Friday, June 22, 2012

List of World Richest Internet Entrepreneur Billionaires

Online business from Amazon to Google or Netflix to Facebook have produced billionaires from garages and dorm rooms. Each of the Internet venture that became successful had one thing in common, passion. 

If you are also an internet entrepreneur and have been looking for net worth of top Internet billionaires of the world then here is the list (all figures in billion):

Thursday, June 21, 2012

Real time crude oil prices: Short and long term charts

Crude oil, often termed as black gold, is the most tracked commodity in the world. Indian Economy is almost entirely dependent on crude for its energy need. Crude prices are almost inversely related to equity markets and hence affects both commodity and equity investors. Hence if you are a regular crude oil watcher and it movement affects you then don't forget to bookmark this page to keep a tap on the real time prices and it's short term and long terms trends. In the following chart just hover your mouse on the period and the chart for that period will load instantly.

Tuesday, June 19, 2012

Veritas Research Report on RCOM, DLF: PDF

Veritas Investment Research, a Canada based equity research firm has pegged the actual worth of India's largest real estate company DLF and Anil Ambani owned second largest telecom company  Reliance Communications (RCOM) at Rs. 100 and Rs. 15 respectively.  

Veritas dubbed India’s largest realtor ‘a crumbling edifice’ in its March 2012 report and on 19th June 2012 the equity research firm, which torn apart Kingfisher Airlines’ financials last year — well before the world woke up to the reality of the doddering airline, has snubbed RCOM numbers and has recommended sell  on the stock with a target price of Rs. 15.

Sunday, June 17, 2012

EPF Transfer vs. Withdrawal - Rules and Benefits

Employee Provident Fund or EPF is the only investment instrument in India which enjoys EEE advantage. 

EEE is acronym for exempt from tax during deposit, exempt during interest accumulation and exempt from tax during withdrawal on the corpus after retirement or specified period.

EPF is commonly seen as retirement fund which is accumulated and compounded at a very high interest rate for the tenure of your employment. The benefits of EPF is only visible when it is left for accumulation for 30 - 35 years. 

Friday, June 15, 2012

Rakesh Jhunjhunwala Interview

Rakesh Jhunjhunwala, the billionaire investor and trader who is often compared to the legendary investor Warren Buffett, doesn't want to be recognized as India's Warren Buffett. "It's not a fitting comparison. In terms of wealth, success and maturity, he's far, far ahead," says Jhunjhunwala in an interview at his office in a prime location in Mumbai overlooking the Arabian Sea."I'm not a clone of anybody. I'm Rakesh Jhunjhunwala," he booms. "I have lived the world on my own terms. I do what I enjoy. I enjoy what I do."

Wednesday, June 13, 2012

Buy Hindustan Unilever for short term trading

Hindustan Unilever made a new life time high today and remained strong throughout the trading session today as on 13th June 2012. The stock touched a lifetime high of 448.50 before closing for the day at 447.50. 

For the past few trading sessions the stock is witnessing strong delivery based buying which suggest that there is more upside left in the stock. Traders can go long at the current levels of 446, 447 keeping a tight stop loss at 439 for a possible target of 460 in next few trading sessions. However if stock moves past 460 continue to hold the stock with insurance of trailing stop loss placed 2% below the then existing price.

Friday, June 8, 2012

Sensex 2013 PE valuation near historical bottom

Historically India's benchmark Index, SENSEX, has bottomed out at a PE valuation of 10 to 12 times. At the current index level of around 16,500 and an estimated EPS of 1250 for the financial year 2013, the index is trading at a PE multiple of around 13 times FY 13 earnings. Above that considering the appreciation of dollar against rupee, the valuation in dollar terms is already around 11 times if we assume an average dollar rate of 48 against INR.

Thursday, June 7, 2012

The Confusing Stock Analysts

Warren Buffett once said that serious investors should not believe on all those talking heads coming on CNBC or other business news channels frequently giving out recommendation on stocks you should buy. I spotted a very interesting instance which will make you understand why Mr. Buffett said so.

In the following snapshot, if you look at the encircled area you would notice that there are two recommendations on Hindalco both given on 7th June 2012 at a difference of just 1.5 hours. The target prices given are poles apart. Now the question is whom to believe and whom to leave. The chances of success and failure are equal. So even if you succeed once there is no guarantee that you will succeed next time again. That is why for a layman who just buy/sell stocks based on analysts recommendation it is impossible to make money consistently in the long run.

Tuesday, June 5, 2012

Buy Saregama India for trading

Kolkata based RPG group company, Saregama India, has zoomed over 10% to Rs 86 on back of over ten-fold surge in trading volumes. Over 9 lakh share, representing around 5% of the total equity of the company were traded on NSE and BSE put together, against an average sub 40,000 shares that were traded daily in past ten trading days on both the exchanges.

The entertainment company has reported a net loss of Rs 7.42 crore, due to Rs 11 crore provision for doubtful debts and advances for the quarter ended March 2012. The company had a net profit of Rs 5.32 crore in the same quarter of previous fiscal. Total operational income too, declined 7% at Rs 41.81 crore on year-on-year basis.

Global Economic Events Calender - June 2012

Australia RBA Interest Rate Decision
Germany Purchasing Manager Index Services (PMI) data for May 2012
Bank of Canada Interest Rate Decision

Japan Gross Domestic Product Annualized (Q1)
United Kingdom BoE Interest Rate Decision
United States Consumer Credit Change
Switzerland Unemployment Rate

Germany Exports and Imports (April)

Monday, June 4, 2012

Best example to understand Inflation

If it has been difficult for you to understand inflation just by reading the definition from your text book or financial dictionary then the following video is for you. 

The illustration shown in the video below will certainly make you understand inflation from the bottom of your brain.

Goodbye Inflation Confusion.

Saturday, June 2, 2012

Reliance Industries (RIL) buyback Update

As expected, the recent fall in stock markets is not affecting RIL stock price as much due to the fact that on any massive fall RIL does aggressive buying of it's own shares under the ongoing buyback programme. As on May 24, RIL had purchased a total of 19.22 million shares. 

Rough calculations show the company has so far bought shares worth Rs 1,364 crore, about 13 per cent of the maximum buyback amount. RIL’s Rs 10,440-crore buyback offer is the largest ever in India Inc’s history. The programme started on February 7 and is scheduled to continue till January 19, 2013.

Though the buyback program began in February, it gained momentum only in May. The company picked up 12 million shares in May 2012 as against three million in April. Interestingly, 25 percent of the share trading volume in the RIL counter this month has come from the buyback.

InvestorZclub believes that the stock is looking attractive in terms of valuations and Rs 680 to 700 range should act as strong support zone. 

Global Investment Banks downgrades India 2013 GDP forecast

India's fourth quarter 2012 GDP growth of 5.3 percent sent shockers to the global investors which led to series of downgrades in expected 2013 GDP growth by leading global investments banks. 

Morgan Stanley has cut its 2012 economic growth estimates to 5.7 per cent from 6.3 per cent, after already downgrading its forecasts about two weeks ago from an initial estimate of 6.9 per cent growth. 

Standard Chartered Bank cut its financial year 2013 gross domestic product (GDP) forecast to 6.2 per cent from 7.1 per cent while CLSA said it “will probably” lower its consensus GDP forecast of 6.3 per cent to around six per cent. 

InvestorZclub believes that there is increased chance of another rate cut of 25 bps to 50 bps in next RBI meet in spite of inflation being in un-comfort zone. The inflation in India is mainly due to supply side bottlenecks which can hardly be controlled by keeping rates high. A 50 bps points cut in interest rate will not feed into inflation too much but could be a big confidence booster for investors which would lead to increased inflows and could fix our current account deficit.

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...