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basant
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   Posted: 27/Nov/2006 at 10:56am |
Originally posted by omshivaya
Uhmm, not till now. The problem is until next 1 year I cant sell any more stocks, else I shall have to pay capital gains tax. So whatever I look into, has to be a year from now. I shall look for a more than 50% CAGR(for 2-3 years) company 1 year from now and shall post this question in Nov, 2007 I guess. LOL! |
The moment you let taxes determine your strategy you move away from taking the most sppropriate decision leading to lower profits so I suggest sell and buy stocks without looking at the tax aspect.
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BubbleVision
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Posted: 27/Nov/2006 at 11:08am |
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Great Advice BasantJi... Kahin Capital Gains Tax bachane ke chhakkar mein Capital loss hi na hojaye....
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You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer!
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kulman
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Posted: 27/Nov/2006 at 11:13am |
The moment you let taxes determine your strategy you move away from taking the most sppropriate decision leading to lower profits so I suggest sell and buy stocks without looking at the tax aspect.
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Isko bhi 'kitaab' mein daalna padega!
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Life can only be understood backwards—but it must be lived forwards
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xbox
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Posted: 28/Nov/2006 at 6:30am |
Nice to see support to my conviction on YES Bank. Now those people who said that comparision with HDFCs are not correct, they will get minority feeling.
Edited by vipul - 28/Nov/2006 at 7:14am
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Don't bet on pig after all bull & bear in circle.
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reetesh
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Posted: 29/Nov/2006 at 12:40pm |
No matter what you say, but you should also look at base at which HDFC Bank is growing and base of YES Bank, it is a NO comparision in my sense.. YES Bank is 2 year old bank...
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When going gets tough, that’s when tough (people) gets going.
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xbox
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Posted: 29/Nov/2006 at 1:27pm |
Reetesh, your all argument accepted but fact of the matter is this...Yes bank is ranked 3rd by business world.
Base effect that you mentioned is working well for YES Bank rather against it. Obviously, one can imagine what can happen when base difference shrinks.
I am not biased with Yes bank. If one can not envisage future of yes bank, then there is no point comparing it with HDFCs of the world. Definately Yes Bank has miles to go before it can be placed with HDFCs of the world.
Beauty lies in imagination!!!!
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Don't bet on pig after all bull & bear in circle.
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omshivaya
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Posted: 29/Nov/2006 at 5:04pm |
I agree with you Vipul ji, but I would tend to be on reetesh's side on this one. HDFC is number one, despite ite sheer size. If Yes Bank can do the same when it is at HDFC's size(as of today), it will be a gr8 day. As I said earlier, if Yes Bank can stay put at or better its current position for next 2 years, that in itself would be a great thing.
I hope that it does.
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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basant
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Posted: 29/Nov/2006 at 6:57pm |
Yes Bank has a RoE of close to 16% and to grow at more then 50% it has three options:
1) Dilute equity or raise loan
2) Increase fees based income - comes without capital investment
3) Increase RoE from lending operations(not sure if this can be done beyond a point)
Under all the options I fear that it would dilute equity and if it does that it could become a ICICI bank where the bank grows but investors do not earn that much since EPS grows at a lower rate. Broadly the sounds are bullish no doubt but we should be open to these aspects also.As I maintain no company can grow at a rate higher then RoE for a long period of time.
Edited by basant - 29/Nov/2006 at 7:07pm
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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