Owner: Value investing india URL:http://valueinvestorindia.blogspot.com/ Join Date: Mon, 22 Oct 2007 15:21:57 -0500 Rating:0 Site Description: An online diary of my investment philosophy based on the teachings of warren buffett, Ben graham, Phil fisher and other value investors. I will be posting my thoughts and analysis of various companies and industries. In addition i would be posting on pote Site statistics:Click here
Rapid fire analysis of multiple stocks 2008-07-06 21:28:00 In the previous post, I was asked to give an opinion on several stocks. I have fairly broad filters when selecting stocks. As a result I drop companies pretty quickly. Once they make through my filters, I spend quite a bit of time analysing and mulling over them. Frankly I don’t need more than 10-12 stocks to build a decent portfolio, so I don’t spend time on companies which don’t catch my a Read more:Rapid
And now on Twitter 2008-08-02 20:36:00 Twitter is supposed to be a microblogging tool. It is like be cross between an SMS and a blog. This tool allows you to post entries (tweets ?) of about 140 characters. So one can use this to post or inform others about what you are doing, thinking etc almost on a real time basisI originally thought that this tool would be a waste of time for me. However I read a few posts on this tool and have s Read more:Twitter
Arbitrage Process - II 2008-07-31 12:29:00 In the previous post, I detailed the arbitrage process. In this post, let me provide some other resources to understand the process better.Joe Ponzio (Fwallstreet) is a value investor and writes extremely well on value investing with a lot of clarity. He has written several posts on arbitrage with examples of specific companies such as the tribune company. In this post, and this post he talks of t Read more:Arbitrage
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Arbitrage process - I 2008-07-28 15:24:00 I have been reading a book on risk arbitrage and came across the following steps in a typical deal (merger, spin-off, recap etc)Deal announcement – This generally involves a press release or filing of an offer with BSE/ NSE with the requisite details. An investor has to be on a constant lookut for such announcements.Gather and analyse information – After the investor comes to know about the de Read more:Arbitrage
Those were the times !! 2008-07-25 13:16:00 2004-2007Inflation – 3-5%Sensex – 300% upInterest rates – around 7-8%Salary hikes – 20% minimumReal estate – 200% or more upA few more years of this, and I could have retired. Ahh ..life was good !!. All I had to do was to buy a house, anywhere or pick a stock which I heard from my panwala or barber.how I long for those times again :) I want a new bubble !!!!!
Responding to comments - NIIT tech valuation 2008-07-23 15:26:00 I have posted on NIIT tech earlier here. I had done a quick back of the envelope calculation and uploaded the same in the google groups – see the file valuationtemplatev3NIITtemp.xls. I have been asked on the logic of the valuation via comments and emails. So here goes,Following are the assumptions in the valuation- Topline will grow by around 10% per annum for the next 2-3 years- PBT margins wi
Cement Industry – Stock analysis 2008-07-20 12:43:00 I received a list of companies to analyse based on my earlier post. In order to do a better analysis, I am trying to club all the stocks from the same industry. As there are several cement companies in the list, I decided to take a stab at the cement stocks first.My earlier analysis of the cement industry is here and here. In addition I have analysed the industry and updated my analysis in the fil Read more:Stock
How i analyse stocks 2008-08-15 11:04:00 I have been asked via emails and comments on the process I follow in analysing stocks. I have written about my approach earlier, but may have never put it formally in a single post.My approach essentially consists of the following steps1. Idea generation – This is typically the first step in the process. It involves searching for undervalued ideas. I do not have a strict formula for the search p
Analysis – Ashok leyland, Suraj diamonds etc 2008-08-08 15:10:00 I had suggested to the readers of this blog a few weeks back to send me a list of companies to analyse. I am posting on a few from the listAshok
Leyland – I have written on Ashok leyland here and here. I have been analysing the annual results of the company for 2007-2008 and the key points are summarized belowPostitives :The company has maintained its ROE and capital efficiency (Wcap ratio) insp Read more:Analysis
Analyst speak 2008-08-05 18:58:00 Analyst recommendations -Neutral – We are as clueless as you are about the future of the company, but I have to give some rating as I am being paid to do that.Hold – Same as neutralBuy – Holy Cow !! The stock price has gone up recently. Now that the whole world knows that the company is doing well, we are recommending the stock. Doesn’t matter if the company is overpriced …that is your Read more:Analyst
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Replying to a comment, a correction and misc thoughts 2008-09-07 19:31:00 I got the following comment recentlyIf I take u back to 1994, how would u have spotted Infosys. The only way one could spot it could be through the market opportunity, good results and good management.or u may enlighten if there was any other way. So it could have been a kind of recurring deposit wherein one wud have seen good results and put money in that company every quarter.I agree there could Read more:correction
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Analysis: NIIT tech Annual results 2008-09-02 12:50:00 Warning: Parts of this post are boring as I would be discussing about Hedge accounting, reserve adjustments etc. However if you are invested in IT stocks, I would recommend you to get a good understanding of these concepts as they are now critical to understand how the company is doing.Results summaryThe company had an average performance for the year 2007-08. The ROE was maintained at 30% level. Read more:Analysis
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Infosys accquisition of Axon group: My view point 2008-08-28 22:06:00 Infosys recently announced the accquisition of the Axon group. Most of the analysis I have seen is centred around whether the deal is EPS accretive or dilutive. I think this kind of analysis is superficial and misses the point
. A deal can be EPS dilutive and still be adding value and vice versa (more on that in a later post).In this specific case, Infosys is accquiring an ERP (SAP in this case) co Read more:Infosys
My personal investment journey - II 2008-08-25 22:29:00 In the previous post, I described my investment
journey till 2003. By mid of 2003, I had spent close to 6-7 years on reading and studying about the topic. I had read dozens of books on warren buffett and other value investors. In addition I had been analying companies for the past 5 years. So I understood the basics of investing, valuation and other aspects of investing.What was missing was the ex
My Personal investment journey - I 2008-08-19 19:05:00 There is a certain level of curiosity in knowing what the other guy is making or getting in terms of investment
returns. A lot of people and friends I know like to flaunt the returns they are getting from the market (The stock I bought last month doubled !!). Maybe it is an ego thing or maybe just a topic of discussion.I personally prefer to discuss about specific ideas, both in person and on my b Read more:Personal
Value investing is simple but not easy 2008-09-23 22:00:00 The above is a statement by warren buffett. It is a very apt comment. Value
investing does not require a major leap of faith. Most of us can find companies selling below intrinsic value. That is the simple part. The difficult part is ignoring your emotions and buying such a stock.Value investing is even more difficult when the market is in a momentum phase, as it was during 2003-2007, when most of
Credit crisis – Impact on us 2008-09-18 14:29:00 The crisis is now full blown. I have not seen panic at this scale personally. I have read about it, but not seen it personally. It almost feels as if companies are being targeted one at a time. Lehman went into bankruptcy and AIG just survived through government help, though equity holders have been wiped out (almost). Now it seems the market has moved on to Morgan Stanley, Goldman Sachs and Washi
A failure a week 2008-09-14 19:51:00 First it was Bear stearns, but the US treasury (similar to our Finance ministry) and the Fed (similar to our RBI) engineered a bailout. Bear stearns, an investment bank was bought out by J P morgan, a commerical bank, in March. This bailout was done to calm the markets and reduce systemic risk.Well, next in line were Freddie Mac and Fannie Mae which were nationalized (federal takeover) for the sam Read more:failure
Analysis : BEL annual results 2008-09-11 11:43:00 Read my earlier analysis of BEL hereResults summaryThe company had an average year in 2007-2008. The sales growth was around 7% and the profit growth was around the same. The net profit margin improved to around 20%. The company maintained the ROE numbers at the 25%+ levels and continues to be a zero debt- cash rich companyThe open order book has now increased to 9586 Crs with around 3100 Crs exec Read more:results
, Analysis
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