BHARAT FORGE Q1FY11 Is Expected Good Stay Invested,
The second largest forging company in the world, Bharat Forge.
It scaled new high of Rs.328.55, since the buzz around this company remains very positive.
Almost all brokerage houses have put out a ‘buy’ for this stock.
The company is making moves to increase its presence in the non automotive sector, which is largely related to energy, infrastructure, marine and railways. The company has entered into deals with Alsthom and Areva and both these are expected to start adding on to the revenues from 2012.
Monday, July 12, 2010
BHARAT FORGE Q1FY11 Is Expected Good Stay Invested,
Wednesday, October 21, 2009
A successful trade gives you unlimited pleasure, only when it comes after a failure/lesson
INDIAN MARKETS OUT PERFORMING GLOBAL MARKETS TODAY AND FOR DOWN TREND NIFTY HAS TO SUSTAIN BELOW 5080. AS INDIAN MARKETS SHOWED STRENGTH IN FIRST HALF TRADING HOUR TODAY THEREFORE FRESH SELLING REQUIRES TODAY FOR NEXT DOWN MOVE. AS PER MY VIEW 5080 SHOULD BE WATCHED FOR NEXT TREND CONFIRMATION. IF NIFTY SUSTAINS BELOW IT TODAY THEN TODAY DOWN MOVE AND RED CLOSING WILL BE SEEN OTHERWISE INDIAN MARKETS WILL CONSOLIDATE FOR NEXT UP MOVE WITHIN 5080-5180.
THE NEW RULES OF MONEY
In 1971, the rules of money changed. In 1971, President Richard Nixon took the U.S. dollar off the gold standard. Today, 37 years later, the U.S. dollar has become toxic as it falls rapidly in value. Recently, The Economist called the dollar’s fall “the biggest default in history,” exceeding those of any emerging market catastrophe. Today the rich get richer as the financial resources of America’s poor and middle class are wiped out. Unfortunately, the poor and middle class have no idea the rules of money have changed. One definition of the word intelligent is: if you agree with me, you are intelligent. If you disagree with me, you are a moron. In my opinion, Steve Forbes is a very intelligent man. It was an honor to be interviewed with him on the economy during the Forbes.com iconference.
As a bonus, in conjunction with that iconference, I offer my views on the New Rules of Money. Before discussing the new rules, I think it’s important that I cover the old rules.
THE OLD RULES:
1. Go to school so you can get a safe, secure job.
During my dad’s time, people did this. They went to school, got a job, and stayed with the
company until they retired. Today, we all know that job security is a myth, especially as jobs are exported. Billions of people in the third world enter the global market competing for your job at a lower wage, and technology wipes out companies that do not stay competitive. Today,
rather than having a job for life, those born after 1970 will probably have four to seven jobs in their lifetime.
2. Work hard, climb the ladder, and earn more money.
The problem with working hard as an employee is the tax laws are written against employees. The more money an employee makes, the higher the percentage in taxes the government takes. Most of us have heard Warren Buffett say that he thought it unfair that he pays a lower percentage in taxes than his secretary.
3. Save Money
Savers are losers, especially if you are saving U.S. dollars. Since 1971, the U.S. has been able to print money faster than the country earns it. This causes the value of savings to erode as prices increase. Adolf Hitler was elected Chancellor of Germany after the middle class had their
savings wiped out due to hyperinflation. Stalin and Mao also rose to power when the previous leaders devalued their money.
4. Get out of debt.
Because the value of the U.S. dollar is falling rapidly, it is important to know the difference between good debt and bad debt. Unfortunately, even the U.S. banks are loaded with bad debt, a.k.a. subprime debt. If you want to become wealthy in a subprime world, it is
important to know how to use good debt to offset the falling value of the U.S. dollar. If they are smart, debtors can be winners.
5. Invest in a well-diversified portfolio of mutual funds through your company’s 401(k).
First of all, Warren Buffett does not diversify. He says, “Diversification is for people who do not know what they are doing.” Second of all, John Bogle, founder of The Vanguard Group and one of the more brilliant minds in investing today, says that mutual fund companies have been ripping investors off. He states that investors in mutual funds put up 100% of the capital, absorb 100% of the risk, and receive only 20% of the rewards. The 80% in investor gains goes to the mutual fund company. On top of that, the Wall Street Journal called the last ten years “the lost decade” because there have been no real profits in stocks for the past ten years.
THE NEW RULES:
1. Keep your daytime job but start a part-time business.
In other words,become an entrepreneur at home. Not only will you learn a lot, but the tax rules of the rich swing to your favor. If your business grows and can replace the income from your job, you may be ready to spread your wings and fly. As you may know, the richest people on earth are entrepreneurs who invest in real estate.
2. Become an entrepreneur.
The world’s most successful entrepreneurs did not go to school nor did they climb the corporate ladder. Many of the most famous entrepreneurs did not do well in school. Some of them are: Henry Ford, founder of Ford Motor Company. Ford could use the old man today. Thomas Edison, the founder of General Electric, was called “addled” by his teachers. Others include Bill Gates of Microsoft, Michael Dell of Dell Computers, Steve Jobs of Apple, Richard Branson of Virgin. Today, for a country to remain competitive, we need more entrepreneurs and fewer employees. With more entrepreneurs and fewer employees, wages could go back up. Unfortunately, most parents still say to their kids, “Go to school so you can get a job.” In other words, many people and our schools program kids to be employees – rather than entrepreneurs.
3. Hedge your money.
Instead of saving money, keep your money liquid in assets that increase in value as the dollar drops in value. Personally, I keep my liquidity in gold and silver ETFs. I buy every time the price of gold or silver goes down. Today, as I write, I believe gold is a good price under $1000 and silver a bargain at under $25. If I need cash in a hurry, I sell my gold or silver ETFs.
4. Use debt as leverage.
I am deeply in debt… good debt. I use debt to make me richer. I could pay off my home, but my effective interest is only 6%. As long as I can earn a 15% or higher return on my money, I’ll invest my money rather than pay off debt. If you are a professional investor, a 50% to an infinite return on your money is possible. If you would like to find out how I achieve an infinite return, read my latest book, Rich Dad’s Increase Your Financial IQ.One reason I do not diversify is because diversification is like going to theracetrack and betting on every horse. The only way you win by diversifying at the racetrack is if the dark horse wins. I would prefer to focus and pick winners. One myth in investing is that higher returns require higher risks. That is a huge myth. As Buffett says, “Risk comes from not knowing what you are doing.”
5. Know the difference between salespeople and rich people.
One of the reasons so many people are in trouble financially today is because they
get their financial advice from sales people. Today, I cringe whenever I hear so-called investment gurus, who are really sales people, recommending the old rules of money. As Warren Buffett says, “Wall Street is the only place that people ride to in a Rolls Royce to get advice from
those who take the subway.” Steve Forbes is a rich person who knows what he is talking about. His column in Forbes magazine, Fact and Comment, is a column I look forward to every month. If you want to grow rich – and stay rich – investing a few moments with Mr. Forbes is a priceless investment of your time.
A FINAL CHILLING THOUGHT
Here are some closing thoughts from Craig Karmin’s Biography of the Dollar: How the Mighty Buck Conquered the World and Why It’s Under Siege: In 2005, U.S. interest payments on foreign debt topped the $100 billion mark for the first time – coming in at $114 billion dollars. That breaks down to $310 million per day, according to Joseph Quinlan, Bank of America’s chief market strategist. This equates to more than $1 million per day for every man, woman, and child in America. Not only is America addicted to foreign oil, America is addicted to foreign capital. This is not healthy, wealthy, or wise. It will not make much difference who is elected as president or if we raise or lower taxes if America, as a subprime nation, does not stop living on borrowed money. At the risk of being redundant: This is not healthy, wealthy, or wise.
'Life would have been far more comfortable if these ifs and buts were not there but these ifs and buts are always there.'
*Asian stocks declined, led by materials and technology companies, on declines in commodity prices and worse-than-forecast U.S. housing starts. Treasuries and the dollar advanced.
*The Hong Kong Monetary Authority may scrap a program that offers mortgage insurance for investment properties as the city’s central bank tries to prevent a real estate bubble.
*World stocks hit a new 12-month high on Tuesday, fuelled by optimsim over corporate earnings and the global recovery after strong results from Apple and Texas Instruments.
*Oil fell in Asian trade on Wednesday as investors took profit after a recent rally sent prices to $ 80 for the first time in a year analysts said.
*To introduce greater transparency in pricing of loans given by banks, a Reserve Bank committee today suggested that the benchmark prime lending rate (BPLR) system should be replaced with a base rate mechanism.
Friday, October 9, 2009
INDIABULLS POWER IPO Price Listing Date IPO Status
Indiabulls Power is entering the capital market on 12th October 09, with a public issue of 33.98 crores equity shares of Rs. 10 each, in the price band of Rs. 40 to Rs. 45 per share.
Recent power IPOs have not been very good, like NHPC - still on Rs.33 and Adani Power still at 101,
What are plans from INDIABULLS POWER IPO
has plans of setting up 6,600 MW Power Plants,operational by March 2012,
All the projects has seen financial closure and equity tie up, for its with total capacity,
not advised to subscribe to the shares, beyond Rs. 40, especially for retail investors, it is necessary to be cautious,
in view of Adani Power and NHPC, now available at much better valuations, then this company.
Tuesday, September 22, 2009
Mundra Port and SEZ, an Adani group company, is currently the only listed non-captive private sector port.
Five Reasons to invest in Mundra Port
- First quarter results Net profit was up by a healthy 76% at Rs.170.75 crore.
- Its agreement with Maruti, for the export of the A-Star car will pick up once markets in Europe starts picking up, and so business will boom,
- Mundra Port is aiming to emerge as the country's largest port by 2013-14 in terms of cargo handling.
- It is aiming to cross 100 million mark by 2013-14 to emerge as the country's largest port facility.
- There was a 24% rise in total cargo handled at the port at 9.89 mmt.
Thursday, September 17, 2009
Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients. The company's manufacturing facilities are approved by several leading regulatory agencies like US FDA, UK MHRA, WHO, Health Canada, MCC South Africa, ANVISA Brazil. The company's robust product portfolio is spread over 6 major therapeutic/product areas encompassing Antibiotics, Anti-Retrovirals, CVS, CNS, Gastroenterologicals, and Anti-Allergics.
Five reasons to stay invested in aurobindo pharma
- For the first quarter ended 30th June 2009, company registered a total operating income of Rs 852.8 crore, up 25% on a YoY.
- In Q1 FY 2009-10, it had 8 ANDA filings in USA, taking the total cumulative filings to155. It also had 13 Dossier filings in Europe in Q1 FY 2009-10 , taking the total cumulative filings to 677.
- Acquired Hyderabad-based Trident Life Sciences for about Rs.134 crore.
- This acquisition will give Aurobindo an opportunity to enter the injectables business as Trident is building a liquid injectables facility in Medak, Hyderabad,
- Aurobindo has acquired quite a few approvals for its drugs from USFDA as well as Switzerland.
Thursday, September 10, 2009
Why PUNJ LLOYD A Good Stock to Invest Long Term?
first quarter ended 30th June 2009, revenue increased 12% on a YoY at Rs.2979 crore. EBIDTA was up 40% at Rs.309 crore
In Q1 FY2010, major orders came to the company from Libya, Saudi Arabia, Singapore and South Asia. In the order backlog, infrastructure projects contribute 56%, pipelines 20%, tankage 2% and process plants and others contribute 22%. Geographically, South Asia contributes 17%, South East Asia and Asia Pacific contributes 25%, Africa 37%, Middle East 17%, and the rest of the Europe and the rest of the world contribute 4%.
Punj Lloyd continues to remain a good company and now with the Govt giving more impetus to infra development, the company will be in a position to get more orders. One can take long term positions in the stock. Thanks
Tuesday, September 1, 2009
IDFC A company, which has been on a roll before and after the Budget, IDFC has maintained its performance for the first quarter ended 30th June 2009. It's Net Interest Income (NII) increased by 33% to Rs.922 crore. The increase in non-interest income has been quite substantial, it rose 32% at Rs.217 crore, which is as much as the NII and this is what has boosted the overall performance.
The decision to diversify into asset management also helped. IDFC's asset management business increased 4 times to Rs. 72 crore in Q1FY10. This jump was due to new funds raised private equity, in project equity and on account of the AUM acquired through the acquisition of the mutual fund.
Profit before tax (PBT) increased by 30% to Rs. 372 crore. After accounting for Rs. 97 crore for tax and share of profit in associate company, PAT was up 26% to Rs.272 crore.
FY09 was a tough year for IDFC and it adopted a cautious approach, adopted a better to be safe than sorry attitude.
Now that things have settled, the company is back to concentrating on growth. Given the emphasis to infra, IDFC is poised to do well stay invested and enter at every dip. thanks
Its exposure to tourism and cement sectors has gone up. The biggest concern was IDFCs' exposure to realty. Energy remained the top sector,