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Friday, February 19, 2010

some clarification for my friends

I seem to be getting a lot of mails/ comments regarding the fact that the stocks that I am putting on the blog being already been adviced by some other web portal.

However let me clarify that its only coincidental. I am not a subscriber to any paid website. My analysis is purely my perspective based on what I happen to see on BSE announcements or read in the newspapers. And this is not my full time job. I think any of you or rather many of you can have the same ideas just by having a look at the announcements which are there in the public domain. My posts will infact coincide with date of announcements.
Also with so many people now being focussed on the equity market, it should not be impossible for more than a couple of people to have the same idea. And just like any other investor I have the right to be wrong.

For example in case of Sumeet industries if somebody had a look at their Sept 2009 results announcements it was more than apparent what it was doing and what was its financials going to look like in future. I dont think it needed any expert analysis. The opportunity was crying out to be taken.
One of my friends recently sent me a mail saying that I had copied my last post on Sakthi sugar from one of the websites. To this I only want all of you to go thru my previous posts on the blog. I think I like Sakthi sugar for quite a long time now. And while I still think its a great buy the website mentioned thinks that there is some hanky panky going around in the company. Also the website is writing from the perspective of the global banks who had invested whilst my post is largely on how the FCCB conversion has benefitted Sakthi sugar.
Anyways to cut the long story short, investing in any stock is a call to be taken by an individual as the risks / rewards will both accrue to him. So I leave it to the readers to decide upon which website/ blog they wish to visit / not visti and what stocks they want to invest in or not. But yes please do proper due diligence before you decide to invest.

For the record I am a Chartered Accountant by profession and working in one of India's largest corporates for the past 5 odd years.

Maybe the advice of paid websites are more relevant in today's times. Still your comments are always welcome.
Happy investing.

4 comments:

  1. I too believe in sugar story, looking at global and Indian demand n supply scenario, but somehow, market is a strange animal that thinks n acts on sentiiment not fundamentals.

    Moreover, most sugar companies are family-owned businesses and are susceptible to skimming of profits by the owners for self gains rather than rewarding the shareholders, who can only hope to find a more stupid baqra than they are for the gains; sugar sector has been a poor "rewarder" to its shareholders.

    The icing of the cake is the political interference in this industry and ad-hocism that makes this sector "untouchable" by many.

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  2. One more thing: the FCB comversion at discount may mean profit for Sakthi but what it shows are two things:

    1. Sakthi's lenders have been fooled and the int'l lending community never forgets that-- that will be shown in future.

    2. How well they reward their shareholders for this "unexpected gain" will show the professionalism of the Sakthi management. Mere "cleaning of books" means nothing for the shareholders.

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  3. My experience in the corporate world tells me that the lending community is never interested in long term equity funding. They want returns as quickly as possible. And if they think they have made a mistake they are quick to book losses. Just think of it the F&O market always has much more volume than the cash market. My hunch is these same "investors" would come in after March end.....the time when sugar prices are likely to firm up again.

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  4. While we are discussing about Sakthi, please don't miss to look into Simbhaoli Sugar. Looks like its more undervalued than Sakthi too. Let me know what you think. Thanks.

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