Carnival of Indian Stocks – October 31, 2009

Welcome to Carnival of Indian Stocks. This edition of the carnival includes 13 articles for fellow bloggers. Some of the articles presented here may be contrary to the topics I discuss on this blog, however, it provides a view from a different window. I hope you enjoy reading some of the diverse set of articles as much as I did.

That concludes this edition. If you would like your best article to be included here, then submit your blog article to the next edition of Carnival of Indian Stocks. If any blogger(s) is interested in hosting this carnival, then please contact me.

Stock Pre-Screening Process and Metrics

screenI take a considerable amount of time to perform a thorough quantitative and qualitative evaluation for any stock or the company. I believe it is necessary since I am investing for long haul. How does a one month or two month matter when I am attempting to visualize for next 10 years or more. Yes, I agree delaying couple of months will make me miss the window of opportunity or as the stock investing lingo says, missing the multi-bagger.

I screen out many companies before I decide to spend long hours looking into its numbers and future direction. I keep my screening process very simple. The parameters I use for screening are as follows

Operating cash flow: A consistently positive and growing operational cash flow shows the strength of its products and demand in market place. In addition, to a certain extent, it also demonstrates management’s ability to manage the generated cash.

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Suggested Reading – October 26, 2009

Blogosphere is an interesting place where you find various bloggers expressing their viewpoints. I am listing some of the articles that I enjoyed reading.

These are some diverse set of articles from fellow bloggers and business magazines. I hope you enjoy reading all or some of these interesting posts.

Hawkins Cooker: Stock for Long Term Investment

hawkins logoHawkins Cooker Limited (HAWKINCOOK) is India’s second largest company engaged in pressure cookers and cookwares. The produces a wide range of other house hold and commercial cooking utensils. Its brands include Hawkins, Futura, and Miss Mary.

The key aspects that I like about Hawkins is sells in domestic markets (does not depend upon what happens internationally), low debt, and focus of controlled growth. It is well positioned to cash on growth in disposable income from growing Indian middle class.

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Portfolio Rebalancing

howTwo readers of this blog left couple of intelligent questions in comment section on some of the articles. Both of these questions relate to what I term as rebalancing the portfolio (or profit booking). I wanted to wait until I posted articles on TIPBlog portfolio update and risk analysis. I wanted to discuss these two questions in the context of TIPBlog portfolio. It will help better understand the re-balancing and profit booking processes.

You may have read earlier post that discusses risk analysis. I made a comment that the portfolio has overexposure on few stocks like ONGC, LNT, etc. I also mentioned that I will not be selling any partial shares to bring down allocation. Many use the term profit booking for partial selling.

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Festival of Stocks – 162th Edition

This week I have the honor of hosting the 162th edition of the Festival of Stocks.  According to the festival’s original sponsor, ValueInvestingNews, “The Festival of Stocks is a blog carnival dedicated to highlighting bloggers’ best articles on stock market related topics. This will include research and commentary on specific stocks, industry analysis, ETFs, REITs, stock derivatives, and other related topics.” This is the first time  is hosting the festival, and I am looking forward to hosting it again in the future. focuses on Indian stock markets. This is perhaps the first Indian blog which is dedicated to Dividend Investing. In addition to dividend investing, many articles also  discuss and provide value-based thoughts in the context of Indian stocks, businesses, and different opportunities.  It is likely that US based readers may feel that is not relevant to them. However, the principles of value investing or dividend investing tend to remain same. This blog is for all US readers and do-it-yourself investors looking for personalized journey of a do-it-yourself Indian investor. It attempts to separate media hype and looks are realistic and pragmatic opportunities.

Folly of Bonus Shares

monthly-dividend-portfolio-reviewMedia pundits and business experts are again beating the drums of bonus shares from Reliance. And we all individuals, without giving the thought, start beating the drum of the bonhomie, and are rejoicing that we are getting something for free. Because it is termed as “Bonus”, it is free and we all should be happy for it. Happy that company management is thinking about shareholders and giving them “Bonus Shares”. Coming from school of “value thinking” I believe this is fools paradise. We have lost our ability to think rationally and then make a judgment call. Let us discuss little bit more….

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