Bharti Airtel - Connecting India
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Large Cap Blue Chips
Forum Discription: You would not need to read any note, brokerage reports or wait for FII recommendation to buy these stocks. These are solid companies with established business & are akin to family silver.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=221
Printed Date: 09/Apr/2025 at 4:18am
Topic: Bharti Airtel - Connecting India
Posted By: basant
Subject: Bharti Airtel - Connecting India
Date Posted: 24/Aug/2006 at 1:39pm
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Bharti Airtel - Connecting Bharti Airtel (C.M.P Rs 407) Is India’s prominent telecom player. The stock has been in news today for having given out an order for over US $ 1 billion to Ericsson. The huge order has an underlying message that the management is very confident of maintaining the higher rate of growth in the next couple of years. The previous order in June 2004 was for US $ 400 million. The stock is already up some 9 times since its IPO and looks set to continue the trend. The company is a classic play on the following themes Blue chip + growth + Domestic consumption + Demographics Over the next few years Bharti is expected to hold 22% of the wireless market in Bharti should maintain and also increase its monthly net addition run-rate at 1.2 million subscribers over the next 2 years.
Over the next two years earnings could grow by as much as 40% per anum.. This would be driven primarily by robust subscriber growth which has been increasing at 50% CAGR as well by revenues through new businesses. As margins improve investor’s nervousness towards intensifying competition should further improve valuations The unique play: Telecom is the only sector where a company starts a new day/ week/month/year with assured customers. For instance on April 01 2007 Bharti shall wake up to an already assured customer base acquired in the earlier years. The broadband penetration shall add to the growth in the coming years. Broadband penetration shall grow at more then 100% over the next few years and Bharti is uniquely positioned to capture this boom. Moreover as the technology upgrades Bharti would also start having additional sources of revenues from businesses like M-Commerce etc. In the next decade a customer will use his mobile phone to make payments for his purchases at shopping malls, pay for restaurant bills etc. In other words wireless money could overtake the plastic money. That revenue stream could be huge and new businesses should help the company maintain its 30%+ growth rate over the longer term. Recommendation: Bharti Airtel remains a solid blue chip where investors could comfortably double their money in less then 3 years. Investors should buy the stock and keep adding at each decline. Some stocks appear costly and they remain that way Bharti is one of them ------------- '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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Replies:
Posted By: equity analyst
Date Posted: 24/Aug/2006 at 7:34pm
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Dear Sir,
How do u rate Reliance info compare to Bharti,no doubt Bharti is leader in GSM mkt ,but i think Reliance is also capturing the GSM as well as the fixed phone services,its also making its presence in Broadband business.Under Anil Ambani leadership i think Reliance info can touch new high and create new milestone. I think we can aslo buy Reliance Infocom in the telecommunication space.
Your suggestions please.
Regards
Veenit ------------- "Markets are the places where two types of people meet up in the morning: those with experience and those with money. Towards the end of the day, they exchange their assets and go home." |
Posted By: basant
Date Posted: 24/Aug/2006 at 7:54pm
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Hi Equity ANalyst,
I would rate Bharti higher up then Rel Info. Rel is contemplating a change in technology CDMA is inferior to GSM I have learnt that they did not go in coz the markets would have shunted the stock. So that is one real concern
WOuld try and compare them in more detail some time. ------------- '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 |
Posted By: prosperity
Date Posted: 04/Sep/2006 at 10:11pm
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1) Rel comm. would do both GSM + CDMA
Its becoming tech. independent - rather than switching
This tactics is also putting pressure to reduce CDMA royality
2) Reliance leads the way when it comes to cheapest STD Calls
With cities getting cosmopolitan - STD calls would be the decider of future
3) Flag Telecom as 100% subsidiary - International foray is a BIG plus
4) Subscriber Base - Growth Rate is highest - higher than Airtel, etc.
The investment period has been on for some time and with entry into GSM - it still is on...
But once the investment period ends - this is going to beat Airtel..
etc. etc.
But i want to hear your and others opinion on this...
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Posted By: kulman
Date Posted: 04/Sep/2006 at 12:50pm
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Latest news is that Spice Telecom (Modi group) is planning to hit markets with an IPO in next 2 months to fund their expansion plans. Over the last 12 months ending June 2006, the operations have shown a 40 per cent increase in subscriber base. Spice posted revenue of Rs 734 crore ($158 million) and EBITDA of Rs 224 crore in the year ended March 31. The company has a valuation of $1.2 billion (Rs 5,500 crore) at present. The company is expecting its valuation to surge to $2 billion next year and $4 billion by 2009 after it acquires a national footprint.
Basantjee, could you please compare these (Spice) valuations with Bharti Tel & Rel Comm? Please let us know your views.
Thanks. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: prosperity
Date Posted: 07/Sep/2006 at 5:38pm
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1) Sounds like "Cheap STD" Vs. "General Mobile" - Right ?
Reliance leads the way when it comes to cheapest STD Calls.
With cities getting cosmopolitan - STD calls would be the decider of future
2) Rel comm. would do both GSM + CDMA
Its becoming tech. independent - rather than switching
This tactics is also putting pressure to reduce CDMA royality
3) Flag Telecom as 100% subsidiary - International foray is a BIG plus
The new falcon launch is BIG plus...
This part of business is scalable..
4) Subscriber Base - Growth Rate is highest - higher than Airtel, etc.
The investment period has been on for some time and with entry into GSM - it still is on... But once the investment period ends - this is going to beat Airtel.. Then the company would NOT need CASH for a long time to come... it would give huge profit margins then..
etc. etc.
But i want to hear your and others opinion on this...
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Posted By: bub100
Date Posted: 08/Sep/2006 at 1:40pm
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Hi All, I am a new member of this group, go throgh the messages of diff. members they are providing good discussion stuff. My query is i am hodling few shares of Bharti telecom (Old) can anybody tell the value of the same? thanks ------------- gs |
Posted By: basant
Date Posted: 08/Sep/2006 at 1:51pm
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Did you not tender these shares in the open offer. I think that they have been delisted. Can any one throw some light on this. ------------- '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 |
Posted By: bub100
Date Posted: 08/Sep/2006 at 1:57pm
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no I am still holding now in demat- they also gave some shares of Bharit teletech as bonus. good to hold or give in the buyback if open ------------- gs |
Posted By: basant
Date Posted: 08/Sep/2006 at 2:06pm
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Buyback would have closed long back now you need to hold it. Write an email to the company and to SUnil Mittal (seriously) and check whether they would take it now. ------------- '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 |
Posted By: bub100
Date Posted: 08/Sep/2006 at 2:11pm
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thanks for the reply. I now come to know that they war offering 90.- p share but I think this is not the value of Bharti Telecom (as holding company holding 45% in the bhaairtel) are ther anybody in the fourm also holding or want to give in the buyback regards ------------- gs |
Posted By: nav_1996
Date Posted: 19/Sep/2006 at 3:04pm
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I think this topics needs to discussed in more details. Besides financials and number of subscribers we need to closely watch out the technological disruptions this field is going to witness.
Excuse me for my limited telecom knowledge. But still I will try to put across points which are important and relevant. First question needs to be answered is what is impact of CDMA. To start with Reliance was able to provide features like R-world with CDMA technology. But to move to provide 3G services(which will be future value add services) which is cheaper CDMA or GSM. World over GSM larger base has forced equipment manufacturers to spend more on research and product development for GSM. How spectrum issues play? How are new services like IPTV and VoIP going to have an ipact? In case reliance wants to migrate its user base to GSM there will be a considerable cost. But I have a feeling that despite of some challenges Reliance will be a formidable player. I guess Tatas will be loosers either way. |
Posted By: xbox
Date Posted: 19/Sep/2006 at 3:09pm
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There was an article on Economic times Dated 18 Sep on this topic. U will get what diamond you are holding. Try to get newpaper copy and read. I read it from economictimes.com yesterday. Don't tender ur share to promotor. They are trying hard to get these. It values 10 times more that last listed price. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: sajanvm
Date Posted: 19/Sep/2006 at 3:38pm
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I am just a little worried about investing long term (>5 years) in the telecom sector. In the growth phase that we are in, there might be money to be made, but am not sure of what will happen later. If you look at US, you will see what a cut throat business telecom is... Consumers benefit, not the telcos. One of the big factors that I think has protected telco companies in India is the absence of LNP (Local Number Portability - meaning, i can switch to any carrier but my number remains the same). If we did have LNP in India, none of us would care if we were with Bharti or Reliance or whoever as long as I can retain my number. In the US you have companies calling you and offering $50 to switch and giving you a better tariff as well ! People do it at the blink of an eye because I don't have to change my number....
Will all this come to pass in India as well ??? I hate to be a wet blanket, but as investors, we shd seriously examine the downside instead of only looking at the macro level opportunity I think.
Look forward to hearing from all of you. ------------- Sajan |
Posted By: basant
Date Posted: 19/Sep/2006 at 4:18pm
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Great Point. Though 5 years is a pretty long time in an emerging sector your argument brings me to a very interesting point. Suppose any one wants to take over all the subscribers of Nharti (20 million) and is willing to pay Rs 2300 (US $ 50) for that then one could get all the subscribers at Bharti for US $ 1 billion. The company trades at a market cap of over US $ 17 billion. Guess that would take about 2 - 3 years and Bharti could also do some poaching there from other operators but surely once that happens this whole sector could come in for a de-rating.
------------- '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 |
Posted By: basant
Date Posted: 26/Sep/2006 at 10:58pm
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Bharti Airtel has moved about 20% since we discussed this stock some days back. The net monthly additions of mobile telephone subscribers have crossed By 2010 total market size for mobile telephony should be between 350 million – 400 million from the present level of 120 million. It is learnt that Bharti is looking for some international acquisitions. Market grapevine has it that because of international players like Vodafone and Singapore Telecom, Bharti shall make this acquisition in a country where these players do not have significant presence. It is rumored that the company is looking for companies in the lesser developed countries of Africa or The company is aggressively increasing focus on the fixed line/broadband services where ARPU is almost triple of the mobile services. Mobile revenues make up 75% of total revenues, but the real growth is coming from other sections of the While 3G is a few quarters away the IPTV plans of the company are in the pipeline and should further boast revenues. With Reliance communication on its heels the competition is intensifying but the monthly net additions are still ahead of forecasts. That means that the market is growing much ahead of expectations. The fact that Reliance communication is now looking at GSM is a confirmation on the superiority of this business model. The company is attempting to increase its market share to 25% from the present 21% over the next few years. Source: Company Presentation at CLSA meet. ------------- '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 |
Posted By: prosperity
Date Posted: 26/Sep/2006 at 3:04am
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Basantji,
Reliance Communication looks better to me than Airtel..
In times to come, Reliance Communication would have the largest share !
I have posted a post on this topic comparing Airtel and Rel Comm - asking for views.
Got None. Pls. look into that post and LMK the comparision study views..
I believe in investing in ONLY 1 company per sector .. and i have with great confidence placed all my communication bets with Mr. Anil Ambani
Cheers ------------- |
Posted By: Ajith
Date Posted: 26/Sep/2006 at 8:04am
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The great thing about this industry is the cost leadership achieved-world-beating-as pointed out by Nandan Nilekeni so truly a case of maximizing bottom of the pyramid and a further 15 % upside cannot be ruled out.Technology breakthroughs to beat Bharti is difficult to imagine but cannot be ruled out in the medium-term. ------------- Ajith |
Posted By: manishdave
Date Posted: 26/Sep/2006 at 9:03am
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Forget LNP in India as long as BSNL/MTNL are under control of Govt. Another factor for LNP is numbers are held by original companies and if somebody moves same no. to other company, other company pays some "rent" to original company because that company "own" the number. If customer disconnects the number, number goes back to original company. This requires huge software system even after govt. decides on LNP. We also need system to resolve conflicts. Considering all these no LNP even in 5 years. $50 for changing carrier is with condition and that is 2 year contract. So companies secure business of atlest $1200(arpu of telecom companies is $53+) and all companies charge $35 activation fees so $50 is no big deal. Kulman,
Try to compare that with Essar/Videocon rather than bharti/rel.
Modi is one of the notorious groups for investors. They had many companies. Can somebody name one company where investors made atleast some money? |
Posted By: basant
Date Posted: 26/Sep/2006 at 9:18am
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Thanks for sharing these views Manish. Never knew these intricacies. ------------- '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 |
Posted By: nav_1996
Date Posted: 02/Oct/2006 at 12:23pm
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LNP may happen sooner. Read this article
http://www.financialexpress.com/fe_full_story.php?content_id=142117 I think it is an idea whose time has come as it is a global practice. Though operators will continue to oppose it it can not be postponed beyond a couple of years. Now this makes things interesting for CDMA players as and when this happens. Switching from one CDMA operator to another GSM or CDMA operator will call for a change of handset. So definitely there is some barrier and they will have some advantage over GSM players. |
Posted By: vivekkumar_in
Date Posted: 02/Oct/2006 at 5:04am
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I don't think LNP will affect the game for quality players Ppl change carriers based on the Quality of call, call dropage rate, coverage of service area, costs per call, roaming etc.. If Bharti tops the list for customer satisfaction then it need not fear of poaching once LNP comes in.. Moreover when comparing LNP, in US, Govt does not sell Circle rights to service providers. It is right to do business all over US. In India it is not the case Aircel is only in certain circles, Reliance in other circles, Hutch in other circles.. This makes changeover even harder... There could be major re-rating in favor of players like Bharti & Reliance if govt abolishes these Circle wise rights and brings in all over country rights.. ------------- Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies. P Lynch |
Posted By: nikhil090
Date Posted: 07/Nov/2006 at 7:42pm
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Dear Basantji,
The results of Bharti have been really good for the quarter, better than Reliance communication and expectation. With that, do we still see long term story intact for the industry and Bharti?
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Posted By: basant
Date Posted: 07/Nov/2006 at 7:52pm
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Bharti should go up 3 times in 4 years as per current trends. ------------- '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 |
Posted By: nikhil090
Date Posted: 07/Nov/2006 at 7:54pm
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Dear Basantji, thanks for your views. I actually hold some Reliance communications. reading all the discussions, I have started converting part of that into Bharti. I hope that it will pay off better than Rel Com. |
Posted By: basant
Date Posted: 07/Nov/2006 at 8:04pm
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It should!I prefer Bharti really. ------------- '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 |
Posted By: vip1
Date Posted: 07/Nov/2006 at 9:18am
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Basant
I also believe that Bharti is better , but I feel in the Long Run(Marathon ) The younger Ambani can pull a rabbit out of the Hat .
RCOM has 3 mjor subsidaries and there might be further value unlocking there.
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Posted By: PrashantS
Date Posted: 22/Nov/2006 at 7:24pm
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Indian telecom stocks like Bharti, Reliance Communication, etc are
enjoying valuations which appear stratospheric going by the
conventional discounted cash flow valuations. In this article I attempt
to highlight the current irrational valuations. http://photos1.blogger.com/x/blogger2/2735/753911761785752/1600/447418/telecom.jpg">  (Note: All above figures are in Rs. crore, except as indicated) Conclusion: The current telecom penetration is around 17.5% (including fixed telephone subscribers). Thus, the implied growth in subscribers appears very high. The current valuations of mobile telecom companies imply steady revenues from 73 crore subscribers at an ARPU of Rs.450 per month per subscriber. While this analysis is very rough and employs lot of assumptions, it does point to an overall high valuations in the sector |
Posted By: Bobby
Date Posted: 27/Nov/2006 at 9:11am
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Basant Ji,
What is your take on of strategic partnership of bharti enterprise with Wal Mart? |
Posted By: basant
Date Posted: 27/Nov/2006 at 10:28am
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This is not through the listed entity Mittal has tucked it under his privately owed unlisted holding company so nothing for the listed company shareholders.Otherwise also it is too early to comment on the partnership except that it is a land mark deal etc etc.....
Setting up new formats at such speed is not going to be a cakewalk.Wal Mart has already suffered losses in Korea, China and Germany so that should make them pay closer attention to store formats and design and kind of goods they sell. But India in Delhi is very different from India in Chennai. FOr example in Delhi the reacks need to stack up shirts of larger sizes whereas in Chennai the size need to be smaller also females prefer to wear sleeveless in delhi then in Chennai. These can come through experience only. ------------- '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 |
Posted By: kulman
Date Posted: 27/Nov/2006 at 11:12am
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FOr example in Delhi the reacks need to stack up shirts of larger sizes whereas in Chennai the sized need to be smaller also females prefer to wear sleeveless in delhi then in Chennai. these can come through experience only.
----------------------------------------
Basant jee, where have you gathered all this experience?
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 27/Nov/2006 at 11:22am
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By putting 40% of my portfolio in one stock and seeing it move 52 times without selling it. - basically closely tracking Pantaloon and the Indian retail story. ------------- '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 |
Posted By: kulman
Date Posted: 27/Nov/2006 at 11:26am
Thanks for clarifying....Basantjee....but my question was pointed towards the experience of sleeveless & all that....
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: BubbleVision
Date Posted: 27/Nov/2006 at 11:30am
You have to come to SaltLake (Kolkata) for that Kulman... ------------- 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! |
Posted By: basant
Date Posted: 27/Nov/2006 at 11:30am
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No comments at public places ------------- '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 |
Posted By: kulman
Date Posted: 27/Nov/2006 at 11:36am
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Ohhhh....I wish I could come to Kolkata...but Gareeb Rath doesn't have direct connection....and besides I'm afraid of travelling by budget airlines as JP Morgan has too low a target.......50 for Air Deccan, while the guy from First Couple says 1000....!!!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: BubbleVision
Date Posted: 27/Nov/2006 at 11:40am
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Who said 4 Digits for Deccan? Shankar?
Time to look at Emirates now... ------------- 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! |
Posted By: basant
Date Posted: 27/Nov/2006 at 11:42am
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JP Morgan has too low a target.......50 for Air Deccan
___________________________________________________
As long as long as the target is above ground you need not worry!!! ------------- '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 |
Posted By: tigershark
Date Posted: 11/Dec/2006 at 8:59am
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has anybody noticed the telecom numbers realeased for the month of oct i feel they are great and indicates there is a long way to go before the industry matures bharti has added 1.56million for the month we have overtaken china as far as monthly increases go.bharti an 85% yoy increase.most of the growth is coming from Band C circles, talk time has increased but arpu has decreased slightly the least for bharti.there has also been more than a 100% increase in sms revenue.3g could be launched anytime appears dot is only dragging its feet so things do look good especially when the stock prices have changed.500million users by 2010 will bcom a reality. ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: basant
Date Posted: 11/Dec/2006 at 9:05am
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Bharti expects to increase its user base 5 times in 3 - 4 years. Incremental revenues flow largely to the bottomline. ------------- '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 |
Posted By: tigershark
Date Posted: 14/Dec/2006 at 1:49pm
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why doesnt mittal want to sell any further stake in bharti to
vodafone when voda is eager to buy is he telling them to buy in the
open mkt or does he not want to dilute further
------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: basant
Date Posted: 14/Dec/2006 at 2:07pm
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Because Mittal Bhai knows this stock could fetch him three times more in about 4 years. ------------- '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 |
Posted By: vip1
Date Posted: 14/Dec/2006 at 3:11pm
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Agree.Mittal sold before this @ Rs230(around that ) and his notional loss is in Tens of thousands of crores . I think he will sell at 1500 /share now |
Posted By: basant
Date Posted: 14/Dec/2006 at 3:21pm
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Personally I was surprised when I saw him sell at Rs 300 odd but then Mittal thinks he would amke a multibagger in retail and then offer the shares for listing once the fruit is ready!!! ------------- '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 |
Posted By: nikhil090
Date Posted: 27/Dec/2006 at 9:44am
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Hi,
There have been discussions going on both in Bharti and Relcome to demerge their tower business. Reliance COm has already called for a demerger meeting on 27th Jan while Bharti has also made its intent clear as reported in the ET today. Bharti is the largest player with highest number of towers.It may be demerged in 4 companies and then strategic stake can be offered to other players. this will free up cash and remove the personnel, capital eqpt etc from the balance sheet of bharti..May be valued at $4 billion as per the article. against bharti mcap of 25 billion USD, this is around 4 billion only..WOuld this make sense and create some positive impact for shareholders? |
Posted By: basant
Date Posted: 27/Dec/2006 at 9:56am
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More the revenue potential of the demerged entityy greater the probability of wealth creation. In this case it would but not to that extent as Tv18 or Reliance.I would still back Bharti for a 3 bagger in the next 3-4 years. ------------- '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 |
Posted By: basant
Date Posted: 08/Jan/2007 at 7:17am
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In Fy 08 Bharti should do an EPS of close to Rs 30 per share. It has always traded at 30 times and above the current year earnings. I think that it makes a very good case for investment because the stock could go upto Rs 900 over the next 12 months implying a return of about 50% for the investors. ALso this is a large cap with very good visibility. FUrthermore there could be a trigger because of the Hutch deal but I am not baing any of the arguments on that basis. ------------- '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 |
Posted By: kulman
Date Posted: 08/Jan/2007 at 7:37am
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As per Sharekhan's latest fundamental analysis report, Bharti Airtel FY'08 Estimated EPS is Rs.29, and for FY'09 is Rs.36.8
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 08/Jan/2007 at 7:46am
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Have they given any target price? ALso Fy 09 EPS should be closer to Rs 40. SSKI assumes a 45% growth in Fy 08 and only 22% in Fy09 if growth drops like that the PE's will contract. I think that the Fy08 estimate is a bit conservative while FY09 would be revisited again. ------------- '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 |
Posted By: kulman
Date Posted: 08/Jan/2007 at 7:50am
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Quote "We recommend buying BAL with a one-year price target of Rs780 (24x rolling four quarters forward estimated earnings)" Unquote
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: PKB2000
Date Posted: 09/Jan/2007 at 12:21pm
kULMANJI
Let me come to my comfortzone and hope your BAL=Bharti Airtel and not Bajaj Auto Limited! ------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: basant
Date Posted: 09/Jan/2007 at 2:36pm
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This should be Bharti Airtel. ------------- '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 |
Posted By: basant
Date Posted: 22/Jan/2007 at 10:10am
| Bharti Airtel has delivered another stupendous performance. I just do not understand why a diversified portfolio whould not have Bharti Airtel and http://www.theequitydesk.com/forum/forum_posts.asp?TID=277 - |
Posted By: vip1
Date Posted: 22/Jan/2007 at 10:12am
| Bharti Airtel delivers 30% QOQ Net Profit growth.WOW!!!!!!!!!!!!!!!! |
Posted By: nikhil090
Date Posted: 22/Jan/2007 at 10:37am
| They are also planning to move into DTH.. |
Posted By: basant
Date Posted: 22/Jan/2007 at 10:40am
For a Rs 110,000 crore market cap company a Rs 5,000 crore (at max) DTH business will make no difference except that some business channels may like to debate this for a while. ------------- '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 |
Posted By: nikhil090
Date Posted: 22/Jan/2007 at 11:14am
Right. 
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Posted By: deveshkayal
Date Posted: 23/Jan/2007 at 12:41pm
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I think they(RCom and Bharti) r entering a bit late till then major share will be covered by Zee and Tata Sky. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: sanjay3
Date Posted: 23/Jan/2007 at 2:06am
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Bharti Airtel buys out SingTel's stake in cable co
http://www.thehindubusinessline.com/2007/01/24/stories/2007012402370400.htm ------------- |
Posted By: sanjay3
Date Posted: 23/Jan/2007 at 2:29am
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Airtel launches `Temple Offering' service Bangalore: Airtel has launched the `Temple Offering' service, which allows you to make a donation to a temple via SMS. SMS offerings can currebtly be made to four temples: Mantralaya (AP); Siddi Vinayak (Mumbai); Dharmasthala (Karnataka); and Jalaram Temple (Bangalore). It will be soon extended to Tirupati, Shirdi Saibaba, Vaishnodevi and Mahalakshmi temples. An Airtel user, who wishes to send a donation, just needs to type the temple keyword, the amount he/she wishes to donate and SMS "temple code amount" to 64655. As soon as the SMS is sent, it gets updated immediately in the temple records through a software deployed at the temple's premises, which will record the amount donated, time, date and the number from which it has been made. Everything happens in real time and the donation amount goes to the temple. The customer pays Rs 4 per SMS sent. ------------- |
Posted By: basant
Date Posted: 23/Jan/2007 at 8:17am
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So even the Gods would be benefitted by technology.I think Mobile and Tv are set for a huge change in the next 2-3 years. CNN-IBN is preparing itself for a 1 minute news clip to be shown over mobile phones. These clips would catch a person on the move and should cost Rs 1. Imagine the kind of revenues these channels and Mobile companies would make!!! ------------- '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 |
Posted By: deveshkayal
Date Posted: 23/Jan/2007 at 11:20am
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Airtel was bound to come out with stunning results.One billion SMS were sent during New Years Day and i m sure more than a million SMS and Calls were made for entering KBC. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: sanjay3
Date Posted: 24/Jan/2007 at 1:38pm
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Bharti Airtel to hive off tower business 100 per cent subsidiary. The move is aimed at unlocking shareholder value. It also hints at a later possibility of roping in a strategic partner. Currently, the company owns over 35,000 towers, which are expected to hit 40,000 by this financial year. Reliance Communications too had recently announced to hive off its tower business. Reliance has 12,000 towers under its fold and expects a valuation of over $4 billion. Bharti, however, said it has not valued its business. The Bharti board also decided to buy out the 50 per cent equity stake of SingTel in i2i -- a joint venture under-sea submarine cable company that links India to Singapore -- for $110 million. Bharti already has 50 per cent stake in i2i. The company also announced that it will commence direct-to-home services through a wholly owned subsidiary Bharti Telemedia. The new company will compete with a bevy of DTH operators which include Tata Sky, Zee's Dish TV, Doordarshan and the upcoming Sun TV and Reliance Communications platforms which are also expected to kick off this year. http://www.rediff.com/money/2007/jan/24bharti.htm ------------- |
Posted By: basant
Date Posted: 24/Jan/2007 at 3:36pm
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That will be in a 100% subsidiary but a spin off and listing could have ensured better wealth creation (not that it is not happening now).
P.S: It is better if we can copy paste the article while giving the source.makes for easier reading. ------------- '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 |
Posted By: deveshkayal
Date Posted: 24/Jan/2007 at 10:49pm
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Yes thats why i always paste entire article unless it is very long.I dont want anyone to visit site other than this. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: kulman
Date Posted: 24/Jan/2007 at 10:56pm
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I dont want anyone to visit site other than this.
--------------------------------------------
Basant jee, here is a very very loyal TEDdy....... (in anticipation of special ESOPS?)
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: deveshkayal
Date Posted: 24/Jan/2007 at 11:08pm
Kulmanji, i dont know anything abt options.I m already getting ESOPS in the form of TV 18. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: kulman
Date Posted: 24/Jan/2007 at 11:18pm
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That's a good one Devesh jee !!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: sanjay3
Date Posted: 11/Feb/2007 at 1:24am
The hands and feet of these highly-efficient deliverers of the city's lunch tiffins, will now also supply households they visit, Airtel's pre-paid cards, new connections and bundled handsets. "This is a one-of-a-kind initiative tapped by Airtel for deeper penetration in the market," Manu Talwar, CEO, Airtel, said. "Airtel has partnered with Nutan Mumbai Tiffin Box Suppliers to sell its prepaid cards, new connections and bundled handsets", he said. "The company is all set to leverage the large distribution network of dabbawalas to reach out to a larger consumer base," he said. So why dabbawalas? "They are known for their honest, down-to-earth and gentlemanly nature," said Talwar.The dabbawalas today have a reach of about 2 lakh household and 70 Mumbai suburban train stations. ------------- |
Posted By: nikhil090
Date Posted: 12/Feb/2007 at 10:44am
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COMPETITION AND COOPERATION IS THE NAME OF THE GAME Sourced from Business Line Barcelona Feb. 12 The Chairman and Managing Director of Bharti Airtel, Mr Sunil Bharti Mittal, on Monday said that the company would up the ante knowing that Vodafone would come hard to grab more market share. Mr Mittal also said that Vodafone's partial exit from Bharti would allow Airtel to look at expanding outside India as it would not run the risk of having to compete with one of its own equity holder — Vodafone. Restraint removed "Now that Vodafone is out, we can compete with it in other markets. I think Bharti is ready to move outside India," Mr Mittal said. Bharti Enterprises has bought back 5.6 per cent stake in Bharti Airtel from the UK-based Vodafone for $1.6 billion to be paid over 18 months. The move comes after Vodafone emerged as the highest bidder for acquiring the 67 per cent stake held by the Hong Kong-based Hutchison Telecom International Ltd in Indian cellular services provider Hutchison Essar. Singtel interest Speaking on the sidelines of the 3GSM World Congress, Mr Mittal said that Singtel has expressed interest in increasing its stake in Bharti Airtel, but no decision has been taken on whether he would sell the stake acquired from Vodafone to the Singapore-based company. When asked to comment on the Vodafone bid, Mr Mittal said that if he were representing Vodafone, then he would have paid a few billion dollars more to acquire Hutch. He said that the bid value was not too high for Vodafone because Hutch opens a huge door for the UK-based operator to get a foothold into the emerging market. Vodafone had acquired the 10 per cent stake for $1.5 billion. Vodafone is now left with a little over 4 per cent stake in Bharti. Preferred partner While Mr Mittal has sounded the battle cry with Vodafone, on the other hand, Bharti has signed an infrastructure sharing agreement with Vodafone, which would allow both operators to share nearly 70,000 mobile towers across the country. Bharti would also be Vodafone's preferred long distance telephony service provider. Mr Mittal said that the agreement would lead to huge savings for both companies. Bharti would make Vodafone its preferred roaming partner, as per the agreement. |
Posted By: tigershark
Date Posted: 13/Feb/2007 at 3:20pm
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indias mobile users is set to double by 2010 to 265 million at the same time arpus are expected to go down now with vodafone also joining in the party how does one see this with regards to the bottomline and eps growth of bharthi airtel bcos thats what we are really interested in ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: basant
Date Posted: 13/Feb/2007 at 3:59pm
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I think companies like Bharti with over 25 million users should not be affected by such deals - though there could be some near term price cutting but since Arun Sarin and Mittal have agreed on sharing of infrastructure the losses would be offset with the gains. I would hold on to this company. It is a must hold for a diversified portfolio. ------------- '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 |
Posted By: tigershark
Date Posted: 13/Feb/2007 at 8:05pm
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now the mkt knows that vodafone is coming but the bottom has not been pulled out of bharthi which means the mkt is ready to give bharti alot of respect ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: Mohan
Date Posted: 13/Feb/2007 at 10:56pm
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Basantji, How Competetive will Vodafone be in the market considering it has paid
Rs 30,000 + per subscriber ?
It will surely want to raise the ARPU and increase its subscriber base.
------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: basant
Date Posted: 13/Feb/2007 at 9:11am
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Finally they will all make money. Vodafone would be happy at anything more then 10% RoE because that is the kind of growth it cannot dream of in its other areas. ALso India's mobile revolution should carry for at least 3-4 years more because each year we are also adding to the list of mobile aspirants!
But at these prices I doubt if Vodafone would make serious money for the next 12 months. They wanted Hutch because they missed out on AT&T but over the longer term they should make money. ------------- '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 |
Posted By: Mohan
Date Posted: 14/Feb/2007 at 9:08pm
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I agree. Seems like they have a lower ROI expectation than us
They are doing much better than they forecasted on other Investments they made ex. turkey.
They have a substantial stake of 50% ( correct me if I'm wrong on the % )
in Verizon Wireless, the # 2 wireless operator in the US. (Its # 1 in terms of profitability) ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: ramki830
Date Posted: 14/Feb/2007 at 9:43pm
ARPU and APPU (Average Profit Per User) Are not linearly related.
Why? Let us see this qualitatively. Say Bharti took 4 years to get from 3 million to 33 million users. It takes another 4 years to go from 33 to 63 million users.
Assuming same ARPUs, profit is not going to be same bcos - the first phase would have seen heavy capex via expansion to newer areas, building a retailing and distribution network etc , leading to heavy initial costs and depreciation.
The second phase may see much lesser cost escalation because , the economy of scales should start kicking in and that should rein in costs.
Also , maybe first phase, Bharti was building a brand (Airtel) and would have incurred heavy ad costs in earlier days. But now, Airtel is a big brand and Airtel itself is a big medium and so brand building expenses would be relatively lesser.
This is my 2 cent take. So if ARPUs are falling, it may not mean that APPUs should fall, rather it may even increase due to economy of scale kicking in.
Probably that may explain why Vodafone preferred to buy an established player - Hutch Essar, instead of building a new network and brand from scratch.
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Posted By: deveshkayal
Date Posted: 25/Feb/2007 at 12:04pm
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Credit Suisse has put an UNDERPERFORM rating on Bharti. Ha Ha Ha!!! If Bharti comes down Sensex will too... ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: PrashantS
Date Posted: 25/Feb/2007 at 12:55pm
| seriously these reports do they really make any sense? they are out in the open always.............. |
Posted By: vip1
Date Posted: 25/Feb/2007 at 9:02am
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Credit Suisse has put an UNDERPERFORM rating on Bharti. Ha Ha Ha!!!
The next thing SEBI should do is to start giving ratings to these rating agencies , so that these agencies are more accountable . Bharti NP is growing 30% QOQ which this Swisss agency knows is impossible in an European Company .
. Again a case of " Neighbours(Credit Suisse) Envy,Owners (Bharti shareholders) pride
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Posted By: tigershark
Date Posted: 26/Feb/2007 at 3:27pm
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dear basant have yu had a look at the credit suisse report what do yu feel can bharthi maintain growth rate in the future if they cannot then the stock shall appear expensive and may not justify the price. ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: basant
Date Posted: 26/Feb/2007 at 3:53pm
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No I have not looked at that report but whatrever be it Bharti's terminal value is yet too far rather then close.The total subscriber base could triple over the next 4 years and profits would go up more then that.Concerns like Vodafone etc will be there but there is little downside risk in the long run.At most the stock could move sideways. I think this is also insulated from the interest rate scare. ------------- '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 |
Posted By: getmanoj
Date Posted: 06/Mar/2007 at 2:44pm
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Basant ji, Do you think that after the sensex has gone down a bit, it's the right time and price(around 675-700) to accumulate Bharti? Manoj |
Posted By: basant
Date Posted: 06/Mar/2007 at 3:49pm
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Yes, we had that opportunity. Maybe we will have it again but it takes some courage to buy amidst all gloom.I think Bharti has a terminal value of more then Rs 1500 whether we reach that in one year or three is debatable though. ------------- '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 |
Posted By: BubbleVision
Date Posted: 06/Mar/2007 at 3:59pm
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it takes some courage to buy amidst all gloom
----------
Absolutely. But I guess that courage is the most scarce commodity in the markets... ------------- 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! |
Posted By: omshivaya
Date Posted: 06/Mar/2007 at 4:28pm
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That is why this commodity is so costly as it is really scarce and the demand for it is high.
However, the cost is calculated NOT in monetary terms: it's unit of measure is time+experience=age.
Age=Number of years since the person has been in the market continously. Once he/she is in the market for 10-20 years continously without a break, no matter what or how stubborn or mungeri-type he is, he would have aged and thus would have got experience on his side...! ------------- 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 |
Posted By: vip1
Date Posted: 11/Mar/2007 at 11:57am
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MUMBAI (Dow Jones)--India's Bharti Airtel Ltd. (532454.BY), the country's leading telecommunication company by subscriber base, is planning to invest about $8 billion by 2010 to garner a 25% market share, according to a Business Standard report, quoting Chairman Sunil Mittal. The company will post revenue of about INR180 billion for the current fiscal year ending March 31 and expects to double that by 2010, Mittal said, according to the report. Newspaper Web Site: http://www.business-standard.com Basant, Bharti plans to have 120 million customers by 2010 almost 3.5 times now .How much will the bottomline expand ie: No of times? |
Posted By: basant
Date Posted: 11/Mar/2007 at 11:58am
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Sunil Mittal expects to double sales at Bharti in 3 years. Profits should grow at more then this maybe 3 times in 3 years and the stock price should follow that growth!
There could be aslight reduction in PE ratio because in 2010 the company could enter a low growth phase! ------------- '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 |
Posted By: tigershark
Date Posted: 12/Mar/2007 at 2:23pm
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SOME TIME YET FOR DIVIDENDS-sunil mittal says that investments being made in the co continue to outpace earnings.the fact is that the most succseful indian telco is not yet cash positive.asked whether investors still have confidence in bharti and when he expects bharthi to be cash flow positive he saidyes they (investors) do understand the telco business as far as turning cash flow positive i hope we still grow at a rapid fire rate and if we continue to grow at this rate we will still carry on like this. ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: basant
Date Posted: 12/Mar/2007 at 2:54pm
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most succseful indian telco is not yet cash positive
_________________________________________________________
You put an excellent quote. Most of the smart analysts I meet keep talking about cash flow day in and day out. Now had you looked at cash flow positives as a sine quo non for investment you would have missed Pantaloon retail and Bharti Airtel the two important piller stones of this bull run which have gone up some 50 and 35 times respectively inspite of being cash flow negative., ------------- '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 |
Posted By: BubbleVision
Date Posted: 12/Mar/2007 at 3:19pm
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The trick of Fundamental Analysis ... Cash Flow analysis.. BasantJi... you have fully justified the quote ...
"If you could tell the future from a Balance Sheet then accountants and mathematicians would be the richest people in the world" ------------- 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! |
Posted By: tigershark
Date Posted: 12/Mar/2007 at 3:27pm
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basant yu say previously that by 2010 there could be a pe downgrade small as it may be so why dont the mkts start discounting that in 2007 and put acap on the stock of bharthi.may be by the end of 2008 every bharthi investor will decide to sell.i do own bharthi so pl could yu comment ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: basant
Date Posted: 12/Mar/2007 at 4:01pm
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You know that process is just not possible to decipher. Right now the markets are discounting a 40% growth company. Post 2010 they would discount a 15%-20% grower with a lot of over ownership problems.
So obviously if profits go up 3 times the stock price should increase at a bit less then that. I think the terminal value for a high growth investor in Bharti should be somewhere close to Rs 1500 - Rs 2000. That is a very wide range but for the time being you are sitting on the best horse (bull) and it would make all the sense to continue the way you are.
Why I mentioned that PE contraction thing is because it seems so obvious to understand how the markets would behave in 2010. But in the large cap space this is certainly the best company to remain invested as tremendous operating synergies are expected to accrue as the company steps up its expansion.
What is your entry price in Bharti? Not that it matters but I ask this out of curiousity?
------------- '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 |
Posted By: basant
Date Posted: 12/Mar/2007 at 4:25pm
Thank you. All the stocks that I own have been taken without looking at the annual report. Obviously once a position has been taken I do look at reports but Pantaloon, Trent and Tv18 all three significantly weighted stocks in which I have made 95% of my profits have been taken without looking at how that big fat book looks like.
And I call myslef a fundamental analyst. Sounds starnge. Maybe I should rephrase that term and self proclaim myself as a Business Analyst  ------------- '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 |
Posted By: vip1
Date Posted: 12/Mar/2007 at 4:27pm
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By 2010. new triggers like India one of the bigeest Broadband market .
By 2010 one will be watching Live TV, Hand held PC , Banking , Home Security, other value added services will come into play.Like Infy in 1997 people thought INFY story will be over by year 2000(Y2k),
Roti , Kapda , Makaan aur Mobile (necessity)
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Posted By: tigershark
Date Posted: 12/Mar/2007 at 7:41pm
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basant my entry level is 600.tigershark ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: omshivaya
Date Posted: 12/Mar/2007 at 8:08pm
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In my viewpoint, the best way to get cable into the homes, is the IPTV and broadband route. ------------- 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 |
Posted By: vip1
Date Posted: 12/Mar/2007 at 9:11pm
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I have a Bharti IPTV connection(3 in 1 , Phone+Broadband +IPTV) for the last 1 year which is a pilot project , before the Launch. The picture quality is awesome but there are some problems which they are sorting out.
Othewise Good Riddance of the UNfriedly Cablewallah .
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Posted By: India_Bull
Date Posted: 12/Mar/2007 at 1:02am
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I am Back
Basantji, I really appreciate your views and I am really happy to know that I am following the same principle that a market wizard (Basantji !!) is following..
Just to check back, you will not find any post by me talking abt PE and EPS...( I have many multibaggers to my credit by grace of God !! (with small investment and capacity -).
I have only looked at the business, scalability and vision of mgmt to make it big..(and many times I failed as mgmt failed to do what I envisaged they wd be doing)
Just to share few lessons learnt so far..
1.Never invest in a stock controlled/which will get affected by GOVT policies/decisions.
Recent example- I am still holding Ultratech which I bought at 600 (How Govt has screwed up Sugar and Cement !!)--Is there any hope for cement?
2.If a stock is down by 50%-no use in averaging down as it will require take 100% upmove of it to make breakeven..
Whatever goes up may not always go up .
but whatever goes down will go further down most of the times
 ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: basant
Date Posted: 12/Mar/2007 at 1:09am
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Hi, Where were you holidaying at the Apls? YOur logic makes great sense some companies with sound Balance sheet and well documented annual reports keep tottering because these papers indicate only the historical past whereas a view into the business makes us look into the future! ------------- '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 |