Wednesday, September 30, 2015

Can Cairn India and Vedanta Merger happen?

Cairn India and Vedanta MergerGiven the current scenario in which metals and mining companies globally are facing brutal sell-off it seems highly unlikely for the Cairn and Vedanta merger to go through. Mining giant Glencore collapsed 30% in a single day on 28th Sep 2015. Vale, another Brazil based iron ore giant, is down more than 80% from it’s 2011 high. Back home we have Hindalco and Vedanta Ltd and both has corrected 65% and 75% respectively from their 2014 high. Cairn India is also a commodity company but the dynamics of crude oil is very different from metals which are recyclable. Beside that China consume 40-50% of most of the global metals produces while crude oil demand is fairly distributed.

Saturday, September 26, 2015

Portfolio Update as on Sep 2015

Equity Portfolio Update after three & half months. Some minor adjustments done on existing shares and added a new name where huge value has emerged and has very favorable risk reward ratio. Please check the updated portfolio below to see all the changes:

Monday, September 21, 2015

Can IDBI bank be privatized?

IDBI Bank is governed under IDBI act which was amended in 1994 to allow 49% private ownership (as shown in the extract below taken from June 2015 investor presentation). As per Memorandum of Articles of Associations minimum govt shareholding in the IDBI Bank has to be 51% (As shown in the second shapshot taken from the presentation).  Use the link in brackets to open June 2015 investor's presentation (

IDBI Bank History
Snapshot1: IDBI Bank History

Tuesday, September 15, 2015

Personal Finance - The James Altucher Way

James Altucher
James Altucher challenges conventional thoughts at every step and compel readers to think and act differently. Here is his take on personal finance and why the terms itself is a big scam in his view. 

I personally agree with him on most of the points and if you really want to get rich in your life his points need serious attention. Following is the link to his personal finance blog post:

Friday, September 4, 2015

LIC & Goldman Sachs backed Amtek Auto destroyed 80% of Investors Wealth in a Month

We all feel safe in stocks which are backed by strong Institutions and get good sleep while owning them believing nothing too bad will happen there. We assume that these institutions that pay huge salaries to hire best in class research analysts have done thorough analysis before putting money into the stock and we can safely follow them. Well in investing world nothing is safe and especially in Stocks where all the analysis is on paper while the actual show is run by the management / promoter. While following Institutions is relatively better than doing personal analysis (if you are not a very seasoned analyst), following them blindly and committing all or major portion of your capital to one single stock could bring you disaster.

Amtek Auto is one such example which is backed by some renowned institutions such as LIC & Goldman Sachs. As on 30th June 2015 LIC held more than 8.4 million shares while Goldman Sachs had 4.2 million shares of the company. Together Institutions held over 15% of the company as on 30th June 2015. 

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...