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Bible Quotes--

“Here’s a simple, rule-of-thumb guide for behavior: Ask yourself what you want people to do for you, then grab the initiative and do it for them. Add up God’s Law and Prophets and this is what you get.” –Jesus, Matthew 7:12

18 Jul 2015

THANKS GIVING MESSAGE

Hi Friends, I am completing one month after opening this Blog site,. I have posted 41 Verity posts in this blog till date. More than 5000 brothers and sisters from all over the Globe visited my blog. It is great success. I expect the same co operation in future also. I shall post very informative articles which you will be benefited. I am doing this free service as charity. In this occasion I am thankful to my Lord Jesus Christ for His abundant grace to help me complete the Blog with the ability to write the posts daily. Almighty has given me best viewers like you Sir. Thanks, Thanks, Thanks.  

Christy boy J

VARIANT INVESTORS AND VARIANT APPROACHES

Variant investors and variant approaches- Though all equity investors are driven by the same ambition of making as much money as possible, they differ in their time perspectives. Just look at the following alternatives.


(a)    Mr. Prasad invested in 100 shares of Acoy at Rs. 18 in 1981. After the bonus issue of 1:2 (1988) he had 150 shares of Acoy. Priced at Rs.170/- in December 1991. He sold the shares. Thus an investment of Rs. 1800 grew to 25,500 in 10 years. An appreciation of 1300% in decade the scripture assures us. He that shall endure into the end, the same shall be saved.


(b)   Mr. Krishan invested in 100 Bcoy share in July 1990 at Rs. 60/- per share and sold them in December 1991 at Rs. 250/- per share. Krishnan made profit of Rs 19000. A gain of 317% in 15 months. He believes little boats should keep near the shore.


(c)    Mr. Nair bought 100 shares of Coy at Rs. 165 by paying a margin of Rs. 25% on 6 December 1991. Within fifteen days he sold them at Rs. 185. Mr. Nair made a profit of Rs, 2,000 on an investment of Rs. 4125. An appreciation of 48% for 15 days. Nair is a wise man who will make more opportunities than he fiends.


Here Mr Prasad is a cautious and long term investor. He invested in established growth stocks and follows a buy and hold strategy for a long time he endures


Mr. Krishan is an aggressive investor with a medium term perspective. He buys emerging blue chips at an early point and sells them after a few months. His little Boat is always kept near the shore.


Mr. Nair is a speculator in search of quick money opportunities with a very short term perspective. He buys on margin and quits fast. Thus the three persons are the examples of long term investor, short term investor and speculators


Good luck,                                                        See you later 

17 Jul 2015

DOUBT CLEARED

Hi friends, (1) SIP- Systematic Investment Plan. SIP is a method of investing a fixed sum on a regular basis in a mutual fund scheme. It is more or less like a recurring deposit. In SIP one buys units on a given date each month or quarter and can implement a savings plan for oneself.


(2) SWP- Systematic withdrawal plan.SWP is a plan that provides for future needs by withdrawing amounts systematically from the existing portfolio either to reinvest in another portfolio or to meet expenses. Savings no longer remain idle. Money can earn better returns if reinvested, instead of remaining idle in a savings account for meeting regular payments.


(3) STP- Systematic transfer  plan. this plan allows the investor to make a provision to periodically and systematically transfer a certain amount from one scheme to another


(4) A liquid investment – is one which can be easily sold. An investment that cannot be readily sold and converted into cash is for all practical purposes a dead investment. Therefore, every time you make an investment, you must keep in mind that one day you may have to sell it. If you feel that you are going to experience difficulty in selling it at a reasonable price, and within a reasonable time, don’t make the investment. Keeping your investments liquid is one of the basic principles of sound investment. Liquid investments offer many advantages. You can readily en-cash them during emergencies for meeting unforeseen expenditure.. They enable you to revoke your decisions, rectify your mistake, cut your losses and switch over rapidly from one investment to another. In short, they give you the necessary flexibility for coping with rapidly changing financial and economic conditions. Liquidity will thus greatly enhance the safety factor in your investments.


(5) Evaluation- A portfolio has to be managed efficiently. Efficient management calls for evaluation of the portfolio. This process consists of portfolio appraisal and revision


 thanking you                                            see you later.

16 Jul 2015

A POTENTIAL SCRIP IN THROWAWAY PRICE

Virinchi Technologies Ltd. Listed in BSE only (code-532372) quoting Rs.21.80 is a small cap IT Company. It is currently trading at around 40% of its book value and PE 10 but has also reported strong results in the current year ended 31.3.2015. Total sales 79.09 Cr and net profit 3.61 Cr. Its net debt equity ratio is 0.25.


VTL is a global leader in providing IT solutions to the retail micro lending industry mainly in the US with its flagship product Q Fund. It has another product called Q Pawn which is a similar IT solution for the needs of the pawn- bro king industry. The company claims that Q Pawn is a market leader in North America and the UK while Q Fund is a market leader in North America where 12 out of the top 20 players in the short term loan industry use their software.


The total market size of retail micro lending in the US at any given point of time is about USD 15 billion with around 20,000 small and mid level players contributing to it. This is a vast opportunity and the company plans to aggressively tap this pool of potential users. The company aggressively plans to expand its service business in the future.


Financials:- equity capital 17.99 Cr. Market price of share Rs.21.80, Face value of share Rs. 10/-, market capitalization 39.21 Cr,EPS 2.01, PE-10.08,book value-51.41, Industry PE 21, gross sales in Cr for the year (2011-2015) 37.08, 36.01, 42.59, 64.01 and 79.09.Net profit in Cr for the year ( 2011-2015) 2.68, 1.91, 2.06, 1.40 and 3.61. Last quarter ended 31.3.2015 the company achieved gross sales Rs. 24.30 Cr and net profit Rs 1.95 Cr.


The present stock price deserves more valuation than the current level and therefore would like expectations of 100% appreciation from the current level in the next one year. Try your luck .


Thanking you,                                                           see you later.

15 Jul 2015

MUTUAL FUND STUDY

Hi Friends, Mutual Funds are among the hottest favorites with all  type of investors. Investors in Mutual funds rank among one of the preferred ways of creating wealth over the long term. In fact, Mutual funds represent the hands off approach to entertain the equity market. There are a vide Variety of Mutual fund that are viable investment avenues to meet a wide variety of financial goals.


Investment companies or investment trusts obtain funds from many investors through the sale of units. The funds collected from the investors are placed under professional management for the benefit of the investors. The Mutual funds are broadly classified into open ended and close ended schemes.


The open-ended scheme offers units on a continuous basis and accepts funds from investors continuously. Repurchase is carried out on a continuing basis, thus helping the investors to withdraw their money at any time. In other words, there shall be an uninterrupted entry and exit into the funds. The open ended scheme has no maturity period and is not listed on the stock exchanges. An investor can deal directly with the mutual fund for investment as well as redemption. The open ended fund provides liquidity to the investors since the repurchase facility is available. Repurchase price is fixed by net asset value of the unit.


The close-ended funds have a fixed maturity period. The first time investments are made when the close ended scheme is kept open for a limited period. Once closed, the units are listed on a stock exchange. Investors can buy and sell their units through stock exchanges only. Demand and supply factors influence the prices of the units. The investor’s expectation also affects the unit prices. The market price may not be the same as the net asset value.(to be continued)


Thanking you,                                  See you later.

14 Jul 2015

BONUS SHARE

Anuh Pharma Ltd :- Hi friends, This pharmaceutical company incorporated in the year 1960 is a Small Cap company having a market Cap of Rs. 771.1 Cr operating in pharmaceutical and health care sector. Their products/ Revenue include Antibiotics (66.26%) and other chemicals (33%). They are exporting their products to more than 40 countries.


Financials:- Gross income in Cr for the period from (2011-2015) 175.59,224.33,242.67,266.40 & 283.69. Net profit for the period in Cr (2011-2015) 12.14., 12.71, 12.54, 17.59 & 21.99. Equity capital-4.18 Cr, face value of shares Rs. 5/-, Reserve excluding revolution reserve- 96.72 Cr, Bonus history—2006—1:1,2010—2:1 and 2015 2:1. Divided from 2011 is regularly paid.


 Stock holding pattern:- Promoters- 65%, General public 32.07%, Other companies 2.27%, foreign NRI 0.62, others- 0.04% and directors 0.01%Anuh Pharma share is trading @ Rs. 936/-, Company has announced and AGM approved issue of Bonus shares @ 2:1. That means every share holder get two shares as Bonus shares. If you buy 5 shares now, after Bonus record date it will become 15 shares. Now the share is quoting cum bonus. Ex Bonus date will be announced shortly.  The well known investor Mr.Rakesh Junjhuwala has recently purchased bulk quantity shares in this company. The company has very good plans for their expansion. Their debt equity ratio is 000.No shares are pledged. Promoter holding 65% shares, it hopes further capital appreciation in near future. Try your luck.


Good luck                                                                        See you later 

TIPS,RUMOURS AND GOSSIP

The stock market is the biggest circulators of tips, rumorus and gossip in the country. As an investor you will find it very difficult to insulate yourself from the pernicious influence of such tips and rumours. Some of them can be very persuasive. Listening to tips and rumours is one sure way of being infected by the crowd. Therefore, try to build up your psychological defenses against tip and rumours. We cannot help you in this regard, except to warn you against the dangers of listening to, and acting on, tips and rumours. You will have to devise your own methods of safeguarding against  tips, rumours and stock market gossip.It is very dangerous situation if you go  and play according to tip,rumours and gossip, final result will be loosing your pocket. So be conscious.


Good luck.                                                        thanking you

13 Jul 2015

BUY AND HOLD STRATEGY

The buy and hold strategy essentially consists of buying into an Up company, in an Up industry, operating in an Up economy and then holding on for a sufficiently long period to take full advantage of its growth phase. The company should be a well- managed, technologically advanced market leader, or potential market leader, committed to long term growth and expansion. The buy and hold  investor buys shares in such a company and waits for time and the  magic of compound rate of growth to snowball his invested capital into a sizable fortune. In order to ensure safety and minimize risks, he diversifies by investing in a number of growth companies operating in different but equally fast growing sectors of the economy. He keeps a watchful eye on these companies and used every dip in share prices to buy more shares and increase his total shareholding. He ignores the day- today, week to week price fluctuations and other short term stock market cycles, expect to buy additional shares when share prices are at cyclically low levels.


The buy and hold investor normally does not sell any shares except under certain specified conditions. He makes money by capitalizing on the underlying growth rate of a fast growing company, in a fast growing industry in a fast growing economy. He banks on the climate and not on the weather. Some of the greatest fortunes in the world have been made through the successful application of buy and hold strategies Computer aided experiments and studies carried out in the  US have also shown that in an overwhelming number of cases, long term buy and hold strategies have generally given better returns than in  and out stock market trading strategies


Thanking you,                                                                    see you later

12 Jul 2015

TREE HOUSE

Hi Friends,    Tree House Education And Accessories Ltd. Started function in 1987, it is incorporated as Private Ltd Coy on 10/7/2006 with an aim to give education to children and they started Pre-Schools under International Syllabus. During 2010 they converted the Company into a public Ltd. Coy.. Again 2012, they issued Shares to public and listed their shares in BSE and NSE. They headquartered at Bombay and their pre-schools are functioning in different states. They are also giving Educational services to other educational institutions. Education plays a significant role in building a nation and creating huge opportunities for the individual. The growth of Indian economy and ricing income levels are factors boosting the investment in education. The Indian education sectors market size is expected increase to Rs.6,02.410 Cr by financial year 2014-2015 (CARE report).


The concept of pre-school is now almost a must for every child to be groomed before he or she enters primary school. Pre-schooling is significant because the first few years are critical for a child's mental and solid development. As Tree House, they are very well positioned in this sector. They maintaining their leadership status in the pre-school industry and dream for the future.

Financials:-Equity share capital- 42.31 Cr, Market capitalization –Rs.1972.74, EPS- 14.39, PE- 32.40, Book value 109.57, Face value of shares Rs. 10/-, Industry PE- 49.34, Dividend from 2012 to 2014 regularly paid. Present dividend 20% Reserve excluding revaluation reserve 612.57. Gross income from operations in Cr from (2011-2015) 39.24,77.21, 114.28, 157.64 & 207.45. Net profit in Cr for the period from (2011-2015) 9.19, 21.66, 33.33, 43.92 & 60.88.

Share holding:-Promoters- 27.95 Cr, foreign OCB- 25.42%, FIS-19.42%, Other companies -9.02%, General public – 6.73%, Foreign others -3.10%, Financial institutions -2.48%, NBFC/mutual funds -1.61%, Directors 1.18%, Others -0.95% and foreign NRI 0.34%

Management efficiency:- Return on equity-11.04%, return on Assets-8.52%, return on capital employed – 12.65%, fixed Assets turnover -0.35%, gross profit margin 45.84%, operating profit margin  56.60%, net profit margin -27.62%, debt equity ratio – 0.13%, cash flow to long term debt 1.36%

The key products/Revenue segments include income from educational services which contributed Rs.116.32 Cr to sales value ( 73.78% of total sales ), Consulting income which contributed Rs.34.69 Cr to sales value ( 22.09% of total sales), Rent which contributed Rs. 3.07 Cr to sales value (1.94% of total sales), Royalty income which contributed Rs.2.03 Cr to sales value ( 1.28% of total sales), Education tools which contributed Rs.1.50 Cr to sales value ( 0.94% of total sales), Other operating income which contributed 0.03 Cr to sales value (0.02%% of total sales) for the year ending 31.3.2014. For the quarter ended 31.3.2015 the company has reported a stand alone sales of Rs.50.68 Cr down -4.58% from the quarter sales of Rs. 53.11 Cr and up 41.76% from last year same quarter sales of Rs 35.75 Cr. Company has reported net profit after tax of Rs 17.12 Cr in last quarter.


This company has ambitious plan for development, Net profit margin is in better stages 27.62% and debt equity ratio is very low 0.13%. No Bonus history till date. Therefore I expect capital appreciation in coming future. Investors may look into it for investment



Good luck.                                                         See you later