Thanks to an Enron-style fraud at Satyam Computers, stocks in India have never been as cheap as they are today.
The chairman of Satyam, a huge software company, gave himself up, saying he'd been "cooking the books" for years. He'd overstated profits and overstated the cash balance... at this point by billion of rupees.
When he gave himself up, shares of the company fell some 78% in a day. Other major Indian stocks fell by double-digit percentages. Investors are worried about which company is next.
Now, on a price-to-earnings basis, India is as cheap as it's ever been in the 20 years. It's trading at about nine times this year's earnings.
There could be more frauds. WorldCom followed Enron. But this is a heck of an opportunity... The last time Indian stocks were close to this cheap (mid-2003), they rose roughly 700% in US dollar terms until they peaked at the end of 2007.
Most investors are scared. The foreign investors who hadn't fled already have surely left by now. Hardly any major international brokerage firms have a "buy" recommendation on India. We see it as an opportunity – there's nobody left to sell.
India doesn't have a credit bubble, a real estate bubble, or a debt problem. And India has a domestic market, so it doesn't rely on exports nearly as much as China does.
At some point, the big brokerage firms will recommend India. Each recommendation will mean new buyers. Foreign investors will return.
We prefer to buy when everyone who wants to sell has sold. We prefer to buy when everyone is bearish. The biggest gains in investing come when things go from bad to less bad. And India is on the brink of that now.
What's the best way to play it? Use the scandal as a cheap entry point. There may be another one or two scandals... or not. But this is too cheap to pass up.
We think one can enter this trade without much downside risk.
Good investing,
Resdtech Team.
Thursday, January 15, 2009
Tuesday, December 9, 2008
Peace
I can still hear the deafening boom, the complete silence after that, somewhere
a mother wailing, she had just sent her son to the grocery shop. Running around the heaps of legs, torsos, hands, she like a scavenger sifted through the pile.
What she got left her numb no cries, no words, a total calmness, as if death itself has enveloped the earth. A fleeting image of a child she saw through those hazy eyes, the first day after hours of labour she held her son. It looked all this pain was worth the effort after all she was lost in an ecstasy. Then she followed his each milestone her heart swelling with pride as he grew up. No hardships were too big for her as one look at him would make her forget it all. But today what had she to live for. Where are those little fingers which she kissed when they hurt? Where are those little feet which scampered around her? Oh where, Oh where, is he my son she wailed? With heart rending cry & a mad frenzy she again sifted through the heap. What are you doing I asked? Sorting & separating the Hindu limbs from the Muslims she answered, for isn’t that what they want to save the one from the other. But look here at all the blood, how do I separate his from all these.
Contributed by Simmi Vasu, Head-Content Development, Resdtech
a mother wailing, she had just sent her son to the grocery shop. Running around the heaps of legs, torsos, hands, she like a scavenger sifted through the pile.
What she got left her numb no cries, no words, a total calmness, as if death itself has enveloped the earth. A fleeting image of a child she saw through those hazy eyes, the first day after hours of labour she held her son. It looked all this pain was worth the effort after all she was lost in an ecstasy. Then she followed his each milestone her heart swelling with pride as he grew up. No hardships were too big for her as one look at him would make her forget it all. But today what had she to live for. Where are those little fingers which she kissed when they hurt? Where are those little feet which scampered around her? Oh where, Oh where, is he my son she wailed? With heart rending cry & a mad frenzy she again sifted through the heap. What are you doing I asked? Sorting & separating the Hindu limbs from the Muslims she answered, for isn’t that what they want to save the one from the other. But look here at all the blood, how do I separate his from all these.
Contributed by Simmi Vasu, Head-Content Development, Resdtech
Thursday, November 27, 2008
Purani Jeans aur Guitar
Remember the time even a rose would make us smile, a romantic song would bring tears in our eyes. When that one look in our lover’s eyes would fill us with unknowing warmth, where has all those days gone? Those days seems to have vanished, so much so that we have started doubting it’s existence, when today even a child’s cry on the street doesn’t move our eyelid. Another rat in this rat race we have forgotten even to look back on all those days when a face in the crowd would make our heart flutter, and to smile just like that.
What did we gain after losing all these, the baggage we are carrying these days is a lot of wealth no doubt, status & acknowledgment by or peers, a lot of envy & loads of unrest not to talk about the amount of ill health we carry. Never feeling complete we all are seeking god knows what?
So let’s get back, along with whatever you are doing today after all we need to earn our bread & butter, the next time when you walk down the road : - leave aside office, children, spouse everything let your heart take you back to your college days , your teenage. Feel the wind against your face, sing a song to yourself, let your feet skip on the road lightly, become childish for those few minutes. And you’ll find a whole new you. I smile at total strangers in the mall at times, I sing along when I walk, some days I just feel simply happy looking at the sun & the world around. I dance like mad after putting some deafening music. Believe me it doesn’t look silly it just takes me out of all this humdrum to my own world and brings back a whole new me. Try to look as good as possible, if you have a chance join a gym the exercise would keep you fit & your slim looks would boost up your confidence.
So! What’s stopping you discover a whole new you, yes go out the world is waiting!!!!!!
Contributed by Simmi Vasu, Head-Content Development,Resdtech
What did we gain after losing all these, the baggage we are carrying these days is a lot of wealth no doubt, status & acknowledgment by or peers, a lot of envy & loads of unrest not to talk about the amount of ill health we carry. Never feeling complete we all are seeking god knows what?
So let’s get back, along with whatever you are doing today after all we need to earn our bread & butter, the next time when you walk down the road : - leave aside office, children, spouse everything let your heart take you back to your college days , your teenage. Feel the wind against your face, sing a song to yourself, let your feet skip on the road lightly, become childish for those few minutes. And you’ll find a whole new you. I smile at total strangers in the mall at times, I sing along when I walk, some days I just feel simply happy looking at the sun & the world around. I dance like mad after putting some deafening music. Believe me it doesn’t look silly it just takes me out of all this humdrum to my own world and brings back a whole new me. Try to look as good as possible, if you have a chance join a gym the exercise would keep you fit & your slim looks would boost up your confidence.
So! What’s stopping you discover a whole new you, yes go out the world is waiting!!!!!!
Contributed by Simmi Vasu, Head-Content Development,Resdtech
Friday, November 21, 2008
The story from the heart: The Debt
The clouds gathered there was thunder & lighting and the sky was overcast. It looked as if the sky was getting ready to repay the earth. What was it that her aunt had said? Yes, “Akhilesh has hanged himself”. So, that was how it had ended, thought Vidya, a smile on her lips. Infact she wanted to laugh, laugh aloud to her heart’s content. But then suddenly she asked why did he hang himself – “he was suspicious that his wife who was pregnant was not carrying his child”. Now, she could not control herself at all she laughed, laughed as if she would die, tears streaming down and amidst those tears she saw that small girl with two pigtails.
That day after coming back from school she met Akhilesh for the first time her mom had introduced him as her relative from there village. Just like the scores of others in there hometown he had come to this city seeking a job. She wished him & went to her room.
At first everything was all right but then she found her uncle was more interested in her than finding a new job. Each day when she came back from school he would be there waiting with a sly smile. How she hated that smile & used to feel like wiping that face from earth. “Vidu look what I have for you here”, and he would show her what her little eyes could never comprehend at that time. The days of torture followed, her parents quite oblivious to whatever was happening, too wrapped up in there own process of living. Like all parents they were too busy in the process of providing that they overlooked the actual need.She didn’t know whom to tell or what to do. Too scared even to recall the details when she was alone she could never muster the courage to tell this to her parents. One day he just went as he had come. Years passed but her world was never the same; never again did she know innocence that was lost somewhere forever. The dirt she felt everywhere was intolerable. She would wash even the glass again & again before drinking water from it even if someone had just touched it. One could never be sure.
After all these years today she did not stop her tears and let them flow. She had wanted to do this for a long time. A strange peace descended on her, outside it was raining insistently the sky had cleared its debt.
contributed by Simmi Vasu, Head-Content Development,Resdtech
The clouds gathered there was thunder & lighting and the sky was overcast. It looked as if the sky was getting ready to repay the earth. What was it that her aunt had said? Yes, “Akhilesh has hanged himself”. So, that was how it had ended, thought Vidya, a smile on her lips. Infact she wanted to laugh, laugh aloud to her heart’s content. But then suddenly she asked why did he hang himself – “he was suspicious that his wife who was pregnant was not carrying his child”. Now, she could not control herself at all she laughed, laughed as if she would die, tears streaming down and amidst those tears she saw that small girl with two pigtails.
That day after coming back from school she met Akhilesh for the first time her mom had introduced him as her relative from there village. Just like the scores of others in there hometown he had come to this city seeking a job. She wished him & went to her room.
At first everything was all right but then she found her uncle was more interested in her than finding a new job. Each day when she came back from school he would be there waiting with a sly smile. How she hated that smile & used to feel like wiping that face from earth. “Vidu look what I have for you here”, and he would show her what her little eyes could never comprehend at that time. The days of torture followed, her parents quite oblivious to whatever was happening, too wrapped up in there own process of living. Like all parents they were too busy in the process of providing that they overlooked the actual need.She didn’t know whom to tell or what to do. Too scared even to recall the details when she was alone she could never muster the courage to tell this to her parents. One day he just went as he had come. Years passed but her world was never the same; never again did she know innocence that was lost somewhere forever. The dirt she felt everywhere was intolerable. She would wash even the glass again & again before drinking water from it even if someone had just touched it. One could never be sure.
After all these years today she did not stop her tears and let them flow. She had wanted to do this for a long time. A strange peace descended on her, outside it was raining insistently the sky had cleared its debt.
contributed by Simmi Vasu, Head-Content Development,Resdtech
Wednesday, November 12, 2008
Water Filtration using RO
Two biggest problems with the reverse osmosis filter that companies don’t want you to know:
1. The reverse osmosis filter removes all of the good, healthy minerals like calcium and magnesium along with the things you don’t want in your water. Many reports and books stress the opinion that long-term consumption of demineralized water can in fact be dangerous. Two negative things happen when you drink water that has been stripped of its natural minerals. Firstly, demineralized water becomes acidic. Any time we consume an acidic substance, our bodies will pull minerals from our teeth and bones to produce bicarbonate in order to neutralize the acid. Second, it has been proven that when body fluids become more acid than alkaline the production of free radicals increases, causing an increase in the risk of cancer!
2. For every gallon of filtered water produced, 3-4 gallons of water is wasted. If you are paying for water your will definitely notice a jump in your water bill.
Therefore, before you spend a lot of money on a reverse osmosis water filter, consider the risks to your health. Look at your other alternatives and compare all the home water purifier technology available today for effectiveness, safety and value.
1. The reverse osmosis filter removes all of the good, healthy minerals like calcium and magnesium along with the things you don’t want in your water. Many reports and books stress the opinion that long-term consumption of demineralized water can in fact be dangerous. Two negative things happen when you drink water that has been stripped of its natural minerals. Firstly, demineralized water becomes acidic. Any time we consume an acidic substance, our bodies will pull minerals from our teeth and bones to produce bicarbonate in order to neutralize the acid. Second, it has been proven that when body fluids become more acid than alkaline the production of free radicals increases, causing an increase in the risk of cancer!
2. For every gallon of filtered water produced, 3-4 gallons of water is wasted. If you are paying for water your will definitely notice a jump in your water bill.
Therefore, before you spend a lot of money on a reverse osmosis water filter, consider the risks to your health. Look at your other alternatives and compare all the home water purifier technology available today for effectiveness, safety and value.
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