Saturday, January 30, 2010

RishabDev TechnoCable

I recommended this stock to few people when it was around 17 RS.(now CMP is 11 RS )expecting that company is going to give good results with EPS around 10, but now i think its not going to make it. Now a days i started analyzing balance sheet and the interesting thing which i saw in the balance sheet of this company is its paying more then 1/2 profit as Tax and interest expenses.

Question: why is it paying so much interest rate?
Coz it took loan to run its business and the business is not making enough money to repay it
Question:why business is not making money?
answer i know its its total cost of raw material is increase rest all components remain the same from previous quarter
Question: What is the future price movement?
I expect the stock to fall for some more time and settle around 4-6 RS

And also i started looking at Gordon Growth model..hope i can place this over there and see where it ends up..Will see where the slide stops at

Wednesday, January 6, 2010

Domino Effect

Just got this into my mind ..--what are the effects of printing money by govt (they gave a nice word called stimulus) is going to show effects on common man...we can think of increase of purchase power which inturn lead to increase in price of items ..which inturn will make farmers or industries to supply that product to market there by stopping the production of item/crop which is giving less margin..which inturn will lead to demand-supply mismatch....which again will lead to price rice...but for this viscous circle is going move on

oops..i havent talked about Domino Effect time now..will post it sooner
Pradeep Reddy Lekkala