• Quotes

  • NAVs

  • News

  • Messages

  • Opinions

  • Notices

  • Videos
Search: Messages    Stock    Boarder
 
Post a Message | Explore Forums  |  Browse Stock Messages  |  Hot Discussions  | Top rated Messages  | Top Boarders
Ads by Google
Moneycontrol.com >> Messageboard >> Stocks >> Balmer Lawrie >> PLEASE THINK OVER IT AND ACT!
   You are here :     Moneycontrol     MMB    Stocks      Balmer Lawrie                         Most active discussions of 2006 , 2007 & 2008
PLEASE THINK OVER IT AND ACT! (4)   22-Nov-09 22:10Track this thread   Tracked by (0)  
Posted by:   vikasbargale on ( 22-Nov-09 22:10 )
Price : BSE: Rs 504.00 ( -1.23 % ), NSE: Rs. 504.90 ( -0.85 % )
Hi Fellow Stock-holders,
One sincere request for you. As some of you are aware that Balmer Lawrie is coming with postal ballot for shareholders approval for venturing into new businesses like Power business, mining, transport, travel etc.
My post is regarding this point.
Though I am a young person, I strictly follow conservative view. As company is debt free and gives good dividend, it’s sitting on lots of cash. But venturing into other competitive businesses is not the way for growth. I know people say Change is equal to growth. But going into such businesses where there are n no. of dominant players and lots of tough competition doesn’t make sense to me.
I personally believe that one bird in hand is better than two birds on tree. So company should concentrate on what it does the best i.e. industrial packaging, tea, leather chemical, grease & lubricants. And if company is having so much of surplus cash then it should go for buy-back / bonus / generous dividend.
Do anybody have doubt on Infosys management. They are sitting on loads & loads of cash, but waiting for right opportunity to buy some nice, small & growing company in their own field. Infosys is not venturing in any other business where there are already set-players and lots of competition. Other-way around, look at what ITC has done. From such an excellent cigarette business, they have ventured in already competitive FMCG business. And at consequence of it, loosing cash on huge ad campaigns just to settle down in FMCG sector. This is what Peter Lynch (one of world’s best investor) says- Too much of diworsification (its not diversification), can kill the company.
Same thing about Unitech, which was in real estate business and recently ventured into already saturated Telecom business where there are already big players like Airtel, Reliance, Vodafone, Idea. Venturing into such tough competitive business is suicidal for sure.
The bottom-line is to concentrate on your strong areas and don’t venture into new business where there are already set-players and lots of competition.
PLEASE THINK OVER IT.
And please vote against such new competitive venture by ticking in the ‘I /We Dissent The Resolution’ column.
With regards,
Vikas

2 replies to this message   Reply to this post | Rate message | Click if Offensive 

What the stars foretell

Bejan Daruwala

Ganeshaspeaks: Market prediction for Mar 16

View all astrologers

India over 10 years

See whats improved/ worsended

FII Investments »
FDI »
Exports »
Imports »
GNP »
See all »

Poll 

Will the Nifty close below 5200 next week?

Yes No
 
View Result  7 comments read all
To SMS your queries to us Type YS < Your query > SMS to 51818
Stocks to be discussed next:
|  Axis Bank |  Balrampur Chini |  Bajaj Hind |  BPCL |  Coromondel fert |  Indiabulls Realty |  GNFC |  RCF |  REC |  Tata Steel 
 view all queries »
Boarder Circle
Platinum
Gold
Silver
Newbie
Popular Boarders 7days
sukhani001
188
dipakgod
187
Bear-Market
182
emmawatsan
169
Rudra Sharma
168
All Time
more
Top Tracked 7days
KotakInvestment
1408
India_bulls
1088
joetom
1046
flashstock05
885
marketman
859
All Time
more
Prolific Boarders 7days
hsnmf
1055
dipakgod
330
ISHANT
277
radhika_nandlal
274
All Time
more

Have you made your Dream Team?

Top selected cricketers today

Virender Sehwag
Adam Gilchrist
Mathew Hayden
Suresh Raina
Yusuf Pathan
Time: 20.00 hrs
Next Match

Team Mumbai & Team Kolkata

Who will win the match?

v/s

What's happening in IPL?

Delhi have to hold their nerve

Punjab strike back with quick wickets

Mumbai vs Kolkata: Starry, starry night!

more news »

more galleries »