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CHINKI
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   Posted: 22/Feb/2007 at 7:11pm |
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Not much postings/observations on this topic.
Eventhough crude prices have come down from the higher level, the decrease in Petrol/Diesel prices to contain the inflation, will again hit the oil companies.
If you have to value these oil companies based on the land they hold, the assets they have in their balance sheet and big amount of investments & time required to develop a company of this magnitude ( the same reason why TATA paid more as per market feeling to buy Corus), these companies should be valued at higher prices.
Basanthji, does it make sense to buy any of these oil companies stocks now???
Edited by CHINKI - 22/Feb/2007 at 7:12pm
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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johnnybravo
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Posted: 22/Feb/2007 at 7:23pm |
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Crude is a commodity and hence is hated here!
Also if you have to go by land-bank, there might be plenty of other private companies which actually might be interested in selling their lands...Govt owned companies especially oil companies are far from taking such a step in the next 10-15 years unless u have Arun Shourie managing them!
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basant
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Posted: 22/Feb/2007 at 7:39pm |
Originally posted by CHINKI
Not much postings/observations on this topic.
Eventhough crude prices have come down from the higher level, the decrease in Petrol/Diesel prices to contain the inflation, will again hit the oil companies.
If you have to value these oil companies based on the land they hold, the assets they have in their balance sheet and big amount of investments & time required to develop a company of this magnitude ( the same reason why TATA paid more as per market feeling to buy Corus), these companies should be valued at higher prices.
Basanthji, does it make sense to buy any of these oil companies stocks now??? |
That land bank connection appears very far fetched.Those petrol pumps will never be sold. also they are also dependent on what the Govt. does each time - which is the toughest thing to predict.
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'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
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xbox
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Posted: 22/Feb/2007 at 4:59am |
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Jab rakshak hi bhakshak ho to, ye BPCL/HPCL kyo appreciate karega.
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Don't bet on pig after all bull & bear in circle.
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CHINKI
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Posted: 01/Mar/2007 at 12:47pm |
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Basanthji,
Regarding Land Bank I agree with you. Because many of these lands may not be owned by company. They may be on lease or rent.
During next elections, if Congress gets majority on its own or if BJP comes to power, then these companies may look attractive. Am I right??
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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basant
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Posted: 01/Mar/2007 at 1:52pm |
Yes but that carries a lot of unpredictability in terms of
1) Time - Next elections are in 2009
2) Whether any party would get majority
3) What mindset would these parties work with
4) Finally disinvestment is not the first thing any party would do when it gets into power
Better to be with predictable companies rather then unpredictable ones. There is almost little downside here though.
Edited by basant - 01/Mar/2007 at 1:58pm
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CHINKI
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Posted: 02/Mar/2007 at 2:12pm |
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I was working in one of these OIL companies earlier.
Knowing the potential of these companies, if they are let free, then these companies can overcome all these adversaries and perform extremely well.
I still remember when Shell and other MNCs came in LUBRICANTS sector during 90s, all these PSUs thought that their lubs will get sold on the brand name. So they had tied up with one of these MNCs. But to their surprise, they found that these companies are only eating their market share not the competitor share. So the alliance was over and even today all the PSUs lubricants are doing extremely well. Who don't know Servo of IOC or Mak of BPCL??
From that angle I thought it may make sense to invest. But when you have better ones in market, why to depend on the unpredictable one. Fully agreed. Thanks
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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kishantripura
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Posted: 31/Aug/2007 at 9:38pm |
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Is it any good valuing the land owned by these companies? I mean, what are the chances of unlocking value from the land? They might find it very difficult to dispose the land that is surplus to their requirement. They definitely have some real estate goldmines where they have their corporate & regional & various other admin offices. But will they ever allowed to shift those offices by their union? Big big question. Unfortunately no answers.
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