Can anyone tell me if the company is taking black money from people who book houses? In Mumbai they don't. But one cannot say this about other centres.....
That's a really relevant question and the answer from Alok is reassuring. The black component causes a lot of problems for simple folk trying to take a loan.
Joined: 02/Oct/2007
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Posted: 13/Feb/2009 at 11:32am
One should use brokerage reports only for the data they can provide us. Their recommendations are usually swayed by extraneous considerations. Also analysts under pressure from their bosses tell us things between the lines which a sharp reader should learn to pick up.
Joined: 07/Feb/2007
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Posted: 14/Feb/2009 at 10:35pm
True. There is no doubt about that.
I had a very meaningful & effective dialogue with one of the analyst regarding a stock.
During the discussion, I had questioned him regarding rationale behind giving short term (three months) view/price of the stocks.
He replied back with two genuine reasons:
1) While computing the future price of a stock, lot of assumptions are made which cannot hold good for one or two years or they don't see that much visibility for longer period
2) Investors are more concerned with stock price within a month or two. Most of them are not interested in long term prices.
So we can't blame the analysts for all the wrong reasons.
1) While computing the future price of a stock, lot of assumptions are made which cannot hold good for one or two years or they don't see that much visibility for longer period
2) Investors are more concerned with stock price within a month or two. Most of them are not interested in long term prices.
So we can't blame the analysts for all the wrong reasons.
The first argument is valid and so one year-targets are okay.
The second is a chicken & egg type of situation with brokers clearly benefiting if clients churn frequently. So whether the investor or the broker is responsible for the quarterly fever is moot.
Joined: 25/Dec/2007
Location: India
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Posted: 13/Apr/2009 at 12:07pm
Update - Arun Nanda had bought an additional small lot of MLL shares recently(around 7500). Results are on April 24, 2009.
The share price has increased from 83(12th March' 09) to 180(13th April ' 09) in last one month. Lets see how much it reacts downwards if correction happens. I would take that as a further buying opportunity. The real estate companies are still not out of woods, but this is one company which will survive and will be outperformer in coming years, my personal opinion.
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