Monday, December 14, 2009
Here are few things which i look and feel this as good value buying
Mcap :30 cr
Share Holding :Public 20%
rest with Promoters and other investors which is a Good sign i guess
only last two years it had performed badly and all the ratios and figures are bad for the past two years
Debit/Equity is 15 which is very high is the only concern
But recently they are planning to divest part of companies units into separate entities so that they can capture true potential and had asked PWC and SBI Capital to Advice regarding this .
Pradeep Reddy Lekkala
Pradeep Reddy Lekkala
Sunday, December 6, 2009
Thursday, November 26, 2009
Shareholders of a company can now cast their vote electronically on company resolutions through an Internet-based e-voting platform. The e-voting platform for corporates was inaugurated by Mr Salman Khurshid, Minister for Corporate Affairs, at a function organised by the Bombay Stock Exchange (BSE) and Central Depository Services Ltd.
"It is a major step forward that would bring more transparency to the system," Mr Khurshid said, adding that he wished the same could happen in the election of political representatives as well.Dont know how much it can protect minority investors
The e-voting platform has been developed by CDSL Ventures Ltd (CVL), a wholly-owned subsidiary of Central Depository Services Ltd (CDSL).
"The e-voting system will empower shareholders to participate in the decision-making process of companies in which they have invested, thus making their vote count," Mr S.S. Thakur, Chairman of CVL, said.
During the voting period investors can cast their vote by visiting the Web site ( www.evotingindia.com) and log on using their demat account number and permanent account number (PAN) and password.
how will be sending me the password? can that be changed ? Need to look it .
Companies would benefit from this system as the remote voting process would also result in savings on various cost overheads, which are currently incurred for postal ballot.
Pradeep Reddy Lekkala
Wednesday, November 25, 2009
Will explain with facts in coming posts
Tuesday, November 24, 2009
but i can see that NDTV got the report first as they boast it by sharing on their server or is it INDIAN EXpress which claims it has printed the report first in the newspaper, whoever it be,,either of them had reported first as they say..so why can't we book them and ask how gave the report to them ? is it not possible ?
When we know that one report is with liberham and other with home minister. how come a copy went to media? someone in homeministry leaked it right? since justice liberham is sincere i beleiev
now why did they leaked to media is another question which is asking me ? is it ruling party got kicked in a@@ by the entire opposition coming together in attacking UPA on farmers issue
i guess so..to divert the blame on govt on price rise issue govt looks wantedly side track the issue and divide the opposition
congrats to govt
now its too late for me to post it now..will resume it tomorrow Thanks
Pradeep Reddy Lekkala
Saturday, November 21, 2009
Its raining dollars in India. Such a dollar deluge can be quite harmful. Here is how. When a foreigner Joe invests $100 into the Sensex,
he first needs to convert his dollars to rupees. So, let's say the exchange rate is 47, which means 100 dollars becomes Rs 4,700.
After a couple of months the Sensex rises by 10 per cent (it's hot right now, and that's why Joe is putting his money ). The investment of Rs 4,700 becomes Rs 4700 + Rs 470 = Rs 5,170. At this point, dollars coming into the Indian economy have made the rupee stronger, so that the exchange rate is now 46 instead of 47.
So, when Joe decides to collect his winning investment, he gets Rs 5,170 divided by 46, which when calculated is $112.4. In short, he put in $100, and got back $112.4, even though the Sensex went up only by 10 per cent. This 2.4 per cent advantage is simply an added icing on the cake, not available to a desi (rupee) investor. The inward pressure of dollar investors also makes the Sensex go up dizzily. That makes Joe even happier.
He tells his friends. They all start investing here. Dollars pour in, and the inward pressure gets even more intense. It soon becomes a feeding frenzy . This Sensex is a "sure thing" say the foreign punters. You know how this ends, don't you? One fine day, with a small rumour , the tide turns abruptly. The bubble is pricked.
There is a stampede to get out. The financial world is known for such herd mentality and abrupt reversals. Once the investors rush out, this whole model starts going in reverse.
Meanwhile, the sufferers are the desi rupee investors. This indeed happened in September 2008, when the Sensex crashed, because the foreign institutional investors pulled out funds from India due to the Wall Street collapse. All that the desi investors could do was hold a morcha on Dalal Street. They did not know what hit them.
Of course, all this stock market investment is risky business. So, investors should heed caveat emptor (buyer beware). If they are taking risks, it's their funeral. Why should the government or the Reserve Bank intervene?
Under normal circumstances, the investors should be left alone with their risk-taking . However, it is difficult to say what 'normal circumstances' are. Since a trickle can become a deluge very quickly, normal can turn abnormal almost overnight. Hence, the policymakers need to keep a constant vigil on this incoming deluge of dollars.
The dollar dilemma is also faced by other developing countries. Recently, Brazil started tightening the screws on inflows of dollars, since their local currency strengthened rather quickly and unhealthily. Taiwan, Indonesia and South Korea too, have imposed some controls on dollar inflows.
The controls are not so much on stock market inflows, rather on the money that flows into debt markets and banks. Since dollar deposits earn close to zero per cent in fixed deposits in American banks, the Joes are tempted to put that money into an Indian bank into rupee deposits, which gives them 10 per cent. It's safer than the stock market. In addition, you get an additional 2.4 per cent due to rupee getting stronger, remember?
Of course it's much easier to do this in Korea or Taiwan, thanks to India's restrictive laws for foreign deposits.
As long as interest rates in America are low, and economic outlook remains uncertain or bleak, the dollars will tend to flow to emerging economies.
Those economies, like India, will need to put up some barricades, lest the dollar deluge destroys the edifice of the economy.
Of course, the dollar monsoon has not quite begun, yet it's better to keep our umbrellas ready.
Friday, November 20, 2009
And coming to Dollar index..why is this getting all the limelight these days, reason is Dollar went down index 80 and still FED is not going to increase the rates and all the dollar value is going down
First Question why dollar going down? IF dollar goes down whom will it help? why Equities are going up..though i know that right now they are inversely correlated from 2000.., Why are they supposed to be inversely correlated? why is FED happy to keep dollar low? do they want to increase their asset value and clear the bad debts? and come clean again..am afraid this is the reason?
And one more questions came up to my mind..why obama visited China and i guess Singh is also going to US? any relation? Till now i couldn't find any..But will find out sooner
Wednesday, November 18, 2009
hope i get some information from SEBI Database or RBI Database
Pradeep Reddy Lekkala
Friday, November 13, 2009
When i say markets i mean whole global markets in which trade is done day to day in specified time hours.One important thing about this is ICE' Inter Continental Exchange" what a name... from past few days am following this link where it gives Dollar index which is traded in ICE which gives DOLLAR value in International Market
This Dollar Index is dictating the terms in Worlds financial Markets.At least this is what i believe for now
If you see the trend for the past 1 yr it gives a fair idea .You can see that it peaked in March-April..Remember at that time at least our INDEX (both SENSEX and NIFTY) are down..From then on if you see Its going down like anything .Reason i don't know as of now...What i think ...FED has printed a lot of money and distributed in market just like that .(very crude of saying..will tell you the exact phrase later on....) as Liquidity is increased dollar value becomes low as long as FED doesnt increase Rate its going be like that .
Now coming into Indian Markets, the run up in market is due to low interest Cash in Dollar
(infact its not low intrest its ZERO intrest dollar borrowed overseas is Coming into Indian Markets (you see emerging markets in news...this is nothing but countries like india and china ,austriala etc...) and thus creating a t Bubble in Equities and raising a bubble ,but till what point can this bubble raise , it can raise as long as that run up is supported by the fundamentals of the economy , it gave a decent IIP number for last month (Though i dont have much knowledge on IIP}.
Now the question is what will happen once Dollar starts climbing?
Am afraid i huge sell off is coming in near months
Watch This Space ffor More Updates
By a one who wants to become------
Monday, October 26, 2009
Here is the latest look of it
Pradeep Reddy Lekkala
Friday, September 18, 2009
Generally Rain will dampen the spirits of joy only when it rains at wrong time...but by this time of the year in the southern India it should rain
But that's not the case this year . As u can see from the pic already we are running a 40 % deficit rainfall on a average if this is going to continue for next couple of weeks.
Then i guess output of the kharif crop which is major crop in year is going to decrease drastically , which will lead to scarcity of rice .
now its mroe dangerous because the states which supplies rice to stock pile
are facing the drought situation.
If that is the case then it will lead to shorting in supply side..which will lead into high pirces in coming days.
That implies it will lead to higher inflation which i suspect will act as a barrier to the growth
Thursday, September 17, 2009
With knowledge i have BDI is calculated on the no ships in sea which are on business mean taking cargo from one place to place ..that implies export and import activity . July early BDI was at its peak due do heavy purchase of raw materials by china to increase its stock pile and also concerns of monsoon might restrict the number of ships engaged in business so i feel it increased at that time . Now if economic activity has to increase it has to start from imports /exports ,because for any business raw material is needed to start the activity . So ships have to be in business but here in this index am not seeing any relation of that kind ...am i missing anything..may be in next post i will include the price of booking a ship which might tell the actual demand of ships....guess that in turn should reflect the economic activity
Wednesday, September 16, 2009
If you look at the EPS of the company right now its negative due to write downs made due to business but when u look for the future of this company i strongly believe it can deliver some Good Return when investors show some intrest in it
Right now its my underdog
Monday, September 14, 2009
in which market is heading , i believe am also one among them if given a chance. am not here to
undermine their abilities am just wondering where all did these experts go when market fared badly and what reco's they gave to investors about the direction
which made me believe that all are not correct .
Coming to the market here is the expert
(in making ..till will tell )I believe this is short term bull market which might end some where around 17500 to 18000
until unless fundamentals improve this will not get past that mark
Although speculators are going for a kill whenever they had the opportunity
but this trading range is not good for long term investors, also long term investors
should buy stocks when everyone is selling them and should sell when every one buys
will take u through EPS,P/E and historical values,Fundamentals in my analysis
...Will keep more of my analysis in later posts