The story of King Bruce and the spider is not entirely unknown. Try try try till you succeed. I did not know the same applied to the stock markets as well. Its as if the markets are trying to head to the sky till nothing higher is possible... all in the name of prospects, and future earnings. I know most of the people who happen to read this blog, would criticize my ideas and question my credentials and its veracity, but then I still would maintain my stance kee yah! The recent thing going on in the market was TCS Bonus ... some say thats the reason for it to go high.
I dont quite understand how this market works. I heard my manager say ... TCS is rewarding the stake holders by giving them a Bonus. He also added for my knowledge... Stock Bonuses and Splits are ways to make the share holders happy. Rubbish! I remember this from my childhood days ... the days when a ONE rupee note was big money. Whenever I would pick up a rupee note from my fathers purse and play with it, he would be concerned, I would tear it. To save the pain of sticking it back with cello-tape, he would give me 2 50 paise coins and say ... " See now you have '2' money instead of '1' money". This would make me happy. This is the exact strategy with a stock split. Give the stock holders the same amount of money, decrease the value of the underlying security by factor of 2 and say " See ... more shares :)" and we like kids feel happy and raise the price of the stock to astronomical levels.(Read Cipla prices 2006 pre - split reached 700+ more than 1.5 times its current value even when the market was 8000 odd levels. Dont you readers think, it is just taking advantage of being in reach of the masses while you dilute your offering? Basically, for say X Rs. the total book value you own will be exactly same if it is 1 share (pre split) or 2 shares (post split).
Same is the case with a Bonus... I put in more capital into my company, at the same time increase the number of shares by giving you more shares of the company. Your net value per share has decreased, and the total number of shares have increased by an equal quantity all in all ... no gain. So why the ho-halla about Bonus? beats me!!!
Monday, May 11, 2009
Sunday, May 10, 2009
Perceptions....
26-Nov was surely a black day. But what followed was even more darker. The international community freaked out. Hotel Bookings canceled, Plans changed, investment put on hold. Everything that could have gone wrong, went wrong, horribly! Even now(last week), when one of my boss's seniors' (ironically, of Indian Origin) was coming to India, he opted a hotel, which was totally inconspicuous, and away from the main business district. I pains me. Moving the clock, back in time, to Nov-Dec 08, again, I, with regret, remember the foreign leaders commenting about 'security situation' in India, The conglomerates and incorporates of the world, shouting their lungs out about the 'safety' of their people and more so, their investments. We had the FICCI and every other corporate body from India expressing 'concern'... and what not.
Then the biggest blow of them all, the movement of IPL out of India to a far flung place (when compared to this subcontinent). That too by our very own people. Just to show to the world the how concerned they were! The world hailed this move. Mr. Lalit Modi, please shove these tidbit in the vacuum of your head... WE HAD ELECTIONS, however unimportant the other 50% of India thinks it to be, IT IS A HUMONGOUS EXERCISE, not something which is some thing where people are more interested in who is dancing than who is involved, but to elect the leaders of tomorrow, for good or maybe for worse. This was a far more important issue than your $2 billion 'nautanki'. You being an Indian, moved the 'Indian' premiere league to South Africa, where Delhi and Mumbai played cricket... WHAT A SHAME. Ironically, the elections so far have been really safe and without any major untoward incident.
Where does this leave us? India 1 - Terror 1, does that mean this field is even? May be. May be not! I don't know. What I fail to understand, is what on earth was the world thinking? The so called safe economy, USA, had the worst of all the terror threat, September-11,that too in the heart of NY does that mean US is unsafe? going by the word of the "world", it is unsafe. Britain has a long standing strife with the IRA, does that make the UK unsafe? you bet!!! China may sure be 'safer' but does that mean it is human friendly? I do not know, but sure don't think so. South America has it sown set of problems, internal strife, Mafia, Communism, Dictatorship, Diseases, bad ecological record, name it you've got it. Russia, too is not untouched. Using your own deductions, I proved this world to be unsafe for you. So 'where on earth' will you do your business Mr. Capitalist? Antarctica?
Then the biggest blow of them all, the movement of IPL out of India to a far flung place (when compared to this subcontinent). That too by our very own people. Just to show to the world the how concerned they were! The world hailed this move. Mr. Lalit Modi, please shove these tidbit in the vacuum of your head... WE HAD ELECTIONS, however unimportant the other 50% of India thinks it to be, IT IS A HUMONGOUS EXERCISE, not something which is some thing where people are more interested in who is dancing than who is involved, but to elect the leaders of tomorrow, for good or maybe for worse. This was a far more important issue than your $2 billion 'nautanki'. You being an Indian, moved the 'Indian' premiere league to South Africa, where Delhi and Mumbai played cricket... WHAT A SHAME. Ironically, the elections so far have been really safe and without any major untoward incident.
Where does this leave us? India 1 - Terror 1, does that mean this field is even? May be. May be not! I don't know. What I fail to understand, is what on earth was the world thinking? The so called safe economy, USA, had the worst of all the terror threat, September-11,that too in the heart of NY does that mean US is unsafe? going by the word of the "world", it is unsafe. Britain has a long standing strife with the IRA, does that make the UK unsafe? you bet!!! China may sure be 'safer' but does that mean it is human friendly? I do not know, but sure don't think so. South America has it sown set of problems, internal strife, Mafia, Communism, Dictatorship, Diseases, bad ecological record, name it you've got it. Russia, too is not untouched. Using your own deductions, I proved this world to be unsafe for you. So 'where on earth' will you do your business Mr. Capitalist? Antarctica?
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