Sunday, April 29, 2012

Peter Lynch Quotes PPT / PDF

Peter Lynch, former fund manager of Fidelity Magellan Fund and author of New York Times Bestsellers "One up on Wall Street" and "Beating the Street", is regarded as one of the world's most successful fund managers. 

His core investment philosophy was value investing, as proposed by Sir Benjamin Graham, but with a little bit of customization. Investors all over the world pay heed to what Mr. Lynch has to say and try to follow his investment techniques. 

A lot can be learned about his strategies and philosophy by reading his famous quotes. The following PPT presentation covers some of his most famous quotes on slides.

Wednesday, April 25, 2012

S&P downgrades India outlook to Negative from Stable

Standard and Poor (S&P), the foreign rating agency, has revised India outlook to negative BBB- Rating due to slowdown in investment and economic growth and widening of CAD.

The Indian Stock Markets reacted negatively to the news and fell around 1% from previous day close.

Tuesday, April 24, 2012

CLSA view on TCS

clsa logoA better than expected result from India's largest software exporter, Tata Consultancy Services Ltd, have cheered the street but failed to impress one of the world's largest rating agency CLSA

Monday, April 23, 2012

Telecom spectrum bands and their significance

After the TRAI's recommendation on pricing of several spectrums, people might be thinking why 700 MHz band is priced so steep to 1800 Mhz band. The basic answer to this question is that lower level spectra can travel more with the same number of towers. In other words, operators would need to install much lower number of towers in lower-range spectra. As such, such spectra is more valuable.

Spectrum can be broadly divided into six classes. As their frequency (MHz) increases, their penetration power falls and the operators need to put more and more towers to cover the same area. It is approximately 70% cheaper to provide mobile broadband coverage at frequencies around 700MHz than using the core 3G frequencies at 2100 MHz. 

Following is a short description on each of the spectrum bands currently being used in India.

700 MHz -- Used for terrestrial TV transmission (Doordarshan) and possibly ready for broadband use by 2015.

A letter from a Tax Payer to the Income tax department: Humor

Date: 18th Feb 2012

The Internal Revenue Service (IRS), 
Department of Treasury 
Washington, DC

Sub: Payment of Tax Dues
Dear Sir / Madam,

Enclosed is my 2012 Form 1040, together with payment. Please take note of the attached article from USA Today archives. In the article, you will note that the Pentagon paid $171.50 each for hammers and NASA paid $600.00 each for toilet seats.

Please find enclosed in this package 4 toilet seats (value $2,400) and 6 hammers (value $1,029). This is in payment for my total tax due of $3,429.

Sunday, April 22, 2012

Bharti Airtel subscribers base crosses 180 million

Bharti Airtel added 2.5 million new subscribers to its user base in the month of March 2012, highest in the last 12 months, due to increased number of MNPs going in favour of the India's largest telecom company, following the Supreme Court order for cancellation of 122 licences issued during A.Raja tenure.

As of March 2012, Bharti Airtel remains at No.1 position with a total subscriber base of 181.3 million while Idea maintains it's third position with 112.7 million subscribers. Vodafone remains second with total subscriber count at 150.5 million at the end of March.

Warren Buffett Quotes PPT - PDF

Warren Buffett, the billionaire investors and chairman of Berkshire Hathaway, has openly revealed his success formula and investment mantras in various interviews, meetings and discussions. 

Wednesday, April 18, 2012

Warren Buffett suffering from Prostate Cancer

Warren Buffet has recently been diagnosed with a stage 1 prostate cancer, which is believed to be non life threatening. The eighty one year old, billionaire investor, will begin a two month treatment of daily radiation in July. 

“I feel great -- as if I were in my normal excellent health -- and my energy level is 100 percent,” Buffett said in the letter yesterday. “I will let shareholders know immediately should my health situation change. Eventually, of course, it will; but I believe that day is a long way off.”

Tuesday, April 17, 2012

Prepayment charges on home loans abolished

Reserve Bank of India, in it April 2012 monetary policy review, has abolished the prepayment charges charged by banks from home loan borrowers on the prepayment of the outstanding principal before the loan maturity. 

The move is definitely positive for consumers but slightly negative for banks like ICICI Bank which are heavily exposed to home loans. 

However some private banks have already been providing home loans without prepayment charges.

Monday, April 16, 2012

Merrill Lynch bullish on IVRCL

Merrill Lynch Capital Markets bought additional 2.125 million shares of IVRCL Ltd. in a bulk deal today as on 16th April 2012 at Rs 70.83 apiece for Rs 15 crore through an open market transcation.

Last week, Merrill Lynch Capital Markets bought 1.6 million shares of IVRCL for Rs 11.83 crore.

Sunday, April 15, 2012

Why FMCG Companies Trade at Expensive Valuations?

BSE FMCG index has gained 22 per cent since January 2011 even as the Sensex lost 15 per cent in that period. The index has been consistently making new all time highs in the month of March and April 2012. 

In 2007, the FMCG index had only a narrow premium over the PE of the broader market. In April 2007, for example, the FMCG index traded at 21.5 times, the Sensex was at 18.7 times and the BSE 500 at 16.8 times.

The gap in valuations of FMCG index, sensex and broader BSE 500 remained narrow from 2005 to 2009 but the premium began to rapidly inflate from 2010 onwards. The BSE FMCG index is now at a price-earnings multiple of 35 times. In contrast, the BSE Sensex trades at 17.6 times, and the broader BSE 500 is at 19.1 times (see the image above).

If one looks at the business model of the FMCG companies closely, it would become clear why the stocks of these companies are in high demand and trades at hefty premium.

Thursday, April 12, 2012

George Soros Biography PDF

George Soros, a hungarian business man, investor and philanthropist, is the founder chairman of Soros Fund Managment. 

In September 2011, Forbes announced that George, has for the first time made to the list of top 10 wealthiest Americans, with a net worth estimated at $22.0 billion. According to this list, George is the 46th richest person in the world. 

India's IIP growth @ 4.1 percent in Feb 2012

For the month of February 2012 IIP (Industrial Production) growth stood at 4.1% as against 6.8 % in January 2012. But the statistical department revised the number for January 2012 sharply from 6.8% to 1.1% mainly on account of wrong data forwarded by the Ministry of Consumer Affairs. Sugar production was wrongly taken at 13.41 million tonnes, as compared to 5.81 million tonnes.

With such poor IIP data, there is a an increased possibility now that RBI might cut rates soon by 25 basis points if not 50 basis points in April to boost confidence. That should provide floor to the market and we might see some rally in interest rate sensitives.

Wednesday, April 11, 2012

Top 5 of Fortune 500:1812

Charts by Black & White
Top five companies in fortune 500 list of 1812 were banks. It's clearly evident that banks were dominant 200 years ago as well.

Online Trading Simulator

If you are new to stock trading and has been looking for a trading simulation to understand how trading happens before investing your real money, then you are at the right place. 

The following trading simulator helps you understand the trading system, setup and software: Online Trading Simulation

Tuesday, April 10, 2012

Most Reputed Companies of India

In a recent survey conducted by Nielsen (2012), that tracked the reputation of 32 companies in India based on what they offered in terms of service, product quality, financial performance and talent pool, Tata Motors has emerged as the most reputed company in India followed by Aditya Birla Nuvo and Bharti Airtel.

Tata Motors was ranked second in the last year's (2011) list. Tata Steel dropped from the first position to fifth this year, while Wipro slipped from fourth to seventh position. ITC, ICICI Bank and Hero MotoCorp Ltd are the new entrants in the list of top reputed names.Hindustan Unilever Ltd (HUL), Wipro and HDFC Bank also figured in the list of top firms.

Monday, April 9, 2012

Indian Stock Market History: PPT / PDF

Indian Stock Markets have come a long way since the days when trading used to happen under a banyan tree. In 1957 Bombay Stock Exchange became the first stock exchange to be recognized under Securities Contract Act.

In 1993 National Stock Exchange was established which brought the paradigm shift in the way trading use to happen. In 2000 Internet trading was started at NSE. BSE followed soon later.

Friday, April 6, 2012

United States Unemployment Rate Chart - 2012

U.S unemployment rate fell to 8.2 percent in April 2012 after employers added more than 200,000 jobs for the fourth straight month in March, suggesting the economy is getting better with every passing month and thus needs no extra monetary policy support from the Federal Reserve at least for now.

Tech Bubble Again?

After more than a decade of tech bubble are we entering the tech bubble zone again. The recent valuation of some of the tech companies such as Facebook and linkedIn based on the number of users rather than revenue suggest that people are again chasing tech companies with lot of hopes built into the valuation. Here is a look at some of the most recent tech valuations that could be cause for concern.

Thursday, April 5, 2012

Gold and Silver Price Widget by Google: Best Precious Metals Gadget

Precious metals like Gold, Silver and Platinum are no longer just a physical instrument for investment but are being traded globally in huge volumes by traders and investors for both speculation and investment purposes. 

The price movements in these metals also affects movements in other asset classes such as equities, currencies etc. Thus it becomes very essential to keep track of their price movements whether you trade in them or not. 

Corporate Finance pdf ebook

As a supplement to famous text books such as "Corporate Finance Fundamental by Ross" and Allen's "Corporate Finance", this compendium provides a comprehensive overview of the most important topics covered in a corporate finance course in BBA and MBA. Throughout the compendium theory is supplemented with illustrations and examples.

Tuesday, April 3, 2012


BHEL today announced that it would withdraw the FPO papers filed with SEBI. 

The company filed DRHP in September for the follow-on public offer (FPO) under which the government planned to offload 5% stake in the company which was expected to fetch over Rs 4,000 crore.

The company said the decision has been taken after the receipt of "no-objection" for withdrawal of DRHP for BHEL FPO from the Department of Heavy industry and Department of Disinvestment.

BHEL Q4 & FY 2012 Result and Valuation Analysis

Bharat Heavy Electricals Ltd. (BHEL), India's largest public sector capital goods company has declared its fourth quarter and full year results.

Full Year (FY-12) Highlights:

  • Total turnover at Rs.49,301
  • PBT at Rs. 10,001 crores
  • PAT at Rs. 6848 crores
  • Order inflow declined 63.4% to Rs 22,096 crore from Rs 60,507 crore.

15 Stock Investment Tips from Rakesh Jhunjhunwala

1. Always go against tide. Buy when others are selling and sell when others are buying.  2. If you believe in the growth prospects o...