4 03, 2012

Readings: DLF Overpriced, Greek Default, RE Losses

By |March 4th, 2012|Categories: Readings|3 Comments

Subramoney on Losses in Real Estate Deals. (But success stories are equally incredulous. I have seen money doubled between a pre-construction purchase, waiting for three years until it’s evident builder isn’t anywhere close to finishing, and then selling off the flat; and the flat is still a LONGGGG way from completion)

Monika Halan on why banks should not be allowed to be insurance agents. (or must be liable for their mis-selling)

A Veritas Report (I don’t have a copy) says DLF is overpriced and it should be worth Rs. 100. They claim “aggressive accounting” overstated profits. They used to […]

16 01, 2012

Back From Holiday, With Notes…

By |January 16th, 2012|Categories: Readings|2 Comments

Bangalore was fantastically refreshing, with mentionably better weather. Much  has happened in the last few days, so I’ll use this post to link-comment.

Europe was downgraded (WSJ) by S&P – France is no longer AAA, and Italy is BBB-, just above junk. Portugal is junk. Step back and think about this a bit: The US is no longer AAA, and their stock market, their bonds and their currency have only gone up. Nobody cares about what rating agencies think. The point they should have been downgraded was two years ago. Right now, the rating fellows are just saying […]

19 12, 2011

Readings: Bank Risk, Carbon Credits, Kingfisher

By |December 19th, 2011|Categories: Readings|1 Comment

Nine Lakh Cr. stuck in risky sectors, says Firstpost. Even a 10% loss on that will hugely hurt bank capital, but the figure is exaggerated.

There is an enormous difference between a market opinion and a market position”, says Peter Brandt. A great post by an experienced trader. Lose your opinion before you lose your money; it’s silly to tell traders how they were wrong a month back, perhaps.

EU Carbon Credits have fallen off a cliff (From barchart.com)


13 12, 2011

We Need More Equity Investors: McKinsey

By |December 13th, 2011|Categories: Readings|3 Comments

The coming shortage of equity investors by the Economist, quoting a report by McKinsey. 80% of the world’s financial assets of $157 trillion are held in developed economies, where people are ageing. Pension funds are maturing and they withdraw from equities. Emerging market investors hold most of their assets in debt, very little in equity. The crash in recent years – 10 years of nothingness in the US, 4 years in Asia, 20 years in Japan etc. – have prompted an exodus from equity markets. Finally, financial investors like banks will have to sell equities to create capital […]

9 12, 2011

Random Reads: The Big Fight, Social Media, UID Kaput?

By |December 9th, 2011|Categories: Readings|2 Comments

The Big Fight between Ma-Mu and John K about the demise of Taggle, the kamikaze (or not) act of Air Deccan, and how we should not do things. I think it’s good that we do proper post-mortems of companies without looking at the ego lifting parts of the pieces involved (“I said Air Deccan wouldn’t work”, “Not till after it was dead”, etc.)

The story is of a much-chased space (“deals”) spoilt by the small fact that no one thinks getting a haircut for 80% discount at Rs. 200, implying a regular price of Rs. 1000, is […]

7 09, 2011

Readings: Farms, Prepayment Penalties, VC Movies

By |September 7th, 2011|Categories: Readings|Comments Off on Readings: Farms, Prepayment Penalties, VC Movies

30 08, 2011

Readings: Edible Oils, Real Indian Story, Italian Mints

By |August 30th, 2011|Categories: Readings|1 Comment

A few interesting things to read over the 2-day trading holiday:

Italian town printing its own currency to escape austerity (Reuters)

Nidhi Nath Srinivas on the edible oil industry (ET).

Read @moneybloke about KS Oils, which has fallen a magnificent 80% in the last year, from highs of Rs. 80 down to Rs. 10 today. (Disclosure: I went long at 32. I ignored my stop losses on the way down and exited at an average price of 21 or so. But it  was a small position, so I console myself.)


8 02, 2011

Readings: Warming, Bonds, Book Writing

By |February 8th, 2011|Categories: Readings|8 Comments

Krugman blames global warming for "popular rage" from lack of food. Sadly, this is really shallow. We’ve had food crises for ages, and we only had a relatively nice period in the last 10 or so years. That we’re warming is a fact, but it’s not that humans are influencing it, regardless of the so-called consensus. Rage against food prices is usually the straw that breaks a camel’s back – people are usually pissed off about other things, like corruption (and Egypt *is* a prime example).Blaming a "vast leftist conspiracy" is just a strawman.

12 […]

30 12, 2010

Readings: Guarantees, Neta-Babu, Term Plans

By |December 30th, 2010|Categories: Readings|5 Comments

Readings after a hiatus:

Dhirendra Kumar takes a jab at the labour ministry for asking for a “guarantee” of equity returns. The labour min seemingly asks for a guarantee and a minimum return – yeah, what’s different between that and buying government bonds, one would think. The EPFO looks screwed, with the corpus of 5 trillion (lakh cr.) that needs to pay out either 8.5% or 9.5%; if they fall short, they will need the government to put in money.

About 100 years ago: The New York Stock Exchange decreed that commissions of 1/8% is […]

12 12, 2010

Readings: Bank Elite, MFI, MoneyLife, 99ers

By |December 12th, 2010|Categories: Readings, SKSMICRO|2 Comments

A Secretive Banking Elite Rules Trading in Derivatives by NYT. How the big bankers won’t let in the small guys into the market they control and keep opaque.

At Forbes, In India, Size Does Matter. On how the MFI industry has screwed itself by going national, rather than local. Yeah, that’s true of countries too – when they’ve borrowed from foreigners, it’s that much more palatable to say “let’s default”. And bankers, who only originated credit and packaged the loans they gave to […]

23 11, 2010

Readings: Japan, Expert Advise, Sec Theater

By |November 23rd, 2010|Categories: Readings|Comments Off on Readings: Japan, Expert Advise, Sec Theater

Japan, after the bubble. An old piece but amazingly informative about how real estate screwed that country. In the same context, WSJ on the London Real Estate Bubble.

Moneylife finds that expert advise is often wrong, with a recent example. Forecasting is such a joke.

Chastity, Poverty and Obedience in store for Ireland.

Oh, and they’re blaming the Sensex 1.3% fall on Korea’s tensions. Forget that – the stock went up […]

19 10, 2010

Readings: China Raises Rates, Coal India, Bond Yields

By |October 19th, 2010|Categories: Readings|3 Comments

China takes rates up 25 basis points. Inflation, it seems. Lending rates are now 5.56%.

Coal India’s 15,000 crore IPO is 1.7 times oversubscribed.

Coal India IPO statistics

For the record: I looked at the IPO document, realized I don’t understand a darn thing about coal, and know just two things:

6 10, 2010

Readings: Dubai, Making Money, A Big Listing

By |October 6th, 2010|Categories: Readings|1 Comment

NYT: Canceling Dubai Property Deals Is Nearly Impossible Watch out, there’s an Emaar IPO coming up in India soon.

Ritholtz: Do You Wanna Be Right, or Do You Wanna Make Money?

If you are constantly fighting the tape, if you missed the run up and are now whining about it, let me steer you to esteemed technician Ned Davis of NDR. In his 1991 book Being Right or Making Money, Davis tells the story of […]

5 10, 2010

Links: SKS CEO, SEBI Outrage, Cover Stories

By |October 5th, 2010|Categories: Readings|2 Comments

Moneylife is pissed with SEBI. I’m not in favour of their arguments; though some of them are forced through for no reason (such as KYC or KYD being made compulsory). Removal of entry load is awesome, as was the trail commission removal at the request of the investor. The point is: If we don’t do these things suddenly, people will not wake up and decide to pay the advisor separately. Imagine if doctors were getting paid by the medicine companies, and offered their services to you for free – would […]