Tuesday, July 24, 2012

NSE to suspend 51 stocks from derivative (F&O) segment

As per revised and more stringent eligibility criteria, National Stock Exchange will suspend following stocks from derivative segments from October 2012 onwards. However the NSE said, "The existing unexpired contracts of these securities for the month of July, August and September 2012 would continue to be available for trading till their respective expiry.

Friday, July 20, 2012

Google ad rates (Adsense CPC) falls significantly in 2012

Bloggers and Google adsense publishers have been experiencing sudden fall in cost per click (CPC) rates since past few months which might have affected their overall earnings. But at the same time the click through rate (CTR) should have increased marginally partly offsetting the fall in CPC rate. 

This is primarily happening due to the overall fall in the advertisement rates given by the advertisers. In the second quarterly report google mentioned that "Advertising rates, or costs per click, have headed south as users gravitate to smartphones and tablets, where Google can generally charge less than on desktop computers.The cost per click for online search ads continued to decline in the second quarter, falling 16% year-on-year but the overall number of clicks on ads, however, increased a robust 42%."

Monday, July 16, 2012

Dewan Housing Finance Ltd. (DHFL) Fixed Deposit Scheme - 2012

DHFL, India's one of the premiere housing finance company, has revised the rates on it's cumulative and non-cumulative fixed deposit schemes for retail investors. 

Sunday, July 15, 2012

ICICI Direct Research Report on Bharti Airtel: Recommend Strong Buy

ICICI Securities has become very bullish on India's largest telecom company Bharti Airtel and has recommended a strong buy on the stock with a target price of 420 which is good 37% appreciation from the current market price of 306 as on 13th July 2012. 

The brokerage report says "Using the DCF methodology for valuing Bharti and assuming a revenue CAGR of 7.9% in FY12-20E and a terminal  growth  of  3.0%  thereon,  we have arrived at a target price of  Rs 420. The risk reward seems to be favourable at this point. We rate the stock as STRONG BUY"

Friday, July 13, 2012

LIC holdings in Infosys crosses 6 percent

Life Insurance Corporation of India (LIC India) doesen't seem to be bothered much as far as Infosys under performance is concerned and is playing contra by investing an additional sum of Rs 2,000 crore in the first quarter of the current fiscal. 

LIC seems to be taking advantage of the blue chip stock being available at historically low valuation. At the current market price of Rs.2150 the stock is trading at a PE multiple of 12.5 times based on FY-13 expected EPS of 170 which is very cheap considering the size and the quality of the company. LIC is the largest non-promoter shareholder of the company.

Wednesday, July 11, 2012

World's Top 10 Young Teen Entrepreneur Millionaires

We all know that entrepreneurs carry different genes that distinguish them from the 99 percent of the population who just wish to work for somebody else throughout their life to lead a constant life. Entrepreneurs take risk and choose to ride a bumpy road to achieve a greater goal for themselves and the society at large. Age is never a bar for this rare breed and following are some of the examples which demonstrates how these young entrepreneurs became successful at such tender age. 

Andrew Hsu : Co-Founder of Airy Labs, a business that creates social learning games for children. Hsu has managed to snare $1.5 million in seed funding for Airy Labs. He was a graduate of the University of Washington by 16.

Friday, July 6, 2012

Morgan Stanley view on Tata Motors for 2012

Morgan Stanley has turned bearish on the India's largest CV maker, Tata Motors, and has lowered its year end target price for the stock to Rs 240 from Rs 291 and maintains its "equal-weight" rating on the stock. The market price of the stock at the close of the markets as on 6th July 2012 was 240.55. 

Sell JSW Steel July 780 Call option at Rs 5

Credit Suisse in a report dated 6th July 2012 stated that JSW Steel understated FY12 net debt by at least Rs 11,900 crore. The company stated debt stood at Rs 16,600 crore for FY 2012. Creidt Suisse arrived at the figure based on following three reasons:

1. Acceptances of Rs 75 bn (up from Rs68 bn in FY11) are effectively debt
2. Securitised receivables of Rs 31 bn (up from Rs26bn); and 
3. Rs12 bn from the fall in INR; un-hedged liabilities are now $3 bn.

Steel industry is mainly valued on EV/EBIDTA basis and such latent debt of almost 70 percent of the stated debt in annual report certainly makes the valuation expensive especially for JSW steel. The stock is expected to remain under pressure and hence a good short term trading opportunity is visible. Instead of shorting the stock directly in futures one can sell 780 call of JSW Steel at the current market premium of Rs 5.

Total return from the strategy

Thursday, July 5, 2012

Mutual Fund Schemes that outperformed SENSEX and NIFTY in H1 2012

Reliance Mutual Fund's Reliance Banking Fund (Growth) and Reliance Tax Saver (ELSS) Fund (Growth) have outperformed benchmark indices Sensex and Nifty by huge margins with year-to-date returns of 28.35% and 25.12% respectively. Sensex and Nifty have gained 12.78% and 14.16% respectively since the beginning of 2012. 

Apart from the above two ICICI Pru Discovery Fund (Growth), Reliance Equity Opportunities Fund (Growth) and IDFC Sterling Equity Fund (Growth) has delivered returns in excess of 25% so far this year.In total there are 38 mutual fund schemes which have given better returns than the benchmark indices Sensex and Nifty so far this year.

Wednesday, July 4, 2012

Money Bags by Chinese Feng Shui - July 2012 Calendar

This year we have very unique month of July which comes once in 823 years. July 2012 has 5 Fridays, 5 Saturdays and 5 Sundays which rarely happens. According to Feng Shui this is called a money bag and sharing this brings money imminently.

Jobs in USA, Greece and Italy - Humor

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Sunday, July 1, 2012

Country wise Stock Market Performance in H1 2012

If you look at the stock market returns generated by the countries all over the world you will be surprised to know that Turkey and Pakistan has been the best performing countries in the world in first six  months of the current calander year. 

Turkey stock markets has delivered 22 percent while pakistan's stock markets has delivered little less at 21.62 percent returns in the first half of 2012 calander year.

India has also done well with 12.78 percent gain while Germany is up 8.78% during the same period. 

Spanish markets, one of the biggest European countries in soveriegn debt trouble, has been one of the worst performers with negative returns of 17.09 percent. 

One of the interesting thing to note is that while US markets were up 7.7 percent, Canadian markets are down 3.41 percent.

Among BRIC countries Brazil has been the worst performer with -5.06 percent returns followed by Russia with -2.3 percent. 

India has  clearly stolen the show in terms of equity returns as far as BRIC nations are concerned.

Greece, the centre of all the crisis in Europe, is not the worst performing market in the world and is down around 10 percent year to date.

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...