On the one hand, stop-loss orders can still serve a purpose. For example, if bad news for a company gets released during market hours and the stock goes into free-fall, a stop-loss could get an investor, still unaware of the news, out of the stock just minutes later.
On the other hand, value investors tend to understand what they are buying (lowering the risk of an unexpected impairment), prefer companies with low debt to capital levels (lowering the risk that a company will have some sort of negative credit event), and prefer to take advantage of volatility (rather than fall victim to momentum trading). As such, they are less likely to benefit from the protections offered by a stop-loss.
So while the benefits to stop-loss orders may not be as large for value investors, they still suffer from the negative effects of stop losses: when the market panics unjustifiably, stop loss orders kick in and investors are exited from their positions at prices far inferior to what they may have been willing to sell for!
Consider what happened just a couple of years ago to the parent company of United Airlines (NASDAQ: UAUA). Panic swept the market after a false rumour of bankruptcy spread throughout, causing the stock to drop 99.92% (from $12 to one penny!). Following news that the rumour was false, the stock returned near its original level. Those with stop-losses got exited at terrible prices, as the stock dropped like a rock. Even if an investor had a stop loss at $10, it would have been filled at a much lower price, since there were no buyers at $10 during this panic.
While we've previously discussed the idea that airlines do not make for very good value investments, the example depicted above can happen to any company when a market panic occurs, even if there has been no change in a company's fundamentals.
Before deciding whether or not to use stop-losses, value investors should ensure they understand both the (possibly reduced) benefits as well as the drawbacks.
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on September 03, 2010 10:55 AM · permalink
<p><span>Strong economic performance in developing countries will not only benefit the 5.6 billion people who reside there, but will also impact the likelihood of a double-dip recession in advanced countries.</p> <p>As GDP growth in advanced countries slows sharply, emerging economies are set to help sustain the global recovery. Though growth in emerging markets has moderated from torrid post-crisis rates, it remains high. In addition, it has grown more reliant on domestic demand, and is broadening across sectors. This high rate of growth can help mitigate a sharp slowdown of domestic demand in advanced countries, but cannot compensate fully for it.</p></span>
Posted by Carnegie Endowment on September 03, 2010 05:05 AM · permalink
Posted by Deepak Singh on September 03, 2010 02:04 AM · permalink
<p>A bit of a deviation from our normal posts…but with a Robert Cialdini flair…</p>
<p><strong>Introduction (Via Thomas Morton@ Vice)</strong></p>
<blockquote><p><em>Vice</em> made me join three cults for this issue: Adidam, the Moonies, and Aleph. Since Adidam tops the list of “controversial groups” at cult watchdog Rick Ross’s website, I figured it’d be the best place to start. Also, their whole deal is worshiping a guru from Long Island who now lives on Fiji and looks like a cross between Yoda and a man-frog. This, cultwise, is about as good a vibe as it gets.</p>
<p style="text-align: center;"><a href="http://instapaperstories.tumblr.com/post/983262827/cults"><strong>Click Here To Read: Lessons On Group Think: How I Joined 3 Cults Simultaneously</strong></a></p>
</blockquote>
<div class="relatedposts"><strong>Other Related Posts From Simoleon Sense:</strong><ol><li><a href='http://www.simoleonsense.com/group-think-or-group-act-crowd-noise-influences-referee-decisions-contributes-to-the-home-advantage/' rel='bookmark' title='Permanent Link: Group Think or Group Act: Crowd noise influences referee decisions & contributes to the home advantage'>Group Think or Group Act: Crowd noise influences referee decisions & contributes to the home advantage</a></li>
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<li><a href='http://www.simoleonsense.com/the-global-financial-crisis-lessons-learned-and-challenges-for-developing-countries/' rel='bookmark' title='Permanent Link: The Global Financial Crisis: Lessons Learned and Challenges for Developing Countries'>The Global Financial Crisis: Lessons Learned and Challenges for Developing Countries</a></li>
<li><a href='http://www.simoleonsense.com/stabilisation-and-growth-under-dictatorships-lessons-from-franco%e2%80%99s-spain/' rel='bookmark' title='Permanent Link: Stabilisation and growth under dictatorships: Lessons from Franco’s Spain'>Stabilisation and growth under dictatorships: Lessons from Franco’s Spain</a></li>
</ol></p>
Posted by Miguel on September 03, 2010 01:08 AM · permalink
<p>Just in from my friend Eric @Wired.</p>
<p><strong>Excerpts (via Eric Barker @ Wired)</strong></p>
<blockquote><p><strong>What can you really tell about someone just by looking at their face? What if you knew that you’d have a better-than-chance shot of knowing whether they’ll live a long life, get dementia, are extroverted, prone to cheating or likely to kill you</strong></p>
<p>But what does a face tell us about someone’s personality? There are a number of characteristics where science suggests we should trust our instincts. A study at the University of Liverpool concludes: “Judges perform better than chance in guessing others’ personality, particularly for the traits conscientiousness and extraversion [sic]”.</p>
<p>You should also trust yourself when judging whom not to trust, as a paper from the Centre for Advanced Study in the Behavioural Sciences concludes: “The human mind might be capable of picking up on subtle visual cues that cheaters’ faces give off.”</p>
<p style="text-align: center;"><a href="http://www.wired.co.uk/wired-magazine/archive/2010/10/start/lab-notes-face-time"><strong>Click Here To Read: Eric Barker: How Scientists can read your face like a data-filled bookface </strong></a></p>
</blockquote>
<div class="relatedposts"><strong>Other Related Posts From Simoleon Sense:</strong><ol><li><a href='http://www.simoleonsense.com/new-book-the-flaw-of-averages-why-we-underestimate-risk-in-the-face-of-uncertainty/' rel='bookmark' title='Permanent Link: New Book: The Flaw of Averages Why We Underestimate Risk in the Face of Uncertainty'>New Book: The Flaw of Averages Why We Underestimate Risk in the Face of Uncertainty</a></li>
<li><a href='http://www.simoleonsense.com/strong-character-face-to-face-with-daniel-s-och/' rel='bookmark' title='Permanent Link: Strong character: Face to face with Daniel S. Och'>Strong character: Face to face with Daniel S. Och</a></li>
<li><a href='http://www.simoleonsense.com/breaking-things-down-to-particles-blinds-scientists-to-big-picture/' rel='bookmark' title='Permanent Link: Breaking Things Down to Particles Blinds Scientists to Big Picture'>Breaking Things Down to Particles Blinds Scientists to Big Picture</a></li>
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</ol></p>
Posted by Miguel on September 03, 2010 01:02 AM · permalink
<p><strong>Introduction & Excerpts (Via Karl Case)</strong></p>
<blockquote><p>If you read the coverage of the latest figures on the sales of existing homes from the National Association of Realtors, you may well have come to the conclusion that the American dream is dead. It is indeed worrisome that sales in July were down 25 percent from a year ago.</p>
<p>But a little perspective is in order.</p>
<p>First, the bad news. What has happened in the housing markets since 2005 is a catastrophe that may take years for our economy to recover from.</p>
<p>Anyone who believed that home prices never fall has learned a tough lesson. The Case-Shiller price indexes released on Tuesday suggest that since their national peak in 2006, home prices have fallen by 29 percent. Some areas of course look better than others. Las Vegas is down 57 percent from its peak and Phoenix is down 51 percent. On the other hand, Boston is down just 13.5 percent and Dallas only 4.2 percent.</p>
<p>The effect on household wealth has been huge. Data maintained by the Federal Reserve show that the value of residential real estate directly held by households fell to $16.5 trillion in the first quarter of 2010, down from $22.9 trillion in 2006. It has yet to be determined who will end up bearing those losses. The decline in wealth has substantially reduced consumption, stifling the economy.</p>
<p>….</p></blockquote>
<blockquote><p>Do the math. Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833. In addition, the down payment would be $42,600 instead of $60,000.</p>
<p style="text-align: center;"><strong><a href="http://www.nytimes.com/2010/09/02/opinion/02case.html?_r=1">Click Here To Read: From The Founder of The Case Shiller Index: A Dream House After All</a></strong></p>
</blockquote>
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<li><a href='http://www.simoleonsense.com/house-prices-and-fundamentals-355-years-of-evidence/' rel='bookmark' title='Permanent Link: House Prices and Fundamentals: 355 Years of Evidence'>House Prices and Fundamentals: 355 Years of Evidence</a></li>
</ol></p>
Posted by Miguel on September 03, 2010 12:55 AM · permalink
<p><strong>Synopsis (via Voxeu)</strong></p>
<blockquote><p>Are declarations of victory against the global crisis premature? This column argues that “graduation” – the emergence from recurrent crisis bouts – is a long and painful process which neither developed nor developing countries look close to completing. Two centuries of evidence suggests that most countries need 50 years before the chances of further crises subside.</p></blockquote>
<p><strong>Excerpted Conclusion (Via Voxeu)</strong></p>
<blockquote><p>Because financial crises tend to occur only at very long periodicities, it is easy to forget that they happen at all. Across a large data set, we find that two decades without a crisis is an important market to signal the “first step” toward graduation, but also that there are still relatively high odds of relapsing into crisis even after several decades of tranquillity.</p>
<p style="text-align: center;"><a href="http://www.voxeu.org/index.php?q=node/5450"><strong>Click Here To Read: Carmen M. Reinhart & Kenneth Rogoff: Do countries “graduate” from crises? Some historical perspective </strong></a></p>
</blockquote>
<div class="relatedposts"><strong>Other Related Posts From Simoleon Sense:</strong><ol><li><a href='http://www.simoleonsense.com/the-aftermath-of-financial-crises-ken-rogoff-carmen-reinhart/' rel='bookmark' title='Permanent Link: The Aftermath of Financial Crises: Ken Rogoff & Carmen Reinhart'>The Aftermath of Financial Crises: Ken Rogoff & Carmen Reinhart</a></li>
<li><a href='http://www.simoleonsense.com/carmen-m-reinhart-kenneth-rogoffs-latest-debt-and-growth-revisited/' rel='bookmark' title='Permanent Link: Carmen M. Reinhart & Kenneth Rogoff’s Latest: Debt and growth revisited'>Carmen M. Reinhart & Kenneth Rogoff’s Latest: Debt and growth revisited</a></li>
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</ol></p>
Posted by Miguel on September 03, 2010 12:49 AM · permalink
<p><strong>Abstract (Via Howard Margolis)</strong></p>
<blockquote><p>A controversy among economists and others interested in the limits of rational choice analysis, still running after an onset at least two decades ago, concerns whether intelligent people, and especially experts, can be subject to cognitive illusions. This note provides a striking illustration supporting that disconcerting conjecture. It analyzes the apparent inability of professional economists to give a better than chance response to a very elementary question about consumer surplus.</p></blockquote>
<p><strong>Fascinating Conclusion (via Howard Margolis)</strong></p>
<blockquote><p>Sometimes, as here, we don’t see something that is important for the question at hand because absent cues familiar enough to be effective, cognition works to inhibit attention. Both sorts of error can arise on purely private matters outside the range of normal experience with sufficiently prompt feedback. But cognitive errors can occur more easily and with more profound consequences in the context of social choices, which are so often well beyond the normal experience of an individual. Then the aggregate response of many individuals can have consequences that may be both large and perverse. Is a cognitive illusion affecting experts in their domain of expertise unprecedented? Not at all. As I’ve shown elsewhere (Margolis 1998), for 400 years the very best experts in early astronomy (from Kepler through Thomas Kuhn and beyond) uniformly misjudged a very simple technical issue due to an easily corrected cognitive illusion.</p>
<p style="text-align: center;"><a href="http://harrisschool.uchicago.edu/about/publications/working-papers/pdf/wp_06_02.pdf"><strong>Click Here To Read: Are Economists Human?</strong></a></p>
</blockquote>
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</ol></p>
Posted by Miguel on September 03, 2010 12:45 AM · permalink
<p>Very interesting…think social proof.</p>
<blockquote><p><strong>Abstract (Keizer, Lindenberg, Steg)</strong></p>
<p><strong>Imagine that the neighborhood you are living in is covered with graffiti, litter, and unreturned shopping carts. Would this reality cause you to litter more, trespass, or even steal? A thesis known as the broken windows theory suggests that signs of disorderly and petty criminal behavior trigger more disorderly and petty criminal behavior, thus causing the behavior to spread. </strong>This may cause neighborhoods to decay and the quality of life of its inhabitants to deteriorate. For a city government, this may be a vital policy issue. But does disorder really spread in neighborhoods? So far there has not been strong empirical support, and it is not clear what constitutes disorder and what may make it spread. We generated hypotheses about the spread of disorder and tested them in six field experiments. <strong>We found that, when people observe that others violated a certain social norm or legitimate rule, they are more likely to violate other norms or rules, which causes disorder to spread.</strong></p>
<p style="text-align: center;"><a href="http://www.influenceatwork.com/Media/BrokenWindowsArticle.pdf"><strong>Click Here To Read: Broken Window Theory: The Spreading of Disorder</strong></a></p>
</blockquote>
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</ol></p>
Posted by Miguel on September 03, 2010 12:41 AM · permalink
<p><strong>Introduction (via Peter Miller @ Babusineslife)</strong></p>
<blockquote><p>Business leaders are often praised for making bold, intuitive decisions. But recent research has shown that, when faced with a difficult choice, an ant colony makes more rational choices than people do. Peter Miller discovers what we can learn from swarms</p></blockquote>
<p><strong>Excerpts (via Peter Miller @ Babusiness life)</strong></p>
<blockquote><p>It has to do with the process they use to make decisions, Pratt says. Rather than relying upon individual ants to examine all three options, compare their relative merit, and then select the best one, as a group of people might do, the colonies divide up the decision-making duties, sending scouts to only one site each. If each scout judges her site to be acceptable, she returns to the colony and recruits another scout to visit the site. (I say ‘she’ because all ant workers are females). If the second scout approves of the site, she joins the first in recruiting two more ants, then four more, then eight more, in an exponential build-up of support.</p>
<p>Meanwhile, other ants are evaluating the remaining sites in a kind of race to see who can attract the most scouts to their site the fastest. The winning site becomes the colony’s choice.</p>
<p>By spreading out the decision-making among many scouts, in other words, “They’re actually avoiding the irrational behaviour that they would otherwise have made if they’d had to do the whole problem as individual ants,” Pratt says.</p>
<p>When faced with strategic decisions such as acquisitions, investments or mergers, Leedle and his managers have adopted a novel process. “We wanted to get away from both the authoritative, top-down model and the loudest-or-most-persistent-voice model,” Leedle says. “So we asked ourselves, how do we let a lot of really smart people into our process of decision making? How do we pull in the ‘power of many’ versus the ‘brilliance of one’? And then how do we scale and cascade that through our organisation?”</p>
<p>Their solution was to split the decision-making duties into four roles: the decider, the recommender, the input gatherer and the vetoer. The decider ‘owns’ the decision. The recommender formulates the plan. The input gatherer organises relevant data. And the vetoer reviews the call. By establishing separate roles, Leedle says, he and his managers have better prepared themselves to address key questions, “such as, what are the risks with a decision? How do you size the risk? What are the economics of the decision? Who will be impacted by the decision, either directly or indirectly?” All those factors come into play.</p>
<p style="text-align: center;"><a href="http://www.babusinesslife.com/Tools/Features/Smart-swarm.html"><strong>Click Here To Read: What we can learn from swarms</strong></a></p>
</blockquote>
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Posted by Miguel on September 03, 2010 12:37 AM · permalink
<p><strong>Introduction (Via Fora.Tv)</strong></p>
<blockquote><p>An Afternoon of Conversation engages big thinkers and doers in serious discussion about their work and the future. This conversation features Bill Gates and Walter Isaacson.</p></blockquote>
<p><strong><a href="http://fora.tv/2010/07/08/A_Conversation_with_Bill_Gates_at_Aspen_Ideas_Festival">Watch The Video Below Or Click Here For Our Subscribers</a></strong><br />
<object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="400" height="264" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="flashvars" value="webhost=fora.tv&clipid=12415&cliptype=clip" /><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /><param name="src" value="http://fora.tv/embedded_player" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="400" height="264" src="http://fora.tv/embedded_player" allowfullscreen="true" allowscriptaccess="always" flashvars="webhost=fora.tv&clipid=12415&cliptype=clip"></embed></object></p>
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Posted by Miguel on September 03, 2010 12:34 AM · permalink
<p>Think capital markets, blackswans, booms and busts…</p>
<p><strong>Introduction & Excerpt (Via Jess McNally @ Wired)</strong></p>
<div>
<div>
<blockquote><p>Unlike infectious diseases and news, behavior change spreads faster through online networks that have many close connections instead of many distant ties. Redundancy is key, as people are more likely to engage in a behavior if they see many others doing it.</p>
<p>“There has been a lot of theory about the difference between information and behavior spreading,” said economic sociologist Damon Centola of the Massachusetts Institute of Technology, author of the study published Sept. 3 in <em>Science</em>. “We’ve assumed that they are the same, but you can imagine that behavior is not really like that, that you need to be convinced.”</p>
<p>The research has important implications for people designing online communities intended to change or maintain a behavior, like weight watchers or online health communities, Centola said.</p>
<p>…</p>
<div>Centola also found the more friends people had that also signed up, the more likely they were to return to the forum to participate.</div>
<div></div>
<div style="text-align: center;"><a href="http://www.wired.com/wiredscience/2010/09/network-behavior-spread/"><strong>Click Here To Read: Clustered Networks Spread Behavior Change Faster!</strong></a></div>
</blockquote>
</div>
</div>
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Posted by Miguel on September 03, 2010 12:32 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/tJedZ1Tq65ayiwb8ZU5_jvAbhsA/0/da"><img src="http://feedads.g.doubleclick.net/~a/tJedZ1Tq65ayiwb8ZU5_jvAbhsA/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/tJedZ1Tq65ayiwb8ZU5_jvAbhsA/1/da"><img src="http://feedads.g.doubleclick.net/~a/tJedZ1Tq65ayiwb8ZU5_jvAbhsA/1/di" border="0" ismap="true"></img></a></p><table border="0" cellspacing="4" cellpadding="2">
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Mutual Fund</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Kotak Mahindra Mutual Fund </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Type</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Close Ended </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Category</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Income </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Launch Date</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> 01-Sep-2010 </td>
</tr>
</table>
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<p><a href="http://www.amfiindia.com/nfo.aspx?intId=4780#123">Kotak FMP 370 Days Series 7</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by kalyan on September 03, 2010 12:23 AM · permalink
<p>Yesterday, we had written about the controversy over GDP numbers. What has happened since is even more bizarre. Now the government has issue new numbers. All within some 24 hours. The government has revised consumption numbers quite dramatically, claiming the earlier low numbers were simply a result of a calculation error.</p> <p>The size of revision is dramatic. The consumption size GDP growth estimate is now 10%, compared to 3.7% earlier. Pvt consumption growth is now 3.7% compared to 0.3%, while the government expenditure growth is now 14.2% compared to -0.6% earlier. </p>
Posted by Wisdomsmith on September 02, 2010 03:35 PM · permalink
<p>I tend to agree with this notion…(enjoy!)</p>
<p><strong>Introduction (via Ted)</strong></p>
<p>After hitting on a brilliant new life plan, our first instinct is to tell someone, but <strong>Derek Sivers says it’s better to keep goals secret. He presents research stretching as far back as the 1920s to show why people who talk about their ambitions may be less likely to achieve them.</strong></p>
<p><a href="http://feedproxy.google.com/~r/TEDTalks_video/~3/HIh4boym3I8/947"><strong>Watch The Video Below or Click Here For Our Subscribers</strong></a><br />
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<div class="relatedposts"><strong>Other Related Posts From Simoleon Sense:</strong><ol><li><a href='http://www.simoleonsense.com/video-ted-talk-how-to-expose-the-corrupt-a-talk-by-a-director-of-the-world-bank/' rel='bookmark' title='Permanent Link: Video: Ted Talk – How to expose the corrupt: A talk by a director of the world bank'>Video: Ted Talk – How to expose the corrupt: A talk by a director of the world bank</a></li>
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Posted by Miguel on September 02, 2010 03:25 PM · permalink
<span style="font-weight:bold;">Folks it feels good to let you know I got recently interviewed by the magazine Business today as a penny stock winner.I received the issue in my hand today itself,its their with my picture in the page 134.Book a copy yourself.Cheers and happy investing.<br /><br />Btw:Another interview by a renowned magazine is in the offing too.<br /><br /><br />Regards,<br />ARUN<br />9804589299<br />I can be reached at:arunanalyst@rediffmail.com</span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on September 02, 2010 02:34 PM · permalink
<p>The Direct Tax Code has no DDT for debt or non-equity funds. Currently, for liquid funds, dividends are taxed at 25% plus the surcharge and cess, which adds up to nearly 28.5%. (Which I argue is <a title="Liquid Funds are still better than Fixed Deposits" href="http://blog.investraction.com/2007/04/liquid-funds-are-better-than-fixed.html" target="_blank">still better than a fixed deposit</a>)</p> <p>So what’s the catch? Dividends will be taxed for non-equity funds, as if they are your income. Plus, there’s a dividend “withholding tax” – a sort of Tax Deducted at Source – 10% for residents (for >10K dividend), 20% for NRIs and companies. </p> <p>That makes dividend income equivalent to a fixed deposit, where you get paid a certain amount of interest every year and the bank holds back 10% as TDS. It also makes life more cumbersome – you now need TDS confirmations for each non-equity mutual fund (dividend option) that you hold. (Luckily, now the system is automated, so your TDS credit is visible online. <a title="View Tax Credit Online at NSDL" href="https://onlineservices.tin.nsdl.com/TIN/JSP/security/PanLogin.jsp" target="_blank">Register here</a>.)</p> <p>Impact: <strong>Growth Plans will make more sense to the investor</strong>. Even if you want regular income, just sell regularly, and that gets qualified as either a short term gain or a long term gain depending on how long you’ve held. Short term gains on non equity funds get taxed at your marginal rate too, but have no withholding tax, which is better for cash flow. Long term gains give you indexation benefits for inflation, which is great for debt funds. For a return of 8%, if 6% is inflation, you will pay tax on 2% – again, much better than FDs where you pay tax regardless of inflation. </p> <p>Example: Take a fund or FD that makes 1% a month, and you put 50 lakhs in it. Assume you’re in the 30% tax bracket.</p> <table style="border-bottom: 1px solid; border-left: 1px solid; border-top: 1px solid; border-right: 1px solid" border="1" cellspacing="0" cellpadding="5" width="592"><tbody> <tr> <td valign="top" width="115"><strong>Investment</strong></td> <td valign="top" width="71" align="right"><strong>Interest</strong></td> <td valign="top" width="89" align="right"><strong>Withheld</strong></td> <td valign="top" width="121" align="right"><strong>What you get</strong></td> <td valign="top" width="88" align="right"> <p align="right"><strong>Tax Pd later</strong></p> </td> <td valign="top" width="96"> <p align="right"><strong>Net Return</strong></p> </td> </tr> <tr> <td valign="top" width="115">Fixed Deposit</td> <td valign="top" width="71" align="right">50,000</td> <td valign="top" width="89" align="right">5,000</td> <td valign="top" width="121" align="right">45,000</td> <td valign="top" width="88" align="right">10,000</td> <td valign="top" width="96" align="right">35,000</td> </tr> <tr> <td valign="top" width="115">Fund (Dividend)</td> <td valign="top" width="71" align="right">50,000</td> <td valign="top" width="89" align="right">5,000</td> <td valign="top" width="121" align="right">45,000</td> <td valign="top" width="88" align="right">10,000</td> <td valign="top" width="96" align="right">35,000</td> </tr> <tr> <td valign="top" width="115">Fund (Growth)</td> <td valign="top" width="72" align="right">50,000</td> <td valign="top" width="89" align="right">0</td> <td valign="top" width="123" align="right">50,000</td> <td valign="top" width="88" align="right">150</td> <td valign="top" width="96" align="right">49,850</td> </tr> </tbody></table> <p></p> <p>This is for the first month, since your gain is very little. If you buy 500,000 units at Rs. 10 each, the NAV would have gone up to Rs. 10.1, you will sell 4950 units to get your Rs. 50,000 – that has 49,500 of principal and Rs. 500 of capital gain. Tax at marginal rate = Rs. 150.</p> <p>As the gains increase, the tax amount goes up, steadily (since now more of the return is gain). But after about 24 months – the longest you need to hold for going into the “long term” bracket – you get the first 6% free of tax due to indexation, and are only taxed on what’s above that (again, at your marginal rate). In the 25th month, the same 50,000 will consist of 10,600 gain and remaining as principal – yet, the long term gain concept keeps that tax at only 2,500. That is far cheaper than the mutual fund (dividend) or FD, where the total tax is Rs. 15,000 every month.</p> <p>That means: <strong>Monthly Income Funds need to be relooked.</strong> So does every non-equity fund where dividend was used as an option. With the 10-20% equity kicker in them, they make sense for a reasonable income plan, but the monthly income as dividends will be taxed at a high rate. You might want to use the growth plans instead. </p> <p>Downside: You need to have the discipline to sell every month, and you’ll need some work in the year to calculate your tax liability. The difference, though, is substantial, even at the 10% marginal tax bracket.</p> <div class="blogger-post-footer"><p style="border: 1px solid #C888C8">
This post is written by <a href="http://blog.investraction.com">Deepak Shenoy</a>,
at <a href="http://blog.investraction.com">Capital Mind</a>.
</p><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/18601284-1371355670064448185?l=blog.investraction.com' alt='' /></div>
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Posted by Deepak Shenoy (noreply@blogger.com) on September 02, 2010 01:27 PM · permalink
<p>Although in the positive, the Indian indices moved closer to the dotted line in the final hours and settled marginally higher today. Profit booking in index heavyweights led the indices to shed most of the early gains. While the BSE Sensex closed higher by around 32 points (up 0.2%), the NSE Nifty gained around 14 points (up 0.3%). The BSE Midcap and the BSE Smallcap indices managed to do well to notch gains of 0.8% and 1.1% respectively. Profit booking was largely seen in software, realty and oil & gas stocks. <br> <br> As regards global markets, barring Indonesia most Asian indices closed in the positive today. However, European markets have also opened on a cautious note. The rupee was trading at Rs 46.78 to the dollar at the time of writing. </p>
Posted by Equitymaster on September 02, 2010 11:18 AM · permalink
Consider Access Plans (APNC), a marketer of various consumer health and insurance products. The company has a book value of just $13 million, but it generates about $1 million in after-tax income per quarter.
As a result of the company's stellar returns, it trades at a market cap of $18 million. As such, if the earnings fall, investors have no downside protection in the form of assets, unlike the case in other companies we have discussed. If competition, attracted by these returns, is able to erode margins, the company's stock price will fall towards its book value.
At the same time, however, if the company is able to continue to generate such returns, shareholder gains will be enormous. Companies with sustainable competitive advantages trading at discounts are the ones off of which fortunes are made, as Warren Buffett and Philip Fisher can attest.
Therefore, the question comes down to whether the stellar returns on capital can be sustained. To answer this question with any reasonable level of confidence, the investor must understand the business. He must be able to determine the key success factors in selling these products, and what advantages Access Plans has which will allow them to continue to generate excess returns in the future. Without this understanding of the industry, the investor is just guessing, and is therefore at risk of violating the first two rules of value investing!
When a company's value based on its earnings is far higher than its book value, investors will end up paying too much for a company if they wrongly assume the strong returns on capital will continue to persist. Competition will reduce earnings to a normal level in time, unless the company has a competitive advantage. But only by understanding the company's business thoroughly can the investor determine if a competitive advantage exists.
Disclosure: None
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on September 02, 2010 10:27 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/MWvgeFXGN_BT_GjqoCJ4ZrcxN7o/0/da"><img src="http://feedads.g.doubleclick.net/~a/MWvgeFXGN_BT_GjqoCJ4ZrcxN7o/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/MWvgeFXGN_BT_GjqoCJ4ZrcxN7o/1/da"><img src="http://feedads.g.doubleclick.net/~a/MWvgeFXGN_BT_GjqoCJ4ZrcxN7o/1/di" border="0" ismap="true"></img></a></p><p> Department of Telecommunications (DoT) finally start5ed producin gresult to the 67000 crore revenue they got through selling 3g Spectrum , On wednesday The Department of Telecommunications (DoT) started allocating 3G spectrum to telecom operators, giving relief to all the seven companies that emerged successful in the intense bidding process that took place in May this year.<br />
<strong>Some changes in Licensing .</strong></p>
<blockquote><p> > Operators were authorised to use the spectrum for 20 years from September 1, 2010, even if their telecom licences expired before that period.<br />
> Each licensee will also have to pay the annual licence fee as share of adjusted gross revenue (AGR) from the services using 3G spectrum.<br />
> In the case of two companies merging, only one slot of spectrum can be retained, according to the amended rules.<br />
> The operators will also have to pay the upward revised spectrum usage charges ranging between 3 per cent and 8 per cent depending on the quantum of spectrum held by them.</p></blockquote>
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<p><a href="http://www.rupya.com/2010/09/02/3g-spectrum-allocated-to-seven-telecom-company/15610">3G Spectrum Allocated to Seven Telecom Company</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by Ganapathy on September 02, 2010 04:44 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/T9pXEoHrfPuVJNjuVKUmxmwBq9Q/0/da"><img src="http://feedads.g.doubleclick.net/~a/T9pXEoHrfPuVJNjuVKUmxmwBq9Q/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/T9pXEoHrfPuVJNjuVKUmxmwBq9Q/1/da"><img src="http://feedads.g.doubleclick.net/~a/T9pXEoHrfPuVJNjuVKUmxmwBq9Q/1/di" border="0" ismap="true"></img></a></p><p>Record date for Precision Wires India interim dividend announced on 10 September 2010<br />
Record date for Bajaj Auto bonus issue announced on 10 September 2010 for bonus of 1:1</p>
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<p><a href="http://www.rupya.com/2010/09/02/record-date-for-precision-wires-india-and-bajaj-auto/15608">Record Date for Precision Wires India and Bajaj Auto</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by Lalitha on September 02, 2010 04:39 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/kgshDLMsb9W_uBcBdvSeqZ2Dcng/0/da"><img src="http://feedads.g.doubleclick.net/~a/kgshDLMsb9W_uBcBdvSeqZ2Dcng/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/kgshDLMsb9W_uBcBdvSeqZ2Dcng/1/da"><img src="http://feedads.g.doubleclick.net/~a/kgshDLMsb9W_uBcBdvSeqZ2Dcng/1/di" border="0" ismap="true"></img></a></p><p>Bajaj Electrical Ltd has informed the market that it has secured new prestigious orders worth over Rs. 408 crores involving the construction of 312 KMs of 400 KV double-circuit transmission lines, Village Electrification (BPL), under RGGVY (Rajiv Gandhi Gramin Vidhyutikaran Yojna) and High mast & Street Lightening segments. So with this new order , the order book of the Company as reached past Rs. 1150 crores.</p>
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<p><a href="http://www.rupya.com/2010/09/02/bajaj-electricals-bags-order-worth-408-crores/15606">Bajaj Electricals bags order worth 408 crores</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by abhisheak on September 02, 2010 04:31 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/AssajP1GcEV4PTSW-9-9mo_GD_g/0/da"><img src="http://feedads.g.doubleclick.net/~a/AssajP1GcEV4PTSW-9-9mo_GD_g/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/AssajP1GcEV4PTSW-9-9mo_GD_g/1/da"><img src="http://feedads.g.doubleclick.net/~a/AssajP1GcEV4PTSW-9-9mo_GD_g/1/di" border="0" ismap="true"></img></a></p><p>Auto Sales number for the month of August 2010 has come out today and all the company have hit the all time new high yet another time previous month .<br />
<strong>Maruti Suzuki</strong></p>
<blockquote><p>Maruti Suzuki India rose 1.29% as total vehicle sales grew 23.6% to 1.04 lakh in August 2010 over August 2009. This is the highest ever monthly sales recorded by the company. </p></blockquote>
<p><strong>TVS Motor Company</strong></p>
<blockquote><p>TVS Motor Company rose 2.78% as total vehicle sales in August rose 34% to 170,735 units in August 2010 over August 2009. Total two wheeler sales grew 32% in August with sales of 1.67 lakh units in August 2010 over August 2009. Three-wheeler sales surged to 3,626 units, from 1,033 units in August 2009. </p></blockquote>
<p><strong>Bajaj Auto</strong></p>
<blockquote><p>Bajaj Auto is likely to announce its numbers tomorrow but sources say that the company is likely to post bike sales of 2.9 lakh units in August, again, the highest ever monthly sales. The sale of Pulsar is learnt to be at 83000 units for August while Discover sales are at 1.27 lakh units.</p></blockquote>
<p><strong>Hero Honda</strong></p>
<blockquote><p>Hero Honda reported a rise of 2.3% in its sales at 4.24 lakh units in August 2010 over August 2009.</p></blockquote>
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<p><a href="http://www.rupya.com/2010/09/02/auto-sales-hit-all-time-high-for-august-2010/15600">Auto Sales hit all time high for August 2010</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by Lalitha on September 02, 2010 04:14 AM · permalink
<span style="font-weight:bold;">Scripscan:Deccan Gold Mines Ltd<br />Cmp:21<br />Code:512068<br />Target:25.50<br />Return:22%<br />Duration:2-3 months.<br /><br />Story:Why I like it at present juncture:-<br /><br />1)Deccan gold mine is the only listed company engaged in the gold exploration sector.Deccan gold has got close to about 10,000 square kilometer of prospective blocks in different states.<br /><br />2)India produces just 3 tonne of gold per annum as compared to 300 tonne, produced by Australia.Gold mining business is just like the oil exploration business, where there is a high degree of uncertainty involved. Nobody knows whether the amount that is being spent for the exploration process will really yield any results or will have to be written off.But these company is something which can yield windfalls of gains in the long run.<br /><br />3)Even if deccan gold gets no mines people would always look at it to be the proxy play.The management has guided a revenue figure of around 300-400crs for 11-12.<br /><br />4)As the industry has got a very high operating margin even if deccan gold delivers half of that revenue it would attract tremendous buying attention from all sorts of investors fraternity.<br /><br />5)They have recently hinted of finding some gold which is yet to be reflected in the stock price.Its a good tradeable counter too which often falls to 21-22 to inch up to levels of 25-28.Downside to me looks very limited and I put a short term buy on it with a target price of 25.50 to be achieved within the next 2-3 months.</span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on September 02, 2010 03:37 AM · permalink
Speaking of profound misunderstandings, this: BitDefender created a "test profile" of a nonexistent, 21-year-old woman described as a "fair-haired" and "very, very naïve interlocutor" -- basically a hot rube who was just trying to “figure out how this whole social networking thing worked” by asking a bunch of seemingly innocent, fact-finding questions. With the avatar created, the fictitious person then sent out 2,000 "friendship requests," relying on the bogus description and made-up interests as the presumptive lure. Of the 2,000 social networks pinged with a "friendship" request, a stunning 1,872 accepted the invitation. And the vast majority (81 percent) of them did it without asking any questions at all. Others asked a question or two, presumably like, "Who are you?" or "How do I know you?" before eventually adding this new "friend." ... But it gets worse. An astonishing 86 percent of those who accepted the bogus profile's "friendship" request identified themselves as working in the IT industry. Even worse, 31 percent said they worked in some capacity in IT security....
Posted by iang on September 02, 2010 02:46 AM · permalink
Posted by Deepak Singh on September 02, 2010 02:27 AM · permalink
Posted by Deepak Singh on September 02, 2010 02:25 AM · permalink
It is fairly normal to hear people talk about innovation, but it doesn't take much experience to realise there is a gulf between the reality and the buzzword. Innovation is not something we can bring to the company just by talking about it. Here's some cold water poured on popular notions by Govindarajan and Trimble (G&T): The fashion these days is to focus on the supply side of innovation: for example, by encouraging everyone to think big thoughts. 3M, the maker of Post-it notes, ... Fashion in innovation thinking is an oxymoron if ever I saw one! When did 3M invent Post-it notes? No matter, let's carry on: ...expects its workers to spend 15% of their time on their own projects. Google expects them to spend 20%. This approach is attractively democratic: by giving everyone a chance to innovate, it makes everyone feel special. Or so the theory goes. G&T are ready with the cold water. The let-them-loose approach spreads resources thinly and indiscriminately. Companies dissolve into a thousand small initiatives rather than focusing on a few big problems. It also produces far too many ideas: managers have to spend weeks sorting through the chaff to find a few grains of wheat. I've seen the 20% idea in operation, and it doesn't work. Calling it democratic is a good approximation, so there is some value to it in a tight bureaucracy seeking to "empower" its people. But innovation-driving it isn't, and doing it in a technology company like google reveals a profound misunderstanding of the techie's human psyche. I'd even suggest that the approach quite possibly hides the sources of true innovation. G&T say that you need to start by recognising that innovation is unnatural. Hallelujah! Now, ask your boss whether she'd like something unnatural to happen to her this week ... and we'd be getting close to why that it isn't going to happen. Established businesses are built for efficiency, which depends on predictability and repeatability—on breaking tasks down into their component parts and holding employees accountable for hitting their targets. But innovation is by definition unpredictable and uncertain. Bosses may sing a pretty song about innovation being the future. But in practice the heads of operational units will favour the known over the unknown. Right. But it is also not just companies that are obsessed with these things. People are scared, scared for their jobs. Mundane is safe, innovation gets you fired, or if you are lucky the credit will be lost to others. Far safer to talk the buzzwords, only. So how to to turn big corporations or departments into innovation factories? Well, it's probably unreasonable because we are likely in that statistical impossibility space. Either people will talk about it, and not do it (for fear of their jobs), or people will do it and lose their jobs. So every lesson will be an anti-innovation lesson, and any accidental slippage into innovation will be dismissed as a statistical outlier. Annecdote: I recall presenting on the fundamentals of why innovation is impossible in banking, to a big british bank's Head of Innovation. Of course, he argued I was wrong. But after he left, two of his employees told me that while he talked the talk very well, he did everything possible to avoid innovation. He was the head of Innovatory Capture & Suppression, and he served the bank well. The only way to crack the anti-innovatory structure of business is to change the rules. Many would-be innovators deal with the trade-off between efficiency and innovation by rejecting traditional management entirely. They repeat mantras about “breaking all the rules” and “asking for forgiveness rather than permission”. They set up skunk works (small, autonomous units with a remit to innovate) and mock the boring corporate types who write their pay-cheques. But again this is counter-productive. However, not the rules written on paper, but the meta-rules of the operation! (People who talk about breaking the rules are generally using this as a cover to get their own way.) G&T argue that companies need to build dedicated innovation machines. These machines need to be free to recruit people from outside (since big companies tend to attract company men rather than rule-breakers). They also need to be free from some of the measures that prevail in the rest of the company. Right! But! That gets us back to the same dilemma: But they must avoid becoming skunk works. They need to be integrated with the rest of the company—they must share some staff, for example, and they must tap into the wider company’s resources as they turn ideas into products. And they must be tightly managed according to customised rather than generic rules. For example, they should be held accountable for their ability to learn from mistakes rather than for their ability to hit their budgets. We can talk about it but we won't actually do it. Or, what we do will not be it. Or what we do will be captured or dispersed, so not learnt. Innovation in big corporates, as a turnaround, /has been done/. But the cases are relatively rare, and the conditions are hard to duplicate. Innovation happens in the startup sector, and the word innovation is never used there, it's just business, or survival, or the founder's omniscience. That is, the natural state of the startup is to write the meta-rules, so it is totally natural that the unnatural takes place. Which perhaps confirms that the only successful strategy for innovation a large company has is to buy out small successful startups ... Sorry about that!...
Posted by iang on September 02, 2010 02:09 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/ySQIFr9xUbKfUO-GMCDpZFkuJ_s/0/da"><img src="http://feedads.g.doubleclick.net/~a/ySQIFr9xUbKfUO-GMCDpZFkuJ_s/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/ySQIFr9xUbKfUO-GMCDpZFkuJ_s/1/da"><img src="http://feedads.g.doubleclick.net/~a/ySQIFr9xUbKfUO-GMCDpZFkuJ_s/1/di" border="0" ismap="true"></img></a></p><table border="0" cellspacing="4" cellpadding="2">
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Mutual Fund</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> IDBI Mutual Fund </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Type</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Open Ended </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Category</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Growth </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Launch Date</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> 02-Sep-2010 </td>
</tr>
</table>
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<p><a href="http://www.amfiindia.com/nfo.aspx?intId=4786#123">IDBI Nifty Junior Index Fund</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by kalyan on September 02, 2010 01:08 AM · permalink
<p>Brilliant</p>
<p><strong>Abstract (via Leslie K. John, Alessandro Acquisti, and George Loewenstein)</strong></p>
<div>
<blockquote><p>New marketing paradigms that exploit the capabilities for data collection, aggregation, and dissemination introduced by the Internet provide benefits to consumers but also pose real or perceived privacy hazards. In four experiments, we seek to understand consumer decisions to reveal or withhold information and the relationship between such decisions and objective hazards posed by information revelation. <strong>Our central thesis, and a central finding of all four experiments, is that disclosure of private information is responsive to environmental cues that bear little connection, or are even inversely related, to objective hazards. </strong>We address underlying processes and rule out alternative explanations by eliciting subjective judgments of the sensitivity of inquiries (experiment 3) <strong>and by showing that the effect of cues diminishes if privacy concern is activated at the outset of the experiment (experiment 4). This research highlights consumer vulnerabilities in navigating increasingly complex privacy issues introduced by new information technologies.</strong></p>
<p style="text-align: center;"><a href="http://www.journals.uchicago.edu/doi/pdf/10.1086/656423"><strong>Click Here To Read: When Are We Most Likely to Divulge Secrets! Think Strangers On A Plane</strong></a></p>
</blockquote>
</div>
<div class="relatedposts"><strong>Other Related Posts From Simoleon Sense:</strong><ol><li><a href='http://www.simoleonsense.com/a-ubs-insider-blows-the-whistle-on-swiss-banking-telling-swiss-secrets-a-bankers-betrayal/' rel='bookmark' title='Permanent Link: A UBS insider blows the whistle on Swiss banking- Telling Swiss secrets: A banker’s betrayal'>A UBS insider blows the whistle on Swiss banking- Telling Swiss secrets: A banker’s betrayal</a></li>
<li><a href='http://www.simoleonsense.com/how-prevalent-is-wishful-thinking-how-prevalent-is-wishful-thinking-misattribution-of-arousal-causes-optimism-and-pessimism-in-subjective-probabilities/' rel='bookmark' title='Permanent Link: How prevalent is wishful thinking? Misattribution of arousal causes optimism and pessimism in subjective probabilities.'>How prevalent is wishful thinking? Misattribution of arousal causes optimism and pessimism in subjective probabilities.</a></li>
<li><a href='http://www.simoleonsense.com/knowing-too-much-using-private-knowledge-to-predict-how-one-is-viewed-by-others/' rel='bookmark' title='Permanent Link: Knowing Too Much: Using Private Knowledge to Predict How One Is Viewed by Others'>Knowing Too Much: Using Private Knowledge to Predict How One Is Viewed by Others</a></li>
<li><a href='http://www.simoleonsense.com/you-can-judge-a-book-by-its-cover-evidence-that-cheaters-may-look-different-from-cooperators/' rel='bookmark' title='Permanent Link: You can judge a book by its cover: Evidence that cheaters may look different from cooperators'>You can judge a book by its cover: Evidence that cheaters may look different from cooperators</a></li>
</ol></p>
Posted by Miguel on September 01, 2010 09:01 PM · permalink
<p><strong>Abstract (via Eminegul Karababa and Guliz Ger)</strong></p>
<blockquote><p>We examine the sociohistorical formation of the consumer subject during the development of consumer culture in the context of leisure consumption.<strong> Specifically, we investigate how an active consumer was forming while a coffeehouse culture was taking shape during early modern</strong> Ottoman society. Utilizing multiple historical data sources and analysis techniques, we focus on the discursive negotiations and the practices of the consumers, the marketers, the state, and the religious institution as relevant stakeholders. <strong>Our findings demonstrate that multiparty resistance, enacted by consumers and marketers, first challenged the authority of the state and religion and then changed them. Simultaneously and at interplay with various institutional transformations, a public sphere, a coffeehouse culture, and a consumer subject constructing his self-ethics were developed, normalized, and legalized.</strong> We discuss the implications of the centrality of transgressive hedonism in this process, as well as the existence of an active consumer in an early modern context.</p>
<p style="text-align: center;"><a href="http://www.journals.uchicago.edu/doi/abs/10.1086/656422"><strong>Click Here To Read: Early Modern Ottoman Coffeehouse Culture and the Formation of the Consumer</strong></a></p>
</blockquote>
<div class="relatedposts"><strong>Other Related Posts From Simoleon Sense:</strong><ol><li><a href='http://www.simoleonsense.com/six-psychological-reasons-consumer-culture-is-unsatisfying/' rel='bookmark' title='Permanent Link: Six Psychological Reasons Consumer Culture is Unsatisfying'>Six Psychological Reasons Consumer Culture is Unsatisfying</a></li>
<li><a href='http://www.simoleonsense.com/how-does-context-affect-consumer-judgment/' rel='bookmark' title='Permanent Link: How does context affect consumer judgment?'>How does context affect consumer judgment?</a></li>
<li><a href='http://www.simoleonsense.com/collection-of-consumer-psychology-articles/' rel='bookmark' title='Permanent Link: Collection of Consumer Psychology Articles'>Collection of Consumer Psychology Articles</a></li>
<li><a href='http://www.simoleonsense.com/analyzing-consumer-confidence/' rel='bookmark' title='Permanent Link: Analyzing Consumer Confidence'>Analyzing Consumer Confidence</a></li>
</ol></p>
Posted by Miguel on September 01, 2010 08:56 PM · permalink
<p>I’m tempted to say…I knew it all along but here’s the research.</p>
<p><strong>Abstract (via Serra, Serneels, Barr)</strong></p>
<blockquote><p>Economists have traditionally assumed that individual behavior is motivated exclusively by extrinsic incentives. Social psychologists, in contrast, stress that intrinsic motivations are also important. In recent work, economic theorists have started to build psychological factors, like intrinsic motivations, into their models. Besley and Ghatak (2005) propose that individuals are differently motivated in that they have different “missions,” and their self-selection into sectors or organizations with matching missions enhances organizational efficiency. We test Besley and Ghatak’s model using data from a unique cohort study. We generate two proxies for intrinsic motivations: a survey-based measure of the health professionals philanthropic motivations and an experimental measure of their pro-social motivations. We find that both proxies predict health professionals’ decision to work in the non-profit sector. We also find that philanthropic health workers employed in the non-profit sector earn lower wages than their colleagues.</p>
<p style="text-align: center;"><a href="http://www.csae.ox.ac.uk/workingpapers/pdfs/2010-04text.pdf"><strong>Click Here To Read: Intrinsic Motivation Leads Health Professionals to Work in Non Profits</strong></a></p>
</blockquote>
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<li><a href='http://www.simoleonsense.com/video-carrot-the-stick-the-workplace-and-intrinsic-motivation/' rel='bookmark' title='Permanent Link: Video: Carrot & The Stick – The Workplace and Intrinsic Motivation'>Video: Carrot & The Stick – The Workplace and Intrinsic Motivation</a></li>
<li><a href='http://www.simoleonsense.com/how-rewards-can-backfire-and-reduce-motivation/' rel='bookmark' title='Permanent Link: How Rewards Can Backfire and Reduce Motivation'>How Rewards Can Backfire and Reduce Motivation</a></li>
<li><a href='http://www.simoleonsense.com/guest-post-matt-kukkla-challenges-to-health-reform-part-1-of-intro-to-health-care-reform/' rel='bookmark' title='Permanent Link: Guest Post: Matt Kukkla -Challenges to Health Reform (Part 1 of Intro to Health Care Reform)'>Guest Post: Matt Kukkla -Challenges to Health Reform (Part 1 of Intro to Health Care Reform)</a></li>
</ol></p>
Posted by Miguel on September 01, 2010 08:54 PM · permalink
<blockquote><p>Excerpts (Via PhysOrg)</p>
<p><strong>As any nine-to-fiver will testify, a new paycheck brings with it a familiar sense of freedom, albeit one that dwindles in lockstep with the balance in one’s checking account. But, it’s not the checking account size that influences consumer behavior; rather, it’s the time that has elapsed since payday, according to a new study published in the September issue of the <em>Journal of Marketing.</em></strong></p>
<p>Payday proximity means more than awareness of the amount of money in the bank and product prices. It actually changes consumer motives, response to messages and purchase behavior, report University of Utah marketing professors Himanshu and Arul Mishra.</p>
<p><strong>The researchers found that the proportion of “aspired” products declined and the proportion of “ought” products increased as the participants got further away from their paychecks. The team also demonstrated that these results were not related to declining checking account balances during the month or to product prices.</strong></p>
<p style="text-align: center;"><a href="http://www.physorg.com/news202360204.html"><strong>Click Here To Read: Approaching Paydays Change Our Behavior & Motivation!!!</strong></a></p>
</blockquote>
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</ol></p>
Posted by Miguel on September 01, 2010 08:52 PM · permalink
<p><strong>Excerpt (via Phys Org)</strong></p>
<blockquote><p>“The results suggest that economic migrants might well experience disappointment. Migrants do gain happiness from higher incomes, to a greater extent than natives – but the relationship is weak even for migrants. In fact, it also works out that migrants are less happy than natives. The probable reason is that they expect to be happier by virtue of earning the greater incomes available in a wealthy country – but they end up wanting even more after they get there: aspirations probably increase at least as much as incomes.</p>
<p>“In short, even after an increase migrants find it difficult to feel satisfied with their incomes – just like the rest of us.</p>
<p>“Many of us are guilty of believing that money is more important for happiness than it is – and this research suggests that migrants are not terribly different in this regard. Life as an immigrant in a wealthy country can be very hard.”</p>
<p style="text-align: center;"><a href="http://www.physorg.com/news202466547.html"><strong>Click Here To Read: The Grass Is Not Always Greener: migration may not bring happiness</strong></a></p>
</blockquote>
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<li><a href='http://www.simoleonsense.com/the-pursuit-of-happiness-time-money-and-social-connection/' rel='bookmark' title='Permanent Link: The Pursuit of Happiness: Time, Money, and Social Connection'>The Pursuit of Happiness: Time, Money, and Social Connection</a></li>
</ol></p>
Posted by Miguel on September 01, 2010 08:49 PM · permalink
<blockquote><p>Via PhysOrg</p>
<p><strong>When given a choice, older people prefer to read negative news, rather than positive news, about young adults, a new study suggests.</strong></p>
<p>In fact, older readers who chose to read negative stories about young individuals actually get a small boost in their self-esteem, according to the results.</p>
<p>And what about younger people? Well, they just prefer not to read about older people.</p>
<p style="text-align: center;"><a href="http://www.physorg.com/news202380667.html"><strong>Click Here To Read: Over 50? You probably prefer negative stories about young people</strong></a></p>
</blockquote>
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</ol></p>
Posted by Miguel on September 01, 2010 08:47 PM · permalink
<p>Recommended Excerpts (via Jonah Lehrer @ Wired)</p>
<div>
<div>
<blockquote><p>The miners have already survived underground longer than anyone else – they broke the 25 day record today – and will mostly like remain underground for at least another few months.</p>
<p>But this post is not about the miners, and their Dantesque plight. Instead, it’s about our reaction to them, and the extraordinary outpouring of emotion that occurs whenever we can latch onto a set of identifiable victims.</p>
<div>
<div>
<p>Of course, this is a deeply irrational reaction. We are much less interested in helping <em>a</em> victim – we only want to help <em>the </em>victim. (This bias is known as the identifiable victim effect, since it suggests that we react much more strongly when the victim can be specified.) Why do we this? Because human charity is ultimately rooted in our compassionate feelings, and not in some rational, utilitarian calculations. We are not Vulcans.</p>
</div>
</div>
<p>What’s interesting, though, is that some people are much less vulnerable to the identifiable victim effect than others. (There are Spocks among us!) Consider this new <a href="http://www.informaworld.com/smpp/content%7Edb=all%7Econtent=a922566955">paper</a> led by James Friedrich, at Willamette University, which measured differences in “analytic processing” style among 120 undergraduates. (The test for this is a rather straightforward survey, which includes questions such as “I enjoy intellectual challenges” and “I believe in trusting my hunches”.) Not surprisingly, people who tend toward analysis were also less likely to display the identifiable victim bias:</p>
<p style="text-align: center;"><a href="http://www.wired.com/wiredscience/2010/08/the-identifiable-victim-bias/"><strong>Click Here To Read: Jonah Lehrer on The Identifiable Victim Bias & Chilean Miners</strong></a></p>
</blockquote>
</div>
</div>
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<li><a href='http://www.simoleonsense.com/jonah-lehrer-optimism-bias-equity-analysts-still-too-bullish/' rel='bookmark' title='Permanent Link: Jonah Lehrer: Optimism Bias- Equity analysts: Still too bullish'>Jonah Lehrer: Optimism Bias- Equity analysts: Still too bullish</a></li>
<li><a href='http://www.simoleonsense.com/jonah-lehrer-studies-on-time/' rel='bookmark' title='Permanent Link: Jonah Lehrer: Researching Our Relationship with Time'>Jonah Lehrer: Researching Our Relationship with Time</a></li>
<li><a href='http://www.simoleonsense.com/jonah-lehrerdelaying-gratification-thinking-about-tomorrow/' rel='bookmark' title='Permanent Link: Jonah Lehrer: Delaying Gratification -Thinking About Tomorrow'>Jonah Lehrer: Delaying Gratification -Thinking About Tomorrow</a></li>
</ol></p>
Posted by Miguel on September 01, 2010 08:46 PM · permalink
<p><a href="http://twitter.com/LeadonYoung/statuses/22626950022">H/T Leadon Young</a><br />
<strong>Introduction (via Kissmetrics)</strong></p>
<blockquote><p>For retailers, shopping is the art of persuasion. Though there are many factors that influence how and what consumers buy. However, a great deal is decided by visual cues, the strongest and most persuasive being color. When marketing new products it is crucial to consider that consumers place visual appearance and color above other factors such as sound, smell and texture. To learn more about color psychology and how it influences purchases, see our latest infographic.</p>
<p>*Image via Kissmetrics</p></blockquote>
<p><a href="http://blog.kissmetrics.com/wp-content/uploads/2010/08/color-purchases-sm.png"><img class="alignnone" src="http://blog.kissmetrics.com/wp-content/uploads/2010/08/color-purchases-sm.png" alt="" width="524" height="2476" /></a></p>
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<li><a href='http://www.simoleonsense.com/how-does-context-affect-consumer-judgment/' rel='bookmark' title='Permanent Link: How does context affect consumer judgment?'>How does context affect consumer judgment?</a></li>
<li><a href='http://www.simoleonsense.com/do-friends-influence-purchases-in-a-social-network/' rel='bookmark' title='Permanent Link: Do Friends Influence Purchases in a Social Network'>Do Friends Influence Purchases in a Social Network</a></li>
<li><a href='http://www.simoleonsense.com/smells-we-dont-notice-still-affect-our-judgement-of-others/' rel='bookmark' title='Permanent Link: Smells We Don’t Notice Still Affect Our Judgement Of Others'>Smells We Don’t Notice Still Affect Our Judgement Of Others</a></li>
</ol></p>
Posted by Miguel on September 01, 2010 08:32 PM · permalink
<p>The latest via the St.Louis Fed</p>
<p><strong>Abstract (Via James Bullard)</strong></p>
<blockquote><p>In this paper the author discusses the possibility that the U.S. economy may become enmeshed in a Japanese-style deflationary outcome within the next several years. To frame the discussion, the author relies on an analysis that emphasizes two possible long-run steady states for the economy: one that is consistent with monetary policy as it has typically been implemented in the United States in recent years and one that is consistent with the low nominal interest rate, deflationary regime observed in Japan during the same period. The data considered seem to be quite consistent with the two steady-state possibilities. The author describes and critiques seven stories that are told in monetary policy circles regarding this analysis and emphasizes two main conclusions: (i) <strong>The Federal Open Market Committee’s “extended period” language may be increasing the probability of a Japanese-style outcome for the United States and (ii), on balance, the U.S. quantitative easing program offers the best tool to avoid such an outcome. </strong></p></blockquote>
<p><strong>Additional Excerpts (Via James Bullard): </strong></p>
<blockquote><p><strong>Seven Faces Of Peril</strong></p></blockquote>
<blockquote><p><strong>1. Denial</strong></p>
<p>I think it is fair to say that, for many who have been involved in central banking over the past two or three decades, it is difficult to think of Japan and the United States in the same game, as Figure 1 suggests. For many, the situation in Japan since the 1990s has been a curiosum, an odd outcome that might be chalked up to particularly Byzantine Japanese politics, the lack of an inflation target for the Bank of Japan (BOJ), a certain lack of political independence for the BOJ, or some other factor specific to the Land of the Rising Sun. The idea that U.S. policymakers should worry about the nonlinearity of the Taylor-type rule and its implications is sometimes viewed as an amusing bit of theory without real ramifications.</p>
<p><strong>2. Stability</strong></p>
<p>There is another version of the denial view that is somewhat less extreme but nevertheless still a form of denial in the end. It is a view that I have been associated with in my own research. In this view, one accepts the zero bound on nominal interest rates and the other details of the analysis by Benhabib, Schmitt-Grohé, and Uribe. One accepts that there are two steady states. How – ever, the steady states have stability properties associated with them in a fully dynamic analysis, and the argument is that the targeted steady state is the stable one, while the unintended, low nominal interest rate steady state is unstable. Therefore, according to this argument, one should expect to observe the economy in the neighborhood of the targeted steady state and need not worry about the unintended, low nominal interest rate steady state.</p>
<p><strong>3. The FOMC in 2003</strong></p>
<p>In Figure 1, a set of data points is circled. These data are labeled “2003-2004” and are associated with a policy rate at 1.0 percent and the inflation rate between 1.0 and 1.5 percent. This episode was the last time the FOMC worried about a possible bout of deflation. While core inflation did move to a low level during this period—not quite as low as the current level—inflation moved higher later and interest rates were increased. This episode surely provides comfort for those who think the Japanese-style outcome is unlikely. It suggests that the economy will ultimately return to the neighborhood of the targeted steady state, perhaps even indicating that the stability story is the right one after all. The 2003 experience did not involve a near-zero policy rate, however.</p>
<p><strong>4. Discontinuity</strong></p>
<p>If the problem is the existence of a second, unintended steady state—and this is partly caused<br />
by the choice of a policy rule that is controlled by policymakers—why not just choose a different policy rule? This can, in fact, be done and was discussed by Benhabib, Schmitt-Grohé, and Uribe in their original paper. Furthermore, some parts of the current policy discussion have exactly this flavor.</p>
<p>….Of course, this policy looks unusual and perhaps few would advocate it, but again we are trying to avoid all those circles down there in the southwest portion of the diagram. The discontinuouspolicy has the great advantage that it is a very simple way to ensure that the unintended, low nominal interest rate steady state no longer exists. The only point in the diagram where the Fisher relation and the policy rule can be in harmony is the targeted equilibrium. This would remove the unintended steady state as a focal point for the economy.</p>
<p><strong>5. Traditional Policy</strong></p>
<p>According to the Bank of England,15 for 314 years the policy rate was never allowed to fall below 2.0 percent. During more than three centuries the economy was subject to large shocks, wars, financial crises, and the Great Depression— yet 2.0 percent was the policy rate floor until very recently. A version of this policy is displayed in Figure 5. This policy rule does not eliminate the unintended steady state; it simply moves it to be associated with a higher level of inflation. In the figure, this point occurs at an interest rate of 2.0 percent and an inflation rate of 1.5 percent (the center arrow in the figure). This policy seems very reasonable in some ways. To the extent that one of the main purposes of the interest rate policy is to keep inflation low and stable, this policy creates two steady states, but the policymaker may be more or less indifferent between the two outcomes. Then one has to worry much less about the possibility of becoming permanently trapped in an unintended, deflationary steady state. This policy prevents the onset of interest rates that are “too low.”</p>
<p><strong>6. Fiscal Intervention Given the Situation in Europe</strong><br />
In the academic literature following the 2001 publication of the perils paper, some attempt was made to provide policy advice on how to avoid the unintended steady state of Figure 1.17 This advice was given in the context of trying to preserve the desirable qualities of the Taylor-type interest rate rule in the neighborhood of the targeted steady state. That is, even though interest rate rules are the problem here, the advice is given in the context of those rules—as opposed to simply abandoning them altogether.</p>
<p><strong>7. Quantitative Easing</strong></p>
<p>The quantitative easing policy undertaken by the FOMC in 2009 has generally been regarded as successful in the sense that longer-term interest rates fell following the announcement and implementation of the program.20 Similar assessments apply to the Bank of England’s quantitative easing policy. For the United Kingdom in particular, both expected inflation and actual inflation have remained higher to date, and for that reason the United Kingdom seems less threatened by a deflationary trap. The U.K. quantitative easing program has a more state-contingent character for rates to bottom out at a level somewhat higher than zero, as the traditional policy rule does. Of course, a policy rule like the one depicted in Figure 5 does not allow as much policy accommodation in the face of shocks to the economy at the margin. But is it worth risking a “lost decade” to get the extra bit of accommodation?</p>
<p style="text-align: center;"><a href="http://research.stlouisfed.org/publications/review/10/09/Bullard.pdf"><strong>Click Here To Read: Japan in the US? Seven Faces of “The Peril”</strong></a></p>
</blockquote>
<div class="relatedposts"><strong>Other Related Posts From Simoleon Sense:</strong><ol><li><a href='http://www.simoleonsense.com/are-we-turning-japanese-the-7-faces-of-the-peril/' rel='bookmark' title='Permanent Link: Are we turning Japanese: The 7 faces of “The Peril”'>Are we turning Japanese: The 7 faces of “The Peril”</a></li>
<li><a href='http://www.simoleonsense.com/a-macroeconomic-view-of-the-current-economy/' rel='bookmark' title='Permanent Link: A Macroeconomic View of the Current Economy'>A Macroeconomic View of the Current Economy</a></li>
<li><a href='http://www.simoleonsense.com/nial-ferguson-an-empire-at-risk-how-economic-weakness-endangers-the-us/' rel='bookmark' title='Permanent Link: Nial Ferguson- An Empire At Risk: How Economic Weakness Endangers The US'>Nial Ferguson- An Empire At Risk: How Economic Weakness Endangers The US</a></li>
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</ol></p>
Posted by Miguel on September 01, 2010 04:40 PM · permalink
<p>GDP data for Q1, reported today, came in at a strong 8.8%. However, the data was widely questioned for the discrepancy between supply side and consumption side estimates. </p> <p>For example, <em>The Economic Times</em>, in a front page flier wrote:</p>
Posted by Wisdomsmith on September 01, 2010 04:22 PM · permalink
<p><span>Although in the positive, the Indian indices remained range bound for the larger part of the trading session today. However, buying activity intensified in the final hours and helped the indices to close well above the dotted line. While the BSE Sensex closed higher by around 235 points (up 1.3%), the NSE Nifty gained around 69 points (up 1.3%). The BSE Midcap and the BSE Smallcap also did well to notch gains of 2% each. Gains were largely seen in metals, IT and oil & gas stocks. <br><br> As regards global markets, barring China most Asian indices closed in the positive today while European indices have also opened in the green. The rupee was trading at Rs 46.82 to the dollar at the time of writing. </span></p>
Posted by Equitymaster on September 01, 2010 11:52 AM · permalink
Consider Canam Group (CAM), a company that has gone on a buying spree in the last year or so. As competitors have been shutting down units to conserve cash, Canam has been strategically purchasing competitor plants at attractive prices. As many industries are currently at overcapacity, the benefits of these acquisitions won't be seen for years. But the costs of these acquisitions (i.e. the cash used to finance the purchases) are seen immediately. How does one value the fact that future earnings will be higher than past earnings?
One method applicable to manufacturing companies is based on a company's historical return on its fixed assets. If similar assets to the company's current assets have been purchased, the company may be expected to generate the same type of returns on those fixed assets that it generated over the last business cycle. Of course, this exercise only results in a starting point for estimating future earnings. Adjustments may have to be made based on the age of the assets acquired, their quality, and a whole slew of other factors (e.g. geography).
When times are good, companies will often fall over themselves in bidding wars to acquire potential targets or business units. Value investors realize, however, that the best time for companies to acquire such assets is when business conditions are poor (financing in general is hard to come by, there is overcapacity in many industries, and sellers are desperate to raise cash), due to the great price discounts that are available.
This recession has offered many companies with great balance sheets the opportunity for future growth at excellent prices. However, valuing these companies is a challenge. Using past, average earnings (as is often advocated for value investors) would be inadequate, since an acquiring company's earnings power is now greater than its past earnings have shown. Estimating earnings power based on a return-on-fixed-assets measure may provide better accuracy, leading to more profitable investment decisions.
In a similar vein, we have previously discussed using this method when a company has reduced its capacity in this recession, as in this case, average earnings of the past would overestimate the company's earnings power.
Disclosure: Author has a long position in shares of CAM
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on September 01, 2010 10:32 AM · permalink
<p>I speak about the lack of active investors over at Yahoo: <a title="Too Few Investors by Deepak Shenoy at Yahoo" href="http://in.news.yahoo.com/columnist/deepak_shenoy/18/too-few-investors" target="_blank">Too Few Investors</a>.</p> <blockquote> <p>A question [1] was asked in the Rajya Sabha of the Namo Narain Meena, MoS in the Finance Ministry about how turnover was distributed in the National Stock Exchange (NSE) among different classes of investors. The answer was enlightening - 30.9 lakh different entities traded in the cash segment of the NSE in the first quarter (April to June) of this financial year.</p> <p>But this is top heavy; of the entire turnover in this period, just 451 entities were responsible 50% of the total. Of these, around 156 were "proprietary" traders, meaning members trading on their own behalf, rather than for clients. In the Futures and Options segment, about 557,000 entities traded in this period, with just 106 accounting for 50% of the turnover - again, 58 of this was prop-trading.</p> <p>The minister's response to yet another question [2] revealed that more than 60% of both cash and derivative markets are "intraday" trades - that is, both the buy and sell are executed on the same day.</p> <p>This triggered angry reactions from parts of the media, some saying that the market is <a href="http://www.moneylife.in/article/72/8312.html">really a casino</a> for concentrating volume in the hands of a few. And that the <a href="http://www.moneylife.in/article/72/8347.html">rampant speculation</a>, evident by high intraday trading, is benefiting only a few people.</p> <p>In my view this is outrage at the wrong issue. That our markets are top-heavy isn't a surprise. Of the 1,400 stocks traded on the NSE, just the top 50 account for more than half of the total market capitalization - the Nifty 50 market cap is Rs. 34 trillion (lakh crore) of the total NSE market capitalization of 64 trillion. Just the top 15 stocks account for 1/3rd of the NSE market capitalization. (All data from the NSE web site) In terms of traded volumes too, most of the trades happen in the largest stocks, both from the data on NSE and from the Minister’s replies. Our markets are top-heavy and will be for the foreseeable future.</p> </blockquote> <p>(<a title="Too Few Investors by Deepak Shenoy at Yahoo" href="http://in.news.yahoo.com/columnist/deepak_shenoy/18/too-few-investors" target="_blank">Read the whole article</a>)</p> <p>Comments as usual are deeply appreciated.</p> <p>More <a title="Yahoo Columns by Deepak Shenoy" href="http://in.news.yahoo.com/columnist/deepak_shenoy" target="_blank">Yahoo Columns</a>:</p> <ul> <li><a title="Survivorship Bias, at Yahoo" href="http://in.news.yahoo.com/columnist/deepak_shenoy/17/survivorship-bias" target="_blank">Survivorship Bias</a> (<a title="Comments on Yahoo Column: Survivorship Bias" href="http://blog.investraction.com/2010/08/on-yahoo-survivorship-bias.html" target="_blank">Comments</a>)</li> <li>The <a title="Problem with Multi-Level Marketing" href="http://in.news.yahoo.com/columnist/deepak_shenoy/16/the-problem-with-multi-level-marketing" target="_blank">Problem with Multi-Level Marketing</a> (<a title="Comments: The Problem with Multi Level Marketing" href="http://blog.investraction.com/2010/08/on-yahoo-multi-level-marketing.html" target="_blank">Comments</a>) </li> <li><a title="Planning for the Grim Reaper by Deepak Shenoy" href="http://in.news.yahoo.com/columnist/deepak_shenoy/15/planning-for-the-grim-reaper" target="_blank">Planning for the Grim Reaper</a> (<a title="Comments: Planning for the Grim Reaper" href="http://blog.investraction.com/2010/08/on-yahoo-planning-for-grim-reaper.html" target="_blank">Comments</a>) </li> <li>Of <a title="Of Options and Choices by Deepak Shenoy" href="http://in.news.yahoo.com/columnist/deepak_shenoy/14/of-options-and-choices" target="_blank">Options and Choices</a> (<a title="Comments: Of Options and Choices by Deepak Shenoy" href="http://blog.investraction.com/2010/08/on-yahoo-of-options-and-choices.html" target="_blank">Comments</a>) </li> <li><a title="Credit Default Swaps" href="http://in.news.yahoo.com/columnist/deepak_shenoy/13/credit-default-swaps-and-the-battle-for-regulation" target="_blank">Credit Default Swaps</a> (<a title="Comments: Credit Default Swaps" href="http://blog.investraction.com/2010/07/on-yahoo-credit-default-swaps.html" target="_blank">Comments</a>) </li> <li><a title="Four Investing Myths Busted" href="http://in.news.yahoo.com/columnist/deepak_shenoy/12/four-investing-myths-busted" target="_blank">Four Investing Myths Busted</a> (<a title="Comments: Four Investing Myths Busted" href="http://blog.investraction.com/2010/07/on-yahoo-four-investment-myths-busted.htmlhttp://blog.investraction.com/2010/07/on-yahoo-four-investment-myths-busted.html" target="_blank">Comments</a>) </li> <li><font color="#555555">(<a href="http://blog.investraction.com/search/label/Yahoo" target="_blank">The Whole Lot</a>)</font> </li> </ul> <ul> <li></li> </ul> <div class="blogger-post-footer"><p style="border: 1px solid #C888C8">
This post is written by <a href="http://blog.investraction.com">Deepak Shenoy</a>,
at <a href="http://blog.investraction.com">Capital Mind</a>.
</p><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/18601284-6368200603341914936?l=blog.investraction.com' alt='' /></div>
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Posted by Deepak Shenoy (noreply@blogger.com) on September 01, 2010 09:10 AM · permalink
<a href="http://2.bp.blogspot.com/_yxDXLyjgmlU/TH3-lyG7lPI/AAAAAAAALLE/4hz_O1RgbG8/s1600/YTD_SECT.PNG"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 271px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5511841444030813426" border="0" alt="" src="http://2.bp.blogspot.com/_yxDXLyjgmlU/TH3-lyG7lPI/AAAAAAAALLE/4hz_O1RgbG8/s400/YTD_SECT.PNG" /></a><br /><div align="justify">Here's the YTD (January to August) sectoral performance. On this time frame, Healthcare has done 10.47% so the idea is to look out for buying opportunities when the sector turns down on a shorter time frame. The benchmark Nifty has done 3.87% YTD.</div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/5184850244660132569-7865003863477720257?l=timamo.blogspot.com' alt='' /></div>
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Posted by ss (noreply@blogger.com) on September 01, 2010 07:27 AM · permalink
<a href="http://2.bp.blogspot.com/_yxDXLyjgmlU/TH36bL9GObI/AAAAAAAALK8/Fe8gG0KiG-8/s1600/AUG_SEC.PNG"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 270px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5511836863943817650" border="0" alt="" src="http://2.bp.blogspot.com/_yxDXLyjgmlU/TH36bL9GObI/AAAAAAAALK8/Fe8gG0KiG-8/s400/AUG_SEC.PNG" /></a><br /><div align="justify">Here's the sectoral performance in August. This can give a good idea about where the smart money is going.</div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/5184850244660132569-1103682520260971150?l=timamo.blogspot.com' alt='' /></div>
<p><a href="http://feedads.g.doubleclick.net/~a/Y2lQNGvwRxr6gKHvGY7O_qMsH6Y/0/da"><img src="http://feedads.g.doubleclick.net/~a/Y2lQNGvwRxr6gKHvGY7O_qMsH6Y/0/di" border="0" ismap="true"></img></a><br/>
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Posted by ss (noreply@blogger.com) on September 01, 2010 07:05 AM · permalink
<div align="justify"><a href="http://1.bp.blogspot.com/_yxDXLyjgmlU/TH3xRXNw7dI/AAAAAAAALK0/7CTWMTNj1pE/s1600/AUG_PER.PNG"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 267px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5511826799563173330" border="0" alt="" src="http://1.bp.blogspot.com/_yxDXLyjgmlU/TH3xRXNw7dI/AAAAAAAALK0/7CTWMTNj1pE/s400/AUG_PER.PNG" /></a> Here's the performance of NSE stocks during August. This picture is almost evenly matched but slightly tilts on the bullish side since there are more gainers than losers in the 'more than 10%' slot. The benchmark Nifty has remained unchanged at +0.65%.<br /><br /></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/5184850244660132569-9209906081348313347?l=timamo.blogspot.com' alt='' /></div>
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Posted by ss (noreply@blogger.com) on September 01, 2010 06:31 AM · permalink
<span style="font-weight:bold;">Scripscan:Brahmaputra Infraproject Ltd<br />Code:531194<br />cmp:97<br />Target:115<br />Duration:3-4 months<br />Return:18%<br /><br />Story:BIL is promoted by Suresh Kumar Prithani with 29 years experience in infrastructure development works like construction of highway and roads, tunnels, airports, mining, institutional buildings and hydro electric power projects etc.BIL has been awarded the prestigious Rs.433 cr. `Yamuna Expressway` (erstwhile Taj Expressway) roadways construction project in Uttar Pradesh connecting Greater Noida to Agra over a stretch of 165 km, which comprises construction of earthen embankments, culverts, interchange bridges and vehicular & cart track underpasses from Jaypee Associates.In addition, Jaypee Associates has awarded two more projects namely extension of the project on 21 February 2009 and another interchange construction work on 18 May 2009.Since this is just beginning of its infra business, BIL is striving to obtain more infrastructure development & other civil construction projects for airports, highways and bridges. For this, it is in talks with Coal India, HHAI, MMRDA, IRCON and Airports Authorities of India (AAI).The construction sector has grown at about 12% annually for the past five years and contributed Rs.3,80,000 cr. to India’s GDP in 2007-08 compared to Rs.3,46,000 cr. in 2006-07. The past five years has seen many new trends with project sizes increasing manifold involving huge outlays of equipments and manpower with better technologies.The booming Indian economy is fuelling a massive demand for housing, transportation, water supply, sanitation and commercial facilities such as shopping malls and hotels, which is the growth driver for the construction industry.The Rs.1000 cr. Brahmaputra group is one of the fastest growing groups in infrastructure development. Over the last decade, it has built a strong reputation for reliability combined with economy and efficiency of works and has successfully implemented several important infrastructure projects in India.BIL’s greatest asset is deploying latest and innovative construction techniques, which enable it to take up complex projects. It is investing in a fleet of construction equipments, at strategic locations for easy mobilization to any region across India. Great emphasis to workmanship and timely comcpletion of works is its paramount concern.Based on the half yearly results, BIL is likely to register sales of Rs.250 cr. in FY10-11 with a net profit of Rs.17.5 cr., which would fetch an EPS of Rs.19.At the CMP of Rs.97, the BIL share is traded at a P/E of less than 5.2 on its FY10-11 projected earnings.The share is recommended with a target price of Rs.115 in the short term.</span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on September 01, 2010 06:22 AM · permalink
<p>An interesting presentation on the <a title="Asian Financial Sector Presentation by Peter Rodeia" href="http://www.frbsf.org/banking/asiasource/events/2010/0607/rodeia.pdf" target="_blank">Asian Financial Sector</a> by Pedro Rodeia, Head of Asian Financial Institutions Group at McKinsey. (Thanks <a href="http://www.greylock.com/team/team/26/" target="_blank">Arvin</a> for the tip!)</p> <p><a href="http://lh5.ggpht.com/_cwHfePkadc4/TH3sj3aABtI/AAAAAAAAA2Y/UkpKpgIslSo/s1600-h/image%5B2%5D.png" target="_blank"><img style="border-bottom: 0px; border-left: 0px; display: inline; border-top: 0px; border-right: 0px" title="image" border="0" alt="image" src="http://lh5.ggpht.com/_cwHfePkadc4/TH3sltWBy8I/AAAAAAAAA2c/ezPA9lsAs7Q/image_thumb.png?imgmax=800" width="640" height="478" /></a> </p> <p>Awesome presentation, and for an insider who can invest in Indian banks, very useful.</p> <div class="blogger-post-footer"><p style="border: 1px solid #C888C8">
This post is written by <a href="http://blog.investraction.com">Deepak Shenoy</a>,
at <a href="http://blog.investraction.com">Capital Mind</a>.
</p><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/18601284-2813498582281856506?l=blog.investraction.com' alt='' /></div>
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Posted by Deepak Shenoy (noreply@blogger.com) on September 01, 2010 06:03 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/0AdRdkaxUYRITdWwKb_efAqhurw/0/da"><img src="http://feedads.g.doubleclick.net/~a/0AdRdkaxUYRITdWwKb_efAqhurw/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/0AdRdkaxUYRITdWwKb_efAqhurw/1/da"><img src="http://feedads.g.doubleclick.net/~a/0AdRdkaxUYRITdWwKb_efAqhurw/1/di" border="0" ismap="true"></img></a></p><table border="0" cellspacing="4" cellpadding="2">
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Mutual Fund</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> IDBI Mutual Fund </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Type</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Open Ended </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Category</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Income </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Launch Date</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> 01-Sep-2010 </td>
</tr>
</table>
<script type="text/javascript">
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<p><a href="http://www.amfiindia.com/nfo.aspx?intId=4787#123">IDBI Ultra Short Term Fund</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by kalyan on September 01, 2010 01:32 AM · permalink
<p>A really awesome collection of Richard Feynman videos…via the BBC</p>
<p><a href="http://www.openculture.com/2010/08/richard_feynman_fun_to_imagine.html">A big H/T To Dan Colman @ Open Culture</a> (please visit open culture and thank them for the find)</p>
<blockquote><p>Richard Feynman: Fun to Imagine</p>
<p><strong>Back in 1983, the BBC aired Fun to Imagine, a television series hosted by Richard Feynman that used physics to explain how the everyday world works – “why rubber bands are stretchy, why tennis balls can’t bounce forever, and what you’re really seeing when you look in the mirror.” </strong>In case you’re not familiar with him, Feynman was a Nobel prize-winning physicist who had a gift for many things, including popularizing science and particularly physics</p>
<p style="text-align: center;"><a href="http://www.bbc.co.uk/archive/feynman/"><strong>Click Here To Watch Original Richard Feynman Hosts – Fun to Imagine (Incredible TV Series)</strong></a></p>
</blockquote>
<div class="relatedposts"><strong>Other Related Posts From Simoleon Sense:</strong><ol><li><a href='http://www.simoleonsense.com/what-investors-can-learn-from-richard-feynman/' rel='bookmark' title='Permanent Link: What investors can learn from Physicist Richard Feynman'>What investors can learn from Physicist Richard Feynman</a></li>
<li><a href='http://www.simoleonsense.com/free-book-richard-feynman-what-do-you-care-what-other-people-think-challenger-investigation/' rel='bookmark' title='Permanent Link: Free Book – Richard Feynman: What Do You Care What Other People Think – Challenger Investigation'>Free Book – Richard Feynman: What Do You Care What Other People Think – Challenger Investigation</a></li>
<li><a href='http://www.simoleonsense.com/videos-two-awesome-richard-feynman-documentaries/' rel='bookmark' title='Permanent Link: Videos: Two Awesome Richard Feynman Documentaries'>Videos: Two Awesome Richard Feynman Documentaries</a></li>
<li><a href='http://www.simoleonsense.com/amazing-bill-gates-does-the-unthinkable-posts-feynman-lectures-for-free/' rel='bookmark' title='Permanent Link: (Amazing!) Bill Gates Does The Unthinkable- Posts Feynman Lectures For Free!!!!'>(Amazing!) Bill Gates Does The Unthinkable- Posts Feynman Lectures For Free!!!!</a></li>
</ol></p>
Posted by Miguel on September 01, 2010 12:24 AM · permalink
<p>If investors weren’t already aware of the tremendous “growth gap” between the developed and emerging markets of the world, a report Tuesday out of New Delhi served as a nice reminder. India’s gross domestic product grew by 8.8% in the quarter ended June 30, roughly in line with analyst estimates for expansion in the world’s largest democracy. That marks the fastest GDP growth in more than two years, outpacing the 8.6% clip from India’s fiscal first quarter ended in March. Coming just days after the U.S. revised its GDP growth estimate for the same period downward to 1.6%, India’s pace of expansion is truly remarkable. <span></p> <p>Reaction to the latest GDP figures was primarily positive. “The data underscore the strong recovery in India’s economy, Asia’s third-largest and among the earliest to emerge from the global economic crisis,” <a href="http://online.wsj.com/article/SB10001424052748703369704575462770053958664.html?mod=googlenews_wsj" rel="nofollow">writes Anant Vijay Kala</a>. The impressive figures give Indian policymakers enhanced flexibility in their efforts to combat inflation, which has recently shown signs of accelerating.</p></span>
Posted by Michael Johnston on August 31, 2010 09:12 PM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/yQNI2ELgfgqNwy0wInnL5K9Yva0/0/da"><img src="http://feedads.g.doubleclick.net/~a/yQNI2ELgfgqNwy0wInnL5K9Yva0/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/yQNI2ELgfgqNwy0wInnL5K9Yva0/1/da"><img src="http://feedads.g.doubleclick.net/~a/yQNI2ELgfgqNwy0wInnL5K9Yva0/1/di" border="0" ismap="true"></img></a></p><p>Record date for <strong>Kalpataru Power Transmission</strong> stock split announced, the date is on 09 September 2010 .( face value of Rs. 10 each to face value of Rs. 2 each.)<br />
Record date for <strong>Dabur India</strong> bonus issue announced , the date is on 10 September 2010 . (1:1 Bonus)<br />
Record date for <strong>TVS Motor Company</strong> bonus issue announced , the date is on 09 September 2010 . (1:1 Bonus)<br />
Record date for <strong>Astral Poly Technik </strong>stock split announced , the date is on 16 September 2010. ( face value of Rs. 10 each to face value of Rs. 5 each)<br />
Record date for <strong>Mundra Port and Special Economic Zone </strong>stock split announced , the date is on 24th September.( face value of Rs. 10 each into 5 equity shares of face value of Rs. 2 each.)</p>
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<p><a href="http://www.rupya.com/2010/09/01/record-date-for-stocks-that-was-announced-on-august-31-2010/15597">Record date for stocks that was announced on August 31 2010</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by Lalitha on August 31, 2010 06:58 PM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/JcJSJWhmkzDiewPeSlMA3mjpjeo/0/da"><img src="http://feedads.g.doubleclick.net/~a/JcJSJWhmkzDiewPeSlMA3mjpjeo/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/JcJSJWhmkzDiewPeSlMA3mjpjeo/1/da"><img src="http://feedads.g.doubleclick.net/~a/JcJSJWhmkzDiewPeSlMA3mjpjeo/1/di" border="0" ismap="true"></img></a></p><p>GDP groth rate data came out today and the First quarter GDP growth rate for a year 2010-11 has come at 8.8% compared with 8.6% last quarter.This is really high compared to the growth rate of 6% in the first quarter 2009-10.<br />
<strong>Sector Wise Growth</strong></p>
<blockquote><p>Agriculture sector has recorded a growth of 2.8% compared to 0.7% (QoQ),<br />
Manufacturing grew by 12.4% compared to 16.3% (QoQ)<br />
while mining sector growth was at 8.9% versus 14% (QoQ) and<br />
Construction sector growth was at 7.5% compared to 8.7% (QoQ).</p></blockquote>
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<p><a href="http://www.rupya.com/2010/09/01/gdp-growth-is-at-8-8-per-cent-for-first-qtr-2010-2011/15595">GDP Growth is at 8.8 Per Cent for First QTR 2010-2011</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by Lalitha on August 31, 2010 06:53 PM · permalink
<p><span>Despite reports of higher GDP growth, the benchmark indices failed to elicit investor interest and languished in the red till the closing hours. Selling activity was largely seen in realty, telecom and metal stocks. BSE Sensex edged lower by around 61 points (down 0.3%) whereas NSE Nifty edged lower by around 13 points (down 0.3%). BSE Midcap and Small cap indices were not spared either as they closed lower in the vicinity of 1% each. While Asian across the board closed lower today, European stocks have opened mostly on a negative note. The rupee was perched at Rs 47.01 to the dollar at the time of writing. <br><br>As per the latest release, Indian economy grew at its fastest clip in nearly three years in the quarter ended June 2010. The GDP growth of 8.8% was largely due to strong manufacturing growth of 12% YoY and improved farm output. Financing, insurance and real estate grew 8% as against 11.8% in the corresponding quarter of FY09. The higher GDP numbers may make it easier for the central bank to <a href="http://www.equitymaster.com/detail.asp?date=04/20/2010&story=2" rel="nofollow">raise interest rates</a> going forward. </span></p>
Posted by Equitymaster on August 31, 2010 06:42 PM · permalink
<p><em>By Nicholas Deleon</em></p><div><p><img src="http://static.seekingalpha.com/uploads/2010/8/31/saupload_skypeindia.jpg" align="right" class="alignleft size-full wp-image-175243" hspace="6" vspace="6" width="200" height="200" /></p> <p>Only a few hours after <a href="http://www.mobilecrunch.com/2010/08/30/rim-avoids-indian-ban-hammer-cooperates-with-security-authorities-over-blackberry-e-mail/" rel="nofollow">RIM managed to avoid the Indian ban hammer</a>, it now looks like Google (<a href='http://seekingalpha.com/symbol/goog' alt='Google Inc.' title='Google Inc.'>GOOG</a>) and Skype <a href="http://www.bbc.co.uk/news/technology-11137647" rel="nofollow">could be the next target</a>. India’s Home Ministry, the country’s interior ministry (think police force and other domestic policy matters), has told the BBC that “any company with a telecoms network should be accessible” to the country’s security services. India says it needs to be able to be able to tap into such communications in order to thwart potential terrorism threats.</p></div>
Posted by TechCrunch on August 31, 2010 02:47 PM · permalink
<p><span><span>In <a href="http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=14806:bullion-buying-in-china-and-india-part-i&catid=48:gold-commentary&Itemid=131" rel="nofollow">Part I</a>, I alerted readers to the problem with using Western labels and Western analysis to analyze the gold markets of other nations – especially the two titans of the gold market: China and India. More specifically, I pointed out that breaking-down demand into the categories of “retail investment” and “jewelry” demand was both arbitrary and inaccurate.</span></span></p> <p><span><span>In fact, much of the gold/silver acquired under both of those categories simply represents “savings”, rather than “investment” or the mere purchase of a luxury good (i.e. jewelry). Because of this inaccurate analysis, I suggested that (Western) analysts will likely consistently underestimate long-term demand, while overestimating the amount of “scrap” bullion which would/will return to the market.</span></span></p>
Posted by Jeff Nielson on August 31, 2010 02:07 PM · permalink
<div><p><em>By Elliot Turner</em></p><span><span></span></div><p>India reported its strongest GDP number since the global financial crisis began, posting an 8.8% growth rate for the second quarter. This checked in 20 basis points higher than the first quarter’s 8.6%. The 8.8% figure was right in-line with analyst estimates, and demonstrated the impressive organic growth in this third largest Asian economy behind China and Japan.</p></span>
Posted by Wall St. Cheat Sheet on August 31, 2010 01:32 PM · permalink
Due to the recession, the amount of work available for the company has declined, leaving it operating at a lower capacity. Idled equipment generates no revenue, but accrues charges for depreciation. This charge shows up on the income statement, but note that no actual cash charges occur (apart from any maintenance that is required).
However, if the company did sell this equipment, those depreciation charges would disappear, making the company's income statement look better! Considering the company is not hurting for cash, it would seem that Sterling is better off with the extra capacity, since the actual cash costs (as opposed to earnings costs) are minimal. The extra capacity could come in handy if competitors go under or if the government passes infrastructure stimulus bills.
Usually, minority public investors don't get to know what goes through a manager's mind when it makes a decision to reduce capacity. Sterling, however, illustrated on its last conference call how short-term earnings (as opposed to long-term cash flow) can influence decision-making. Here were management's comments on the topic of selling idled equipment that it believes it will eventually require:
"We're struggling with that issue. So far we are absorbing that extra cost...I have some on our management team that would prefer that we [sell idled equipment], mostly to enhance currently reported financial results. Most of us are of the opinion that that's shortsighted."
Warren Buffett has stated time again that managements must concentrate on long-term returns over short-term earnings management. He notes, "If a management makes bad decisions in order to hit short-term earnings targets...no amount of subsequent brilliance will overcome the damage that has been inflicted." All sorts of companies are busy trying to make earnings look better than they are; investors would be well served to find and stick with managements doing right by shareholders over the long term.
Disclosure: None
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on August 31, 2010 10:40 AM · permalink
<p>India’s Oil Bill is 51% higher than last year for <a href="http://commerce.nic.in/PressRelease/pressrelease_detail.asp?id=2629" target="_blank">the April to June quarter</a>. Sure, the average oil price has moved up from $60 average last year to about $70 average today. There is also the fact that since oil payments may have been hedged at lower levels (remember oil was in the $30s in December 08).</p> <p>The oil bill for this quarter is about $25 billion; at $70 per barrel that’s 4 million barrels per day! Even if we presume $75 per barrel, we are at 3.7m barrels per day. Imported, remember – we produce around 700K barrels per day. Now 4 million barrels per day is a lot of barrels – we consume about 3 million barrels of crude per day, and of that we import about 2.3m. If you take last year Q1’s imports that comes to about 3 million barrels per day – meaning the extra must be what we refine and export? </p> <p>With that assumption do we now import more than a million barrels a day to refine and export? That’s very interesting, because the stuff we buy and refine is largely the heavy forms of crude which is cheaper and has slightly higher margins. </p> <p>The trade deficit for June was $32 billion and <a title="India's July Trade Deficit at $43 billion" href="http://commerce.nic.in/PressRelease/pressrelease_detail.asp?id=2638" target="_blank">July has gone to $43 billion</a> – at this rate we’ll have about $100 billion as the trade deficit (which is as much as our oil import bill, really). It should be interesting to chart this.</p> <div class="blogger-post-footer"><p style="border: 1px solid #C888C8">
This post is written by <a href="http://blog.investraction.com">Deepak Shenoy</a>,
at <a href="http://blog.investraction.com">Capital Mind</a>.
</p><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/18601284-3614494062482015074?l=blog.investraction.com' alt='' /></div>
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Posted by Deepak Shenoy (noreply@blogger.com) on August 31, 2010 09:26 AM · permalink
<span style="font-weight:bold;">Scripscan:Concurrent (India) Infrastructure Ltd.<br />Code:531261<br />cmp:28<br />Target:100<br />Duration:9-12 months<br /><br />Story:-For a true watershed moment in a lifetime,stock markets retail fraternity has been clamouring for a small cap masterpiece that has the potential to be a 10-20 bagger and Concurrent India infra fills the gap.This is a company, as you have gleaned from the inescapably omnipresent penned note of mine time and again, about something which is set to retire you early.At some point one needs to get beyond these details and ask: who the hell is running this steroidal company?That is precisely what I did some months ago and spent three of the most engrossing hours of my life, listening to the life story of Mr K.Sudhir Babu.But sadly no matter how hard you work some hypocritical parasitic troglodytes would always try to pull you down.This is the case with our concurrent's ceo, K.sudhir babu.Evidence?<br /><br />1)Allegation:-He is laundering money,another Ramalinga raju in making.<br /><br />Ans)Such is the passion and commitment of this guy he doesn't even draw a single penny to his home when he can easily draw 30-35 lakhs per annum."Ceo's remuneration for the last two fiscal has been "NIL".Sounds absurd?Never even heard about such once in a galaxy cases rite?Satisfy yourself by glancing through the recent annual report.Rather than answering he questions one,"I can make 1 cr with that 20 lakhs.So why would I draw that figure when I don't require it?Happy with the answer?<br /><br />My remark:-Its only a matter of time before India Inc notices the gem.Its only a matter of time when the shareholder base increases to a lakh from high 4 digits.<br /><br />2)Allegation:-The CEO is making stories and dumping his shares to gullible public.<br /><br />ans)Those were inter Dp transfer to his employees where he transferred around 3.3 lakh shares to his employees in 2-3 tranches.Why?For motivation,for giving them the ownership feel.How many of you went through the fineprint of its agm update?It clearly says the owner is planning to increase his stake by a massive 5% through warrants.Hell 5% is over 21 lakh shares and I believe the pricing would be done at 29-30rs.<br /><br />My remark:-The owner knows most about his company and is putting 6.5crs from his pocket to increase his stake.Do I need to speak more?Jubilation cant wait folks.If the promoter can buy such a massive quantity at 30 why cant you at 28?Don't stammer now.Its such a confidence booster which immediately instills amazing conviction on the company.This single point itself is enough to defend the company against all odds.<br /><br />3)Allegation:-Concurrent came with its true colours when it announced the Sikkim spdc deal which is completely baseless.<br /><br />ans)The evidence was shown in the AGM today.Concurrent is very very hopeful of concluding the deal shortly.<br /><br />My remark:-Being a no-nonsense guy few weeks back I with a close buddy of mine(Who again happens to be a big concurrent shareholder)went to "Investigate" about the Sikkim episode.We did whatever we could,interacted with immense number of people, got satisfied and returned very happily.Honestly its easy to bag projects from a place where the national highways are 5-6ft wide.Gosh had a real terror time traveling to that shit of a place(Kolkata to bagdogra by air,from bagdogra to gangtok is a strenuous life threatening 6 hours travel by car).Do check the Sikkim pics in my orkut album.<br /><br />4)Allegation:-All the other bagged orders and acquisitions are fake.<br /><br />ans)Concurrent clarified again with full proof evidences which satisfied all the investors who attended the AGM.<br /><br />My remark:-My proxies who attended the AGM were very pleased.Infact they helped themselves with few thousand shares at the dying moments of yesterdays trading session.They plan to buy in bulk in the coming days.It would be prudent to note that I clarified all with my sources before.All the orders are in hand and would be completed within schedule.<br /><br />5)Allegation:-The company is having real estate as a vertical and it busted.<br /><br />ans)Forget about a bust the landbank itself is many times superior than the present marketcap of the company.<br /><br />My remark:-K.sudhir is such a dynamic visionary fellow,this guy sensed the real estate opportunity and acquired several acres of prime land at throwaway prices in and around Hyderabad during the bad times of 2002-03.We all are aware what followed next.Realty went through the roof for the next 5 years.Its only in 2008 it busted but nil effect to concurrent.It still owns all the lands and posses the developments and residential rights too.Once the situation betters(which has already changed a lot for good)the company would reap a heap of cash by developing them.This vertical again can do bigtime wonders for the company.<br /><br />Conclusion:-All of us,at some point in our life, have read the story of King Bruce and the spider -- the disappointed king who took heart from the spider, which fell many times to finally complete the Web.K.Sudhir.Babu, CEO of Concurrent India infra, is one such Bruce of the modern times.So, going ahead, if you are looking at someone who will help you become truly rich without taking a rupee's favour in return then the man in all probability is going to be KSB and his company Concurrent India infra. When you see a stock like Concurrent at a price of Rs 28-29 and a market cap of Rs 120 crore, it is not just another opportunity; it is a once-in-a-generation opportunity, especially when you factor in the growth that its set to witness in the coming years.Happy investing folks.<br /><br />Regards,<br />ARUN<br />9804589299<br />I can be reached at:arunanalyst@rediffmail.com</span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on August 31, 2010 04:01 AM · permalink
Posted by Deepak Singh on August 31, 2010 12:42 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/mEwYjZGtu9u23Rw7aqZeEaGtWuk/0/da"><img src="http://feedads.g.doubleclick.net/~a/mEwYjZGtu9u23Rw7aqZeEaGtWuk/0/di" border="0" ismap="true"></img></a><br/>
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<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Mutual Fund</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Fidelity Mutual Fund </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Type</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Close Ended </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Category</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Income </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Launch Date</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> 30-Aug-2010 </td>
</tr>
</table>
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<p><a href="http://www.amfiindia.com/nfo.aspx?intId=4789#123">Fidelity Fixed Maturity Plan – Series III – Plan C</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by kalyan on August 31, 2010 12:07 AM · permalink
<p>The Government introduced the Direct Tax Code Bill today. After some serious amount of searching, I <a title="Direct Tax Code Bill" href="http://164.100.47.4/BillsTexts/LSBillTexts/asintroduced/DTC%20%28110%20of%202010%29%20To%20be.pdf" target="_blank">found the bill online</a>, after struggling with pages timing out, debugging communication messages and guessing IP addresses. (Read: It was darn easy in the end, but I had spent so much time I needed to make it look like it was a bloody difficult job).</p> <p>What matters is not that I found it. What matters is what is in it.</p> <p>First, <strong>this bill of the DTC applies from 1 April 2012</strong>, so heave a sigh of relief. </p> <p>For salaried income: Deductions are Employment Tax, Travel allowance (currently Rs. 800 a month), actual reimbursements, employer’s contribution to pension [upto 10% of salary], retirement or provident fund [upto 12%].</p> <p><strong>Housing rent allowance is fully exempt,</strong> without the complex formula – now it is limited to the rent actually paid. Nice. </p> <p><strong>Property income</strong>: Only rent actually received is taxable. You get to deduct local taxed and 20% of the gross rent, plus all interest paid on a loan for that property. If you take on a loan before the property is ready, you get to amortize the interest paid before possession over the subsequent five years, equally.</p> <p><strong>Securities Transaction Tax stays.</strong> We will now pause for a minute to pray for the arbitrageurs that died after that sentence.</p> <p>Capital Gains: First calculate the gain as selling price minus cost price minus all intermediate costs. <strong>For shares and equity mutual funds on which STT is paid and held over a year, ZERO.</strong> Rejoice. </p> <p><strong>Shares and MFs with less than one year of holding</strong> – 50% of the gain (or loss) is “ditched” and the rest added to income. </p> <p>For debt MFs or shares transferred off-market or Gold ETFs or things like that: To qualify for LTCG (Long Term Capital Gains) you have to hold the asset for “<strong><em>one year from the end of the financial year in which the asset is acquired</em></strong>”. If you buy on April 1, 2012, you have to hold it till after March 31, 2013 – that’s two years at the extreme. Then, you get to index the costs to inflation. If you’ve bought the asset before 2000, then you must assume indexation from 2000, but you get the option – and I mean it’s your choice to do this if it works in your favour – of using the price on April 1, 2000. This is incredible, for me, because my family owns shares held for over 20 years. </p> <p>Any other short term capital gains are simply added to income. </p> <p>There will be a <strong>Capital Gains Deposit Scheme</strong> where you can dump the proceeds (not just the gains, the entire proceeds) of capital asset sales (long or short term) and not pay tax. You can buy a house or agricultural land to offset cap gains taxes, within a year after the sale or use the Cap Gains Deposit Scheme, to park money upto three years to invest in such a tax-offsetting asset. You get to do this for max two residential properties for a person. </p> <p><strong>Deductions</strong>: Everyone gets a <strong>Rs. 100,000 deduction</strong> for money put into “approved funds”. What we don’t know – are ELSS mutual funds “approved”? Are "ULIPs” approved? Most likely no to both. They do mention that approved funds are – </p> <ul> <li>PF, retirement or gratuity funds</li> <li>Pension funds</li> <li>Any thing else specifically approved </li> </ul> <p>An <strong>additional Rs. 50,000</strong> is deductible under 3 heads – 50K is the limit for all of them added up.</p> <ul> <li>Pure life Insurance – defined as any policy where the premium is less than 5% of the sum assured for ALL years of the policy, </li> <li>Health insurance</li> <li>Two children’s tuition fees (including pre-school fees). But no donations or “development fees”.</li> </ul> <p><strong>Housing</strong>: This gets interesting. First, <strong>no principal deduction</strong>. Second, interest is only deductible if the <strong>house is completed within three years of the loan commencement</strong>. (And the pre-completion interest is amortized forward over five equal yearly installments. You don’t get the deduction during the pre-completion phase) The interest deduction limit is Rs. 150,000.</p> <p><strong>Higher Education loan interest </strong>is deductible for seven years, but it’s gotta be from a bank or FI (not relatives) and for a course the govt. recognizes. (Sorry, IIPM. Perhaps even ISB will not qualify!) </p> <p><strong>Medical expenses</strong> get a 40K deduction if you actually spend the money on medical treatment. 60K for treatment of senior citizens. Oh, and if you get insurance, that much is not counted.</p> <p><strong>Tax slabs: </strong>Upto 200,000 a year, no tax. <br /><em>Rs. 200,000 to 500,000</em>: 10% <br /><em>Rs. 500,000 to 10 lakhs</em>: 20% <br /><em>> 10 lakhs</em>: 30%. </p> <p>It’s progressive, and slabbed. For senior citizens (65+), the first slab is 250,000. For companies, the rate is 30%, and Minimum Alternate Tax is 20% (but you can claim it back within 15 years)</p> <p><strong>Dividends and Insurance income </strong>distribution from “Equity Oriented Insurance Schemes” (ULIPs) get taxed – at 5%. The 15% dividend distribution tax stays. That means to go through equity mutual funds you actually pay a lot – first companies pay 15% tax on dividends, then the mutual funds get a tax hit of another 5%. </p> <p><strong>Wealth tax</strong>: 1% of whatever’s above 1 crore rupees, every year. But not including the house you live in. This is just horrible, but amounts to just 1% more income tax, if you look at it. But if someone has money in illiquid assets like multiple houses, or equity, they’ll find the going tough. Think of the promoters of Indian companies! </p> <p>With about 35 lakh crores under private sector ownership, that alone will give the government more than 30,000 cr. of wealth tax revenue.</p> <p>But the section actually doesn’t count assets like shares and bonds! This needs lawyer input but it seems like for wealth, they consider land, farm houses, cars/yacht/aircraft, jewellery and bullion, antiques and paintings, expensive watches, cash, and shares held in foreign companies. Nothing about Indian company shares, or bonds, or mutual funds. </p> <p><strong>EEE or EET</strong>: NPS goes Exempt on withdrawal – commutation of pension (lumpsums) upto 1/3rd or 50% of the amount in different cases. </p> <p><strong>Life insurance paid on death is exempt</strong>. This is still a great way to transfer assets without a will. </p> <p>All exemptions for donations to non-profits, political parties etc. stay. </p> <p>Nothing much changes, really, other than a few exemptions gone, and wider tax slabs. Retaining LTCG at zero for equity markets is good, of course, but it won’t last that long. Wealth tax can be a huge issue or a non-issue, if there is clarity on whether it applies on share/bond holding. </p> <p>To me this is no big deal – just business as usual. But the equity markets have reason to rejoice. </p> <div class="blogger-post-footer"><p style="border: 1px solid #C888C8">
This post is written by <a href="http://blog.investraction.com">Deepak Shenoy</a>,
at <a href="http://blog.investraction.com">Capital Mind</a>.
</p><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/18601284-5061293652620501153?l=blog.investraction.com' alt='' /></div>
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Posted by Deepak Shenoy (noreply@blogger.com) on August 30, 2010 08:10 PM · permalink
Posted by Deepak Singh on August 30, 2010 12:53 PM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/CGEk0_ZzJeLmO8tVQhxbqRujQMA/0/da"><img src="http://feedads.g.doubleclick.net/~a/CGEk0_ZzJeLmO8tVQhxbqRujQMA/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/CGEk0_ZzJeLmO8tVQhxbqRujQMA/1/da"><img src="http://feedads.g.doubleclick.net/~a/CGEk0_ZzJeLmO8tVQhxbqRujQMA/1/di" border="0" ismap="true"></img></a></p><p></p><p>Want to invest in <strong>best mutual funds in India</strong>? Read on. I have compiled a short list of Mutual Funds which are top mutual funds in Equity Diversified category. These are long-term winners in their categories and have proved their performance over the years by beating their benchmark and category average by a good margin. These are non-tax saving <strong>Equity diversified mutual funds</strong> which are large cap oriented. Remember that I am giving a list of funds. These are funds which have more than half allocation in large cap oriented companies and around 50% of their money in top 3 sectors they hold . Based on these criteria, I am putting 7 best mutual funds along with analysis, some of these are very old and some are relatively newer. (last year list)</p>
<p><strong>List of Best Equity Mutual Funds</strong></p>
<p><img class="aligncenter" src="http://img.jagoinvestor.com/ji/cagr_returns_of_different_top_mutual_funds.png" alt="Best Mutual funds in India" /></p>
<p style="text-align: right;">Source : valueresearchonline.com</p>
<p><img class="aligncenter" src="http://img.jagoinvestor.com/ji/equity_returns_of_different_top_mutual_funds.png" alt="Best Mutual funds in India" /></p>
<p><strong>Portfolio & Sector Allocation </strong></p>
<p>All the above funds have returned around 20% or more in different time frames consistently, which is very encouraging when you want to invest in these funds. However our concentration this time is large cap oriented mutual funds, we are not including funds which have high concentration in midcap or small cap funds. Lets look at these mutual funds share in Large or Giant Companies. My criteria was to have at least 60%+ in Large/Giant Companies and around 50% allocation in the top sectors they invested in. We also have funds expense ratio which is around 2% for each of them . Read <a href="http://www.jagoinvestor.com/2009/03/magic-of-sip-part-2.html">Magic of SIP</a></p>
<p><img class="aligncenter" src="http://img.jagoinvestor.com/ji/Equity-mutual-funds-portfolio.png" alt="Best Mutual funds in India" /></p>
<p style="text-align: right;">Source : valueresearchonline.com</p>
<h3>Fund Manager and a brief Overview of Mutual Funds</h3>
<p>Past performance is just one of the criteria we can look at, but it’s not enough and not a guarantee of how it will perform in future. Lets also look at who manages it and how these funds have done so far overall as per their mandate and investing philosophy. Please note, that we are talking about <a href="http://www.jagoinvestor.com/2008/04/mutual-funds-options-growth-dividend.html">Growth option</a> here and not dividend option.</p>
<p><strong>HDFC Top 200</strong></p>
<p>HDFC Top 200 is one of the most well-known Mutual Funds in the country. It’s amazing performance of 26% CAGR in last 14 yrs is the proof. 10 lacs invested in HDFC Top 200 since Inception is worth 2.54 crores (non taxable) today compared to 30 lacs in FD (taxable) . Some achievements of Fund’s are that in 2008 bear market, HDFC Top 200 was able to restrict its fall to 45% only, which was 11% less than its benchmark and 8% less than its category. <a href="http://business.in.com/article/boardroom/what-is-prashant-jains-secret/15812/1" target="_blank">Prashant Jain</a> is the Fund Manager of HDFC Top 200 and one of the best known and famous Fund managers in the country with a long term experience.</p>
<p>Prashant Jain’s Investment Approach : “The criteria that go into selecting stocks/sectors are quality, our understanding, growth prospects, valuation of businesses and the composition of the benchmark – BSE 200.” . The fund has good 20% allocation in Midcap or small cap stocks which gives a kicker in returns.</p>
<p><a title="How to look beyond short term returns in Mutual Funds" href="http://www.jagoinvestor.com/2010/02/how-to-look-beyond-short-term-returns-in-mutual-funds.html">How to look beyond short term returns in Mutual Funds</a></p>
<p><strong>DSP BlackRock Top 100 Equity<br />
</strong></p>
<p>DSPBR top 100 is not a decade old fund, but its performance is strong enough to say that its one of the best in the category as of now . The fund has given enough proof of its performance like even in the first year of its launch it gave an amazing 129% return beating its benchmark by an “oh my god” 29% return <img src='http://www.jagoinvestor.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> . It also showed its capacity to restrict loses in the bear market of 2008 by falling by only 46% compared to its benchmark which fell by 55% , thereby giving a better performance by 9% . The best thing I liked about this fund is that this fund has provided very strong performance by mainly focusing on large cap companies, the fund allocation in Large cap companies stands at 94% which is outstanding. This clearly shows the competence of Fund manager Apoorva Shah who is managing the fund for the last 3 yrs.</p>
<p><strong>Birla Sun Life Frontline Equity A<br />
</strong></p>
<p>This is another winner in the long run. Over the years Birla Sun life frontline equity has consistently outperformed its benchmark by a good margin. During the market falls of 2004, 2006 and the the big crash of 2008 and early 2009, This fund was able to restrict downsides better than its benchmark. The fund is largely Large Cap oriented, however the fund is known to take some risks in Midcap space and hence has seen one-quarter and its first year lagging behind its benchmark , but that was not a prolonged behaviour, over all it has done great. The main reason it came to top in performance was entry of Mahesh Patil as the fund manager in Nov 2005 .</p>
<p><strong>HDFC Equity</strong></p>
<p>This fund is for <a href="http://www.jagoinvestor.com/2009/03/what-is-long-term-in-share-market.html">long-term investors</a> because HDFC Equity does not hesitate to take risks. Having a good allocation in midcap/small cap companies , Its performance comes by being invested for long-term, which means short-term volatility in its performance . Being 15+ yrs old fund, have shown its performance over and over again , this one is for people who really like to play with mutual funds on long-term basis. The fund manager is again star performer Prashant Jain, who took over this fund in 2003 and the fund has never looked back. Just to give you a flavor, the fund in 2009 has given 30% more than Nifty Index and in the last 1 yrs itself it has given 42% return compared to just 15% from Nifty. You can count this one as an aggressive large cap fund for investors with strong heart and long-term vision <strong><br />
</strong><strong> </strong></p>
<p><strong>UTI Opportunities</strong></p>
<p>As the name suggest, UTI opportunities is for you, only if you a <a href="http://www.jagoinvestor.com/2009/12/ability-to-take-risk-vs-willingness-to-take-risk.html">risk taker</a> and like to bet on different opportunities available in the market. As per the mandate of UTI opportunities it looks at the gaps available in the market and the sector and pics the stocks which are really undervalued and might outperform in future. As per the fund mandate, the Fund manager dynamically shift between sectors depending on the macro economic outlook and opportunities available in the market. This means potential of huge upside as well as risk of getting wrong . After Harsh Upadhyaya took over in 2007, the fund has done wonders and has given returns double than its benchmark, which is impressive . So if you a kind of investor who likes to take chance on opportunities, UTI Opportunities should be in your Portfolio .</p>
<p><strong>Reliance RSF Equity</strong></p>
<p>Reliance RSF has shown some impressive performance over last some years. However the fund is fairly aggressive in nature and is known to take risky calls whenever it finds good opportunity, despite being called a large cap fund, Reliance RSF has large amount (45%) of portfolio in small and mip cap stocks at the time of writing this article, The fund did not really do very well when it started, but within a year it came on track and then showed good performance. Remember that this is a risky fund and can be actually compared to mid cap funds in some sense given its nature of taking risks . So it might not suit you if you like to take long-term calls and want to be on safe side. The fund is also known to churn its portfolio faster, so be cautious.<strong><br />
</strong><strong> </strong></p>
<p><strong>UTI Dividend Yield</strong></p>
<p>This fund is really special. UTI dividend Yield is another gem in the basket of Diversified mutual funds with a different style of investing. This is one fund, which has a woman for a fund manager in Swati Kulkarni, who has done wonderful job in managing the fund till now . As per the mandate, UTI dividend yield fund should make investment of at least 65 per cent of the portfolio in equity shares that have a high dividend yield at the time of investment. The fund has managed to successfully deliver on its commitment and have never deviated from its words. That’s called ethics and focus. Due to this, the fund has given strong performance and because of its nature of strategy the downfall is always restricted well. Ladies would like to invest in this fund given they like to play safe and it also comes from a lady fund manager <img src='http://www.jagoinvestor.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> (<a title="Women & Personal Finance in India" href="http://www.jagoinvestor.com/2010/03/women-personal-finance-in-india.html">Women & Personal Finance in India</a>)</p>
<h3>Which one should you invest in ?</h3>
<p>Remember that you have to take a call based on what your time frame is and which fund suits your requirement, Overall, if you are too confused in choosing the fund, I would say the best thing would be to choose any, randomly and invest rather than delaying your decision because of confusion. Another thing which you should understand that this is not an exhaustive list. There are enough funds other than these which could have been here in the list, but I have not included them as these 7 funds were the one which came on the top as per my criteria and also because I wanted to limit the number of funds to a single digit so that one can choose with less confusion. Also make sure your <a href="http://www.jagoinvestor.com/2009/07/power-of-asset-allocation-and-portfolio.html">asset allocation</a> is correct</p>
<p><strong>Disclaimer</strong> : Note that these funds are pure equity funds and just because they have performed excellent in history does not make them future star performers. This is just an assumption, that they will keep doing great even in future given their investment style and integrity in management till date . Also you have to make sure you review your investments every year so that you throw out the laggards and pick better funds. Expect around 12-13% in future even though they have high potential. This article should in no way be treated as encouragement to invest in these funds. Your decision is purely yours <img src='http://www.jagoinvestor.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> </p>
<p><strong>Comments </strong>: Which other funds did you expect in this list? Do you have other funds name which deserved to be here according to you? Do these funds suit your requirement?</p>
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Posted by Manish Chauhan on August 30, 2010 11:50 AM · permalink
<p><span>Although the Indian indices began the day's proceedings on a strong note, subsequent bouts of profit booking pared some gains. While the latter part of the afternoon session saw the indices struggling to stay afloat, renewed buying in the final hour helped the indices to close in the positive. While the BSE Sensex closed higher by around 34 points (up 0.2%), the NSE Nifty gained around 7 points (up 0.1%). While the BSE Midcap closed marginally in the positive, the BSE Smallcap closed in the red. While metals and auto stocks found favour, IT and FMCG stocks were at the receiving end. <br><br>As regards global markets, most Asian indices closed in the positive today while European indices have opened on a mixed note. The rupee was trading at Rs 46.88 to the dollar at the time of writing. </span></p>
Posted by Equitymaster on August 30, 2010 11:32 AM · permalink
<p>The telecommunications market in India has tremendous potential, and there is no communications equipment maker in the world which is not increasing its presence there at this time, ahead of the era of 3G cellular communications. That technology is still not available for hundreds of millions of customers there.</p><p>It must be understood that this is a country where wired broadband, such as ADSL, is almost non-existent, because of a lack of appropriate infrastructure. So surfing over cellular communications seems to be the only solution for hundreds of millions who thirst for online information.</p>
Posted by Shlomi Cohen on August 30, 2010 10:17 AM · permalink
In the fifteen year record of Palm's existence, it generated an operating income in just 6 of those years. The best operating margin it could ever manage was 8.5% (1999) at the height of the tech bubble. In no single year did Palm ever generate a return on equity of over 10% (the closest was 7.8% in 1998), even though it was considered the leader in its industry during that period.
RIM, on the other hand, operates at very high margins and generates returns on equity that are extremely high. The following charts illustrate how RIM has been more profitable in each of the last five years than Palm was even in its best year:
When an industry grows at a 25% rate despite a recession, there is room for success for many companies. The success of one or two companies (e.g. Apple, Google) does not preclude the success of other companies. Investors who predict the demise of companies generating ROE's of 30% in growing industries are ignoring the most fundamental and basic aspect of whether a company is sustainable: its financials.
In a similar way, GameStop (GME) is often touted as the next Blockbuster. But an examination of the financials shows that these two companies are nothing alike, and never have been. While one barely snuck by, even in its "good years", the other continues to deal from a position of financial strength that the former never had. That again appears to be the case here with RIM and Palm. But investor sentiment is so low, that RIM trades at a P/E below 10 once its cash balance is factored in.
Disclosure: Author has a long position in shares of RIMM
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on August 30, 2010 10:10 AM · permalink
<p>In a sudden flurry of announcements, SEBI changes the technology game.</p> <ol> <li><strong>Mobile trading <a title="Mobile Trading will be allowed" href="http://www.sebi.gov.in//circulars/2010/cirmrd25.pdf" target="_blank">will be allowed</a></strong>. Meaning, you will soon be able to trade directly from your mobile phone. I believe this is useful for people that travel a lot in the day. Mobile trading may be possible using “mini” sites like Sharekhan has recently provided, but the functionality is limited (can’t easily see order book changes, modify orders etc.). A mobile app will be more useful and can easily piggy back the current layers that brokers use online (SSL, web service layer). Plus mobile charting, screeners etc. are useful in that you can use them to actually place trades. The mobile operators, though, are of no use – brokers don’t even need them other than if they will cut costs dramatically.</li> <li><strong><a title="Smart Order Routing" href="http://www.sebi.gov.in//circulars/2010/cirmrd26.pdf" target="_blank">Smart Order Routing</a></strong>. When you place your order it has to go on a specific exchange. With Smart Order Routing the broker can check the pricing on different exchanges (currently BSE/NSE but MCX-SX is coming soon) and place the order appropriately. Divided into chunks, this makes a lot of sense for automated order routing for which complex algorithms have already been designed; institutions like mutual funds or pension funds can use such a facility to auto-route orders appropriately. It’s strange that this needed “authorization” from SEBI – brokers should have been able to do it already, or provide the programs to the client to do it. Strange, indeed.</li> <li><a title="Call Auctions at market open" href="http://www.sebi.gov.in//circulars/2010/cirmrd27.pdf" target="_blank"><strong>Call Auctions at market open</strong></a>: Brokers allow investors to place orders outside market hours, and these are placed into the exchange at 9 AM during hte market open. If there are a lot of orders at “market” there is a problem – the “market” hasn’t yet been discovered for the day, and prices can go haywire (they indeed do, as noted in many stocks, and brokers/punters take undue advantage). Call auctions help streamline the price discovery process – the original circular was a July 15 one.</li> <li><strong><a title="Private treaties to be disclosed by media" href="http://www.sebi.gov.in//press/2010/2010200.html" target="_blank">Private treaties to be disclosed</a> by media</strong>. Many press entities like Times of India own stake in certain businesses as part of “Private Treaties”, in return for (partly) advertising real estate and coverage. This skews incentives in that sometimes negative news about the entity is held back or is spun around because the equity ownership may otherwise be in danger of losing value. In India selling editorial space is considered okay – that is, you buy an ad, and they’ll write a column about your company; I have been offered this kind of deal at multiple times. SEBI along with the Press Council has decided that such private equity ownership must be revealed on the media web sites. [<em>I think this is a good rule, though our media companies will continue to act like hedge funds until they can.]</em></li> </ol> <p><font color="#555555"> </font></p> <div class="blogger-post-footer"><p style="border: 1px solid #C888C8">
This post is written by <a href="http://blog.investraction.com">Deepak Shenoy</a>,
at <a href="http://blog.investraction.com">Capital Mind</a>.
</p><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/18601284-5535994546403996608?l=blog.investraction.com' alt='' /></div>
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Posted by Deepak Shenoy (noreply@blogger.com) on August 30, 2010 07:55 AM · permalink
<span style="font-weight:bold;">Borosil just sold its bandra property today for a massive 800 odd crs.The same info was penned few months back.Check the link for the same.<br /><br /><a href="http://www.arunthestocksguru.com/2010/04/borosil-glass-works-ltd.html">http://www.arunthestocksguru.com/2010/04/borosil-glass-works-ltd.html</a><br /><br />Scripscan:Borosil Glass Works Ltd<br />Cmp:519<br />Code:502219<br /><br />Story:Hi mr.Arun..This is dinesh of geojit again.I had interacted with you few month before in mail.Your stock picks and investment ideas is nice.We had gained few bugs with your ideas so to greet you we giving a multi bagger stock gee for investment and that stock is BOROSIL GLASS WORKS a bse listed stock.We had accumulated A lot in our offices.The news is that the company going to open tender for 800cr land sale next week.The entire process values the stock price above 2000.It has potential to raise minimum 3 times from here within two months.We hold 50thousand shares accumulated everything in market for last two months.Its now or never.Publish this stock in your website also and get lots of new followers for you to gain in future..Happy investing.<br />My views:I wont like to have a say here.My work is to present prudent spicy ideas to you folks.This sort of hearsay/rumuor/insider info can either help you to make a killing or can erode your capital immensely.If this gentleman feels I am posting this for getting more followers that would be utter rubbish.Its all substance that counts for me.So folks act as per your gut feeling.<br /><br />Latest update:As you see folks borosil was given at 500rs 4 months back.Indeed the news got vindicated today.Borosil to move in circuits now.</span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on August 30, 2010 07:26 AM · permalink
<span style="font-weight:bold;">Scripscan:-Bellary Steels & Alloys Ltd<br />Cmp:3rs<br />My view:-Fraud dubious company<br /><br />Story:Now a days one stock which has kept me busy reverting to people query is none other than "Bellary Steels".I have been told to have a close look on the counter as its scripting a new scripture for itself.So let me proceed on:-<br /><br />Year 2000-2001:-Several financial institutions on hopes of recovering their dues and to find out the unscrupulous activity of the company ordered a special investigative audit through a bangalore based firm which vindicated several inherent problems of the company like misuse of funds,horrendous financial condition etc.The investigation showed that without the permission and awarence of the board members bellary steel transferred funds to set of its own associate companies.Further the company wrote off debts,transferred goods from one company to other at a loss etc.<br /><br />Year 2003-2004:-On september 2003 the Securities and Exchange Board of India and the stock exchanges decided to shift bellary steels and several scrips to the trade-to-trade (T-to-T) segment as a surveillance measure.Not withstanding the same bellary steel filed a case against the formers mentioning that the company has got listing agreement with BSE, which is a contract that binds the exchange into listing the shares in a particular segment and that it cannot unilaterally make a change.I haven't heard much about the case after that its still pending I assume.<br /><br />Year 2004-05:-Economy is in upswing and the steel rally begins.From fiscal 04 to begining of 07 all companies except bellary steel had doubled,tripled,quadruppled and so on.Some even became 15-20 baggers.From sick BIFR companies those companies except "Bellary" became financially sound dividend paying companies.I can mention a nomenclature of them but bellari's fortunes never changed infact it got surmounted with more losses.<br /><br />Year 2005-06:-SEBI in an interim order directs Bellary Steel & Alloys Ltd and its directors not to issue any further shares or alter its share capital till further directions.The company and its directors have been prohibited from accessing the capital market or dealing in securities, directly or indirectly.The SEBI order follows a complaint filed by KSFC against Bellary for its failure to redeem Rs 1.5 crore NCDs that it had subscribed in 1996.The story is big but in a nutshel i can only say "Mr S. Madhav" the Chairman and Managing Director of Bellary Steel is the guy behind all these scams with his malafide intention of cheating each and everyone.Mind you the guy is still the MD of the company.<br /><br />Year 2007-2008:-The scrip gets an unprecedented rally and becomes a 15 bagger moves from 1 to 15 in just a matter of just 8 months.The reason which supported the spurt is said to be the company having "huge real estates(mortgages with FIs),takeover buzz by JSW steel(promoter luring of simple gullible investors),Turnaround story(Absurd stuff, company never posted any profits)blah blah.<br /><br />April 2008:-Market regulator SEBI bans Bellary Steels along with 3 other entities and their directors from accessing capital markets for five years in a case involving issuance of duplicate shares.SEBI also directs Bellary Steels to cancel the duplicate shares lying in the demat account of Panchloha Hotel and take "appropriate steps.. to recognise the valid shares pledged with the KSFC) in the books of the company/STA (share transfer agent)/depositories".SEBI passed the order after investigating a complaint by KSFC inJan 2006 that Bellary Steel has issued duplicate shares with the same distinctive numbers "with the malafide intention to cheat KSFC".<br /><br />Conclusion:Have I said it all or still you folks thinks it to be the next multibagger?I wonder how still it can quote at 3-4rs.OOps sorry sorry,I recall about you guys and your investments in bellary steel.Many of you are still averaging for sure...isnt it?A fraud loss making company,a cheater promoter who still is on board and holds the highest number of shares,its such a company which just exists on papers and on your demat accounts.<br /><br />Still you feel it to be the next multibagger?<br /><br />Regards,<br />ARUN<br />I can be reached at:-arunanalyst@rediffmail.com</span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on August 30, 2010 04:31 AM · permalink
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<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Mutual Fund</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> ICICI Prudential Mutual Fund </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Type</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Close Ended </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Category</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Income </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Launch Date</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> 27-Aug-2010 </td>
</tr>
</table>
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<p><a href="http://www.amfiindia.com/nfo.aspx?intId=4782#123">ICICI Prudential Fixed Maturity Plan – Series 52- 1 Year Plan C</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by kalyan on August 30, 2010 12:53 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/eHFR8Qu0-iOx5nHltT4vPAhB7ko/0/da"><img src="http://feedads.g.doubleclick.net/~a/eHFR8Qu0-iOx5nHltT4vPAhB7ko/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/eHFR8Qu0-iOx5nHltT4vPAhB7ko/1/da"><img src="http://feedads.g.doubleclick.net/~a/eHFR8Qu0-iOx5nHltT4vPAhB7ko/1/di" border="0" ismap="true"></img></a></p><span style="font-family:arial;font-size:85%;">There is none.</span><br /><span style="font-family:arial;font-size:85%;"><br />If you were expecting me to share some magic key to super high returns, you must be disappointed. It is amazing that there is an entire segment of the financial industry which is into selling all kinds of special ways of making very high returns with minimal risk and absolutely no effort. I will not blame the seller alone for selling </span><a href="http://en.wikipedia.org/wiki/Snake_oil"><span style="font-family:arial;font-size:85%;">snake oil</span></a><span style="font-family:arial;font-size:85%;">. They would not be able to sell this garbage, if there was no demand for it.<br /></span><br /><span style="font-family:arial;font-size:85%;">If one leaves aside the clueless and the greedy, the rest of the investors still live under several myths. Let’s look at some of the prevailing myths<br /></span><br /><span style="font-family:arial;font-size:85%;"><strong>Finding a multi-bagger is key to high returns<br /></strong>The number one aspiration of a lot of investors is to find the elusive multi-bagger or better yet a ten bagger. If one can find and invest in a multi-bagger, then he or she is all set for life.<br />I don’t deny the thrill of investing in a multi-bagger. However unless one has a focused portfolio (with 3-5 stocks), a multi-bagger will not make a huge difference to the overall returns.<br /></span><br /><span style="font-family:arial;font-size:85%;">The problem with focusing on multi-baggers is that one loses sight of the main objective (getting good portfolio returns) and ends up confusing the means with the end. A lot of times a mindless focus on multi-baggers blinds one to good opportunities, where one can make good returns (30-40%) in a decent period of time.<br /></span><br /><span style="font-family:arial;font-size:85%;">In addition to the above problem, new investors become susceptible to fly by night operators and other shady services which promise multi-baggers and quick returns.<br /></span><br /><span style="font-family:arial;font-size:85%;">Finally multi-baggers are the result of a good investing process, patience of holding the stock over a long period of time and ample luck.<br /></span><br /><span style="font-family:arial;font-size:85%;"><strong>Leverage<br /></strong>I have heard from some readers that they have considerable leverage in their portfolio and it has helped them to get high returns.<br /></span><br /><span style="font-family:arial;font-size:85%;">I am personally against leverage. High leverage is enjoyable when the going is good and one is making high returns, but it can kill your financial well being when things go wrong. The whole 2008-2009 financial disaster was a lesson in excess leverage, both by individuals and financial institution.<br /></span><br /><a href="http://en.wikipedia.org/wiki/Lord_Keynes"><span style="font-family:arial;font-size:85%;">John maynard Keynes</span></a><span style="font-family:arial;font-size:85%;"> said it best – The markets can remain irrational longer than you can remain solvent.<br /></span><br /><span style="font-family:arial;font-size:85%;"><strong>Inside information<br /></strong>The other common myth I have heard is that the markets are completely rigged and the only way to get high returns is to have access to insider information.<br /></span><br /><span style="font-family:arial;font-size:85%;">That may be true. It is quite possible that there are several shady operators in the market who try to manipulate the market and have been able to make a killing as a result.<br /></span><br /><span style="font-family:arial;font-size:85%;">It is however incorrect to blame the market operators alone for the losses of the small investor. A lot of time, cheats and con artist are able to take advantage of others due to their greed and fear. This is not limited to stock markets alone and one has heard of such stories in lots of other cases, especially if money is involved.<br /></span><br /><span style="font-family:arial;font-size:85%;"><strong>Super high intellect<br /></strong></span><span style="font-family:arial;font-size:85%;">The other common myth is that one is born with some kind of ‘finance’ gene. Such super talented investors can make money effortlessly and are destined for greatness. This myth is not limited to finance alone and extends to a lot of other areas such sports and education.<br /></span><br /><span style="font-family:arial;font-size:85%;">This is an topic is of great interest for me and I have read a lot on it (as I consider myself to have no inborn talent for investing).<br /></span><br /><span style="font-family:arial;font-size:85%;">The question is this – Is extreme skill, such as being a great investor or great sportsman the result of an inborn talent or something which one can develop over a lifetime?<br /></span><br /><span style="font-family:arial;font-size:85%;">There are a lot of great books on this topic – </span><a href="http://www.amazon.com/Talent-Overrated-Separates-World-Class-Performers/dp/1591842247"><span style="font-family:arial;font-size:85%;">talent is overrated</span></a><span style="font-family:arial;font-size:85%;"> and </span><a href="http://www.amazon.com/Mindset-Psychology-Success-Carol-Dweck/dp/0345472322/ref=sr_1_1?s=books&ie=UTF8&qid=1283093852&sr=1-1"><span style="font-family:arial;font-size:85%;">mindset</span></a><span style="font-family:arial;font-size:85%;">. My personal conclusion for whatever it is worth is this – Extreme skill is the result of a lot of focus and hard work over a long period of time.<br /></span><br /><span style="font-family:arial;font-size:85%;">There are lot more myths and I could go on and on. The key question is what drives high returns?<br /></span><br /><span style="font-family:arial;font-size:85%;">The key points which I think drives portfolio returns are quite simple and can be listed in a couple of points<br /></span><span style="font-family:arial;font-size:85%;"></span><br /><span style="font-family:arial;font-size:85%;">1.Continuous learning with the aim of constant improvement<br />2.Intellectual humility to learn from one’s mistakes<br />3.Hard work and intense focus<br /></span><br /><span style="font-family:arial;font-size:85%;">I don’t have any research to back the above points and state them from my personal experience and what I have read of other super-investors and top performers.<br /></span><br /><span style="font-family:arial;font-size:85%;">It is true that talent plays a part in one’s success, but intense focus and hard work drives eventual success far more than talent alone. I don’t think there is any great investor out there who has also not worked extremely hard over a long period of time to achieve that level of success. There is nothing natural in picking a good stock.<br /></span><br /><span style="font-family:arial;font-size:85%;">The counter point to the above statement can be – Do you think that working hard will make you a warren buffett or rakesh jhunjhunwala ?<br /></span><br /><span style="font-family:arial;font-size:85%;">I think this statement or thought misses the point. I may not become a warren buffett (highly unlikely), but working hard and focusing on this skill over a long period of time will definitely make me a much better and hopefully successful investor. </span><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/7004453-7246203885691176843?l=valueinvestorindia.blogspot.com' alt='' /></div><div class="feedflare">
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Posted by Rohit Chauhan (noreply@blogger.com) on August 30, 2010 12:40 AM · permalink
Posted by Deepak Singh on August 30, 2010 12:30 AM · permalink
<p><em>By fairval</em></p><p>Sucheta Dalal is creating some much needed debate about just how well the Indian stock market runs. Since NSE is the dominant player now, much of her criticism is directed against NSE. And very predictably, NSE reacted with intense vehemence.</p>
Posted by Wisdomsmith on August 30, 2010 12:11 AM · permalink
Reminiscences of a Stock Operator was originally written in 1922 as a first-person fictional account, but is now generally accepted as the biography of stock market whiz Jesse Livermore. The book is recommended to traders and value investors alike, for the lessons it teaches the reader in human behaviour as it pertains to securities trading and investing.Livermore discusses some of the successes and failures he has had in selling stocks for clients with large blocks. Due to his reputation in the newspapers as a skilled trader, he has received many such requests.
In these chapters, Livermore goes into detail about which companies he sold under the requests of which stock owners. In some cases, he had luck on his side, as a prevailing bull market enabled him to employ the technique (of running up the price, and thus encouraging volume to grow) described in the previous chapter. But at other times, he simply advised his requester to sell, as he feared things would only get worse if he purchased more.
In one particular instance, Livermore was double-crossed by a consortium he was in league with to drive up the price of a security. The large holders (who wanted to sell) were actually adding to their positions, as they figured Livermore would be driving the stock up in an attempt to attract speculators. Livermore, however, noticed the market action and did nothing of the sort. This left the large holders with even more stock to sell, and thus eventually caused the price to get driven even lower. Livermore notes that hogs are bound to lose.
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on August 29, 2010 10:57 AM · permalink
<span style="font-weight:bold;">Scripscan:Dharti dubi lotion ltd<br />cmp:52<br />Traded:Nse-bse<br /><br />Story:It can be another classic case of a massive fraudulence by a company which is listed in our stock markets and commands over lakh volumes a day.I am in no mood to disclose the name since that can create an immediate stir.Let the facts speak for the company which seems most prudent as of now.Concerned stakeholders please safeguard yourselves in no time and act accordingly as I furnish more information about the stock.Such is the open-ended crisis that in the last one year alone, as many as three auditors — Ernst & Young, Price waterhous Coopers India and Grant Thornton — walked out.Its new auditors never has been reviewed with its peers which itself is a violation of the law as peer review is a mandatory requirement for any auditor auditing a listed firm.To amaze me further the fineprint suggests those audit guys completed and issued the audited statements in a mere period of 20 odd days.Last year a FIR was filed against the same company by a big bank accusing the company promoters of a fraud worth 9 million usd.Dharti dubi had apparently raised money through bill discounting but when it failed to pay on schedule, the Bank contacted the customers to know that they had no business with the listed company.It was mentioned the accused company channelized those funds to reality sector making false claims of bagging huge contracts.The directors have been issued summons by a city criminal court for another 200crs fraud.The listed firm has allegedly diverted the huge amount to itself, violating various agreements that it had concluded with a Japanese trading firm in early 2008.Now their are strong rumuors in the market that the company is all set to bag a "200cr" order.Can you sense the foul play folks?It is reliably learnt that SEBI and the BSE and NSE have received serious complaints from the company’s vendors.For a clue,the company is a preferred vendor of BSNL.Our regulators are still horror striken over the satyam saga and so far nil action has been taken on the company.Corporate governance,listing clause blah blah gone for begging folks.Unfortunately,"The stunt is still on in the gallery".<br /><br />btw:The name has been changed but guess all can makeout the real name now.<br /><br />Regards,<br />ARUN<br />9804589299<br />I can be reached at:arunanalyst@rediffmail.com</span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on August 29, 2010 03:21 AM · permalink
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<a href="http://feedads.g.doubleclick.net/~a/NsI__jRaINrYPNFcag2zdF4v40g/1/da"><img src="http://feedads.g.doubleclick.net/~a/NsI__jRaINrYPNFcag2zdF4v40g/1/di" border="0" ismap="true"></img></a></p><table border="0" cellspacing="4" cellpadding="2">
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Mutual Fund</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Reliance Mutual Fund </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Type</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Open Ended </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Category</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Growth </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Launch Date</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> 26-Aug-2010 </td>
</tr>
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Posted by kalyan on August 29, 2010 01:20 AM · permalink
<span style="font-weight:bold;">Scripscan:Concurrent (India) Infrastructure Ltd.<br />Code:531261<br />cmp:28<br />Target:37<br />Percentage:32%<br />Duration:2-3 months<br />Target:100<br />Duration:9-12 months<br /><br />Story:Enough has been penned about concurrent.At this juncture here are 5 points which would vindicate my stand on the future wealth creator.<br /><br />1)Be greedy when others are afraid,be afraid when others are greedy:-Its a retail counter and rumuor mongers are busy spreading irrevelant and baselss statements which are taking the toll from few horror stricken and never driven investors resulting the offloading of them.Its a boon for guys looking to invest/average the stock at present levels.<br /><br />2)Next stock like concurrent:-Lot of members/followers/admirers often ask me about my next concurrent.My answer for the moment:Concurrent is my next concurrent.<br /><br />3)The best stock is the one that you already own:-Majority of my members owns this stock and rather than coming out with a fresh bet I felt concurrent to be the best buy at this bargain levels.<br /><br />4)Dark clouds era to end:-Concurrent is expected to have its AGM within the next few days.The same should be beneficial as its set to clear each and every questions/aspects which would make the investors feel a world of good.Expect the annual report to be in your hand any day now.If possible do attend the AGM thers even a power packed lunch getting ready for you.<br /><br />5)So at 28rs or at a marketcap of 120crs you are getting a company with zero debt and 6 sunrising verticals, which is set to cross 300crs of turnover this fiscal,which is set to cross 32crs of profit and which is expected to pay atleast a rupee dividend early next year.Once it gets into the big radar of HNI"s and FII's expect it to be in a different orbit.Buy it in bulk to retire early. </span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on August 28, 2010 02:47 PM · permalink
<strong>How I came to stock markets:I hail from the suburbs of west bengal from a small town called hooghly.Parents from these part of the world are very apprehensive about their children"s future and mine one of being no exception.My dad always had a fetish to a pinkish paper called "The Economic Times" or simply "ET".It was actually taken to meet couple of ends:1)To satiate the corporate world knowledge of my sweet&supportive dad and secondly so that I can learn and speak in fluent english.Now at that point of time I was hardly 13 or 14 with least interest in the english subject itself.One day after some harsh words from ma dad for my deliquency I opened the paper and incidently started rolling the paper from end to front.In the meantime the stock quote page got opened and it looked like sums from my point of view.There were so many lines and stuff like that,I went straight to my dad to ask about these and he having the basic knowledge always, helped me to get aware of the name "stock market" and stock prices.I was on class 7 at that time and its like I awake from my sleep and first thing which I would do would be to look at all the stock quote prices.These way, I got to know the names of companies like hind lever,colgate,ranbaxy,infosys,wipro,bata all the names which were quoted bigtime even in those days.Slowly I learnt about volumes,PE,eps,52 wk high/low and several stuff.<br /><br />My first investment in wellwin industry:My dad inherited some shares of my grandpa so he was the one to guide me about all the stuff that I mentioned above.He always had the interest but due to his immense work pressure, he had time constraints and therefore couldnt allocate much time to our stock markets.One day I told my dad that its enough,I have learnt a lot and have zeroed upon a company called "wellwin industry".Dad use to operate under an ICICI direct account and I got the permission to use it on his behalf.Some money were there in the account and I Bought 100 shares of wellwin industry at 22rs.Luckily after some 3-4 days Wellwin inched up to 23 odd and to my sheer excitement and pleasure I booked the profit.It was like I made 45 bucks after paying all the taxes and brokerages that got levied.I was so damn happy,hugging my parents and buddies all the day.I was 14 years old then, so in these way I made my first income from the stock markets.<br /><br />Peoples" apprehension and sarcasm:Though dad was supportive to me but he always made sure that I was away from it.He used to speak a quote time and again,"You should watch stock markets from a distance,learn it but never plunge into it".A computer was there in ma house but affording a net connection for whole day was big time expenses.I with my excitement used to surf whole day about stock markets reward being getting daily spanking and blows from my dearest parents.Some relatives of mine started exchanging words like this stock market is a shit of a place where only one can loose.They had the experience in stock markets and since they were my superiors, I kept numb all the time consuming all the stuff spoken by them.I even got underestimated bi gtime but I always had the beleif and conviction to learn from it,to see the end,to explore the vast potential,to be the winner where people loose.<br /><br />An horrendous bear phase and my confidence shattered:In 2002-2003,It was the time for the bears to chill.Whatever I bought those got pounded after that.I bought counters like Kec international at 13 assuming its the least and the next day it falls to 12.11rs followed and after some days to my huge surprise it fell to a level of 8rs.I panicked and along with some more counters I did basket selling(selling all stocks at one go).My dad gave me huge blows and houled by saying I have commited a huge blunder.At that point of time neither I had money,nor any support,I was bunking my school"s classes and a mix of all made my life like hell.I got dejected,depressed and I can recall I had so many sleepless nights.It was decided that net connection would get cut off and thus I can only surf from cybercafes which on those days were charging 60-70 bucks per hour.Imagine a guy of 14-15 with no confidence and money-Things went on like these until the next phase came.<br /><br />My big income of 1000rs:At 15-16 I thought lets give tips to people and by that way I would earn.People were like ridiculing me,my knowledge,my dilligence and my confidence main hindrance being my tender age.After several days of hard working a kind guy subscribed my intraday tips and I was paid 1000 bucks.With that 1000rs today my portfolio stands tall at a decent respectable figure(even after all those merciless times when scrips were taken granted for mere white papers,a 15% market fall to the sensex high of 21200).I have already written a lot and maybe I would pen down the latter part when I get more time.Hope you enjoyed the part and would be supporting me as always just like you guys are doing now.<br /><br />Regards,<br />ARUN<br />9804589299<br />Can be reached at:arunanalyst@rediffmail.com </strong><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on August 28, 2010 02:47 PM · permalink
<span style="font-weight:bold;">Plenty of you guys have expressed your interest in meeting me in person.So just come down to my office and it would be a pleasure for sure folks.Be it an opening of an online trading account,be it the portfolio management service or even a discussion about markets and multibaggers would do our interaction a world of good.So note down the address and get set go.<br /><br /><br />c/o SAYANNET<br />Ground Floor<br />1/1,Dover Lane,Garia hut<br />Kolkata-700 029<br />Cell No-9804589299<br />E-Mail:arunanalyst@rediffmail.com<br /><br /><br />Regards,<br />ARUN<br />9804589299</span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on August 28, 2010 02:47 PM · permalink
<span style="font-weight:bold;">Scripscan:Magnum Ventures Ltd<br />Code:532896<br />cmp:11<br />Target:15<br />Duration:4-6 months<br />Return:40%<br /><br />Story:Promotedby Jain family, MVL has 2 divisions i.e. Paper and 5 Star Hotel in Ghaziabad.Company had come out with an IPO at a price of Rs 30 per share to part finance setting of the hotel project at Sahibabad which is the prime location of Delhi-Meerut National Highway NH-24 and upgradation of existing paper unit to the tune of Rs 53 cr.<br /><br />Paper Division: This unit i ssituated at Sahibabad Industrial Area. Licensed capacity of this unit is 85000 tpa. In 2009, massive technology upgradation programme had taken place by way of Modernisation/Replacement of Plant & Machinery for Duplex Board Machine which includes chemicals, Fibre recovery section and recycling of back water system.Company has also started commercial operations of Precipitated Calcium Carbonate and it is being used for PVC Compounding, Rubber Compounding, Plastic Paints, Paper industry, Tooth Paste, Cosmetics etc.<br /><br />Paper Products range:<br />White Duplex Board: End use for Carton Printing, Jobs such as Tea Pockets, Tooth paste and Note Book covers<br />White Back: End use for Readymade garmetn cartons, Book covers and Pharmaceutical boxes<br />White duplex Board HWC: For High-end printing jobs used for Carton printing for Tea, Toothpaste etc<br />White Cream Paper: Used in commercial printing business like Books, stationary etc<br />Map Litho Paper: All commercial printing publications like Diaries, Books and Stationaries<br />Hotel Division: IPO had been launched mainly to fund hotel project as company set up, initially a Four Star hotel with 216 rooms. Subsequently, Hotel has been upgraded to Five Star Grade. Hotel is known as COUNTRY Inn and Suites by CARLSON, USA. Hotel location is approx 35 km from Delhi airport, 20 km from Connaught Place. This is in vicinity of thickly populated posh colonies liek Kaushambi, Vaishali, Vasundhara, Indirapuram adn Ghaziabad.<br /><br />Financial Performance: For 2009-10, MVL has reported sales of 132.50 crores and incurred loss of Rs 19.30 cr, after providing Rs 23 cr for depreciation. Thus, company made cash profit of Rs 4 crores. Equity is 37.60 crores. Losses are mainly due to high interest burden and higher depreciation.<br /><br />Valuations:Its hotel has 216 rooms.For setting up a new hotel in place like Ghaziabad, total project should be more than Rs 4 cr per room. Even if we take valuation of MVL's hotel @ Rs 3 cr per room,. market value of its hotel division alone works out to Rs 648 crs. And from this, if we exclude total debt of Rs 300 cr (part of debt belongs to paper division as well), value of Hotel division alone is more than Rs 348 cr. Valuation of Paper division will be separate.Against this, Market cap of Magnum Ventures is just Rs 38-40 crs. Magnum should be in a position to report profits after 2 quarters. <br /><br />Conclusion:At 10-11rs, Magnum Ventures appears a value buy (case of bottom fishing), worth taking the risk. In future if promoters decide to encash value of hotel division and sell it (there will be plenty of takers for this fully upgraded New property), Magnum can make huge profits.Downside from CMP is very very low and scrip can give good returns if management decide to sell the hotel division.<br />Source:hkg and guli </span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on August 28, 2010 02:46 PM · permalink
<span style="font-weight:bold;">Valuemart info technologies was recommended at 1re 8-9 months ago.In a matter of few months it has moved on to a level of 18rs providing a staggering 1800% return.Check the link if you missed the previous story:-<br /><br /><a href="http://www.arunthestocksguru.com/2009/09/atul-auto-ltd-and-valuemart-info.html">http://www.arunthestocksguru.com/2009/09/atul-auto-ltd-and-valuemart-info.html</a><br /><br />1)Scripscan:Valuemart Info Technologies Ltd<br />cmp:1<br />Code:532338<br /><br />Story:Valuemart Info Technologies, (formerly known as GDR Software) was incorporated in October-97 however commenced its business operations exactly a year later in October-98. During the initial years under the earlier management the company focused on providing solutions in the GIS space, and after a gap of just 15 months, during the middle of technology boom in March-2000 the company went public to raise capital to ramp up its infrastructure, resources and overseas offices. In the next four years under the earlier management - the company could good not ramp up clients and started reporting losses, which led to the wiping of net worth. Seeing the huge opportunity in the IT service sector, Mr. Vasudevan (an ex-banker with SBI having 20 years of experience) took over the company from the earlier dispensation and re-named the company as Valuemart Info Technologies in September - 04 to capture and give new focus and thrust to the company's activities. Along with Mr. Vasudevan came a fresh set of investors and a new management team on board to revive and restructure the company.Valuemart intents to position itself as a new generation technology and business solutions provider with a clear mandate to focus on two business lines: (a) to be a leading IT solutions-cum-service provider and (b) in the business processing space - to focus on transaction processing. To attack the global clients - Valuemart has already identified the following business segments like business continuity of software applications through rejuvenation of legacy applications, ensuring data integrity and security, IPR and R&D incubation and finally improving business controls like IT governance, corporate performance and compliance. For the domestic market - Valuemart is targeting the enterprise solutions space to address the mid to large enterprise market. Though the company is unwilling to divulge the names of its clients, Valuemart has already acquired anchor clients in this space. It is expected that Valuemart would derive significant portion of revenues from clients from the banking and insurance sector, hotels & hospitals and from the discrete and process manufacturing industries.Though Valuemart might be a new entrant and is a startup entity - the management is reasonably confident that it can put up strong domain knowledge based functional heads to head the various practice. Our only concern is, can the company scale up over the next 3 - 5 years, since global clients are going for vendor consolidation. Hence not many tier-3 IT services vendors can compete with the large ones - unless these companies offer extremely competitive billing rates, which in turn would affect the margins over the medium term. This can lead to positioning of the company as a price warrior or discount service provider status within the industry. The other main concern that we have is large and mid size clients are looking for IT services vendors - who have serious past track record and a strong balance sheet. Valuemart can mitigate this shortcoming by strategically tie-up with some mid sized US IT vendors like Whitman Hart or Sapient - who can provide access to large clients and also can participate in large offshore deals - by leveraging with the balance sheet size of the partners. Investment into Valuemart - is a HIGH RISK HIGH RETURN investment.Though at 1 re investors hve hardly anything to loose.<br /><br />Latest update:As you folks know an entreprenur is everything for me.In this case too Mr Vasudevan reinforces my confidence and conviction on the fact.It bagged a 4.5million usd order recently and stock zoomed bigtime.Way to go Mr Vasudevan.Enjoy the 18 bagger folks.</span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on August 28, 2010 02:46 PM · permalink
<span style="font-weight:bold;">Guys its time to be jubilant as your mulitbagger,Concurrent India infra is going to have its AGM on 30th of this month.Let me put the venue address once again:-<br /><br />q)(Me kuthe jaile pahije?Me konala bhetle pahije?)<br /><br />ans)Hotel Yogi International<br />Plot no-31/A,sector 24<br />Opposite mafco market,APMC road,Vashi<br />Navi Mumbai-400 705<br />Time:11 A.M<br />Date:30th august,2010.<br /><br />Its a 3 star hotel and from refreshment to lunch everything would be provided.Now lets talk business.As you all are aware the AGM happens once in a year and each and every investors are welcomed.So attend the AGM and satisfy yourself through every means by getting clarification of your relevant/irevelant questions from the CEO,Mr K.Sudhir Babu himself.Ask him whatever comes to your mind and he would reply accordingly.Concurrent family as on date boasts of nearly 10000 proud shareholders who with time gonna be filthy rich as the verticals of the company does wonders and market rewards it through immense capital appreciation.So without much ado prepare a question aire now and help yourself in getting a better hassle free sleep at night.<br /><br />btw:Nearly 700 shareholders of the company are from Mumbai.So Mumbaiwalas "Tu majhya sobath yeshil ka?" <br /><br />Regards,<br />ARUN<br />9804589299<br />Can be reached at:arunanalyst@rediffmail.com </span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on August 28, 2010 02:46 PM · permalink
<span style="font-weight:bold;">Scripscan:Cals Refineries Ltd<br />code:526652<br />cmp:31 paisa(.30)<br /><br />Story:Promoters acquired listed NBFC and planned to set up crude refinery.Equity bloated to 794 crs through GDR issue. Company is intending to import IInd hand plant from Germany. To finance the same, it wanted to raise USD 500 mn from overseas.However, due to bad market conditions, company may not succeed.Hence, implementation of project is uncertain. However,some strong operators are trying to take the share price up and scrip is being recommended by everyone in the share market to everyone else in the share market. Fundamentals of the company are nil.Promoters make grandiose plans although company may have no substance.Same promoters acquired Hitkari Fibres and renamed it as SRM Energy. Here, promoters are dreaming to set up 4000 MW Power Plant. It will be a miracle with zero financials can implement billion dollar projects. It can quote at a mere 30 paisa but still attracts a several hundered crores marketcap.I can run a nomenclature of my buddies who loves to trade in these stock.They opt for Cals Refineries at below 30-35 paisa to sell the same at nearly 50 paisa,i.e,a gain of over 40%.You people may just do the same and rake the moolah too but as I have mentioned chances are the bet getting dumped resulting loss of entire money.Cals do have humongous aggressive expansion plans but I have got decent doubt regarding the projects materialization.Often in newspapers and local channels it comes with influencing ads to lure investors but the policy offlate has done little for them.So forget outlook or fundamentals,If you have to trade do trade else so many better high growth oriented scrips are there to pocket up.</span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on August 28, 2010 02:45 PM · permalink
<span style="font-weight:bold;">Lot of my readers sent me mails regarding their misfortune in Ipos.Offlate lot of scams and unscrupulous mishaps happened in the bourses.While it may be impossible to prevent scams from taking place,you guys need to realize your role in it,by being easy prays.The IPO segment,in particular,has become vulnerable to manipulation of all kinds,and each time sebi clamps down,some new mechanism springs up.The real coup will be if sebi can net the people behind this deal.Even as regulators try their best to shield investors,it’s a futile task if investors allow themselves to be taken for a ride.What can investors do to make life easier for the regulator and tougher for unscrupulous elements?Not trying to make fast buck is one.In the ipo market,listing gains seem to be the only thing that matters,and now,a new trend is emerging of the steep run-up in prices post listings.So there will be a breed of investors out there who enter on the listing day.They hope to profit from gains in the first few days after listing or even on the same day.<br /><br />Grief awaits such investors.Avoid the lure of easy money.The rules of ipo investing have not changed.Select good ipos and bid for them during the ipo process.Dont worry if you don’t get any shares,perhaps thanks to such operators at work.Disappointment should not lead to buying shares on the first day of listing,irrespective of the price:that’s what the operators are capitalizing on.So set a price level that is acceptable and stay faithful to it.Missing out on an opportunity to make money is a lesser crime than losing to those mother fucker operators.<br /><br />I know that some readers reading it would be dejected coz they were the prays of such operators who pocketed big bucks in these scrips to have skotch with pork in a cozy bar.But its your fault dude-So don’t blame markets or the operators rather admit your mistake-If possible try to learn from it and take oath of never repeating it again.<br /><br />Regards,<br />ARUN<br />I can be reached at-arunanalyst@rediffmail.com</span><div class="blogger-post-footer"><script type="text/javascript"><!--
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Posted by arun (noreply@blogger.com) on August 28, 2010 02:45 PM · permalink
<a href="http://1.bp.blogspot.com/_yxDXLyjgmlU/THjzRvn877I/AAAAAAAALKs/WhTTGbNoPMA/s1600/2008.PNG"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 271px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5510421630255165362" border="0" alt="" src="http://1.bp.blogspot.com/_yxDXLyjgmlU/THjzRvn877I/AAAAAAAALKs/WhTTGbNoPMA/s400/2008.PNG" /></a><br />Here's how the distribution looked like in 2008 and 2009.<br /><br /><br /><a href="http://1.bp.blogspot.com/_yxDXLyjgmlU/THjzLp38VcI/AAAAAAAALKk/YMVn0FHEy5o/s1600/2009.PNG"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 272px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5510421525632406978" border="0" alt="" src="http://1.bp.blogspot.com/_yxDXLyjgmlU/THjzLp38VcI/AAAAAAAALKk/YMVn0FHEy5o/s400/2009.PNG" /></a><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/5184850244660132569-7894369906801823264?l=timamo.blogspot.com' alt='' /></div>
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Posted by ss (noreply@blogger.com) on August 28, 2010 11:31 AM · permalink
Reminiscences of a Stock Operator was originally written in 1922 as a first-person fictional account, but is now generally accepted as the biography of stock market whiz Jesse Livermore. The book is recommended to traders and value investors alike, for the lessons it teaches the reader in human behaviour as it pertains to securities trading and investing.Often, a speculator will acquire a large block of stock that he wishes to sell. Unfortunately, unloading a ton of shares on the market will often reduce the selling price, and can sometimes even cause a panic. As such, selling large chunks of shares to the market is an art form that Livermore argues only specialists should perform.
Livermore has been asked by large holders of stock to use his skill in selling their stock at a reasonable price. In return, Livermore asks for graduated call options on the stock, so that the higher he gets the price (resulting in a higher profit for the large holder), the more he gets paid.
Unlike many stock manipulators of his day, Livermore sees no need to spread false rumours to get a stock price moving. Cognizant of the fact that humans tend to supply their own reasons for occurrences that are taking place, Livermore simply increases the volume of the stock in question by both buying and selling. He finds that the increase in volume attracts buyers, offering him the ability to sell into the newfound demand.
Livermore also discusses the exploits of some of the famous stock manipulators of years past. Some would try to corner markets, though that was no guarantee of success. Others would create ponzi schemes that the public would buy into without thought. As Livermore used to read about past stock market manipulations, he used to believe that people of yesteryear were simply not as bright as people today. With enough experience, however, he saw that people of his day are just as likely to fall for false promises of easy money as people of years past.
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on August 28, 2010 10:40 AM · permalink
<a href="http://3.bp.blogspot.com/_yxDXLyjgmlU/THihbDocnII/AAAAAAAALKE/OuyZTeD6-Is/s1600/AR2.PNG"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 273px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5510331630291295362" border="0" alt="" src="http://3.bp.blogspot.com/_yxDXLyjgmlU/THihbDocnII/AAAAAAAALKE/OuyZTeD6-Is/s400/AR2.PNG" /></a><br /><div align="justify">Here's a fresh look at the low volatility which we've been seeing in this year. Above is a chart showing the daily absolute returns. And the chart below shows the distribution. Out of 165 trading days so far, there are 117 (71%) days where the market gave less than 1% return. Hard to believe but there are only 2 (1%) days showing a 3% move! I would like to hear from you on your experiences as a trader trading these low volatile markets and how you might have adapted to these conditions. Frankly, I've been out of this market most of the time as I believe that it's almost impossible to trade and if anybody has been really successful then he sure deserves some kinda super trader of the year award!<br /></div><a href="http://4.bp.blogspot.com/_yxDXLyjgmlU/THihVxDG8DI/AAAAAAAALJ8/5a7jy5Z0QwA/s1600/AR.PNG"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 272px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5510331539403501618" border="0" alt="" src="http://4.bp.blogspot.com/_yxDXLyjgmlU/THihVxDG8DI/AAAAAAAALJ8/5a7jy5Z0QwA/s400/AR.PNG" /></a><br /><br /><div></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/5184850244660132569-9179930130352552487?l=timamo.blogspot.com' alt='' /></div>
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Posted by ss (noreply@blogger.com) on August 28, 2010 06:08 AM · permalink
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<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Mutual Fund</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> SBI Mutual Fund </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Type</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Close Ended </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Category</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Income </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Launch Date</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> 26-Aug-2010 </td>
</tr>
</table>
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<p><a href="http://www.amfiindia.com/nfo.aspx?intId=4763#123">SBI Debt Fund Series – 370 Days – 6</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by kalyan on August 28, 2010 12:16 AM · permalink
<div><div><em>By Swami Shanmugasundaram </em></div> <p>All tier-one offshore IT service providers, including Cognizant <span>(<a href='http://seekingalpha.com/symbol/ctsh' alt='Cognizant Technology Solutions Corp.' title='Cognizant Technology Solutions Corp.'>CTSH</a>), Infosys <span>(<a href='http://seekingalpha.com/symbol/infy' alt='Infosys Technologies Ltd.' title='Infosys Technologies Ltd.'>INFY</a>)</span>, Wipro <span>(<a href='http://seekingalpha.com/symbol/wit' alt='Wipro Ltd.' title='Wipro Ltd.'>WIT</a>) and Tata Consultancy Services, recently announced their quarterly results, which indicate that growth momentum is gradually picking up for offshore IT outsourcing. Though the economy remains uncertain, there appears to be no pullback in IT spending. Instead, all leading indicators point to a healthy uptick in spending by companies worldwide. While service buyers continue to keep their eye on cost-reduction projects that deliver a quick return on their investments, recent booking trends indicate that companies aren't averse to increasing their budgets for discretionary and longer-term transformational projects. This upward demand trajectory will more likely lead to revenue expansion for offshore service providers in the near-term. However, we believe that, with a multitude of factors in play, increased top-line growth may not translate to improved margin levels. Overall, we expect fiscal 2011 to yield mixed results for offshore IT service providers.</p> <p><span>Expect Growth to be Broad Based, Driven by Higher Volumes</span></p></span></span></div>
Posted by Morningstar on August 27, 2010 08:55 PM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/DSCIo_0kPSbATBja4nL65mikpXA/0/da"><img src="http://feedads.g.doubleclick.net/~a/DSCIo_0kPSbATBja4nL65mikpXA/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/DSCIo_0kPSbATBja4nL65mikpXA/1/da"><img src="http://feedads.g.doubleclick.net/~a/DSCIo_0kPSbATBja4nL65mikpXA/1/di" border="0" ismap="true"></img></a></p><p></p><blockquote><p><strong>Update </strong>Aug 30 ,2010 , 5:00 PM : This post should be now considered as post with old information as after DTC was tabled in Parliament , there were many changes in DTC. </p>
<p>Also DTC Bill has been delayed by 1 yrs and will come into effect from Apr 2012 , <a href="http://business.rediff.com/report/2010/aug/30/direct-tax-code-bill-deferred-by-a-year.htm">Link</a></p></blockquote>
<p>Cabinet has finally approved the <strong>Direct Tax Code</strong> and now it would go to Parliament for approval and as per tax expert <a href="http://elagaan.com/india-tax-story/tax-saving-tips/video-tax-guru-subhash-lakhotia-cnbc">Subhash Lakhotia</a> is would be easily passed by the Parliament. Finally the Tax system of our country is going to simplify after New tax code comes into effect from Apr 2011 next year. The bad part is that the tax slabs have been revised and now its much lesser than what was proposed earlier (<a href="http://www.jagoinvestor.com/2010/07/changes-in-new-direct-tax-code-dtc.html">Link</a>)</p>
<h3>Change in Tax Slab</h3>
<blockquote><p><strong>New Tax Slab</strong> : 10% for 2-5 lacs , 20% for 5-10 lacs and 30% for above 10 lacs</p>
<p><strong>Proposed Tax Slab earlier</strong> : 10% on 1.6-10 lacs , 20% for 10-25 lacs and 30% for above 25 lacs.</p></blockquote>
<p><strong>Some More Features</strong></p>
<ul>
<li>Deductions from taxable income will be available for interest on <a href="http://www.jagoinvestor.com/2010/07/controversial-debate-on-buying-vs-renting-a-house.html">housing loans</a> up to Rs 1.5 lakh per annum</li>
<li>For women and senior citizens, the exemption limit would be Rs 2.5 lakh per annum</li>
<li>Upto 1 lacs could be saved for payments into PF and similar <a href="http://www.jagoinvestor.com/2009/05/what-is-super-annuation-benefit-and-how.html">superannuation</a> schemes</li>
<li>Deduction of up to Rs 50,000 for life insurance and health insurance premiums or tuition fees.</li>
<li>Securities Transaction Tax (STT) and Education cess are out .</li>
<li>Life Insurance payments and mutual fund income are liable for 10% TDS (source)</li>
<li>HRA no longer available.</li>
</ul>
<p>You should<strong> note</strong> that all these changes are going to happen from Apr 2011 (next year). For this current year, everything is same (you will get same old 80C deductions)</p>
<p><strong>Why Public might get disappointed</strong></p>
<p>The biggest blow is the change in the tax slab, especially investors who earn in range of 5-10 lacs per year , earlier Financial minister promised that the tax would be 10% upto 10 lacs , but now there is 20% tax for 5-10 lacs range , which means that effectively the tax paid would be 2 times of what it would have been earlier. Also even for high earning people who make in range of 10-25 lacs , earlier it would have been 20% , but now it would be 30% , which is good enough disappointment <img src='http://www.jagoinvestor.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> .</p>
<p>Here is a nice video which would give you good insight on what to expect from Direct Tax Code .<br />
<object id="IBNLive" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="600" height="360" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="align" value="middle" /><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /><param name="quality" value="high" /><param name="bgcolor" value="#ffffff" /><param name="src" value="http://features.ibnlive.in.com/videos/embed/129664/C1520A46F5A03B820B85FADC2E7111C8385B6EFE0E8D09D692202B007C9F6465250AF9776187481B42E0EC7A9A0B83F19C6669118A745B72F748D354A7C37F771E3689626A321AF5735BC547155EA0FB7D954C87F3C5/08_2010/newtaxslabs630_271x181.jpg" /><param name="name" value="IBNLive" /><param name="allowfullscreen" value="true" /><embed id="IBNLive" type="application/x-shockwave-flash" width="600" height="360" src="http://features.ibnlive.in.com/videos/embed/129664/C1520A46F5A03B820B85FADC2E7111C8385B6EFE0E8D09D692202B007C9F6465250AF9776187481B42E0EC7A9A0B83F19C6669118A745B72F748D354A7C37F771E3689626A321AF5735BC547155EA0FB7D954C87F3C5/08_2010/newtaxslabs630_271x181.jpg" name="IBNLive" bgcolor="#ffffff" quality="high" allowfullscreen="true" allowscriptaccess="always" align="middle"></embed></object></p>
<p><script src="http://static.polldaddy.com/p/3681893.js" type="text/javascript"></script><br />
<noscript><br />
<a href="http://polldaddy.com/poll/3681893/">What is your reaction to Final New Tax Code ?</a><span style="font-size:9px;"><a href="http://polldaddy.com/features-surveys/">customer surveys</a></span><br />
</noscript></p>
<p><strong>Comment</strong> on how you feel about the tax slab ? Are you happy about it or disappointed ? I think it would be a big disappointment for a lot of people, at least personally I am disappointed by that <img src='http://www.jagoinvestor.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> .</p>
<div id="crp_related"><h3>Related Posts:</h3><ul><li><a href="http://www.jagoinvestor.com/2010/05/how-to-think-about-retirement-planning-video.html" rel="bookmark" class="crp_title">How to think about Retirement Planning (Video)</a></li><li><a href="http://www.jagoinvestor.com/2010/07/changes-in-new-direct-tax-code-dtc.html" rel="bookmark" class="crp_title">Changes in New Direct Tax Code (DTC)</a></li><li><a href="http://www.jagoinvestor.com/2010/05/personal-finance-for-starters-video.html" rel="bookmark" class="crp_title">Personal Finance for Starters [Video]</a></li><li><a href="http://www.jagoinvestor.com/2010/08/tax-deductions-from-instrastructure-bonds-under-80c.html" rel="bookmark" class="crp_title">Tax Deductions from Infrastructure Bonds under 80C</a></li></ul></div><div class="feedflare">
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Posted by Manish Chauhan on August 27, 2010 04:36 PM · permalink
I've only sent out a few tweets so far, so I'm still a bit of a novice. But I like what I see so far, so I expect my Twitter activity to continue. Some readers have already found me! For the rest of you who wish to track my discussions, you can do so by following this link. There's also a link to my twitter feed to the right of this post on the main page, next to the rss feed links.
For those who have no interest in joining yet another social media network, do not despair. There are no plans to make any changes to the site's content. Even if you do not join Twitter or do not follow my "tweets", you will still receive the kind of content from this site that you are accustomed to (for better or worse!)
To that end, I have made some changes to the site to make it easier to navigate the latest posts. If you have any suggestions regarding the site's format or its content or anything else, I'd be happy to hear from you. Please feel free to leave a comment or send an e-mail.
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on August 27, 2010 11:05 AM · permalink
<p>Primary articles inflation (mainly food) was announced at 14.75% but as usual what is worry is the restatement of past data. Primary articles inflation of 18th June was revised to 16.92% up from the earlier reported14.75%. Click the below figures for more. </p> <p><a href="http://lh4.ggpht.com/_cwHfePkadc4/THdeZWAHlhI/AAAAAAAAA2I/c14VuGjg2Mo/s1600-h/image%5B12%5D.png" target="_blank"><img style="border-bottom: 0px; border-left: 0px; display: inline; border-top: 0px; border-right: 0px" title="India Primary Articles Inflation at 14.75%" border="0" alt="India Primary Articles Inflation at 14.75%" src="http://lh6.ggpht.com/_cwHfePkadc4/THdeakHcMzI/AAAAAAAAA2M/QskOusKfgqc/image_thumb%5B8%5D.png?imgmax=800" width="311" height="223" /></a> <a href="http://lh3.ggpht.com/_cwHfePkadc4/THdebdAyueI/AAAAAAAAA2Q/Tt_auJDKNZg/s1600-h/image%5B13%5D.png" target="_blank"><img style="border-bottom: 0px; border-left: 0px; display: inline; border-top: 0px; border-right: 0px" title="image" border="0" alt="image" src="http://lh6.ggpht.com/_cwHfePkadc4/THdeceh1TOI/AAAAAAAAA2U/-tD6q7QCR2U/image_thumb%5B9%5D.png?imgmax=800" width="304" height="224" /></a> </p> <p>That just means the latest figure could be revised to as much as 2% higher. We’re inflating much higher than we’re being told? At least at the food level.</p> <div class="blogger-post-footer"><p style="border: 1px solid #C888C8">
This post is written by <a href="http://blog.investraction.com">Deepak Shenoy</a>,
at <a href="http://blog.investraction.com">Capital Mind</a>.
</p><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/18601284-4851530118571427207?l=blog.investraction.com' alt='' /></div>
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Posted by Deepak Shenoy (noreply@blogger.com) on August 27, 2010 06:42 AM · permalink
Posted by Deepak Singh on August 27, 2010 03:18 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/ZAZ3Rwy62ICEV0txib_pMq5kD2w/0/da"><img src="http://feedads.g.doubleclick.net/~a/ZAZ3Rwy62ICEV0txib_pMq5kD2w/0/di" border="0" ismap="true"></img></a><br/>
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<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Mutual Fund</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Deutsche Mutual Fund </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Type</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Close Ended </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Category</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Income </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Launch Date</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> 27-Aug-2010 </td>
</tr>
</table>
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<p><a href="http://www.amfiindia.com/nfo.aspx?intId=4774#123">DWS fixed term Fund – Series 74</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by kalyan on August 27, 2010 12:28 AM · permalink
<p>China is now the world’s second-largest economy, surpassing Japan. But while China sets its sights on the number one position, it might want to look behind itself, too: India is formidable competition. With one ETF, you can play both.</p> <p>China’s ascendancy to the top position isn’t a foregone conclusion. Just two decades ago, Japan was seen as the main rival to the United States. But <a href="http://www.etftrends.com/2010/08/best-etfs-to-play-indias-fast-growing-economy/" rel="nofollow">India’s growth</a> is on track to outpace China’s growth in less than three years.</p>
Posted by Tom Lydon on August 26, 2010 07:55 PM · permalink
<p><em>By Cathy Carlson</em></p> <p>As emerging markets have raced ahead of their developed counterparts in the last two years, investors around the globe have begun to tilt portfolios more heavily towards securities that many have historically perceived to be excessively risky. The inflows into equity ETFs serve as one piece of evidence of this trend; through the first seven months of the year domestic equity funds took in about $3.3 billion, while international equity ETFs saw inflows of nearly $14 billion. Now, with the U.S. economy showing signs of weakness, investors have become particularly interested in emerging markets that have the potential to “decouple” from their developed counterparts, potentially shielding themselves from weakness elsewhere in the world and using internal resources to continue plowing ahead. <span></p></span>
Posted by Michael Johnston on August 26, 2010 06:57 PM · permalink
<p>The Union Cabinet has <a title="Union Cabinet has cleared the Direct Tax Code bill" href="http://ibnlive.in.com/news/new-tax-code-cleared-exemption-slabs-hiked/129664-7.html" target="_blank">cleared the Direct Tax Code bill</a>, which means nothing other than it will actually be cleared by December if it’s tabled on Monday, and that means sometime in the next decade it might actually happen. </p> <p>The DTC simplifies tax slabs. Upto 2 lakhs, nothing, it seems. 2 to 5 lakhs, 10%, 5 to 10L, 20% and above 10L, 30%. Nothing earth shattering – the current limits are 1.6, 5 and 8 Lakhs. </p> <p>Corporate tax goes to 30%. From 33%. That’s nice. MAT for those fellows not paying tax is 20% of book profits. </p> <p>PF is exempt from tax, or so they say, but the rest get taxed EET. Dividend distribution tax <a title="Moneycontrol article on DTC approved by Cabinet" href="http://www.moneycontrol.com/news/economy/union-cabinet-approves-direct-taxes-code-bill_481204.html" target="_blank">stays the same</a>. Life Insurance payments and  mutual fund income <a href="http://www.moneycontrol.com/news/cnbc-tv18-comments/copydraft-dtc-bill-silenttax-rates-sources_481201.html" target="_blank">gets a 10% TDS</a>. (10% of what? We don’t know).</p> <p>I don’t know if STT is out. I don’t know what happens to various random exemptions. I don’t know I can’t really say until I see the full bill – everyone’s taking data from an interview of the Finance Minister, where it’s likely there weren’t enough questions asked or answered. Anyone have a copy?</p> <div class="blogger-post-footer"><p style="border: 1px solid #C888C8">
This post is written by <a href="http://blog.investraction.com">Deepak Shenoy</a>,
at <a href="http://blog.investraction.com">Capital Mind</a>.
</p><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/18601284-8240372962912422272?l=blog.investraction.com' alt='' /></div>
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Posted by Deepak Shenoy (noreply@blogger.com) on August 26, 2010 05:57 PM · permalink
<p>Van Eck announced on Wednesday the latest addition to its ETF product lineup, rolling out the Market Vectors Small Cap India ETF (<a href='http://seekingalpha.com/symbol/scif' alt='Market Vectors India Small-Cap Index ETF' title='Market Vectors India Small-Cap Index ETF'>SCIF</a>). The new ETF will seek to replicate the performance of the Market Vectors India Small-Cap Index, a benchmark that includes about 120 constituents with an average market capitalization of approximately $450 million. <span></p> <p>SCIF joins two existing Market Vectors ETFs offering exposure to small cap equities in emerging markets, including the Brazil Small Cap ETF (<a href='http://seekingalpha.com/symbol/brf' alt='Market Vectors Brazil Small-Cap ETF' title='Market Vectors Brazil Small-Cap ETF'>BRF</a>) and Latin America Small Cap ETF (<a href='http://seekingalpha.com/symbol/latm' alt='Market Vectors Latin America Small-Cap ETF' title='Market Vectors Latin America Small-Cap ETF'>LATM</a>). ETFs from other issuers offer exposure to small cap stocks in China (<a href='http://seekingalpha.com/symbol/hao' alt='Claymore/AlphaShares China Small Cap Index ETF' title='Claymore/AlphaShares China Small Cap Index ETF'>HAO</a>) and Japan (<a href='http://seekingalpha.com/symbol/scj' alt='iShares MSCI Japan Small Cap Index ETF' title='iShares MSCI Japan Small Cap Index ETF'>SCJ</a>, <a href='http://seekingalpha.com/symbol/jsc' alt='SPDR Russell/Nomura Small Cap Japan ETF' title='SPDR Russell/Nomura Small Cap Japan ETF'>JSC</a>). Funds targeting small cap stocks in international market have become popular with investors in recent years because they generally maintain unique risk/return profiles relative to the “first generation” of international equity ETFs that are dominated by large caps. Small cap stocks tend to depend more heavily on the local economy, while mega caps are often multi-national firms that generate revenues in countries around the globe and thus are not necessarily the best representation of their respective local economies. Moreover, small cap equities tend to be more representative of sectors that aren’t adequately represented by mega caps, including consumer products and services.</p></span>
Posted by Michael Johnston on August 26, 2010 01:34 PM · permalink
<p>Yesterday (8/25/10), Van Eck launched <strong>Market Vectors India Small-Cap Index ETF (<a href='http://seekingalpha.com/symbol/scif' alt='Market Vectors India Small-Cap Index ETF' title='Market Vectors India Small-Cap Index ETF'>SCIF</a>)</strong>, the second ETF to target India Small-Caps in as many months. Foreign single-country small cap funds are a relatively new growth area for the ETF industry. This marks the first time ETF investors will have a choice in this segment.</p> <p>The <a href="http://www.marketvectorsetfs.com/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=2147484380" rel="nofollow">Van Eck press release</a> says Indian small-cap stocks are supported by one of the world’s largest and fastest-growing domestic consumer markets, with a demographic profile skewed toward the young. India’s rapidly growing middle class is projected to triple in size over the next 15 years, making it twice the size of the entire U.S. population. “It continues to be our strong belief that small-cap stocks are an excellent way to gain direct exposure to a country’s domestic economy,” said Jan van Eck, Principal at Van Eck Global. “India, in particular, has exhibited demographic and economic factors that support strong continued domestic growth for years to come.”</p>
Posted by Ron Rowland on August 26, 2010 01:29 PM · permalink
<p><span>The Indian markets threatened to close below the breakeven point during the closing hours. However, they recovered just in the nick of time and thus, enabled the indices to close the day with some sort of gains. The BSE Sensex logged in gains of around 50 points (up 0.3%), whereas NSE Nifty closed higher by around 15 points (up 0.3%). BSE Midcap and small cap indices witnessed contrasting trends with the former edging marginally higher and the latter ending marginally lower. Nearly 2 stocks gained for every 1 that declined on the Sensex today. It were the financial institutions like HDFC and SBI that contributed in a big way to the gains on the Sensex. <br><br>Most Asian indices also closed in the positive today whereas Europe too has opened on a strong note. The rupee was perched at Rs 46.8 to the dollar at the time of writing. </span></p>
Posted by Equitymaster on August 26, 2010 11:01 AM · permalink
Amidst all this bad news, why would anyone in their right mind be interested in a company like Sterling Construction? Well, a look at the company's problems reveals that they are all of a short-term nature. This industry, along with many others, has more capacity than it has demand. When that happens, prices fall and margins get squeezed. But this doesn't last forever. As some competitors fail (due to high debt levels or money-losing operations) and industry capacity shrinks (as depreciation far outweighs capex), conditions will eventually return to normal.
But margins and revenues will not return to normal overnight. Therefore, it is not enough for investors to find beaten down companies; they must ensure that these companies can last until such time as conditions are better. Sterling is such a company, with cash and short-term investments of $96 million against debt of $25 million.
Furthermore, the company appears to trade at a discount to its earnings. Subtracting its net cash position, the company trades for just over $100 million, yet it earned $25 million in 2009! Earnings this year will be substantially lower than they were last year, however, due to the reasons discussed above. However, this company has the ability to maintain its capacity for when industry conditions return to normal.
The market will beat down companies with poor near-term outlooks. Sterling Construction has proven to be no exception. However, as the company's problems are short-term, and as the company has the ability to outlast this downturn, investors with a long-term outlook may have here an opportunity for stellar returns with low risk.
Disclosure: None
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on August 26, 2010 10:59 AM · permalink
Posted by Deepak Singh on August 26, 2010 03:58 AM · permalink
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<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Mutual Fund</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> HDFC Mutual Fund </td>
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<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Type</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Close Ended </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Category</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Income </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Launch Date</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> 26-Aug-2010 </td>
</tr>
</table>
<script type="text/javascript">
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<p><a href="http://www.amfiindia.com/nfo.aspx?intId=4784#123">HDFC FMP 35D August 2010 (2)</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by kalyan on August 26, 2010 12:15 AM · permalink
<p><span>Profit booking in index heavyweights intensified during the closing stages. As a consequence, benchmark indices plunged deeper into the red and closed the day with significant declines. The BSE Sensex lost in the region of 130 points (down 1.6%) whereas NSE Nifty lost around 40 points (down 0.8%). BSE Midcap and small cap indices were not spared either. They closed lower by around 1.5% each. Just 1 stock posted minor gain for every 3 that declined on the Sensex today. <br><br>Today's decline was mainly on account of global factors, most notably the US. It is becoming increasingly clear that the effects of stimulus are waning and the world's largest economy is once again staring at a serious slowdown. The latest signal came from the US housing market where home sales saw worse than expected plunge in existing home sales. Furthermore, employment is also showing no signs of improvement. The scenario elsewhere in the developed world is not very encouraging either. Thus, on account of renewed fears, risk aversion seems to be on the rise and this is leading to weakness in risk assets like Indian stocks. However, if the correction does turn out to be a significant one, it could present investors with yet another opportunity to participate in the long term India growth story at attractive valuations. </span></p>
Posted by Equitymaster on August 25, 2010 06:12 PM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/RqqEUfHQDsXsrF7hmEWEYYXMtfc/0/da"><img src="http://feedads.g.doubleclick.net/~a/RqqEUfHQDsXsrF7hmEWEYYXMtfc/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/RqqEUfHQDsXsrF7hmEWEYYXMtfc/1/da"><img src="http://feedads.g.doubleclick.net/~a/RqqEUfHQDsXsrF7hmEWEYYXMtfc/1/di" border="0" ismap="true"></img></a></p><p></p><p>An Agent comes to your home or office and tells you about an Insurance plan. It can be a <a href="http://www.jagoinvestor.com/2008/10/why-endowment-policy-are-never-best_08.html">traditional insurance plan</a> or term insurance. Being an agent, he wants to make sure, you do less work. Anyway most people feel bored or find it tedious to fill out a long form by themselves. After all, the agent is there to do it. It’s an amusing situation, that in today’s generation, we run around all day to different places to buy our TV, Fridge, Washing Machines. We inquire from a million places, read the reviews etc., and make sure you we find out each and every little detail when we buy such products for our home or our convenience, but sadly we don’t care enough to read financial documents or fill them ourselves; documents which will help take care of our little children or family when we are not around; documents that don’t even take few minutes or an hour to look at.</p>
<p><img class="aligncenter" src="http://img.jagoinvestor.com/ji/making%20mistakes%20in%20Insurance.png" alt="Do not declare=" /></p>
<p>Coming back to the story, this Insurance agent treats the customer as King and customer also feels great about it. The maximum he will do is sign the document (after having a super quick look at the pages, making agent feel that he actually cares about it !) The customer is a smoker, but agent doesn’t even bother to ask. Even if customer tells him about it, the agent does not put “Smoker” in the form as it might reduce the chances of getting the policy and hence no commission <img src='http://www.jagoinvestor.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> </p>
<h3>Why Mistakes Happen in Life Insurance details ?</h3>
<p>Now tax saving is coming for the year (not the protection of family, mind you !), and the customer is ready to raise his hands for questions like “Who all have Insurance?” or “Who is adequately covered through life insurance” ? The agent get his commission and mostly disappears, and customer is happily living his life under a happy impression that he has life insurance; until one day, he dies…</p>
<p>The family is devastated, but time goes on and once things settle down, they go to the insurance company and ask them for the Insurance Money… and Pow! The family gets sucker-punched! . The insurance company happily tells them that the customer was a smoker, but has given false information in the documents at the time of taking the policy hence by law, they are will not honour the claim! They are correct . <a href="http://indiankanoon.org/doc/261721/" target="_blank">Read a case</a> between LIC and one customer on claim rejection.</p>
<p>This happens with a lot of insurance customers. They tend to give wrong information in the documents; as giving correct information increases the premium. (This happens a lot with smokers.) What’s so wrong if company asks for a higher premium for smokers? If you are a smoker, definitely from a business standpoint (and even logically) you have higher chances of dying than a non smoker. So, it’s natural to charge you a higher premium. But, if you give wrong information in the documents or try to misrepresent anything, it means company is covering a higher risk person for a a normal premium and they are very correct to reject the claim. Read <a href="http://www.indianweekender.co.nz/Pages/ArticleDetails/30/509/Insurance/The-Duty-of-Disclosure-when-taking-out-insurance" target="_blank">this article</a> to understand more on giving wrong or incomplete information in insurance documents.</p>
<h3>Comment from Insurance Company Official</h3>
<p>Sourav Shah, a senior Manager at Aegon Religare, shares some of his thoughts for claim rejection in comments section.</p>
<blockquote><p>Hi Manish, To give you a detailed explanation of why the plan ‘<a href="http://www.jagoinvestor.com/2009/11/iterm-cheapest-term-insurance-from-aegon-religare.html">iTerm</a>’ is cheap.</p>
<p>The simple reason is ‘There are no middlemen – Agent – involved in selling this product.’ Since this product is sold online there are no agents commission involved and hence the company is not paying anything to the Insurance agent and thus passing on the benefit of the low cost to the consumer. We all know that most insurance products have a commission of 30-40% in the first year premium that is paid to the agent. The reason this product is cheaper because there are no agents commission involved. Secondly, Aegon Religare is the only company that has sought IRDA approvals to sell the product online since we are very keen on providing the customers what a product that they need – a simple term plan – at a price that is affordable.</p>
<p>Regarding the claims ratio, Manish, the 3 customers whose claims were rejected were due to wrong declaration at the time of taking the policy. They had declared themselves as non smokers. I would request all customers who are buying a term plan or any insurance product from any Life insurer, to not hide any facts while taking a policy. The insurers build up the cost based on your declaration, so its always advisable to declare truely in order to ensure that all claims are met. And if any customer faces any issue with any isurer he can contact the insurance ombudsman and he will immediatley look into their issues. Happy buying. Manish this is a beautiful and unbiased platform that you have provided for customers to clarify their doubts. Please keep up the gr8 work.</p>
<p>Regards,<br />
Sourav Shah<br />
(shahsourav@rediffmail.com)</p>
<p>(<a href="http://www.jagoinvestor.com/2009/11/iterm-cheapest-term-insurance-from-aegon-religare.html#comment-11470">Link</a>)</p></blockquote>
<h3>How to correct the false Information ?</h3>
<p>In case, you have provided any wrong information in your policy document, it’s almost certain that your claim will be rejected. Don’t try to fool insurance companies. They are smarter than you at figuring it out. So contact your Insurance company and give them factual information . This may lead to increase in premium or rejection of policy, but it’s a better situation than getting rejected at the time when you are in the sky.</p>
<div id="crp_related"><h3>Related Posts:</h3><ul><li><a href="http://www.jagoinvestor.com/2009/11/iterm-cheapest-term-insurance-from-aegon-religare.html" rel="bookmark" class="crp_title">iTerm , Cheapest Term Insurance from Aegon Religare</a></li><li><a href="http://www.jagoinvestor.com/2010/08/review-of-iprotect-term-plan-from-icici-prudential.html" rel="bookmark" class="crp_title">Review of iProtect Term plan from ICICI Prudential</a></li><li><a href="http://www.jagoinvestor.com/2010/08/buying-health-insurance-policies-online.html" rel="bookmark" class="crp_title">Buying Health Insurance Policies Online</a></li><li><a href="http://www.jagoinvestor.com/2009/02/beware-of-mis-selling.html" rel="bookmark" class="crp_title">Beware of Mis-selling</a></li></ul></div><div class="feedflare">
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Posted by Manish Chauhan on August 25, 2010 04:25 PM · permalink
When a company acquires control of an asset, it can choose to buy it or lease it. If it buys the asset, but uses debt to finance the purchase, it is essentially the same thing as leasing it. Therefore, to make these two transactions identical on financial statements (since they are essentially the same thing), accounting rules require that longer leases be capitalized, so that the asset purchased and the lease payments owed are capitalized on the balance sheet, as if the asset was purchased using debt.
But some companies attempt to avoid capitalizing leases (and therefore don't have to show the future lease payments as obligations on their balance sheets) by structuring them as short-term leases, called operating leases. For this reason, many articles on this site advocate capitalizing operating leases. (To see how, see this article).
But recognizing that the capitalization of operating leases leads to more transparent financial statements, the accounting regulatory bodies are moving towards the capitalization of all leases, whether short or long. As such, investors will soon have to be careful not to capitalize operating leases when they have already been capitalized! This would lead to overstating the company's debt situation and understating the company's return on capital.
To determine whether a company already is capitalizing its operating leases, the investor will have to read the company's notes to its financial statements to determine the company's current policy (companies with different fiscal year end dates will likely have to adopt the capitalization requirements at different times).
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on August 25, 2010 10:23 AM · permalink
<p>My latest at Yahoo, on <a title="Full article: Survivorship Bias at Yahoo by Deepak Shenoy" href="http://in.news.yahoo.com/columnist/deepak_shenoy/17/survivorship-bias" target="_blank">Survivorship Bias</a>:</p> <blockquote> <p>"If you had bought Praj Industries at Rs. 2 in 2003 for just 100,000 rupees, it would be worth Rs. 40 lakh today!"</p> <p>We hear something like this, as advisors and brokers coo about the long term greatness of the stock market. If you bought Infosys in their IPO in 1993, you would make a gazillion rupees, so much that you would be reading this article in your holiday home in the Bahamas. Yet, in the early 90s , IT stocks weren't the darling of the markets - more popular was a stock called Arvind Mills, which still exists and has done fairly well for itself; but if you had plonked your hard earned money into Arvind, you would have seen a stock going from Rs. 400 down to a relatively meager Rs. 43 today, only 18 years later. And that was still lucky; a number of other stocks simply went to zero.</p> <p>What happened? We counted the winners. If you count only the survivors, no accident has casualties.</p> <p>While <a href="http://en.wikipedia.org/wiki/Survivorship_bias">survivorship bias</a> is a classic problem with benefit of hindsight, it teaches us important lessons - that what is visible isn't everything and that it's critical to diversify. For a person investing equally in a number of stocks from stock market darlings to pariahs, the losses on one set of stocks could have been made up by gains in others; remember that you can't lose more than 100%, but you can make many multiples of your investment when you win ("multi-baggers"). If you research stocks well, chances are you will have a few multi-baggers and losers - sometimes many more losers, but the winners more than make up for the losses. The winners become the survivors and investors become geniuses for discovering them; the real genius though was the diversification.</p> </blockquote> <p>(<a title="Full article: Survivorship Bias at Yahoo by Deepak Shenoy" href="http://in.news.yahoo.com/columnist/deepak_shenoy/17/survivorship-bias" target="_blank">Read the full article</a>)</p> <p>Thanks in advance for your comments!</p> <p>More <a title="Yahoo Columns by Deepak Shenoy" href="http://in.news.yahoo.com/columnist/deepak_shenoy" target="_blank">Yahoo Columns</a>:</p> <ul> <li>The <a title="Problem with Multi-Level Marketing" href="http://in.news.yahoo.com/columnist/deepak_shenoy/16/the-problem-with-multi-level-marketing" target="_blank">Problem with Multi-Level Marketing</a> (<a title="Comments: The Problem with Multi Level Marketing" href="http://blog.investraction.com/2010/08/on-yahoo-multi-level-marketing.html" target="_blank">Comments</a>)</li> <li><a title="Planning for the Grim Reaper by Deepak Shenoy" href="http://in.news.yahoo.com/columnist/deepak_shenoy/15/planning-for-the-grim-reaper" target="_blank">Planning for the Grim Reaper</a> (<a title="Comments: Planning for the Grim Reaper" href="http://blog.investraction.com/2010/08/on-yahoo-planning-for-grim-reaper.html" target="_blank">Comments</a>)</li> <li>Of <a title="Of Options and Choices by Deepak Shenoy" href="http://in.news.yahoo.com/columnist/deepak_shenoy/14/of-options-and-choices" target="_blank">Options and Choices</a> (<a title="Comments: Of Options and Choices by Deepak Shenoy" href="http://blog.investraction.com/2010/08/on-yahoo-of-options-and-choices.html" target="_blank">Comments</a>)</li> <li><a title="Credit Default Swaps" href="http://in.news.yahoo.com/columnist/deepak_shenoy/13/credit-default-swaps-and-the-battle-for-regulation" target="_blank">Credit Default Swaps</a> (<a title="Comments: Credit Default Swaps" href="http://blog.investraction.com/2010/07/on-yahoo-credit-default-swaps.html" target="_blank">Comments</a>)</li> <li><a title="Four Investing Myths Busted" href="http://in.news.yahoo.com/columnist/deepak_shenoy/12/four-investing-myths-busted" target="_blank">Four Investing Myths Busted</a> (<a title="Comments: Four Investing Myths Busted" href="http://blog.investraction.com/2010/07/on-yahoo-four-investment-myths-busted.htmlhttp://blog.investraction.com/2010/07/on-yahoo-four-investment-myths-busted.html" target="_blank">Comments</a>)</li> <li><font color="#555555">(<a href="http://blog.investraction.com/search/label/Yahoo" target="_blank">The Whole Lot</a>)</font></li> </ul> <div class="blogger-post-footer"><p style="border: 1px solid #C888C8">
This post is written by <a href="http://blog.investraction.com">Deepak Shenoy</a>,
at <a href="http://blog.investraction.com">Capital Mind</a>.
</p><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/18601284-8765043870177772649?l=blog.investraction.com' alt='' /></div>
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Posted by Deepak Shenoy (noreply@blogger.com) on August 25, 2010 06:58 AM · permalink
<p>IFCI has some infrastructure bonds open for purchase, and they give you a tax exemption on a limit of 20,000 per year. </p> <p>Scheme: <a title="IDFC Infra bond offering detailed PDF" href="http://www.ifciltd.com/Portals/0/IFCI%20Infra%20Bond%20Series%20I_IM_web.pdf">http://www.ifciltd.com/Portals/0/IFCI%20Infra%20Bond%20Series%20I_IM_web.pdf</a></p> <p>10 year bond, with no exit till five years, but will trade on the BSE – but you can’t exit before 5 years are over. Purchasing these bonds on the BSE is unlikely to provide the same tax benefit (it probably only applies for a purchase directly from IDFC, a primary purchase – not secondary purchases). To be honest it all depends on when they list the bonds and whether on listing such bonds will still have a lock-in etc.  </p> <p>Rates: 7.85% if you want to sell them back after 5 years, 7.95% otherwise. </p> <p>Options: Cumulative (interest reinvested annually) or Annual Interest Payout.</p> <p>Issue Closes: August 31, 2010. You have a week from today.</p> <p>Issue details: <a title="http://www.ifciltd.com/IFCIBonds/InfrastructureBonds/Issue201011/tabid/212/Default.aspx" href="http://www.ifciltd.com/IFCIBonds/InfrastructureBonds/Issue201011/tabid/212/Default.aspx">http://www.ifciltd.com/IFCIBonds/InfrastructureBonds/Issue201011/tabid/212/Default.aspx</a></p> <p>You need a demat account. Business standard says <a title="Business Standard: no harm waiting" href="http://www.business-standard.com/india/news/useful-addition-to-portfoliono-harm-waiting/404979">no harm waiting</a> for other such bond offers for the 20K tax benefit.</p> <p>Let’s now analyze the non cumulative schemes.</p> <p>If you’re in the 30.9% tax bracket, investing 20K will save you Rs. 6,180 in tax in the first year, and give you Rs. 1570 in taxable interest, which means a net income of Rs. 1,085 per year. Over five years that’s a total return of 11,604 or about 10% a year, which is nice. Unfortunately the Rs. 20,000 cap on the tax exemption makes it uninteresting for the people in the 30% bracket.</p> <p>At the 20% bracket the net return, calculated the same way, is 10,352 or 10.35% per year. For the 10% tax bracket it means about 9.1% net yield per year. (Net yield = total interest/investment)</p> <p>At the cumulative option interest goes to 12.92% net yield per year, which is definitely very interesting. I might be tempted to wait for more as the year goes by, but to people in the 20% tax bracket this could be invested in immediately, with say 10K (leave the rest for a later offering).</p> <p><strong>Update: </strong>There is an <a title="awesome comment by Kaho Pyare" href="http://blog.investraction.com/2010/08/idfc-infra-bonds-saves-you-tax-too.html?showComment=1282673871326#c7051281333445452926" target="_blank">awesome comment</a> by reader Kaho Pyare, who specifies that the return is higher because you can reduce the tax from the investment amount. For someone in the 30% bracket, the cumulative option works out to a return of 13.77%, since your investment is about 13,820 (20K minus the tax benefit) and the return after five years post tax is 26,345. Just don’t overpay taxes.</p> <p>The absolute amounts are small for the 30% bracket (>8 lakhs a year) and perhaps only marginally more significant at the 20% bracket (>5L). It does make sense at the 10% bracket, surely, even if calculated returns are just 9.5% net of taxes over five years.</p> <p>This isn’t investment advice, just my opinion. </p> <div class="blogger-post-footer"><p style="border: 1px solid #C888C8">
This post is written by <a href="http://blog.investraction.com">Deepak Shenoy</a>,
at <a href="http://blog.investraction.com">Capital Mind</a>.
</p><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/18601284-1197567973918245047?l=blog.investraction.com' alt='' /></div>
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Posted by Deepak Shenoy (noreply@blogger.com) on August 25, 2010 04:11 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/nzvHymPMmww9BjYqnlORs_ltnWI/0/da"><img src="http://feedads.g.doubleclick.net/~a/nzvHymPMmww9BjYqnlORs_ltnWI/0/di" border="0" ismap="true"></img></a><br/>
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<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Mutual Fund</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Deutsche Mutual Fund </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Type</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Close Ended </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Category</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Income </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Launch Date</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> 23-Aug-2010 </td>
</tr>
</table>
<script type="text/javascript">
addthis_url = 'http%3A%2F%2Fwww.amfiindia.com%2Fnfo.aspx%3FintId%3D4772%23123';
addthis_title = 'DWS+Hybrid+Fixed+Term+Fund+%26%238211%3B+Series+1';
addthis_pub = '';
</script><script type="text/javascript" src="http://s7.addthis.com/js/addthis_widget.php?v=12" ></script>
<p><a href="http://www.amfiindia.com/nfo.aspx?intId=4772#123">DWS Hybrid Fixed Term Fund – Series 1</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by kalyan on August 25, 2010 01:08 AM · permalink
<a href="http://1.bp.blogspot.com/_yxDXLyjgmlU/THP622FQEvI/AAAAAAAALJg/9bch6lk4YfY/s1600/N24.PNG"><img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 264px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5509022589341668082" border="0" alt="" src="http://1.bp.blogspot.com/_yxDXLyjgmlU/THP622FQEvI/AAAAAAAALJg/9bch6lk4YfY/s400/N24.PNG" /></a><br /><div align="justify">At last I got some time to post this. The index is hitting the trendline drawn from the January top and there obviously is some pressure here. There isn't much change in the 20 day ATR which remains around 54 or 0.96% of the close. That's too low a figure to trade. As I said in my earlier post, no trade till at least we see an ATR of 75 and above. Until that happens it's just the noise around you which is best ignored. <br /></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/5184850244660132569-1995548242997981186?l=timamo.blogspot.com' alt='' /></div>
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Posted by ss (noreply@blogger.com) on August 24, 2010 05:21 PM · permalink
Iran's Bushehr nuclear power plant in Bushehr Port: "An error is seen on a computer screen of Bushehr nuclear power plant's map in the Bushehr Port on the Persian Gulf, 1,000 kms south of Tehran, Iran on February 25, 2009. Iranian officials said the long-awaited power plant was expected to become operational last fall but its construction was plagued by several setbacks, including difficulties in procuring its remaining equipment and the necessary uranium fuel. (UPI Photo/Mohammad Kheirkhah)" Click onwards for full sized image:...
Posted by iang on August 24, 2010 10:53 AM · permalink
For example, at the end of last week, Bloomberg ran an article that predicted oil was expected to fall in the coming week. Its thesis was reached with a poll that showed that more analysts see oil going lower in the next week than those who see it going higher. The article then went on to explain how global economic factors and higher inventories were contributing to this conclusion.
So should you short the oil market based on this article? Absolutely not! The survey has been conducted weekly since 2004 and has been correct just 48% of the time! The proverbial monkey throwing darts at a board divided into "higher" and "lower" halves would be right 50% of the time, so if anything this survey is a small contrarian indicator.
I'm not saying this because I expect oil to rise. (On the contrary, I've made it clear what I think will happen in cases where commodities, whether oil or gold or any other, deviate from their long-term averages for extended periods.) But the reality is, picking short-term directions in the prices of stocks or commodities is a crapshoot.
Articles in the financial news are meant to get you to read them, not to make you money. The sooner you realize this, the better the investment decisions you will make.
Disclosure: None
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on August 24, 2010 10:18 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/rNKOK9U74CK2U9EFbUvcUJQp2GM/0/da"><img src="http://feedads.g.doubleclick.net/~a/rNKOK9U74CK2U9EFbUvcUJQp2GM/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/rNKOK9U74CK2U9EFbUvcUJQp2GM/1/da"><img src="http://feedads.g.doubleclick.net/~a/rNKOK9U74CK2U9EFbUvcUJQp2GM/1/di" border="0" ismap="true"></img></a></p><p></p><p>Finding a suitable health insurance policy is akin to finding a needle in a haystack. There are 21 health insurance companies in India and many offer more than one type of health insurance product. Joining the bandwagon are life insurance companies who are now offering health insurance policies as well! So how do you buy one? First, make sure you know what you need – whether it is an individual health insurance or a family floater you are seeking; how much cover you need and when you need it.</p>
<h3>How do I go about buying a health insurance policy?</h3>
<p>Traditionally, <a href="http://www.jagoinvestor.com/2010/01/introduction-to-health-insurance-in-india.html">health insurance</a> policies have been bought either because they were sold or because of awareness among investors through advertisements. And a majority of us rely on the group health insurance cover provided by our employers anyway.</p>
<p>The simplest way to go about buying a policy is to get in touch with the insurers and ask for premium rates. But this has its own limitation – you could easily take a month to get all the details and the insurance agent could really be slow in his response – after all it’s a health insurance policy he is selling and it fetches him less commission!</p>
<p><strong>Go online : </strong>Another easy way is to use insurance comparison sites or aggregators as they are called. Aggregators provide a single window to compare quotes and features from multiple insurance companies and help a customer select the most suitable one. There is a whole lot that have mushroomed in India of late.</p>
<h3>How do aggregator sites work?</h3>
<p>Once online, all you need to do is provide your age, how much coverage you need and for how long – typically this is one year with most insurers today. The portal will collect personal information – email id, city and phone number to reach out to you later on – do provide this if you are a serious buyer.</p>
<p>Once you enter all relevant details, you are shown a plethora of policies and you can check each one out before selecting the one you want to buy. Most of the aggregator sites will collect payment from you upfront and liaise with the insurance company who will close the deal with you. Aggregators get a small marketing fee from the insurance companies for policies that they sell online. In response to this article, Deepak Yohannan, CEO and co-founder of iGear Financial Services says <em>“The process of buying online insurance has been made as simple as buying a flight or a movie ticket online. In the last one year, there have been considerable improvements in the online buying process.”</em></p>
<p><strong>Example </strong></p>
<p>Suppose you are 30 years old and need health insurance for Rs 3, 00,000/- for a year. The following is a sample of the health insurance covers that are on offer. Let’s just talk about individual health insurance plans for now.</p>
<p style="text-align: right;"><img class="aligncenter" src="http://img.jagoinvestor.com/ji/Health%20Insurance%20options%20in%20India.png" alt="Health Insurance options in India" width="599" height="361" /> Source : www.myinsuranceclub.com</p>
<p>Imagine the time you would have spent on collecting this data and comparing it if you were to do this offline.</p>
<h3>Filtering the unwanted</h3>
<p>How do you select what you want to buy? Remember that the aggregator site provides you comprehensive information on each policy and even lets you compare them – some sites will allow you to compare two policies at a time while others will allow you to compare more. The comparison feature compares side by side almost everything an insured would want from a health policy – this way an aggregator site is very powerful to help you decide which policy scores better. After you have compared and selected your policies, all you need to do is apply the same filtering techniques one would use when buying a policy offline to select the best one that you will finally buy. There are a host of parameters that one could apply.</p>
<p>In the example above, with so many policies available with such a wide range of premiums, a best practice could be to pick a policy with the highest, lowest and midway premiums for comparison and then apply the filtering parameters. We apply two of the most important comparison parameters first. Firstly, start with the maximum renewal age as the first option – select the insurer which allows you to renew the policy till maximum age. If you want to change to a new insurer at an advancing age, this will be looked at as a new policy and will come with a higher premium. It’s best to stick to a policy which can be renewed till the maximum age. Secondly, check when all the insurers will allow pre-existing illnesses to be covered. The earlier they start covering all pre-existing illnesses, the better. Usually there is a waiting period of a couple of years before which expense incurred on pre-existing illnesses start getting covered.</p>
<p>The waiting period varies from company to company. Filter more by checking on what are the special features that are on offer and go through the exclusions with a comb. Exclusions are most important as far as a health policy is concerned – you don’t want to get a claim rejected because you did not know what was not included in the policy. Does the policy cover maternity expenses or ambulance expenses? Generally, there will be sub-limits for many of the expenses within the overall limit, for eg, room rent could be 1.5% of sum insured per day. So if you are staying in expensive cities like Mumbai or Delhi, for a cover of Rs 3,00,000/- the room rent charges come to Rs 4500/- per day. Think whether the hospital you want to go to will have a room that can be accommodated in this range. If not, you would be better of settling with a no sub-limit policy.</p>
<p>Its worth noting that most of the policies will cover expenses incurred a month before and 60 or 90 days after hospitalization; free annual health check claims and a 24 hour helpdesk among a host of other common services which generally should not be used as key comparison parameters.</p>
<p>Here is how the data looks like in our example for the highest, lowest and mid-way premium figures.</p>
<p><img class="aligncenter" src="http://img.jagoinvestor.com/ji/Health%20Insurance%20comparision%20at%20different%20premiums.png" alt="Health Insurance comparision at different premiums" width="607" height="705" /></p>
<p style="padding-left: 30px; text-align: right;">Source : www.myinsuranceclub.com</p>
<p>Which one would you buy from the above? Its clear that the first policy is better as pre-existing illness are covered from the third year onwards and there are no sub-limits on room rent and doctor fees – so if this meets your criteria, go for it irrespective of what the premium is.</p>
<p><strong>Checkout</strong></p>
<p>After having selected a policy that suits you best, all the aggregator sites are pretty friendly in terms of helping you check out to buy the policy online after you have registered with them. The insurance company will contact you for paperwork within a week of payment.</p>
<p><strong>Issues buying online</strong></p>
<ul>
<li> Firstly, there are many aggregator sites available in India. Not each one will cover all the 21 insurers and you could lose out on some of them. The best way around this is to use maybe 2 or 3 of them and compare and buy from one that best suits your requirement.</li>
<li>Some aggregator sites might not have the correct data! Its best to re-check the details of the policy you have finalized with the insurer, either on the insurer’s website or offline at a local office, before buying.</li>
<li>You still need to undergo medical tests if you are 45 years of age.</li>
</ul>
<h3>Advantages of buying online ?</h3>
<blockquote><p>“For starters, buying online has now become a very simple process. You do not have to go through the hassle of going through an agent, who would have a tie-up with limited number of insurance companies and may not be able to get the product that you want. The agent may try pushing a product which they want you to buy. Also, there is complete transparency in the process when you buy online – everything is there in front of you and then you can make a decision. With an agent you really do not know if some facts are being hidden and only the good part of the policy is being highlighted to you. You realize the worst when the policy document comes to you or when you start the claim process. Having said that, if the agent is a completely trustworthy person, buying online and offline are the same,” says Deepak.</p></blockquote>
<p><strong>So, here are the advantages:</strong></p>
<ul>
<li> You save time – everything can be done at the click of a mouse.</li>
<li> It’s cheap, you save the costs for the insurer. This is passed onto you.</li>
<li> You don’t have to make a trip to the insurer’s offices and wait for time from the agents.</li>
<li> Most of the aggregator sites are easy to use and compare – it’s a one stop shop to buy policies.</li>
<li> Most of these sites are safe to operate and buy a policy using card details.</li>
<li> Most aggregators have a FAQ section and “ask an expert” section which helps you reach out on queries you might have.</li>
</ul>
<p><strong>Quick Bites</strong></p>
<p>Keep the following points in mind when buying health insurance:</p>
<ul>
<li> Ask insurers for premium rates or dig the figures out for yourself on aggregator sites.</li>
<li> Do not base your decision on the premium alone – remember, the policy with the cheapest premium might not be the best one for you. Also, there is no one policy that can be termed as best for everyone. Select one that meets your criteria, lifestyle and family requirements and buy it irrespective of what the premium is.</li>
<li> If you live in a metro, take a cover of 4-5 lakhs; in a smaller city, 2-3 lakhs of cover will do.</li>
<li> Check whether your policy will guarantee long term insurability.</li>
<li> Check whether a floater plan is more beneficial for you.</li>
<li> Most importantly, check the policy wordings on what the exclusions mean to you.</li>
<li> Opt for a cashless plan.</li>
<li> Take health insurance even if you have one from your employer.</li>
<li> Reveal all your family illness history; if you hide anything, it will only come back to hurt you.</li>
<li> Buy from a health insurance and not from a life insurance company.</li>
<li> Buy a critical illness policy separately than as a rider to your basic health insurance.</li>
</ul>
<p><strong>Disclaimer: </strong>The views and analysis expressed are those of the author and should not be construed in any way to be the sole reason of buying a policy online. Please do adequate research yourself before buying.</p>
<p>This is a guest post from TheWealthWisher, a personal finance blogger who writes on <a href="http://www.thewealthwisher.com">www.thewealthwisher.com</a></p>
<div id="crp_related"><h3>Related Posts:</h3><ul><li><a href="http://www.jagoinvestor.com/2010/06/how-to-choose-medical-insurance-policy.html" rel="bookmark" class="crp_title">How to choose Medical Insurance Policy ?</a></li><li><a href="http://www.jagoinvestor.com/2010/07/review-of-heartbeat-health-insurance-policy-from-max-bupa.html" rel="bookmark" class="crp_title">Review of HeartBeat Health Insurance Policy from Max Bupa</a></li><li><a href="http://www.jagoinvestor.com/2010/01/introduction-to-health-insurance-in-india.html" rel="bookmark" class="crp_title">Introduction to Health Insurance in India</a></li><li><a href="http://www.jagoinvestor.com/2010/08/review-of-iprotect-term-plan-from-icici-prudential.html" rel="bookmark" class="crp_title">Review of iProtect Term plan from ICICI Prudential</a></li></ul></div><div class="feedflare">
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Posted by Manish Chauhan on August 24, 2010 04:24 AM · permalink
Posted by Deepak Singh on August 24, 2010 01:03 AM · permalink
Posted by Deepak Singh on August 24, 2010 12:49 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/q7MsL3S7AapawwyHGcrqv475YEI/0/da"><img src="http://feedads.g.doubleclick.net/~a/q7MsL3S7AapawwyHGcrqv475YEI/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/q7MsL3S7AapawwyHGcrqv475YEI/1/da"><img src="http://feedads.g.doubleclick.net/~a/q7MsL3S7AapawwyHGcrqv475YEI/1/di" border="0" ismap="true"></img></a></p><table border="0" cellspacing="4" cellpadding="2">
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Mutual Fund</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> SBI Mutual Fund </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Type</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Close Ended </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Category</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Income </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Launch Date</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> 23-Aug-2010 </td>
</tr>
</table>
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<p><a href="http://www.amfiindia.com/nfo.aspx?intId=4762#123">SBI Debt Fund Series – 370 Days – 5</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by kalyan on August 24, 2010 12:42 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/XGaDk7JCpJxDI2XXNyNzbAVn4ak/0/da"><img src="http://feedads.g.doubleclick.net/~a/XGaDk7JCpJxDI2XXNyNzbAVn4ak/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/XGaDk7JCpJxDI2XXNyNzbAVn4ak/1/da"><img src="http://feedads.g.doubleclick.net/~a/XGaDk7JCpJxDI2XXNyNzbAVn4ak/1/di" border="0" ismap="true"></img></a></p><p>Larsen and Toubro informed the market today that the company has bagged two projects worth Rs 1195 crore from ONGC, the order is to set up Additional Processing Units at its Gas Processing complexes at Hazira and Uran.Second project is for Additional Processing Units (APU) project at Uran complex shall enhance the Gas Processing capacity at the Uran complex by 5 MMSCMD.<br />
<img src="http://www.bseindia.com/bseplus/charts/scol500510.gif" /><br />
<strong>Stock Price Movements</strong></p>
<blockquote><p><strong>Day’s High / Low</strong>1,887.00 / 1,848.00<br />
<strong>Previous Close / Open</strong> 1,869.00 / 1,870.00<br />
<strong>Wtd. Avg Price </strong>1,872.50<br />
<strong>Total Traded Value (Cr.)</strong> 35.79<br />
<strong>TTQ / 2W Avg Q (Lakh)</strong> 1.91 / 1.53<br />
<strong>Circuit Limits</strong> NA<br />
<strong>Mkt. Cap. Full / Free Float (Cr.)</strong>1,12,967 / 1,01,670</p></blockquote>
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<p><a href="http://www.rupya.com/2010/08/23/larsen-and-toubro-bags-order-worth-rs-1195-crore/15581">Larsen and Toubro bags order worth Rs 1195 Crore</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by Lalitha on August 23, 2010 04:28 PM · permalink
The company is not going to wow you with a steady earnings profile, as a couple of factors combine to make this a rather cyclical business. First, on the revenue side it relies on purchases from some industries that are rather cyclical. When the economy operates at overcapacity (as it does during a recession), construction projects get shelved. Second, the cost side of this business is rather fixed. In heavy manufacturing, certain amounts of fixed assets are needed to produce the finished goods, so cutting costs when revenue dries up is not an easy thing to do.
But for investors who can stomach the volatile earnings, the stock appears to trade at a discount to its potential earnings. While the company trades for just $6.5 million, it has pulled in net income of over $3 million in just the last 3 years. The company also trades at a 33%+ discount to its book value. Of course, as discussed above, if the economy remains weak, it would not be surprising to see net losses occur, but that's why the company trades at such a low price point; for those who think long term, this could be an excellent entry point.
One other point should be mentioned. This is one of the few Over-The-Counter (OTC) stocks discussed on this site. These stocks do not offer the same protections for investors as stocks traded on exchanges such as the NYSE or Nasdaq. Investors not familiar with these protections may wish to learn about them or stay away for now.
Disclosure: None
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on August 23, 2010 10:39 AM · permalink
<p>Reading about Spam SMSes I’ve realized that the reason spam is prevalent is that costs are low. [Warning: Long, rambling post] </p> <p>From <a title="LiveMint article on Spam SMSes" href="http://www.livemint.com/2010/07/27000020/Scourge-of-SMS-spam-swamps-mob.html" target="_blank">LiveMint</a>:</p> <blockquote> <p>Today, Singh sends close to 20 million SMSes per month, roughly half of them on behalf of real estate developers, who have become the most prolific and annoying spammers in this particular medium. It takes Singh just a minute to send 100,000 SMSes, for which he charges Rs4,000; for one million SMSes, the rate drops to 3 paise per message. “If you call 100,000 people, even at 30 paise per call, imagine how much more expensive it would be,” Singh points out.</p> </blockquote> <p>This is incredibly cheap, and I like that. I remember the days when you couldn’t go under a rupee per SMS. It’s very useful for business, to send quick and non intrusive status updates. The email of the mobile phone, so to speak. But is it?</p> <p>More business users are likely to use email anyways because 140 characters with no images doesn’t cut it, there is no way to properly “reply all” or even archive/search messages etc. But Email has a much slower delivery than SMS. In general, you would expect email to take longer than an SMS to arrive, plus people get obscene amounts of email and don’t bother opening them all. SMS’s non-archival is also very good in the Indian context where shady deals are being done, and people don’t want to discuss it over official email. </p> <p>The economics works at the 4p or 3p per SMS at a small scale and 1p/2p at a large scale. And this is helpful. I get an update every time I do a transaction on my credit card, or do an online transaction from the bank account. I get SMSes from my broker for each transaction, plus an end of day summary of each market I trade. I get SMSes from NSDL if my shares are moved in or out. This would not be possible if SMSes weren’t cheap. </p> <p>And SMSes are cheap because of the heavy amount of marketing on it. Which as we all know is a pain in the wrong place. I suffer email spam and instead of bothering to send legal notices  I simply delete the message. Or, I report as spam to my email provider, Google – which gets smarter and doesn’t allow such messages in again. No such luck with SMS. Additionally, when I’m out of town, I pay to receive such SMSes inspite of my not-wanting to!</p> <p>We will probably benefit from something of that sort on the mobile. An app that sits in, uses (perhaps) J2ME so it can run on most mobiles, hooks in to the messaging API and automatically records as spam any message that says “TM-“ etc. which isn’t a known non-spam entity. I wonder if such apps exist. </p> <p>Back to the SMS spam. The figures are immense:</p> <blockquote> <p>The largest sender of such SMSes is ValueFirst Messaging Pvt. Ltd, and its chief executive officer Vishwadeep Bajaj estimates that <strong>150 million marketing messages—of both spam and non-spam variety—are sent every day in India</strong>; his firm sends a full one-third of these. On a half-wiped whiteboard at his office in Gurgaon, Bajaj chews through the numbers; assuming each message costs, on an average, 3 paise, that would bring the industry’s annual revenue to Rs200 crore.</p> </blockquote> <p>The article says the mobile operators charge a paisa per SMS, which means 40 cr. in net revenue. They plan to go public, as does One97, another such mobile messaging and VAS intermediary. </p> <p>What happens now? Do people get sick enough of spam that TRAI announces blanket bans on marketing SMSes? Will that hurt these mobile businesses a lot? Time will tell; but the real story in SMS will be how it can be used for our benefit at this low cost, not to spam us. </p> <div class="blogger-post-footer"><p style="border: 1px solid #C888C8">
This post is written by <a href="http://blog.investraction.com">Deepak Shenoy</a>,
at <a href="http://blog.investraction.com">Capital Mind</a>.
</p><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/18601284-6890523707497637543?l=blog.investraction.com' alt='' /></div>
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Posted by Deepak Shenoy (noreply@blogger.com) on August 23, 2010 07:47 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/DekqVPcpPWt5wtPn7j_rQteM3_o/0/da"><img src="http://feedads.g.doubleclick.net/~a/DekqVPcpPWt5wtPn7j_rQteM3_o/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/DekqVPcpPWt5wtPn7j_rQteM3_o/1/da"><img src="http://feedads.g.doubleclick.net/~a/DekqVPcpPWt5wtPn7j_rQteM3_o/1/di" border="0" ismap="true"></img></a></p><p>ARSS Infrastructure Projects Ltd has informed BSE that the Company has received a new work order from Office of the Chief Engineer, National Highways, Orissa on August 20, 2010 for Rs. 103.65 Crores.<br />
<img src="http://www.bseindia.com/bseplus/charts/scol533163.gif" /><br />
<strong>Day’s High / Low </strong>1,343.25 / 1,304.10<br />
<strong>Previous Close / Open </strong>1,302.60 / 1,304.10<br />
<strong>Wtd. Avg Price </strong>1,331.24<br />
<strong>Circuit Limits</strong> 1,563.10 / 1,042.10<br />
<strong>Mkt. Cap. Full / Free Float (Cr.) </strong>1,975 / 395 </p>
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<p><a href="http://www.rupya.com/2010/08/23/arss-infrastructure-projects-bags-order-worth-103-65-crores/15577">ARSS Infrastructure Projects bags order worth 103.65 Crores</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by Lalitha on August 23, 2010 06:36 AM · permalink
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Posted by sandy (noreply@blogger.com) on August 23, 2010 03:34 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/wV3iqzrhWxncudaLCc7TA4MMOdQ/0/da"><img src="http://feedads.g.doubleclick.net/~a/wV3iqzrhWxncudaLCc7TA4MMOdQ/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/wV3iqzrhWxncudaLCc7TA4MMOdQ/1/da"><img src="http://feedads.g.doubleclick.net/~a/wV3iqzrhWxncudaLCc7TA4MMOdQ/1/di" border="0" ismap="true"></img></a></p><table border="0" cellspacing="4" cellpadding="2">
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Mutual Fund</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Pramerica Mutual Fund </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Type</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Open Ended </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Scheme Category</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> Liquid </td>
</tr>
<tr>
<td style='background-color:#CADDEC;FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; FONT-WEIGHT: bold; Color:#012540;'><b>Launch Date</b></td>
<td style='FONT-FAMILY: Verdana,Arial,San-serif; FONT-SIZE: 8pt; Color:#012540;'> 23-Aug-2010 </td>
</tr>
</table>
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<p><a href="http://www.amfiindia.com/nfo.aspx?intId=4764#123">Pramerica Liquid Fund</a> is a post from: <a href="http://www.rupya.com">First Blog for Indian Financial Market</a></p>
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Posted by kalyan on August 23, 2010 12:17 AM · permalink
<p><a href="http://feedads.g.doubleclick.net/~a/Uy9AXyDcfPRqhy8eYltSLfRs7Zw/0/da"><img src="http://feedads.g.doubleclick.net/~a/Uy9AXyDcfPRqhy8eYltSLfRs7Zw/0/di" border="0" ismap="true"></img></a><br/>
<a href="http://feedads.g.doubleclick.net/~a/Uy9AXyDcfPRqhy8eYltSLfRs7Zw/1/da"><img src="http://feedads.g.doubleclick.net/~a/Uy9AXyDcfPRqhy8eYltSLfRs7Zw/1/di" border="0" ismap="true"></img></a></p><span style="font-family:arial;font-size:85%;">A disclosure first – This is a completely borrowed idea. I originally saw this idea on </span><a href="http://dalaal-street.com/"><span style="font-family:arial;font-size:85%;">Ayush’s blog</span></a><span style="font-family:arial;font-size:85%;"> and started investigating it on my own. I had some discussions with him on the phone and liked the story behind the company.<br /></span><br /><span style="font-family:arial;font-size:85%;">The idea is a borrowed one, though hopefully the thinking is not (Ofcourse if the idea succeeds it would become my original idea as i would conveniently forget the source in due time :) ). I personally have no qualms of borrowing ideas from other smart investors like ayush (would highly recommend following his blog), though I will provide due to attribution to the original idea if I post about it.<br /></span><br /><span style="font-family:arial;font-size:85%;">I will not repeat some of the analysis here as ayush has done a great job of it. You can find the analysis </span><a href="http://dalaal-street.com/gujarat-reclaimed-rubber-products-grrpl/"><span style="font-family:arial;font-size:85%;">here</span></a><span style="font-family:arial;font-size:85%;">. Let me add some additional thoughts to the analysis<br /><br /></span><span style="font-family:arial;font-size:85%;"></span><span style="font-family:arial;font-size:85%;"><strong>Competitive analysis</strong></span><br /><span style="font-family:arial;font-size:85%;">The Company has been able to sustain a fairly high growth and profitability for the last 8-10 years. The company currently enjoys a 35%+ market share in its business niche which is characterized by a large number of players from the unorganized sector.<br /></span><br /><span style="font-family:arial;font-size:85%;">The company has been expanding rapidly and is now enjoying the benefits of scale in production and sales. The Working capital turns have been going up steadily over the years which is an indication of the operating leverage (Fixed asset turns have not increased as much due to constant capacity addition). The company is now one of the largest company in its sector and is now exporting almost 57% of its total turnover. An effective sales and marketing organization is required to develop and sustain an export business as it requires a close relationships with the OEMs (tyre manufacturers and other users of rubber)<br /></span><br /><span style="font-family:arial;font-size:85%;">The competitive intensity from any large players is likely to low as this is not a big and attractive segment for any big player. The company enjoys a substantial competitive advantage over smaller player due to economies of scale, customer relationships, strong sourcing network (for waste rubber) and ability to invest in research.<br /><br /></span><span style="font-family:arial;font-size:85%;"></span><span style="font-family:arial;font-size:85%;"><strong>Risk<br /></strong>The main threat is low cost import of tyres from china which can hurt the OEMs directly and Gujarat reclaim indirectly. In addition this is a very competitive industry with a lot of competitors and it is unlikely the company can earn very high profits for a long time.<br />The price of rubber also plays an important part in the profitability. As the price of virgin rubber has increased, the substitution by reclaimed rubber has gone up too. The substitution effect may slow down once the price of rubber starts dropping.<br /></span><br /><span style="font-family:arial;font-size:85%;"><strong>Competition<br /></strong>The company does not seem to have any major listed competitors, though there seem to be a lot of </span><a href="http://www.fishfarubbers.com/index-2.html"><span style="font-family:arial;font-size:85%;">smaller competitors</span></a><span style="font-family:arial;font-size:85%;">. A company like Indag rubber is not really a direct competitor even though they operate in the tyre industry. Gujarat reclaim provides cheap substitution of a raw material used in tyres, whereas indag provides a substitute for the end product – tyres itself (via re-treading).<br /><br /></span><span style="font-family:arial;font-size:85%;"></span><span style="font-family:arial;font-size:85%;"><strong>Valuation<br /></strong>The fair value of the company can be estimated to be between 1700-2000 with an assumption of 8-9% net margins and growth in the range of 10-11 %. The company is selling at a decent discount to fair value and would be quite attractive if the price drops below 800.<br /></span><br /><span style="font-family:arial;font-size:85%;">Disclosure: I have a position in the stock. Please read disclaimer at end of the blog.</span><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/7004453-2254767066546466932?l=valueinvestorindia.blogspot.com' alt='' /></div><div class="feedflare">
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Posted by Rohit Chauhan (noreply@blogger.com) on August 22, 2010 10:49 PM · permalink
Posted by Deepak Singh on August 22, 2010 10:57 AM · permalink
Reminiscences of a Stock Operator was originally written in 1922 as a first-person fictional account, but is now generally accepted as the biography of stock market whiz Jesse Livermore. The book is recommended to traders and value investors alike, for the lessons it teaches the reader in human behaviour as it pertains to securities trading and investing.Livermore speaks to the many tales that have been told about his trading prowess. Everyone from the media to his close friends have all exaggerated his ability. They speak of how he receives hunches in the middle of dinner that cause him to act just then, resulting in a sale (or purchase) right at the market top (or bottom).
These "hunches", Livermore argues, are nothing more than his mind (including, at times, his subconscious mind) mulling over the various facts that govern whether a security is to break higher or lower.
One of the pieces of information in which Livermore places great importance in forming his trading opinions is the level of insider buying/selling. But the information on insider buying/selling only comes out much later, and therefore Livermore tries to determine it right then and there by reading a stock's ticker (i.e. looking at past prices). In combination with a stock's fundamentals and the state of the macroeconomy and industry, Livermore tries to determine (with test trades described in an earlier chapter) whether insiders are participating. If insiders are not bolstering an undervalued stock with their own buying, for example, he often sees this as a signal that something is wrong with the company.
At other times, however, the economy and general market conditions will cause him to trade opposite insiders. Many times, insiders have promoted their stock by releasing positive news or spreading rumours that are bullish. In such cases, Livermore will again test the market to determine if insiders are actually buying. If there is no resistance (e.g. the price moves down as a result of his sale transaction), he will trade against the stock despite the actions of other market participants who are reacting to the news.
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on August 22, 2010 10:16 AM · permalink
Posted by Deepak Singh on August 22, 2010 05:28 AM · permalink
There appears to be a wave of something going through the infosec industry. There are reports like this: In the past month, we've had several customers at work suddenly insist that we make modifications to their firewalls and/or load balancers to redirect *all* incoming HTTP traffic to HTTPS (which of course isn't always entirely sane to do on proxying devices, but they apparently don't trust their server admins to maintain an HTTP redirect). Most of them cited requirements from their PCI-DSS auditors. One apparently was outright told that their redirects were "a security problem" because they presented an open socket on port 80, and they needed to be refusing all HTTP to their servers at the firewall. I think we gave them sufficient wording to convince their auditor that blocking access to the redirect itself wasn't going to do anyone any good. Then, there have been long discussions circulating around the meaning of this hypothesis in security design: there is only one Mode, and it is Secure Which, if I can say in small defence, is an end-point, a result, an arrival that does not in the slightest hint at how or why we got there. Or by what path, which by way of example is the topic of this very blog post. The Electronic Frontier Foundation has announced and pushed a new experimental browser plugin to take browsing on that very path towards https://www.eff.org/https-everywhere/">more and pervasive HTTPS: HTTPS Everywhere is a Firefox extension produced as a collaboration between The Tor Project and the Electronic Frontier Foundation. It encrypts your communications with a number of major websites. Many sites on the web offer some limited support for encryption over HTTPS, but make it difficult to use. For instance, they may default to unencrypted HTTP, or fill encrypted pages with links that go back to the unencrypted site. The HTTPS Everywhere extension fixes these problems by rewriting all requests to these sites to HTTPS. And Jeff Hodges, Collin Jackson and Adam Barth have published an Internet Draft called Strict Transport Security based on this paper, which in essence tells anyone who connects to the insecure HTTP service to instead switch across to the secure HTTPS service. Now, leaving aside whether these innovations will cause a few confusions in compatibility, site-redesign and access, all common ills that we would normally bow and scrape before, ... it would seem that this time there is some emphasis behind it: As well as the EFF plugin above, Paypal and NoScript have adopted STS. As Paypal was at one time the number 1 target for phishing-style attacks, this carries some weight. And as NoScript is allegedly used by practically all the security people on the planet, this could be influential. A few words on what appears to be happening here. In the Internet security field is that the 800lb gorilla -- breaches, viruses, botnets, phishing,... -- it seems that outsiders like EFF, Paypal and PCI-DSS auditors are starting cleaning up the field. And in this case, they're looking for easy targets. One such target was long identified: turn off HTTP. Yup, throw another bundle of tinder on that fire that's burning around me ... but meanwhile, switch all HTTP traffic to HTTPS. In an ideal world, every web request could be defaulted to HTTPS. It's a simple thing, and an approximate first step towards the hypothesis of there is only one mode and it is secure. Switching to HTTPS for everything does a few things, obvious and subtle. 1. the obvious thing is that the user can now be seriously expected to participate in the "watch the padlock" protocol, because she's no longer being trained to ignore the padlock by the rest of the site. The entire site is HTTPS, that's easy enough for the users to understand. 2. The second thing that the notion of pervasive HTTPS does is to strip away some (not all) of the excuses for other parties. Right now, most decision makers almost totally ignore HTTPS. Browser manufacturers, server manufacturers, CAs, cartels, included. It is all compliance thinking, all eyes are turned elsewhere. If, for any circumstance, for any user, for any decision maker, there is a failure, then there is also an easy excuse as to "why not." Why it didn't work, why I'm not to blame, why someone else should fix their problems. Probably, there are more excuses than we can count (I once counted 99...). However, if the PCI-DSS auditors make HTTPS the normal and only mode of operation, that act will strip away a major class of excuses. It's on, always on, only on. Waddya mean, it went off? This means the security model can actually be pinned on the suppliers and operators, more of the time. At least, the outrage can be pinned on them, when it doesn't work, and it will have some merit. 3. The third thing it does is move a lot of attention into the HTTPS sphere. This is much more important, but more subtle. More attention, a growing market, more expectations means more certs, more traffic, more reliance on the server cert, etc. But it also means more attention to client certs, more programmers, more admins, more more more ... Which will elevate the use of HTTPS and its entire security model overall; which will hopefully get the people who can make a difference -- here I'm thinking of Mozilla and Microsoft and the other browser security UI production teams -- to put a bit more effort and thinking into this problem. Some would say they are working hard, and I know they are. But let me put this in context. Last I heard, Jonathan had a team of 2-3 programmers working on Firefox security UI. (And, yes, that's a set-up for a correction, thanks!) This team is so tiny that we can even know their names.... Let me know and I'll post their names :) Yet, this security UI is protecting the online access of probably 100 million people across the planet. And the current viewpoint of the owning organisation is that this is a backwater that isn't really important, other areas are much more important. (Just to point out that I'm not picking on Mozilla unfairly: Microsoft is no better, albeit more clear in their economic reasoning. Google probably has one person, Opera may have one too. Konqueror? Apple won't say a thing...) (Prove me wrong, guys! Ya know ya want to! :)...
Posted by iang on August 21, 2010 06:27 PM · permalink
Reminiscences of a Stock Operator was originally written in 1922 as a first-person fictional account, but is now generally accepted as the biography of stock market whiz Jesse Livermore. The book is recommended to traders and value investors alike, for the lessons it teaches the reader in human behaviour as it pertains to securities trading and investing.In one particular case, it cost Livermore millions of dollars. During World War I, coffee importers held too much supply, and thus sold the commodity to Livermore. Once transportation for the commodity began to return, Livermore stood to make a killing as the price would begin to rise. The importers, however, went to Washington and convinced regulators to force the immediate settlement of contracts so that they could profit over Livermore, a supposed speculator and profiteer that added no value to the economy. Livermore counters that it was he who stabilized the price when it was falling (to the benefit of the economy), and therefore it should be his reward if/when the situation turns.
Livermore also tackles the uselessness of stock tips that are abound in the market. He claims to have received more than 100 tips per day! He never gave tips, for he recognized that in speculation, there is no sure thing. But the number of people willing to listen to and give away tips baffles him. Livermore recounts several stories where tips have led to disasters, and believes no speculator or investor should trade off them. One company president even gave a tip to Livermore's wife, and she traded on the info (only to lose her investment completely) unbeknownst to Livermore.
Posted by Saj Karsan (sajid.karsan@barelkarsan.com) on August 21, 2010 10:06 AM · permalink
Posted by Deepak Singh on August 20, 2010 04:40 PM · permalink
Yesterday, GameStop (GME) shares fell more than 8% after the company missed expectations by a penny and guided earnings estimates lower for its 3rd quarter. A variety of factors appear to be coalescing in the short-term to push the stock close to its 52-week low. But longer term investors should actually be encouraged by the company's results, as the company appears set to generate years of strong free cash flow relative to its current market cap.
First of all, a retailer like GameStop makes most of its money during the Christmas quarter, so a few cents here and there during the summer quarters says nothing about the health of the overall business. But still, how can one get excited by the company's long term outlook when short-term expectations are being lowered? Well, because of the reason for those lowered near-term expectations: namely, increased expenses associated with the national roll-out of initiatives that were very successful in their test locations.
First, the company's loyalty program appears to have generated excellent returns in the test locations, causing management to want to take this program national immediately. Participation rates are high, and customers enrolled in the program have increased their transactions at GameStop, both as buyers and as used-game trad