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Archives for May 2012

Safal Niveshak StockTalk #7: Clariant Chemicals

Welcome to the seventh issue of Safal Niveshak StockTalk.

After covering Balmer Lawrie & Co. Ltd. last time, this time I delve deeper into another small-cap company, Clariant Chemicals India Ltd. (CCIL). Before we dive deeper into CCIL, here is a brief overview of the sections of this report.

  1. About CCIL
  2. Safal Niveshak’s 20-Point Checklist
  3. Intrinsic Value Assumptions
  4. Financial & Market Snapshot
  5. “Should I Buy CCIL?” Checklist

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An Open Letter to My Daughter

My dearest Kavya,

These past seven-and-a-half years seem to have gone by like the blink of an eye.

You’ve gone from a newborn princess cradled in my arms to a small princess experiencing the joy and independence that life can bring.

I can still recall the moment I got the news of your birth. I was not by your side then, but I felt like the happiest father on earth. Your mother and I marveled at your red cheeks, wrinkled fingers, and your intense eyes.

Your birth gave me the experience of my lifetime…an experience that holds the most precious place in my heart.

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How to Invest When the Stock Market is Sinking?

Let me create some fear if you aren’t fearful as yet.

India’s economy is going downhill, fueled by a rising deficits, and falling rupee, governance, and hopes.

Foreigners are taking note, and pulling money from their Indian investments.

Led by this, the stock market is tumbling. The Sensex is down almost 22% or 4,600 points from its last peak in November 2010 (18 months).

Some so called ‘safe stocks’ are down even more – like BHEL is down 59%, L&T is down 46%, Tata Steel is down 36%, and Infosys is down 23% (since Nov. 2010).

How can such a scenario not trouble even the most sensible of long term investors?

  • Is it sane to invest during such bad times?
  • Should you sit on the sidelines?
  • If not, how should you invest in these volatile times?

I tried to provide answers to all these questions in Safal Niveshak’s Friday Night Facebook Jam…

…which finished just an hour back.

Click here to read the transcript of today’s session if you couldn’t participate.

Click here to read the transcript of last Friday’s session.

The next session of the Friday Night Facebook Jam will be held on 1st June 2012 between 7 PM and 9 PM on Safal Niveshak’s Facebook page.

Block your calender!

70 Reasons to Stop Complaining about Rising Inflation (Plus 1 More)

I know…I know how much you cursed the government last night for raising petrol prices by Rs 7.5 per litre!

I know how much you’ve started loving all those ‘revolutionaries’ who are calling for a nationwide protest against these hikes!

It’s funny to see all those queues outside petrol pumps with people waiting to get their vehicles pumped up with as much fuel as possible…as if that is the only fuel they will need for the next several years. (They must’ve burnt more fuel waiting to get their tanks filled up!)

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3 Investing Lessons from Facebook IPO No One is Talking About

Let me start by repeating what has already been repeated somewhere else. Facebook just raised US$ 16 billion in its historic IPO.

It sold 421 million shares for US$ 38 each, a price that valued the company at a mammoth US$ 104 billion, or 107 times its profits in the last year (P/E of 107 times!).

Now how much is US$ 104 billion in market cap? Well that’s 25% more than the combined market cap of India two biggest companies (by market cap) – TCS and Reliance Industries.

I’m a Facebook fan, only and only because of the connections it has helped me create with my friends and readers (that it can become a pastime or is dangerous for kids is another point of discussion). I’m on it for business reasons mostly, but I’m on it.

Like just last Friday, I conducted the first session of Safal Niveshak’s Friday Night Facebook Jam…where we had some great discussion around investing (Check out a part of the discussion here).

You can join the jam this coming Friday evening (25th May), between 7 PM to 9 PM.

Anyways, no matter what everyone is saying about Facebook and its IPO, I don’t believe the company is a fad, at least not technically — it’s been around too long.

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Safal Niveshak Radio: How to Invest When Fear Runs High

Here is an email I received from a reader of The Safal Niveshak Post last week…

Dear Vishal,

I have been an investor in Indian stock markets for the past 10 years, but no other time in the past have I felt the fear of investing as I’m fearing now. With so much global uncertainty, problems in India, and the way markets are behaving these days, I am not sure how to conduct myself with respect to my investments.

Can you help me in this regard?

I thought of writing a post as a reply to this email, but then worked on this short radio show (podcast).

Just click on the ‘play’ button below to listen to the podcast (and let me know your view on this medium of communication in the Comments section below).

If you can’t see the button above, click here to listen to the podcast.

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My Stock Investment Philosophy

While I have discussed my principles, experiences and learning as an investor through various posts in the past, some readers have asked for everything at one place.

So here is my investment philosophy for stocks…developed through practice over the past nine years…all at one place.

You might not agree to some of the parts of this philosophy note. But as I said, this is ‘my’ personal investment philosophy, which suits my personality as an investor. And you are completely different from what I am.

Anyways, here I go…

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Some Advice for the Young…and Broke

I generally don’t like offering advice on this platform – Safal Niveshak is all about sharing my experiences and learning as an investor and manager of my own money. So the headline of this post seems a bit awkward to me.

But then, what follows is my response to some common claims that I’ve heard from a lot of well-educated and confident (yet broke) young people…and I was one of them a few year back. (I’m still educated and confident, but have taken care of that ‘broke’ part :-))

Here are some things I’ve been hearing all around from the young with respect to their careers and finances, and my thoughts on their thoughts…

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