Indian Stocks – Debt & Market Capitalization
Over the last 8 years, BSE Sensex has delivered a return of ~ 24% (i.e. from 21,206 in January 2008 to 26,392 on 28 January 2015). Yes, since 2008 (pre-crash levels), bench-marked Indian stocks have risen by approximately 24%. 8 years for a meager 24% return is disappointing to say the least. Even a […]
PSU Bank Stocks and Basel III Capitalization Concerns
Over the last 5 trading sessions, stocks of public sector banks have surged anywhere between 5-25% in trade. They have caught the attention of investors and traders alike. Besides old timers who invested in PSU bank stocks for high dividend yields, there are many others who now believe that these banks could turn things around […]
Accounting vs. Auditing – Fixing Blame for Manipulation of financial Statements
To give you some background on this post, last week I had disagreement with a celebrated financial expert about the ethics of preparing financial statements. It started with me saying this – “if the management does not want you to know something about the accounts, you will not know it. Period.” There is a thin […]
What To Do When Stock Prices Are Expected to Fall?
Something about human behavior stops all of us from making a decision to sell a thing in loss, no matter how deep are losses keep growing. Equally, greed for a few rupees more is what keeps the gambler going. When it comes to stocks, the best of us behave no different. Exactly 3 months back, […]
How do E-commerce Companies Make Money?
E-commerce companies around the world are running in losses; By any measure, E-commerce industry commands the most extreme valuations; Having received million in private equity funding over the years, big E-commerce companies in India are planning their IPOs; Most big companies in India including Amazon, Flipkart, e-Bay and Snapdeal are focusing on developing high end […]
How Does a Company Benefit From High Stock Prices?
Note: For the purpose of this article high share price does not mean numerically high monetary value. In the explanations, core focus will be on high valuation of the stock. Did this question ever bother you – after a company raises money via its Initial Public Offering (IPO) or via any primary market issuance to […]
Nifty PE Ratio as an Indicator of Stock Market Valuation
The Nifty Price/ Earnings Ratio or the Nifty PE ratio is almost certainly the best buy / sell indicator for anyone who believes in buying good companies at cheap valuations. The way to calculate the Nifty PE Ratio is not any different from how the PE Ratio of a stock is calculated. Nifty PE Ratio Nifty […]