| Author |
Message |
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
   Posted: 27/Jul/2006 at 9:49pm |
|
Right but high price to book, dividend yield and stocks in mature businesses guarantee protection of capital. They are not enough to create market cap. Market cap will be created by companies that are in high growth phase, in a new sector. As long as the company is in a great business generating good RoE (indicates efficiency of capital) and available at a PEG of less then one under able management shareholders will do well.
|
|
'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 10:24pm |
|
What is PEG?
|
|
IP Logged |
|
|
|
Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
|
Posted: 27/Jul/2006 at 10:25pm |
|
Also, kindly tell me, if rolling EPD you mean something like we measure cumulative frequency in statistics.
|
|
IP Logged |
|
|
|
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
Posted: 27/Jul/2006 at 11:10pm |
|
PEG = Price earning to growth. for example if you have bought a stock at a PE of 15 and the eps is expected rise by 10% the PEG would be 15/10 = 1.5 that means an expensive stock. Growth investors normaly like to buy stocks at a peg of closer to 0 (theoritical) and sell stocks as the peg goes up so lever with a 15% growth at a 25 pe is costly and if you can get a 40% growth at 15 pe ceteris paribas you have hit gold (or maybe stocks!)! This is used mainly for evaluating growth companies.
|
|
'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 |
|
|
|
values
Senior Member
Joined: 02/Jan/2011
Location: India
Online Status: Offline
Posts: 313
|
Posted: 16/Jan/2011 at 8:04pm |
|
To the elders of TEDDies,
Why have we stopped discussing innovative stock ideas ?
|
|
IP Logged |
|
|
|
hit2710
Senior Member
Joined: 15/Jun/2009
Location: India
Online Status: Offline
Posts: 4013
|
Posted: 16/Jan/2011 at 9:26pm |
|
Interesting thread.
Innovative ideas I think would occur in
Mobile banking-- if some company can milk the segment
Agriculture-- ways to raise output-- seeds companies-- micronutrient companies
I hear a lot about c**** computing as the next big thing-- dont know too much about it though. Dont know if there is any focussed player in the field among Indian software companies.
Media-- things like dish tv seem to be interesting again --although not too sure about financials.
Alternative energy -- Techno Electric Engg seems to be heading in the right direction looking at its well intentioned foray into wind power and biomass power. And that too in a stepwise manner. Their latest corporate presentation made in Nov 2010, put up on company website does look interesting.
|
|
Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.
|
|
IP Logged |
|
|
|
values
Senior Member
Joined: 02/Jan/2011
Location: India
Online Status: Offline
Posts: 313
|
Posted: 16/Jan/2011 at 9:40pm |
|
Mobile banking would only make sense if banks start expanding their foray and investment in internet operations...don't think its anything specific to a company all or some banks would have to start doing it...may be they are already doing it,...i haven't used it though so don't know much about it....
Agriculture - seems to be interesting...if indian economy has to grow at a 9-10% every year, i think agriculture has to play a major role in it...
media - in any form will only add to the value if major players start big time acquisition...though i am not an expert just some food for thought...
Alternative energy - Techno Electric Engg ? Is it a listed company ? any other information you know of that you can put in here wud be helpful...
|
|
IP Logged |
|
|
|
photophobic111
Senior Member
Joined: 20/Mar/2009
Online Status: Offline
Posts: 162
|
Posted: 16/Jan/2011 at 7:29am |
|
@hitji - Regarding c**** computing, I think we can take look at allied digital, which I beleive is making inroad into it. ALso it is into RIM, which is also growing segment and expected to grow for 3 - 4 years.
I would be looking at companies which are into...
1) Water purification: From long term view - desalinate, water recycling..
What are companies listed here? Ion exchange? (VA tech, ion exhchange, Ramky???)
2) Agriculture: sustainable organic farming..preferablly degradable chemicals, if organic farmng gets costly
@hitji - micronutrients will still be all chemical based, right?
3) Waste management/Recycling - household and electronics.
4) Alternate energy - Solar (right now its too costly, new tech to make it cheaper, just not sure if Indian comp can dio all RnD and get holy grail) or from non-food based mass/cheap/weed based bio-fuel. Also what used cooking oil has been processed to generate bio-fuel (so input cost is very less), I know few companies in US doing it, how well model works, not sure.
Above are probably not new but quite used up, but I think they would become necessary evil and thus companies can profit from these..
I have not started detailed search into this (probably TED has threads already), but will appreciate your inputs into this.
Thanks
SA
Edited by photophobic111 - 16/Jan/2011 at 7:44am
|
|
Doing best is the essence and improving your best is the key to everything....
|
|
IP Logged |
|
|
|
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
