| Author |
Message |
Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
|
   Posted: 27/Jul/2006 at 6:05pm |
I liked JB Chemicals. In this space I also like Orchid Chemicals, granules India and Albert david.I like Pidilite because I see a clear-cut case for a bonus in the next 2 years.Also, the kind of aquisitions it os making golbally also makes me confident about Pidilite. Its performance on Abby's has also been great...has an excellent promotional campaign, most of us will have fevicol ad as one our top pick ads.
|
 IP Logged |
|
|
|
 |
|
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
Posted: 27/Jul/2006 at 6:12pm |
Hi Vivek
Each company is a buy/hold or sell at a particular price. The real test for Pantaloon is up ahead and if they manage to execute it the way they have been doing over the past 3 years then surely it is an all time hold But for the time being I would just say that the oppurtunity is huge, the managemnt has delivered in the past and I do not have any reason except the subjective fear of RIL getting into retailing that suggests Pantalooon not to be an all time hold. One could categorise only leaders in mature businesses as all time holds while emrging companies in new sectors cannot be categorised in such fashion and need to be evaluated very carefully as the risks are high but so are the rewards.
|
|
'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
|
|
IP Logged |
|
|
|
Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
|
Posted: 27/Jul/2006 at 6:21pm |
excellent evaluation. You know my biggest fear for the 2 companies you enlisted is the barriers to entry are relatively less. that makes me lil bit caitious. Also, as far ENIL goes, what will be the impact of world atellite radio, is something I would like to see.
reagrds, vivek
|
|
IP Logged |
|
|
|
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
Posted: 27/Jul/2006 at 6:42pm |
The brand that CNBC has manged to create is phenomenal. You know I find the converstaion at NDTV Profit and Times now more interesting compared to CNBC but the latter delivers on a more consistent basis. these guys have lined with the best in the world CNN and CNBC - never ever have thse two international companies come together on a common platform. My personal expeerience through the discussions that I keep having with Mr Hareesh chawla , CEO Tv 18 and an IIT / IIM alumni tells me that the man is very much capapble of creatiung shareholder value.
I have experienced a very simple yet effective way of comparing companies and I am sure if you look around there would not be too much of a let down if you use this formula. For professionally (does not mean family run even though the owners could be qualified) run companies if the top management is from IIM and IIT then half of your worries are over - obviously you will have to analyse the company from other parameters as well but you will not find many company that has an IIM and IIT at the top.
Both these companies are run by IIT/IIM grads but Pantallon does suffer from the family run drawback even though Biyani is trying to create a prof team.
In retail the story is huge so one company cannot put down another it is only a company's management style that can bring it down. I always say that Wal Mart could not capture more then 10% of teh US retail market so we can have another couple of reliances' and that would not be a worry as much as the company's own doing.
ANd entry barriers should never be an issue what barriers to entry did you have in software, cement, steel, shipping - practically nothing but companies did go up and many did come down More often then not it is the monopolies that are mismanaged look at the pSU units in the 1980's and look at the same units now
Edited by basant - 27/Jul/2006 at 6:57pm
|
|
'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
|
|
IP Logged |
|
|
|
Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
|
Posted: 27/Jul/2006 at 8:12pm |
By entry barrier, I mean there should be an exclusive advantage. Also, I count oligopoly in the same space as a monopoly.for me, Pidilite is a monoply even though there are many players in that space... Vam Organics(jubilant), Nikhil adhesives etc. Brand itself is a big entry barrier.
However, I do agree monopoly if not managed well, becomes a mis-managed entity.You know this year, I made the biggest gain with a company which is so less talked about, yet has been very rewarding to me.This company is Opto Circuits. I see the same potenial in Porritts and Spencer Asia. An exclusive player in a niche segment. They are not talked about, a quality which I tremendously admire.
Entry Barriers I beleive are important. there are many paints cos. in India, but then does any one have the brand equity of Asian?For me, Asian is a monopoly.I may be wrong in my choice of word, but I think I am making myself clear.
Regards,
Vivek
|
|
IP Logged |
|
|
|
s_praharaj
Senior Member
Joined: 10/Sep/2006
Location: India
Online Status: Offline
Posts: 357
|
Posted: 30/Sep/2006 at 10:11pm |
Thanx for initiating the discussion on multibaggers. I read somewhere that to identify a multibagger is like identifying Madhuri Dixit in her teens. I have also a small list of potential multi baggers.
1. TTML - Tata Mgmt, Sector having a lot of potential, cheap
2. Yes Bank - Experienced promoter, professional banking in most profitable sector of banking.
3. Orchid Chemicals - Consistent performance, far sighted and experienced promoters.
4. TV-18 - Agreed with Basant's view point.
I would like to have the views of our forum members.
Shashi Praharaj
Mumbai
|
|
Shashi Praharaj
|
|
IP Logged |
|
|
|
Ajith
Senior Member
Joined: 06/Aug/2006
Location: India
Online Status: Offline
Posts: 1284
|
Posted: 30/Sep/2006 at 10:47pm |
Orchid Chemicals promoter K Raghavendra Rao is an IIM Ahmedabad man -a real practical genius with a very high IQ.The company ought to do well but I simply cant understand pharma companies.
Edited by Ajith - 30/Sep/2006 at 11:32pm
|
|
Ajith
|
|
IP Logged |
|
|
|
Ajith
Senior Member
Joined: 06/Aug/2006
Location: India
Online Status: Offline
Posts: 1284
|
Posted: 30/Sep/2006 at 11:05pm |
I agree entirely with the selections of Mr.Basant.
My choices of potential multibaggers are-
1.Rayban Sun Optics-cash rich,phenomenal brand value products-Rayban,Chanel,Prada,Polo Ralph Lauren etc,favourable fashion trends,spread of broadband and concomitant online shopping,rising disposable incomes,modern retail formats.A long-term story.Quarterly results could get affected by spikes in advertisement expenditure till sales spurt to offset.
2.Nilkamal Plastics-Equity to turnover ratio will be phenomenal.The loss-making at home division is already a hit .
3.Honeywell Automation -huge order backlog a play on the infrastructure and real estate sector.
Technology stocks Aztec Software and Moschip Semiconductors which I hold with personal conviction but these are risky bets.
Edited by Ajith - 30/Sep/2006 at 11:12pm
|
|
Ajith
|
|
IP Logged |
|
|
|
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
