:20:25.241+05:30

Traditionally, Indian investors seem to prefer real estate over equity for their investments. I think the genesis of this attitude lies in the fact that equity markets are volatile and its fluctuations are available to investors on a real time basis. However real estate prices are also prone to severe cuts, though they are not so apparent in the short term and lack some of the advantages which

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com2tag:blogger.com,1999:blog-2812804062113061257.post-31500806149610696262008-08-23T12:11:00.001+05:302008-08-23T12:11:06.233+05:30

China won its first Olympic Gold in 1984. This also coincided with the point where their economy took off and reached its present heights. It has led me to wonder whether there is a relationship between excellence in sports and economic progress. If so, what message does this hold for India considering that they have just got their first individual gold medal in Beijing? Does it indicate that

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com2tag:blogger.com,1999:blog-2812804062113061257.post-4639213402079130802008-08-18T14:04:00.001+05:302008-08-18T14:04:19.620+05:30

Software stocks are suddenly back in the limelight on the back of a stronger Dollar. As the dollar appreciates against major currencies and the Indian Rupee, it could provide a major boost to the bottom lines of IT companies. After lying low for more than 18 months, they could now emerge as the leaders of the next rally. IT companies have already managed to take the US recession in their stride,

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com0tag:blogger.com,1999:blog-2812804062113061257.post-27622284845358254832008-08-15T15:27:00.001+05:302008-08-15T15:27:10.308+05:30

The Union Cabinet on Thursday approved the recommendations of the Sixth Pay Commission thereby paving the way for higher wages for government employees. "The cabinet has approved the pay commission report," Law Minister Hansraj Bhardwaj told reporters after a cabinet meeting. The pay panel made its recommendations earlier in 2008 for salary increases for central government workers costing Rs

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com0tag:blogger.com,1999:blog-2812804062113061257.post-91784920081968935832008-08-11T13:58:00.001+05:302008-08-11T13:58:33.839+05:30

In my last post I had discussed the fundamental factors which an investor looks at in choosing a stock for investment. Apart from these an investor would do well to look at some intangibles which one cannot quantify in numbers, but play an equally important part in an investment decision. This theory was first propounded by Philip Fisher and further by Peter Lynch. Some of the factors to look at

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com2tag:blogger.com,1999:blog-2812804062113061257.post-12603680657542750522008-08-04T18:59:00.002+05:302008-08-04T19:13:44.070+05:30

Value investing is an important tool in the arsenal of a fundamental investor. In simple terms it means buying a stock for much less than what an investor thinks it is worth. But how does a value investor decide the worth of the company under study? Given below is an explanation of some basic parameters to decide whether a business is undervalued or not. They arePE ratio. This is the ratio of the

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com0tag:blogger.com,1999:blog-2812804062113061257.post-22248845621065108602008-08-02T11:47:00.001+05:302008-08-02T11:48:31.053+05:30

Contrarian investing pays if you are a patient investor. We have numerous examples of how stocks which are out of favour with investors, but are fundamentally sound, have given handsome returns once the reasons behind their underperformance ease off.Consider capital goods stocks in 2003. Stocks like BEML, BHEL, L&T and many others were available at a fraction of today’s prices. Investors’ who had

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com3tag:blogger.com,1999:blog-2812804062113061257.post-87110792404646172562008-07-31T20:09:00.000+05:302008-07-31T20:10:33.285+05:30

Hitachi Home & Life Solutions (I) Ltd. Has delivered lackluster results for the first quarter.Sales grew at a decent 25.36 % from 148.49 crore to 186.15 crore.Other Income fell from 4.52 crore to 1.58 croreProfit before tax remained flat at 20.96 crore compared to 20.49 crore.Profit After Tax fell 8.75 % from 17.37 crore to 15.85 crore.It seems that the company has been impacted by the rise in

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com0tag:blogger.com,1999:blog-2812804062113061257.post-64230803307114849182008-07-31T19:54:00.000+05:302008-07-31T19:55:37.827+05:30

Income and Gilt funds which have performed badly over the past three years could be attractive contrarian bets for medium term investors. Income funds predominantly invest in highly rated paper of reputed companies, with almost 80 % of their investments being in AAA bonds. Gilt funds predominantly invest in Government securities.Bond funds have given the following lackluster performance over the

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com0tag:blogger.com,1999:blog-2812804062113061257.post-91473226944694156122008-07-28T19:19:00.009+05:302008-07-28T19:34:00.538+05:30

I had posted on the attractiveness of ICSA (India) Ltd. in an earlier post.It has reported encouraging results for the first quarter of FY 09.Sales increased by 97 % from 122.63 crore to 241.50 crore (YOY)PAT increased by 71.28 % from 23.92 crore to 40.97 crore (YOY)The EPS for the quarter works out to 9.3.The company paid taxes of Rs.14.14 crore for the quarter representing 25.65 % of the

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com2tag:blogger.com,1999:blog-2812804062113061257.post-86157604081313501862008-07-27T12:07:00.001+05:302008-07-27T12:07:34.185+05:30

FMP's (Fixed Maturity Plans) are becoming increasingly popular among debt investors in recent times. Since conventional Income funds and Gilt funds are marked to market, in a scenario where interest rates are rising, these funds deliver low or even negative returns. How does the mark to market concept work? If a mutual fund holds a debt security which gives 8 % per annum (coupon rate) payable

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com3tag:blogger.com,1999:blog-2812804062113061257.post-69068073927624380802008-07-26T17:13:00.005+05:302008-07-26T17:43:26.005+05:30

Are we seeing the beginning of the end of the great commodity run? I feel that, though it is premature to write off commodities, they are certainly headed for a major fall. The reasons are not far to see;A slowdown in the global economy is imminent. We are already seeing the signs in America and Europe. A demand drop poses a major threat to commodity prices, since demand has been a major driver

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com0tag:blogger.com,1999:blog-2812804062113061257.post-41718138434463195562008-07-25T19:01:00.002+05:302008-07-25T20:41:00.127+05:30

In the present market scenario, with volatility being the order of the day, I believe investors should stick to safe stocks with solid managements behind them. Even though some sectors have been beaten badly, investors would do well to not look at how much a stock has fallen from its highs, to base their investment decisions on.It is important to differentiate between stocks and sectors where the

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com0tag:blogger.com,1999:blog-2812804062113061257.post-82125385904387574142008-07-24T19:25:00.001+05:302008-07-24T19:25:15.793+05:30

What a difference a week makes! Around the same time last week we were surrounded by prophets of doom, who forecast levels of new lows for the Indian markets. Predictions ranged from 8500 to 12000 for the sensex. Any upside was said to be a technical bounce back, destined to be short lived.Since then, the incumbent government has managed to hold on to power and the Finance minister is taking of

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com0tag:blogger.com,1999:blog-2812804062113061257.post-75789696342906835152008-07-23T20:39:00.001+05:302008-07-23T20:39:06.069+05:30

Hitachi Home and Life Solutions (India), previously known as Amtrex Appliances is a leading manufacturer of window and split air conditioners. The demand for its products is extremely strong considering the growing Indian middle class with its disposable income and the recent tendency to buy premium brands. In this context Hitachi's wide range of energy efficient products would place it at a

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com2tag:blogger.com,1999:blog-2812804062113061257.post-12062823823500193462008-07-18T23:08:00.002+05:302008-07-18T23:42:00.392+05:30

The theory of Reflexivity propounded by George Soros, seeks to demonstrate that financial markets cannot discount the future correctly because, in certain cases, the behaviour of financial markets affect the so called fundamentals which they are supposed to reflect. It implies that financial markets do not merely discount the future; they help to shape it.Therefore reflexivity is a self

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com2tag:blogger.com,1999:blog-2812804062113061257.post-27354957124661828442008-07-17T11:34:00.002+05:302008-07-17T13:02:49.269+05:30

With crude showing signs of cooling off, stock markets look poised for a rebound. It also depends on the vote of confidence scheduled for the 22nd and the inflation figures. In my opinion it’s a good time for long term investors with a time horizon of 2 years and above to go on a shopping spree.Oil, which has been a major drag on the markets is projected to react to $100 to $110/bbl in the next

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com0tag:blogger.com,1999:blog-2812804062113061257.post-87138232281104676312008-07-13T12:09:00.001+05:302008-07-13T12:09:23.550+05:30

In a book, I recently read, the author gives the example of a person who turned this life savings of $ 2,000 into $ 1 Million by following a simple strategy. When the dividend yield of the Dow Jones Industrial average went up to 6 %, he put all this money into stocks. When it went below 3 %, he got out of stocks and put the realised amount into a savings bank account. It took him 30 years to

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com4tag:blogger.com,1999:blog-2812804062113061257.post-71690335181440771462008-07-09T23:18:00.002+05:302008-07-10T11:18:57.216+05:30

PSU Bank stocks are starting to look somewhat like the Indian cricket team after they ran into Mendis in the Asia Cup. Battered and bruised. But these stocks, currently out of favour could provide a mix of steady income and capital growth to investors' portfolios. Let's look at some reasons as to why PSU Banks are now discarded by the public. It is felt that PSU Banks' profit margins would be

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com5tag:blogger.com,1999:blog-2812804062113061257.post-2261743538002623522008-07-07T14:50:00.002+05:302008-07-07T14:59:26.666+05:30

Aurobindo Pharma is a manufacturer of Active Pharmaceutical Ingredients (API'), formulations and intermediates, having a wide portfolio of products in various segments such as anti infectives, anti retrovirals, cardiovascular systems , CNS etc.Strengths:It has 5 units for manufacture of API' and 4 for manufacture of formulations, catering to regulated markets where norms relating to manufacture

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com3tag:blogger.com,1999:blog-2812804062113061257.post-4378742853590580892008-07-02T21:58:00.002+05:302008-07-06T16:41:52.853+05:30

There has been a lot of mutual fund bashing going on recently, with investors upset that fund managers have not been able to protect investors in the current downside. I am also guilty of criticizing these guys in a previous post. Everyone wants a scapegoat when things go wrong. But I now think we ought to take a relook at what went wrong with the decisions that fund managers made and were they

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com3tag:blogger.com,1999:blog-2812804062113061257.post-23985668351153055682008-07-01T21:50:00.002+05:302008-07-06T16:47:11.928+05:30

What percentage of the Indian investor population regrets not getting out at 21000? My guess would be 95 %. Even long term investors are shocked to see the value erosion in their portfolios now. Some of them are even thinking of cashing out, while they still have some profits left on the table. Panic is slowly creeping into the markets as stock values are rapidly eroded.Looking back it seems that

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com1tag:blogger.com,1999:blog-2812804062113061257.post-54452010406213785762008-06-29T14:11:00.001+05:302008-06-29T14:11:17.420+05:30

 Even though I am a strong believer in a buy and hold strategy for the long term investor, I think investors who are more active in markets could look to ride the market cycles for greater profits. I have found the Elliott wave principle quite useful in predicting these cycles. As anyone who has been in the stock markets long enough, knows fully well that markets follow cycles of boom and bust.

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com0tag:blogger.com,1999:blog-2812804062113061257.post-90495400204355940532008-06-26T17:39:00.002+05:302008-06-26T17:50:09.630+05:30

As you might have figured from my blog, I am basically a fundamental investor, though I reserve a small portion of my portfolio for trading (not day trading though, my typical investment period for a trade is about 30 days). My oservations on my trading experience are as follows.1. It does make the whole process more exciting.2. I use traditional charting methods like candlestick patterns, price

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com1tag:blogger.com,1999:blog-2812804062113061257.post-61418555597779194972008-06-23T14:16:00.003+05:302008-06-23T14:28:23.314+05:30

GARP (Growth At a Reasonable Price) investing is an offshoot of the growth investing principles propounded by Philip Fisher and T Rowe Price. It involves identifying rapidly growing companies that are available for low PE multiples. If an investor gets it right, this strategy could yield multi baggers in due course of time because of two factors. One, the growth of the company and its per share

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com5tag:blogger.com,1999:blog-2812804062113061257.post-82901954758365101242008-06-21T18:18:00.009+05:302008-06-23T14:23:54.711+05:30

I would like to highlight an interesting post on rediff where three different analysts employing different prediction methods predict their levels for the sensex in the coming year. The predictions were made on Jan 7 2008. They went something like this:1. Milind Karandikar - using Neowave theory - Sensex between 27000 to 39000 in the 1st half of 2008,2.Devangshu Datta - using technical analysis -

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com8tag:blogger.com,1999:blog-2812804062113061257.post-16531312204679903152008-06-21T17:36:00.001+05:302008-06-21T17:36:07.800+05:30

So, finally the dreaded inflation number has crossed double digits. Not barely crossed it, but has done so by a considerable margin. Stock markets have expectedly crashed and analysts are screaming "the sky is falling". So what do you as an investor do now? It actually depends upon your timeframe for investment and your reasons for investing in stocks. If your goals are long term in nature such

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com6tag:blogger.com,1999:blog-2812804062113061257.post-55483929947176447892008-06-18T13:14:00.005+05:302008-06-19T18:57:07.803+05:30

In 2003, just before the start of the current rally, suppose someone was to predict a future event with a guarantee that if the predicted event DOES NOT HAPPEN, whatever you lose by taking a call on the prediction will be made good. The prediction was to go thus " Within 5 years the price of crude oil will increase by 650%". Knowing this prediction, what would you do? I would have shorted the

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com2tag:blogger.com,1999:blog-2812804062113061257.post-70924816289381136212008-06-15T17:58:00.002+05:302008-06-15T18:18:28.208+05:30

It is an established fact that over the long run, equities as an asset class outperform all other alternative asset classes including real estate. A RBI report on Currency and Finance, 1997-98 revealed the following returns over a 20 year period compounded annually:Inflation    :     9.19 %Gold        :    7.62 %Bank FD'    :    9.19 %Co. FD'        : 14.47 %Equities        :

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com1tag:blogger.com,1999:blog-2812804062113061257.post-22032313589128470092008-06-13T15:49:00.001+05:302008-06-13T15:49:37.545+05:30

Through most of 2007, when Infosys fell from a high of Rs.2300 to a low of Rs.1300, many investors panicked, thinking that it was the end of an era of one of India' greatest companies or even the entire industry. True to form Infosys not only rebounded back to 1900 levels as on date, but has done so in style, underscoring yet again the fact that panicking is injurious to one' financial health.We

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com5tag:blogger.com,1999:blog-2812804062113061257.post-17997651287512003362008-06-11T14:54:00.001+05:302008-06-11T14:54:40.807+05:30

Pharma companies, once the darlings of the stock markets are badly beaten down, so much so, that it is almost as if the bull run of 2003-2007 did not happen as far as investors in stocks of pharma companies are concerned. But recent events seem to suggest that pharma stocks are about to make a comeback. Various pharma companies in India follow different business models as follows:CRAMS (Contract

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com9tag:blogger.com,1999:blog-2812804062113061257.post-32082392809948386022008-06-09T15:33:00.002+05:302008-06-09T16:06:54.674+05:30

A brief description of the elements of Elliot Wave Theory by Amit Sinha. This is one of my current topics of study. The article is well written in a language most investors can understand.Free wheeling: Elliot Wave Analysis and the Indian Markets

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com1tag:blogger.com,1999:blog-2812804062113061257.post-56566599398487935032008-06-09T14:43:00.003+05:302008-06-09T16:07:40.328+05:30

When the Sensex was at 21,000, how many experts on the business channels were advising investors to sell? I can remember only one, Gul Tekchandani. All the others were busy predicting index levels from 24,000 to 30,000 to come up. Remember the reasons they were quoting to make you buy? Insurance companies have X 1000 crores to invest. Mutual funds have mopped up so many thousand crores. All this

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com6tag:blogger.com,1999:blog-2812804062113061257.post-20966232249815902092008-06-07T20:00:00.002+05:302008-06-08T10:21:44.362+05:30

Never invest in tips and rumours.Look at the products which you use and like. The companies making these products could prove to be very good investments.Be on the lookout for solid businesses which are presently out of favour. Check the 52 week lows columns of newspapers. They make for good contrarian bets.If the market capitalisation of a company is near its net current assets, it could be a

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com5tag:blogger.com,1999:blog-2812804062113061257.post-63421210791893010672008-06-07T11:23:00.004+05:302008-06-07T11:39:20.653+05:30

An interesting interview with Deepak Shenoy co-founder of MONEYOGA, where he discusses his motivation, investment philosophy and other views. A must read for all bloggers and investors.

Mahendra Naikhttp://www.blogger.com/profile/01662641723413347693noreply@blogger.com4tag:blogger.com,1999:blog-2812804062113061257.post-34445850341370339712008-06-05T11:43:00.002+05:302008-06-08T10:21:02.989+05:30

The quandary facing an investor today is to decide what theory should he use in his process of stock selection. If he is taking professional advice, who should he turn to, fundamentalists or chartists?Have you ever had the experience of completely researching a stock, looking into its ratios and the market potential of its products and then investing into it, only to find that after you have

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Technical Analysis is the science of predicting the movement of stock prices using chart patterns. These charts plot the stock prices against time. When a particular pattern is formed on the stock charts, it gives an indication to the technical analyst as to the direction in which the stock price is headed.The rationale behind the science of forecasting stock price movements using technical

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Investing based on fundamental analysis of stocks is considered by many to be the best form for the long term investor. There are two broad approaches in which fundamental analysis may be carried out.Based on the present and future prospectsThis approach consists of valuing a business based on various factors related to the products of a company, its markets, its competitors, its efficiency and

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The single biggest factor influencing the global economy today are surging oil prices. Oil has risen from $ 20/bbl in 2002 to $ 130/bbl now. However this may not affect markets negatively and may in fact even be a bullish signal for stock markets going ahead.The main reason touted for rising oil prices is the increasing demand for the commodity from growing economies. Therefore the very fact that

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Do you remember the stock markets in 2002? The whole world was recovering from the aftermath of the September 2001 attacks. Amidst all the gloom and doom, everyone and his uncle were advising you to sell stocks and get into good old fixed deposits. In fact people were talking as if markets would never rise again and any fresh investments made would fall even further. Further? Think about it now.

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Investors who prefer stability in their portfolios and are not comfortable with stock market volatility can look at dividend yield stocks as an alternative to debt based instruments. Suppose a stock with a face value of Rs.10 is quoting at Rs.100 and giving a dividend of 50% currently i.e. Rs.5 per share of face value Rs.10, then its dividend yield is 5 %. An investor in this stock receives Rs.5

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Market Capitalisation (M Cap) of a company is defined as “ the number of outstanding shares multiplied by the market price of each share”. For instance a company having an issued capital consisting of 1,00,000 shares with each share valued at Rs.100 will have a M Cap of Rs.1 Crore. M Cap of a company changes every day with the change in its market price.Companies in India are classified into

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When markets are down and everyone from television analysts to the man on the street are painting a doomsday scenario, it makes sense to step back and take a look at the larger picture.Since its inception in 1979 has moved from a base of 100 to around 17,000 at present. The compounded annual growth rate works out to 19% p.a. It has been a roller coaster ride, as anyone who has been in the markets

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Conventional logic has it that as people approach retirement, their asset allocation should move away from equity and into debt. For instance most financial advisors recommend that a portfolio of 70 % equity and 30 % debt should be rebalanced towards 40 % equity and 60 % debt as retirement approaches.Take the case of a retired person with Rs.3000000 in savings and having a monthly expenditure of

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What would you say if I told you about a company which is operating in two of the fastest growing sectors in India viz. Power and Oil & Gas, has seen sales grow 200 times in 5 years and profits grow 1400 times in that period. To top it its products enjoy patent protection and competitors if any are only in the unorganized sector.ICSA (India) Ltd is one such company, having several patented

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In the uncertain world of financial markets, gold looks to be an interesting hedging option which an investor can use to protect his portfolio from the wild swings in stock and bond prices. Some arguments are given below to make an investor look at gold with a view to diversifying and allocating a part of his assets to the precious commodity.The basic argument for a higher price of gold hinges

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