My First Hour Conversation with An Ex-Colleague

807852_friends_in_businessI am sitting at Singapore’s Changi International Airport. It is middle of the night, and I come to know my flight is delayed by four hours for technical reasons. I was contemplating what should I do. Made few personal calls and then I decide to munch on unhealthy burger and some fries. I was getting bored, so I started browsing the internet. I log into my blog’s wordpress interface and opened another tab with my blog. I was hoping to answer my emails and blog comments. That just remained a hope.

While I was reading comments, an Indian gentleman came and said, “may I sit here” pointing a chair just across me. I said, “sure, be my guest”. We exchanged few more pleasantries, and then each of us continued doing our own stuff. He started playing with his blackberry, and I turned my eyes to my computer. At the same time, I am thinking, there is no one around in this cafeteria, tons of empty chairs, so why this guy came just next to me. Usually, we just go and sit in an empty space.

I said to myself, “hmm, forget it, why bother”. I went back to reading comments and emails.

Few minutes later, he stops playing with his blackberry. He is looking around. I can sense he wants to talk to me. The moment I raise my head, he says, “The blog you are reading is awesome. Isn’t it?” Continue reading rest of this article…

Praj Industries Ltd – Small Cap with Good Management

logoPraj Industies (PRAJIND) provides turnkey plants and equipments for fermentation and distillation systems used in bio fuels processing (primarily ethanol related). It sells it products domestic Indian markets (about 70% market share), South East Asia (about 50% market share), and Europe (about 30% market share). It has been attempting to diversify in Brazilian and North American market but is still in very early investment/growth phase.

In addition to geographic diversification, it has also attempting at product diversification. It has begun working in other areas like Brewers, Agro Chemicals, Bio Chemicals, and Health and Wellness Products,

Praj Industries is small cap company. My objective here is to understand, if it will fit in my long term buy and hold portfolio. I like it because of very low debt.

Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is from 2000 to 2009. Continue reading rest of this article…

Selling Is Important – Continuing the discussion (II)

In my last post, I discussed about my fair valuation for buying and how it would be likely different than selling value. I tried to make a case that I would like to minimize my cost basis and maximize my sell price. Buying is easy because minimizing cost basis is under my control. Nobody can force me to buy high unless I want to do it, right? However, when it comes to selling I do not have any control. Like everybody else, I would like to sell high, but there has to be somebody willing to pay for it? And hence, it is little bit of subjective.

Furthermore, I identified three companies viz. HDFC Bank, Pidilite, and ABB, as stocks that I would consider as fairly valued for selling. OR likely to be tad over valued. I do not consider them to be extremely overvalued. In this post, I do not intend to discuss (or present an argument) what would I consider over priced or extreme overvaluation. No two people will come up with same conclusion. Continue reading rest of this article…

Selling is Important – Continuing the Discussion (I)

In today’s post, I am continuing my discussion on selling aspects for my long term buy and hold portfolio. To me, buying is always a very easy decision. Easy in a sense that I have few quantitative metrics and qualitative aspect that help me decide whether I should buy a given stock. However, I do not have such fixed metrics that tells me, hey buddy, its time to sell. For me selling is a very subjective process. I touched upon few guidelines that help me make a sell decision.

Discussing and presenting my thoughts on this blogs helps this subjective process. The comments and conversations I have with readers of this blog helps (or influences?) this subjective process. When I say influences, I mean influencing the thought process, and not directly sell a stock because my blog reader says so. Continue reading rest of this article…