Stock Market
September 5, 2010
.Europe and UK remain in equally difficult conditions suffering to some extent from the debt induced overhang.Hong Kong and the rest of Asia in comparison have escaped relatively unscathed and countries in the region have resumed their strong growth trajectory.Its not a wonder then that global talent is looking at Asia for newer growth opportunities.Non-Resident Indians are migrating back to their homeland in record numbers to take advantage of the booming economy.Its the same in case of other Asian centres like Singapore,Hong Kong and Shanghai.Asian companies are now raising money from capital markets in HK rather than NY.
September 1, 2010
Empire Building through Unrelated Expensive Acquisitions make Reliance Industries Stock Underperform
Reliance Industries is known to have one of the smartest management teams in the country.The Reliance Group led by Mukesh Ambani is well connected with proven record in executing huge projects in the Oil and Gas Arena.However outside of their core competence,the Group has suffered.Its Retail Entry has not been much of a success despite big bucks being poured in the last 3-4 years.It entry into marketing of oil based fuels has also meandered without going anywhere.Now the Reliance Group has announced an entry into the Hotels Sector by acquiring a 14% stake in East India Hotels at a significant premium over the market price from the promoter Group.This ~$220 million investment is totally unrelated to Reliance's activities and make no strategic sense.
August 27, 2010
There is no good way of shorting Prakash Steelage stock otherwise it seems a sure shot money making opportunity.What is funny is that mainstream media websites have described the stock glowingly as a multibagger.More reason than ever to strictly avoid mainstream financial media.These IPOs have become a fertile gambling ground with the dice loaded in favor of the promoters and connected market operators.Retail investors get sucked in not realizing its a "Greater Fool" Game with the whole purpose of making them the Greatest Fools.
August 24, 2010
Note HK listed Chinese solar firms like GCL and Comtec solar have performed much better than their NY listed Chinese peers.The HK market has also outperformed the US markets which are presently suffering from Double Dip Scares.If Trony manages to list successfully in Hong Kong it will give an impetus for other Chinese Green Companies like Daqo and others to list in HK as well.With continued apathy towards Chinese solar stocks,it is not inconceivable that you might see NY listed firms apply for a dual listing in HK as well.
August 24, 2010
Italy largest power utility Enel and giant Chinese utilities Huaneng and Datang Group are looking to spinoff their Renewable Energy Arms through IPOs.Note Enel has been […]
August 20, 2010
Midfield Industries was another overpriced small cap IPO in the Indian market which listed on 4th August.This stock not so strangely has almost doubled in price […]
August 17, 2010
The ETF does not make much sense for any class of investor.A Lithium investor would be better off investing in Rockwood,SQM and FMC with appropriate offsetting positions in the agri and speciality chemicals sector.A Battery Investor should invest in BYD,A123 Systems,Ener1 etc. rather than Sanyo,Exide and Cosco.Also a lot of the companies in the ETF have never made profits and are high risk in nature while stable holdings like Rockwood,SQM are expensively valued at the moment.I would advise against investing in this pseudo Green ETF which is only masquerading as a Lithium ETF.
August 16, 2010
This almost 30% decline in US yield is due to a combination of factors like expectations of more monetary easing by Fed,deflation worries and disappointing US economic data.In lockstep with the the US Treasury yields,the German bunds have also been rising.The rise in German Bunds is despite very strong German economic data.The German economy expanded at the fastest pace in 23 years on Rising Exports.So the fall in Bund yield is confusing when seen in terms of the US Treasury and Economy relationship
August 13, 2010
he valuation of this ETF is quite expensive given that Large Cap Nature of these Stocks.There are also some picks that I would avoid .It would make much more sense to invest in individual high quality infrastructure stocks especially since India has recently liberalized foreign investing in Indian stocks.I would advise someone to rather invest in NiftyBees which is listed on the Indian Stock Market.
August 5, 2010
It is a microcap stock with only $12 million being sold to the public making it easily susceptible to manipulation because of its small float size.Its fundamentals could not in any way justify Rs 199 as even at Rs 118 it looked twice overvalued to me.But the stock kept climbing without any news probably sucking in naive investors out to gamble on the "greater fool" theory until the greatest fools were left holding out the can
August 3, 2010
The Indian Market has seen a slew of junk Initial Public Offerings (IPOs) which have led to large losses for investors.The fundamentals of these companies are […]
July 29, 2010
Suzuki which is a global Tier 2 automaker is the biggest automobile company in India through its Indian subsidiary Maruti.The company which was formed in the […]
July 28, 2010
India’s primary market for stock issues has seen a lot of junk offerings in the recent past.They have led to big losses for investors naive enough […]
July 19, 2010
The recent recovery in Euro from 1.2 to 1.3 USD and the strength of the stock markets would make you think that the Greek Contagion is […]
July 19, 2010
While their growth and margins are comparable to the private and foreign owned banks in India,the P/E multiple is much lower despite lower risks.The cause of this discount become apparent when you consider some of the loans these banks make.LIC had come under a cloud in nineties for making investments and loans to favored companies
July 17, 2010
Indian market has seen a raft of junk offerings in the IPO market over the last few months.Many of these issues have failed to get subscribed […]
July 17, 2010
ABB recently came up with an open offer to increase its stake in the Indian subsidiary from 52% to 75% offering Rs 900/share which was a […]
July 15, 2010
The Spanish Financial sector is still in a precarious condition which is underscored by the record European Central Bank (ECB) borrowing . The indications of weaknesses […]
July 3, 2010
India’s Rising Inflation crosses into Double Digit territory India has seen inflation increase at a rapid pace in the recent months with the Wholesale Price Infalation […]
June 23, 2010
India has seen numerous junk initial public offerings (IPOs) in the last few months which have either led to serious losses for the investors or have […]
June 13, 2010
China’s Wind Turbine Producer Xinjiang Goldwind has apparently canceled plans for a massive $1.2 Billion Hong Kong IPO .The reasons for the cancellation of this much […]
June 11, 2010
Standard Chartered IDR closed below its listing price of Rs 104 in the Indian Market.A Review of Standard Chartered IDR had revealed severe disadvantages for retail […]
June 1, 2010
After the Dow and the other US indices crashed by almost 8% in the infamous “Flash Crash” during the Greek contagion,India got its own smaller version […]
May 9, 2010
SEC as is the case with most regulatory agencies, is trying to create more rules to prevent the 1000 point crash that happened on Thursday.From the […]
May 9, 2010
As I have been writing in my earlier posts , EU leaders are continuing to put the blames of the EU debt crisis on “speculators” and […]
May 7, 2010
Green IPO’s which were being planned with the recovery in the world economy and renewed interest by investors have shuddered to a halt.The European debt problems […]
May 7, 2010
Greece was given an aid package by EU-IMF to contain any contagion effects but looks like it has failed miserably.No one knows how this one will […]
May 7, 2010
India has very low exposure to the current European debt crisis. The reasons for that are: India’s export to GDP ratio is much lower than that […]
May 6, 2010
Recent newsflow from China suggest that the country’s real estate market is poised for a sharp slowdown and the heavily controlled financial sector is sitting on […]