Coming to multibaggers we had three superb companies like Infoys, TCS and Maruti which had a compound number like 79, 79 and 43 respectively and which indicates revolution, upheaval, strife and failure of prevention. Despite these handicaps they have created superb shareholder returns. With rupee appreciating in a big way in 2011 the IT companies will face issues as we go along.

Here are the “43” smallcap companies:

 

ü       Aditya Birla Money

ü       Advanta India (34)

ü       Avaya Global Connect

ü       Chemplast Sanmar

ü       Cholamandalam DBS Finance

ü       City Union Bank

ü       Coral Hub (34)

ü       Diamond Cables

ü       Edserv Soft Systems

ü       EIH Associated Hotels

ü       Electrotherm India

ü       Elpro International

ü       Force Motors

ü       Garden Silk Mills

ü       Gateway Distriparks

ü       Glodyne Technoserve

ü       Geometric (34)

ü       Gujarat Alkalis and Chemicals

ü       Hawkins Cooker

ü       HBL Power Systems

ü       Inox Leisure

ü       JMD Telefilms Industries

ü       Jyoti Structures

ü       Karuturi Global

ü       Lanco Global Systems

ü       Moser-Baer India

ü       Oscar Investments

ü       PI Industries

ü       Paper Products

ü       Rain Commodities

ü       Ramsarup Industries

ü       Resurgere Mines and Minerals India

ü       Sakhti Sugars (34)

ü       Sandur Manganese and Ironore

ü       SEL Manufacturing Company

ü       Shasun Chemicals and Drugs

ü       Shriram EPC (34)

ü       Spice Mobility

ü       Sundaram MultiPap

ü       Supreme Industries

ü       Surana Industries

ü       Suven Life Sciences

ü       Venkys India (34)

ü       Vinati Organics

ü       Voltamp Transformers

ü       Websol Energy Systems

ü       Zenith Infotech.

Is 10,000$/ounce Gold inevitable?

 

Aside from the fact that the world had very few economic crisis and collapses when we had the gold standard compared to the post late 70’s where economic collapses have increased. The frequency and intensity have only increased in size and scope having major repercussions on the global economy and trade in general. One economic researcher has found a very close correlation with the movement in the Dow Jones Industrial Average and Gold prices in general. With the expected correction in Dow Jones from 11,000 to 10,000 on account of Banking risk and increased provision for losses in general…. Gold prices seem to be overdue for a big advance to these 10,000 levels. Aside from the fact that the pricing of all major commodities is denominated in dollars and thus commodities are exposed to the US monetary policies of fiscal expansionism and periodic busts of a flawed currency and flawed economic policies. Any student of economics finds it difficult to comprehend as to how a set of people who are ingenious and innovative in global marketplace are held back while inefficient and polluting producers get away by currency manipulation. Accumulation of trillions of dollars in reserves has not made any significant dent in their currencies by making them stronger. Any kind of monetary expansion will not be of service as the competing goods only become expensive and dearer as the overall productive capacity in the economy remains unchanged.

 

Aside from the fact that we will see 4 major crises in the next 7 years (2008-14) where one would see major seismic shifts and shocks in the system. Aside from individuals seeing gold as stable and a hedge against collapses together with Central Banks accumulating in large quantities the prices are expected to spiral. Coming to predictions the dollar will exhibit weakness in 2011 and 2013 and a minor upsurge in 2012 only shows that in the long term as Milton Friedman has said “We are all dead”. The gush of petro dollars only shows that the Gulf countries have to deploy these amounts and Gold is another stable investment avenue. America will witness atleast latest by 2013-14 hyper inflation, shortage of goods and a workforce which has to update it’s skills and move up the value chain. Manufacturing will become cheaper in the US due to a major depreciation and collapse of the dollar. Economies mainly reliant on “domestic consumption story” rather than exports will find that they exhibit stability in the economic model and are beacons of hope in a dark world. A return to “fundas” of global gold standard and internal and fiscal monetary policies over exports would certainly be a good augury in times to come. Exports clearly become uncompetitive as Oil prices move to 150$ by 2011, 225$ by the first quarter of 2012 and collapse to 100$ by the second quarter of 2012. Throw in the same type of movement in the years 2013 and 2014 and one wishes to steer clear of export related stories. Investors need to accumulate gold in the form of bars and coins as opposed to jewellery as it is clearly an inefficient form of holding the same.

 

Originally posted by ravi After Satyam (14) not many shall venture into far and away to buy 14 Cos. Here are a few of them: BASF India CESC Dalmia Cements DEN Networks Essar Oil Essar Shipping MRF PSL Rural Electrification Sun Pharma Advanced Research Sun Pharmaceuticals Tanla Time Technoplast   Apart from Coal (14) India IPO, which is coming up a 10% gain on listing would be good.

Ravi , are all the above companies poor in corporate governance ? I agree on many of them like Tanla , Essar.But do not have insights on few names like Mrf,Rural Elec,BASF and Sun Pharma .Can you share any inputs on Sun Pharma if you might have.Thanks.

I am bullish on SaaS. It's going to be omnipresent technology just like mobile phones. I don't know how to decode balance sheets but the way Ramco is marketing it's SaaS ERP enthuses me. Almost every manufacturing/retail company needs ERP IT systems for better management. In India many companies still do it on excel sheets.So you can expect mid,small and micro cap companies to implement low cost SaaS model.
Also they have some aviation analytics product and Air India is one of their clients.