A load of crap from an idle brainPersonal, Movies, Music, IT, India, Singapore, Politics, Fun

Very often we get a good bargain and think that we are quite intelligent to get that bargain. Whereas in truth, the reason why we got the bargain could have been simply because we were lucky or just happened to be at the right place at the right time.

A friend of mine had bought Reliance Communications stocks at around Rs 480 per share sometime back and had been looking for an opportunity to average out the price.  The current market crash provided a great buy opportunity for him.  When the stock reached Rs 215, i bought a few.  My friend laughed at me and said that it will go down further.  Just as he predicted, the stock fell to Rs 209.  He put a buy trigger at Rs 205.  I advised him to buy it at Rs 209 itself as there was nothing great he was going to gain by buying a stock for 4 rupees cheaper when his idea has been to be a long term investor (a holding period of at least 2-3 years).

The stock zoomed from around 209 rupees to 263 rupees (as of 05/01/2009).  Even though he wanted to, he never got the opportunity to buy in as the stock has been on a northern journey ever since it was announced that Reliance Communications was going to offer GSM services all over India.  The chances of the stock now coming back to my friend’s expectaions are lower now.

One may say that he has lost nothing becuase he didnt buy anything.  No doubt its true, but he lost the chance of buying the stock at around 210 rupees. Had he bought the stock at Rs 210, he would have been sitting on Rs 53 profit per share within 15 days. Also, he lost the chance to average out the stock value which he had previously bought at around Rs 480.

The Lesson: Never try to time the market. If you truly believe in the stock and if you have done all your research into the fundamentals of the stock and the company, then go ahead and buy it.

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NTT DoCoMo will pay $2.7 billion for a 26 per cent stake in Indian Telecom Tata Teleservices, giving Japan’s top mobile operator a foothold in the world’s fastest-growing major mobile market.

DoCoMo’s deal with Tata Teleservices follows a $350 million investment in Bangladesh’s No.3 cellphone carrier, as it speeds up its expansion beyond a mature home market, and adds to the record $63 billion of overseas acquisitions by Japanese firms this year.

But as DoCoMo expands, salt-to-software conglomerate Tata Group — the parent of unlisted Tata Teleservices and the flagbearer for corporate India’s recent overseas expansion — has put its plans for acquisitions on hold due to the global credit crisis. DoCoMo will also make an open joint tender offer with Tata Sons, the holding firm of the group, to buy up to 20 per cent in a listed unit of India’s No. 6 mobile operator, as required by Indian law.

Full article here

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Indian telecom firms added a record 10.16 million wireless subscribers in March, data showed on Friday, propelling India move past the US to become the second-largest market in the world, trailing only China.

In February, operators had added 8.53 million wireless subscribers in the world’s fastest-growing wireless market. Trai said there were 261.1 million wireless users in India at end-March, up 58% from a year earlier. The US is estimated to have 257.9 million wireless users, according to the International Association for the Wireless Telecommunications Industry website.

Last month, Trai said China had 540.5 million subscribers as of February. In India, top operator Bharti Airtel led the signings with 2.31 million new customers in March, and Reliance Communications added 1.62 million. Unlisted Vodafone Essar, controlled by Britain’s Vodafone Plc, added 1.57 million mobile customers in March.

Total wireless subscribers rose by almost 96 million in 2007-08, but fixed-line users dipped 1.33 million to 39.42 million. Total fixed-line and wireless subscribers rose 46% to 300.5 million.

Above news courtesy: TimesofIndia

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Eleven Indian companies among world’s 50 Local Dynamos

As many as 11 India companies, including the likes of ICICI Bank and Bharti Airtel, have made it to a list of 50 ‘Local Dynamos’ for mastering the dynamics of their domestic markets. These 50 firms from the world’s Rapidly Developing Economies (RDEs) are “domestically focused, at least for now, and have devised formidable business models with which to master the intense dynamics of their local markets,” global consultancy firm Boston Consultancy Group said in a report.

Other Indian companies in the list are two Tata Group entities Indian Hotels and Titan Industries besides Amul, Apollo Hospitals, CavinKare Group, ITC Limited, NIIT, SKS Microfinance and Subhiksha.

Full article here

Telecom outfit market to ring in $6.5 bn revenue in 2007-08

India, the world’s fastest-growing telecom market, is also making steady progress in the telecom manufacturing space. Latest figures from the Department of Telecom (DoT) indicate that revenue from the telecom manufacturing sector is set to cross the $6.5 billion (Rs 23,656 crore) figure in fiscal 2007-08. At the current growth rate, the Indian telecom equipment manufacturing sector is set to become one of the largest globally by 2010.

However, telecom hardware manufacturing in India is dominated by international majors, including Nokia, Ericsson, LG and Alcatel-Lucent while indigenous domestic manufacturers continue to contribute very little.

Full article here

132 Indian manufacturing cos join TPM Excellence League

With 23 companies receiving the Total Productive Maintenance (TPM) Excellence Award at a ceremony in Japan, the number of winners has swelled upto 132, industry body CII said.

Hindustan Unilever Nashik and Pune, Hosur and Mysore plant of TVS Motors, Hospet Steel Ltd, Brakes India Ltd are among the 23 companies which included in the TPM Excellence League. TPM is the concept originated and developed by Japan Institute of Plant Maintenance (JIPM).

Full article here

Coke upbeat about making India one of its top 5 mkts

Betting big on India’s potential to emerge among its top five markets in the world, Cola giant Coca Cola today committed to more “incremental” investment on top of Rs1,000 crore which it is pumping within the next three years.

“We are bullish on India. It is a matter of stimulation… as the growth comes, you have to put in incremental investments,” E Neville Isdell Chairman and CEO of US-based multinational Coke told PTI.

“We are investing $250 million (Rs1,000 crore) and this will certainly not be the last. of our investments,,” Isdell, who is visiting India said.

Full article here

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The Sir Richard Branson-owned Virgin group is launching the Virgin Mobile brand in India in association with Tata Teleservices

India has the lowest tariffs in the world. With Virgin getting into the game, things are expected to get more competitive. For instance, subscribers on Virgin will be credited 10 paise for every one minute of an incoming call.

This amount can be used to make calls, send text messages or avail of value added services. “We will bring in 10 telecom industry firsts’ to the Indian market,” the Virgin group chief said.

Referring to the venture, Branson said, “We have been working on this for a long time. This is Virgin Mobile’s seventh launch globally and Virgin’s largest investment to date in India.” He, however, did not reveal the financial details of his tie-up with the Tatas.

Full article here.

www.virginmobile.in

www.tataindicom.com

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