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Sunday, July 29, 2012

Brigade Enterprises –Gem in your Neighborhood!

Peter Lynch, the celebrated Mutual Fund Manager and Investor, used to believe that the best equity investments are made in the brand names you see everyday around you. Invest in what you know. So much so, once Peter went for a haircut in neighborhood saloon and came back and bought the stock of the listed Hair Saloon firm!

On similar lines, Brigade Enterprises is a known brand name in Bangalore, IT Capital of India. Owning a Brigade Apartment is a matter of prestige (Pardon the pun, Prestige is also a competitor). Other than Residential space, Brigade constructs commercial and retail property and leases them out. A noticeable aspect about Brigade which very few people are aware of is that Brigade outsources its construction activities to Infra players such as Ahluwalia, Simplex etc. 

Thursday, July 26, 2012

Thursday MidCap Stock Carnage on NSE...Short term Bottom is Near!

Stock Carnage is a strange phenomena.. It seems like the world is about to end for the small investor who is actually holding the stock. Investor thinks that this stock is falling like dead rock and probably the company is about to shut shop. He tries to sell at any price, but noone is buying and suddenly the lower circuit is hit and investor is left holding the hot potato till the market opens the next day. Investor resolves to sell the stock at any price tomorrow morning, but the saga goes on for next few days till the stock almost seems worthless and investor is left in deep pain holding a stock which is down by 70-80%...

Perversely, Stock crash are a Golden opportunity for Vultures  to own good companies at crazily low prices. Lets see the Carnage that happened today in Midcap select stocks on Thursday today.. Today was a F&O expiry session and it literally become a "Expiry" session where some of these Midcaps actually Died/Expired and went to Hell !! Lets look at the charts and good buying opportunities that will come in next few days...

Sunday, July 22, 2012

Beautiful pictorial depiction of Stock Markets.. Its not only about Bulls and Bears..

Markets are not only about Bears and Bulls.. Bulls win, Bears also win, there are other animals which get slaughtered..
Artist: Susan Slyman, 2000

Wednesday, July 18, 2012

The Plight of Moser Baer!

This morning I bought stocks of Moser Baer.

Now, Moser Baer is a glaring example of what all things can go wrong with a firm. Almost everything that can go wrong has already gone wrong. Moser has been consistently making losses every year from last 5 years. And most quarters of last 5 years have been bleeding in red ink. Moser Baer is the second largest manufacturers of optical media in the world, and manufactures floppy, CDs and DVDs. Great, only that world has moved on from DVD drives to flash drives and thumb drives. 

Sunday, July 15, 2012

Craze for Gold in India and China and possible Gold Crash!

The Craze for Gold in India and China has reached its Pinnacle. Billionaire trader and investor George Soros has warned investors several times that Gold is the Ultimate Bubble, but Gold continues to move higher. I personally witnessed yet one more proof of craziness & sentiment indicator of this ultimate Bubble. When Gold was lying flat at Rs 8000 per 10 Grams in 2007 timeframe, no one was interested in this precious metal. People used to think about Gold only during marriages when buying Gold becomes a cultural and social necessity. Few days back I was shocked to see a Television soap-opera when a TV vamp uses 2 gram Gold coin as a Bindi on her forehead. Utterly obscene and crazy! Such is the level of craziness that Gold has reached in our country.

Wednesday, July 4, 2012

Are Poor Monsoons good for Indian Stock Markets?

Poor Monsoons definitely are bad for overall economy of a country, especially India. Sale of 2-Wheelers, 4-Wheelers, rural spending on FMCG & Consumer products etc goes down after a Bad Monsoon. About 50% of Indian population still draws their livelihood from Agriculture, which is highly Monsoon dependent in India. Poor Monsoon results in poor crops, less cultivated area, cultivation of crops which need lesser water, and all these factors result in lesser spending by bulk of Indian population from rural India. Additionally, many firms top-line growth are dependent on Rural sales penetration as they have already penetrated urban areas, and their overall growth plans are affected as well. All in all, bad monsoon spells nothing but problems for Indian economy.

But what about Stock Markets? Do Bad Monsoon in an year necessarily mean crash in markets, or does it actually go bullish in years when monsoon has been bad? Is this as crazy as it sounds? We need to look at historical Monsoon data and derive our conclusions, which may be shocking to say the least!

Monday, July 2, 2012

Your Queries and Our Answers - Part 1

Its always a good feeling to receive an email from you. It can be a simple hello, or a critique of what I wrote, or a question or request for advice, but we love getting emails from you. Keep writing at

Amitabh from Kolkatta writes:

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