Wednesday, January 23, 2008


Sorry for not posting an update sooner. Over the last couple of days I was busy at work, looking for stocks to buy in the crashing Indian markets.

I bought into Reliance Petroleum, Asahi Glass, Reliance Communications and yes added a little Concor.

I will put up a report on Asahi India Safety Glass; a company I believe has excellent long term potential.
Asahi Glass reported a loss for the third quarter, as a result of amortization and interest costs. With its new plants now complete and in various stages of commissioning, its future prospects are bright, as the company is now the largest integrated glass manufacturer in India. I will continue to buy it on declines.

My other Long term investment Concor held on surprisingly well, as the rest of the market collapsed. It reports results by the end of the month, and as the company is cutting prices to take on the competition, margins could be under pressure.
Longer term tie ups with Reliance logistics, Bharti -Walmart, the Transport Corporation of India etc stand it in good stead. Also its stakes in Ports and container terminals are additional positives for the stock
Its competitors in the private sector are struggling with large borrowings and increased capital expenditure charges.
I will buy some more Concor after the results.

I had not made many purchases over the last few months, except for Elecon Engineering, Sanghvi Movers and Concor, which have somewhat survived the bloodbath.

As I said before, the overvaluation in Indian Equities needed to be corrected and overvalued sectors like Real Estate, Brokerage Firms, the Power sector, and many momentum counters were really beaten down.

Always invest with an adequate margin of safety and do so according to your own investment risk profile.

Do read my blog post Smoke and Mirrors (31 / 12 / 2007). It talks about my outlook for 2008. Also do take a look at my blog post on Investing in Gold.

I see more downside for the US Markets, and Asia as the US goes into recession.
The 0.75 % rate cut will really hurt the US Dollar. Currencies that are USD pegged are going to have a hard time dealing with inflation in their local economies. This should be positive for GOLD. In the near term the continued sell off could hurt gold prices.

Will put up another update soon.

No comments: