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Moneycontrol >> Messageboard >> General >> Business Talk
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Business Talk

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16 Aug 2008 14:20

So what will happen now, the price will come down to Rs 70 to 80 now as the equity dilution will increase the number of Shares and reduce the EPS. The company which Hindalco has aquired is also a loss making company which will further reduce the profits. This is a nonsense stock. Never to touch this....

In reply to:

Hindalco prices rights at Rs 96/share

Posted by : MMB Messenger

Hindalco board panel has approved rights issue at Rs 96 per share of face value Re 1, reports CNBC-TV18. Investors will get rights to buy three shares for every seven held. The company has set September 5 as record date for the same.

15 Aug 2008 23:17

HINDALCO Right Issue is at a high premium, the market price after the issue shall fall below issue price. It is true in the recent past. Examples are Indian Hotels, Tata coffee, Cholamandalam DBS etc. Wise to buy after the right issue. Comparatively Nalco is a better choice....

In reply to:

Hindalco prices rights at Rs 96/share

Posted by : MMB Messenger

Hindalco board panel has approved rights issue at Rs 96 per share of face value Re 1, reports CNBC-TV18. Investors will get rights to buy three shares for every seven held. The company has set September 5 as record date for the same.

15 Aug 2008 18:13

REPower’s gross sales for the period April to June 2008 stood at €240.9 million as against €105.5 million. The company’s EBIDTA for the same period stood at €10.2 million. The company’s order backlog for the said period was at 1,522.6 MW, which is up 48% (YoY).


...

15 Aug 2008 17:26

will these 7:3 shares alloted automatically or need to do something for these allocations?...

In reply to:

Hindalco prices rights at Rs 96/share

Posted by : MMB Messenger

Hindalco board panel has approved rights issue at Rs 96 per share of face value Re 1, reports CNBC-TV18. Investors will get rights to buy three shares for every seven held. The company has set September 5 as record date for the same.

15 Aug 2008 17:26

Hindalco board panel has approved rights issue at Rs 96 per share of face value Re 1, reports CNBC-TV18. Investors will get rights to buy three shares for every seven held. The company has set September 5 as record date for the same....

15 Aug 2008 13:01



The Infosys Annual Report was printed on 100% recycled paper in line with the eco-friendly practices of the ‘Project Ozone’ campaign


LACP is a forum that facilitates a discussion of best-in-class practices in public relations and recognizes exemplary communication capabilities. LACP’s Annual Report competition received more than 3,000 entries from over 20 countries....

In reply to:

Infosys Annual Report 2008 wins LACP Plat

Posted by : Infy_fan_always

Infosys’ Annual Report 2008 has won the Platinum award in the Vision Awards of the League of American Communications Professionals (LACP).



Infosys ranked in the Top 100 new window of LACP’s Annual Report competition. The Infosys Annual Report achieved a cumulative score of 96/100 on parameters such as first impression, report cover, letter to shareholders, report narrative, report financials, creativity, message clarity and information accessibility.

15 Aug 2008 13:00

Infosys’ Annual Report 2008 has won the Platinum award in the Vision Awards of the League of American Communications Professionals (LACP).



Infosys ranked in the Top 100 new window of LACP’s Annual Report competition. The Infosys Annual Report achieved a cumulative score of 96/100 on parameters such as first impression, report cover, letter to shareholders, report narrative, report financials, creativity, message clarity and information accessibility. ...

15 Aug 2008 12:51

Yield to temptation

Equities are but one tidbit on the investment smorgasbord. One way of comparing them with other asset classes is through their dividend yield. Seek out shares whose yields are approaching those on government bonds. Although unfashionable, this could prove the way back into the market with the least risk. Just be sure those dividends can be met out of the companies' profits.

Look for leverage

Courage mon brave! When you decide the time has come to invest, be sure to do so with conviction. Use leverage to your advantage - be prepared to borrow; consider the use of derivative instruments. You could be a hero of the next bull market, if only in your granny's eyes....

In reply to:

10 rules for investing in a bear market

Posted by : Infy_fan_always

Beware false prophets

Nobody knows where markets are going - not me, not you, not Abby Cohen at Goldman Sachs or the anonymous authors of Lex in the Financial Times. Your view has as much or as little validity as anyone else's. Keep this in mind and, when your analysis tells you it's time to buy, you'll find you have the requisite bravery.

Don't shoot the analysts

The backlash against investment bank analysts is in full swing. Don't be diverted by the spectacle, however enjoyable it might appear. Use the research available dispassionately. As in all human life, you'll find there's good and bad there. Just be sure, once you've digested, to formulate your own conclusions.

Rebase to zero

Ignore charts of historic share price performance. How a company was valued at its peak is no guide to its value today. Those shares that have fallen furthest may yet have furthest to fall. Start with a blank sheet of paper - no prejudices or preconceptions - and build an investment argument that reflects today's reality as you perceive it.

15 Aug 2008 12:50

Beware false prophets

Nobody knows where markets are going - not me, not you, not Abby Cohen at Goldman Sachs or the anonymous authors of Lex in the Financial Times. Your view has as much or as little validity as anyone else's. Keep this in mind and, when your analysis tells you it's time to buy, you'll find you have the requisite bravery.

Don't shoot the analysts

The backlash against investment bank analysts is in full swing. Don't be diverted by the spectacle, however enjoyable it might appear. Use the research available dispassionately. As in all human life, you'll find there's good and bad there. Just be sure, once you've digested, to formulate your own conclusions.

Rebase to zero

Ignore charts of historic share price performance. How a company was valued at its peak is no guide to its value today. Those shares that have fallen furthest may yet have furthest to fall. Start with a blank sheet of paper - no prejudices or preconceptions - and build an investment argument that reflects today's reality as you perceive it....

In reply to:

10 rules for investing in a bear market

Posted by : Infy_fan_always

Read a good book

History never repeats itself exactly, but you owe it to yourself to be acquainted with the bear markets of yesteryear. At least if history does then repeat itself you can't say that you weren't warned. I'd recommend J. K. Galbraith's The Great Crash, a brief but insightful analysis of 1929 and all that went before and after.

Avoid collateral damage

In 1987 the real economy emerged from the crash virtually unscathed. Next time around the world may not be so lucky. It will take time for share price damage to have its full effect elsewhere. Use this opportunity to pull out of that house move, sell your granny's Gauguin and ask your boss for an extended contract.

Dust off the abacus

Down and dirty financial analysis has increasingly gone out of vogue. As share prices fall, so value emerges. But you'll only spot it if you are looking for it. And this means poring over the numbers, not chasing dreams. You can afford to keep it simple. Thoroughness will pay greater dividends than sloppy sophistication.

15 Aug 2008 12:50

Read a good book

History never repeats itself exactly, but you owe it to yourself to be acquainted with the bear markets of yesteryear. At least if history does then repeat itself you can't say that you weren't warned. I'd recommend J. K. Galbraith's The Great Crash, a brief but insightful analysis of 1929 and all that went before and after.

Avoid collateral damage

In 1987 the real economy emerged from the crash virtually unscathed. Next time around the world may not be so lucky. It will take time for share price damage to have its full effect elsewhere. Use this opportunity to pull out of that house move, sell your granny's Gauguin and ask your boss for an extended contract.

Dust off the abacus

Down and dirty financial analysis has increasingly gone out of vogue. As share prices fall, so value emerges. But you'll only spot it if you are looking for it. And this means poring over the numbers, not chasing dreams. You can afford to keep it simple. Thoroughness will pay greater dividends than sloppy sophistication....

In reply to:

10 rules for investing in a bear market

Posted by : Infy_fan_always

Holding your nerve in a bear market requires both sound knowledge and a cool head. If you can do so, you can both reduce losses and find profitable gems gathering dust. After all, it\'s worth remembering that that most revered of all investment prophets Warren Buffet eyes bear markets with a special gleam in his eye - for it\'s at such times that buying opportunities are available with handsome value in-built into their prices. Here are ten rules from a master trader to steer by in difficult times...

Flick the switch

You\'ll never make rational investment decisions if you\'re mesmerised by the gyrating prices on your screen. Steel yourself not to look at prices, read market reports or talk to stockbrokers during trading hours. Markets are not going to turn for the better just because you will them to. And, as prices have fallen so far, it matters little if you miss the first inch of their eventual recovery.

Pound the streets

You don\'t just need a sense of perspective; you need the widest possible perspective. The best investment opportunities are those you discover by observation of the workings of the economy in the aftermath of the stock market collapse. If you can bear it, take the taxi driver litmus test.

15 Aug 2008 12:49

Holding your nerve in a bear market requires both sound knowledge and a cool head. If you can do so, you can both reduce losses and find profitable gems gathering dust. After all, it\'s worth remembering that that most revered of all investment prophets Warren Buffet eyes bear markets with a special gleam in his eye - for it\'s at such times that buying opportunities are available with handsome value in-built into their prices. Here are ten rules from a master trader to steer by in difficult times...

Flick the switch

You\'ll never make rational investment decisions if you\'re mesmerised by the gyrating prices on your screen. Steel yourself not to look at prices, read market reports or talk to stockbrokers during trading hours. Markets are not going to turn for the better just because you will them to. And, as prices have fallen so far, it matters little if you miss the first inch of their eventual recovery.

Pound the streets

You don\'t just need a sense of perspective; you need the widest possible perspective. The best investment opportunities are those you discover by observation of the workings of the economy in the aftermath of the stock market collapse. If you can bear it, take the taxi driver litmus test.
...

15 Aug 2008 12:41

Positive cash flow in various market environments is commonly known as dollar-cost averaging. When markets are down, cheaper securities are purchased, leading to enhanced future returns (when markets are up, of course, the opposite effect occurs, but no one seems to care). During periods of negative cash flow, the experience is reversed....

In reply to:

Bear Market Strategy: Raising Cash Can Be

Posted by : Infy_fan_always

Because periods of negative growth in economic activity are almost always associated with bear markets, listening to economic releases is a very popular exercise among professional investment managers and amateurs alike.

The problem is that the market is a leading indicator. Market peaks lead peaks in economic activity by nearly half a year on average. Often by the time concrete evidence of a recession is apparent, most of the damage to the market already has been done. Having an economist as an investment advisor is a little like having a pathologist as a personal physician. They both know a lot, but it’s at least one day too late.

What about economic forecasts? As it turns out, the best forecast of the future usually is the present. Most economists, indeed, extrapolate current trends to try to determine what will happen next. And the truth is, that exercise generally works well, except at those times it is needed the most—at inflection points.

Pundits say that to time the market successfully, one must "be right twice." Getting out of a bear market does no good unless one can get back in before the market passes one by on the way back up. And timing reentry is no easy task. Markets reach their bottoms when the majority of investors become convinced that the only glimmer at the end of the tunnel is the headlight of an oncoming train. I can recall that at the end of the 1973–74 bear market (when the S&P lost nearly 50 percent from its peak), many professional investors were expecting another 50 percent decline. And, like market peaks, market troughs lead the economy by nearly half a year, and a very significant portion of a bull market’s return often takes place in the first few months of its emergence.

Provided that one has a well-diversified portfolio, with an asset mix that was developed with the understanding that negative markets would occur from time to time, the best course of action usually is to take no action at all, except to rebalance. Furthermore, while at the time raising cash in a bear market may feel like the safest thing to do—it can be very dangerous. The problem lies in the fact that investment returns are a function of cash flow as well as of securities price movement.

15 Aug 2008 12:40

Because periods of negative growth in economic activity are almost always associated with bear markets, listening to economic releases is a very popular exercise among professional investment managers and amateurs alike.

The problem is that the market is a leading indicator. Market peaks lead peaks in economic activity by nearly half a year on average. Often by the time concrete evidence of a recession is apparent, most of the damage to the market already has been done. Having an economist as an investment advisor is a little like having a pathologist as a personal physician. They both know a lot, but it’s at least one day too late.

What about economic forecasts? As it turns out, the best forecast of the future usually is the present. Most economists, indeed, extrapolate current trends to try to determine what will happen next. And the truth is, that exercise generally works well, except at those times it is needed the most—at inflection points.

Pundits say that to time the market successfully, one must "be right twice." Getting out of a bear market does no good unless one can get back in before the market passes one by on the way back up. And timing reentry is no easy task. Markets reach their bottoms when the majority of investors become convinced that the only glimmer at the end of the tunnel is the headlight of an oncoming train. I can recall that at the end of the 1973–74 bear market (when the S&P lost nearly 50 percent from its peak), many professional investors were expecting another 50 percent decline. And, like market peaks, market troughs lead the economy by nearly half a year, and a very significant portion of a bull market’s return often takes place in the first few months of its emergence.

Provided that one has a well-diversified portfolio, with an asset mix that was developed with the understanding that negative markets would occur from time to time, the best course of action usually is to take no action at all, except to rebalance. Furthermore, while at the time raising cash in a bear market may feel like the safest thing to do—it can be very dangerous. The problem lies in the fact that investment returns are a function of cash flow as well as of securities price movement....

In reply to:

Bear Market Strategy: Raising Cash Can Be

Posted by : Infy_fan_always


The problem is that each of these elements contains so much inherent uncertainty that their application involves a better-than-even chance of causing more harm than good.

Selling stocks to raise cash works fine—if it is done before the market turns down. Usually, however, even severe bear markets (those associated with deep recessions) are not apparent before a great deal of the damage already has been done. Conversely, to make matters worse, even sharp dips can signify nothing more than short-term corrections. Remember that in October 1987, the market lost more than 20 percent of its value in a single day. The economy, meanwhile, continued to grow—and the market followed shortly thereafter.

Bear market patterns are equally problematic. Reviewing historical experience and determining ranges and averages with respect to lengths and magnitudes of these declines is easy enough, of course. The lack of central tendency, however, makes it quite unlikely that any particular experience will coincide with the averages, and in fact, there is no particular reason to believe that historic ranges will provide best- and worst-case boundaries for the future.

15 Aug 2008 12:40


The problem is that each of these elements contains so much inherent uncertainty that their application involves a better-than-even chance of causing more harm than good.

Selling stocks to raise cash works fine—if it is done before the market turns down. Usually, however, even severe bear markets (those associated with deep recessions) are not apparent before a great deal of the damage already has been done. Conversely, to make matters worse, even sharp dips can signify nothing more than short-term corrections. Remember that in October 1987, the market lost more than 20 percent of its value in a single day. The economy, meanwhile, continued to grow—and the market followed shortly thereafter.

Bear market patterns are equally problematic. Reviewing historical experience and determining ranges and averages with respect to lengths and magnitudes of these declines is easy enough, of course. The lack of central tendency, however, makes it quite unlikely that any particular experience will coincide with the averages, and in fact, there is no particular reason to believe that historic ranges will provide best- and worst-case boundaries for the future....

In reply to:

Bear Market Strategy: Raising Cash Can Be

Posted by : Infy_fan_always

A cynic once noted that the stock market seems to do whatever is necessary to prove the majority of investors wrong. This observation, I believe, will be essentially accurate as long as economic forces that are cyclical in nature continue to drive the markets.

And this notion is not as perverse as it might seem. When times are good, the market discounts good times—it becomes expensive. When times turn difficult, the market gets cheap. And, because booms lead to busts (and vice versa), the market itself is not very good at telling investors when to jump in with both feet and when to keep well away from it.

So, what strategy makes the most sense during bear markets? Nearly any investor—who is lucid—knows from the start that the stock market does not go up in a straight line forever. Negative markets can be expected to take place periodically, and they can involve significant losses. However, dealing with a future eventuality is one thing, and actually watching retirement assets appear to evaporate into thin air is quite another. And, for those of us who consider ourselves to be in charge of our own destinies, a powerful urge arises to do something—maybe anything.

Various approaches often come to light either intuitively or as a result of the suggestions of others. These approaches often incorporate some combination of the following elements:

• Sell stocks to raise cash immediately.

• Try to determine some sense of what pattern the bear market might take, through historic experience with such markets and the economic circumstances that led to them.

• Keep on top of the numbers that are regularly reported with regard to economic activity.

• Get back in when things seem better, with the understanding that a bell doesn’t ring at market bottoms.

15 Aug 2008 12:38

A cynic once noted that the stock market seems to do whatever is necessary to prove the majority of investors wrong. This observation, I believe, will be essentially accurate as long as economic forces that are cyclical in nature continue to drive the markets.

And this notion is not as perverse as it might seem. When times are good, the market discounts good times—it becomes expensive. When times turn difficult, the market gets cheap. And, because booms lead to busts (and vice versa), the market itself is not very good at telling investors when to jump in with both feet and when to keep well away from it.

So, what strategy makes the most sense during bear markets? Nearly any investor—who is lucid—knows from the start that the stock market does not go up in a straight line forever. Negative markets can be expected to take place periodically, and they can involve significant losses. However, dealing with a future eventuality is one thing, and actually watching retirement assets appear to evaporate into thin air is quite another. And, for those of us who consider ourselves to be in charge of our own destinies, a powerful urge arises to do something—maybe anything.

Various approaches often come to light either intuitively or as a result of the suggestions of others. These approaches often incorporate some combination of the following elements:

• Sell stocks to raise cash immediately.

• Try to determine some sense of what pattern the bear market might take, through historic experience with such markets and the economic circumstances that led to them.

• Keep on top of the numbers that are regularly reported with regard to economic activity.

• Get back in when things seem better, with the understanding that a bell doesn’t ring at market bottoms....

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