Whats wrong with some stocks?
Take Canara Bank, when compared with some of the valuations of other stocks, Canara Bank’s numbers and the present price sounds too good to be true.
# Been in the business for long
# Sells for something as low as 1.5 times the book value
# has a decent, infact a good EPS
# has a pretty good YoY growth in profits
# atrociously low PE ratio
and the people were dying to get hold of the likes of Reliance Power, Unitech etc 
Onnume puriyalai!!
I think the toughest thing to do in stock markets is keeping our own counsel.
Disclaimer:
I am no expert in stocks and i hold Canara Bank shares.
February 13th, 2008 at 7:13 pm
Guessed you have some Canara Bank shares even before coming to the disclaimer
:))) (sorru sirichathukku)
Naanum itha maathiri oru tharam stock marketla neenga sonna factorsla irukara nalla name & stableaa irukkara companyla invest panninen. Price was also stable and didn’t move more than a rupee +/-. Veruthu poi vithuttu Stocks irundha thisaikku oru kumbidu pottuten
February 13th, 2008 at 11:07 pm
dubukku annathey,
embutto naal wait pannineengo?
naan muname sonna madhiri.. me a novice.. aanalum 2010,11 la indha stock epdi pogudhu nu parpom
enaku therinja varaikum stock market is more about patience than anything else.
adhu varaikum eralena kooda erngaama irundha thats fine with me..
February 17th, 2008 at 8:20 am
Hi prabhu,
I was really impressed with your blog! great job, However I totally don’t agree with the way you are looking at stock market. Lets see whether this will give you clearer factors to decide.
As a country with 8-9% GDP we are dependent on few key non-traditional Industries..
1) Technology
2) Bio-Technology
3) Infrastructure
4) Energy / Alternative Energy
Always Stock markets will invest in areas which have promising returns.
Canara Bank,->Banking & Finance sector is booming bcoz of the above industries. If Softies(new name for techies) don’t utilise liquid cash in form Laons Do you think there returns would be that great ?!!
On the Other Hand : If you have the share of a Company like Reliance Power which you are more or less clear that they are in process of building one of the biggest Energy resource in India. With India’s market size whom will you bet!!?
Btw Pl email whenever you have free time -> need to talk 2 u regarding a Portal.
February 17th, 2008 at 12:04 pm
dilbert
thanks for your comments.
Regarding stocks, here’s my take.there are several ways ways to analyse a stock.
The starting point maybe,
# looking from a macro perspective,
# the other is how a particular company is or has been performing and then weigh in the macro factors.
we should also take into consideration the risk appetite of an individual.
i am clearly a novice and a part timer. i am not keen to be looking at the stock counter all the time.
for a person like me, canara bank which has weathered many a ‘revolution’ for the past so many years and whose business is something i understand and which is giving a good EPS, available at 1.5 times the book value is a comfortable buy.
i am not playing with crores nor am i prepared to lose a few lakhs during ‘market corrections’.
I am not an FII who can enter any counter at any level and still make money. i think i have to make my own rules and play by it.
>>Always Stock markets will invest in areas which have promising returns.
Sorry, i don’t think the stock market behaviors are inherently rational.
reliance energy for all its reliance tag is essentially a speculation deal. as with all speculations, its risky stock.