Apple Inc lost in a day what Luxembourg earns in a year

Apple Inc lost more than 10% of it's market value in a single trading session after the sales and profit numbers for the 4th quarter of FY-12 couldn't match street expectations. 

Losing 10% on a result day is normal for stocks but a 10% loss on the stock with a market value of around $500 billion is something that happens in years. Apple lost almost $45 billion of market value on 24th Jan 2013 which is more than the GDP of Luxemberg (2011).

The loss in market value of Apple Inc and Luxemberg's GDP are compared here to understand the magnitude of loss. As of 2011, according to the IMF, Luxembourg was the second richest country in the world, with a per capita GDP on a purchasing-power parity (PPP) basis of $80,119 (Source: Luxemberbourg GDP per Capita). The second richest country in the world earned $41.4 billion in GDP in 2011 while Apple lost more than $45 billion in single day.

Sell Reliance Industries JAN 960 CALL Option at 3.70

RIL posted good Q3 numbers which received positive response from the investors. However the stock seems to be getting tired at upper levels as it has already run up significantly from 840 odd levels to 920. Fundamentally the stock seems to be reasonably valued at current levels. Also the buyback program is over which was earlier supporting stock at lower levels. Hence considering all these factors one can sell 960 CALL option of the stock at current market premium of 3.70

Considering one is able to sell the JAN CALL option of RIL 960 strike price at current market premium of 3.70 he can generate following return from this trade:

CLSA Downgrades ONGC to Underperform

The recent run up in stock prices of both upstream and downstream companies in anticipation of steep hike in fuel prices has made these stock expensive which led to CLSA downgrading stocks like ONGC, IOC and HPCL.

ONGC has gained around 18% in past 20 days with an addition of 40,000 crores to its market cap which now stands at 2.62 lakh crores at the current market price of Rs 306. 

CLSA said the rally in these state-owned stocks on the back of hopes for a hike in fuel prices is overdone, given any sweeping changes to pricing would be hard to implement in a very busy political calendar in 2013.

LIC Stake in Infosys Technologies

India's largest Life Insurer, Life Insurance Corporation of India (LIC), has hiked its stake in Infosys to 7.24% by purchasing additional 2.32% shares in the company so far this financial year. The company held 4.92% stake in Infosys at the beginning of the current fiscal on April 1, 2012.

At current market price of Rs 2350 the LIC's stake is worth around Rs 9700 crores which is highest among all the institutional investors in the company. Besides LIC, a number of other large investors also hiked their stake in Infosys during 2012. These include foreign funds like Oppenheimer, Franklin Templeton, Aberdeen and Vanguard.

Contrarian Stocks for 2013

With NSE Nifty up 26% in 2012, people who largely took a bullish call in 2011 on Indian equities made handsome gains. However like every rally not all stocks participated and there were clear winners and losers as far as individual stock performance were concerned. 

But all is not that bad for the stock that didn't do well last year as some of them has become  candidates in the category of contra bets. Value investors always believe in contrarian investing as only that style gives them the opportunity to buy stocks cheap. Value Investors believe that by chasing euphoric stocks you run a very high risk of quick erosion in stock prices in short span of time due to profit booking or bubble burst. 

Sunmeet Kaur Sawhney from Chandigarh wins 5 crores at KBC

Sunmeet Kaur Sawhney, a 37-year-old housewife and a mother of two daughters from Chandigarh, has created history and has become the first woman on KBC , a game show based on UK format, "Who Wants to be a Millionaire", to win Rs 5 crore Jackpot. 

She is the second winner of the highest prize sum. Last season at KBC 5, Sushil Kumar from Bihar had won 5  crore jackpot.

Rupee (INR) - Dollar (USD) Outlook: 2013

Exporters, Importers and FIIs would certainly not hesitate to pay even a billion dollar if anyone can tell them where Indian rupee would be against USD at the end of 2013. Putting a number to this equation is as difficult as it to guess if world would end in 2013 instead of 2012. Humor apart, instead of wasting energy in guessing a number if we can broadly estimate what could happen in next one year it will be equally helpful in taking informed decisions.

InvestorZclub feels that year 2013 is going to be bad for Indian Rupee in spite of nearly 20 percent depreciation against the US dollar in past 2 years. Just consider following points:

Rakesh Jhunjhunwala Portfolio - 2013

Rakesh Jhunjhunwala has had a spectacular year 2012 as the Indian stock markets delivered north of 25% returns with individual stocks such as IDFC, Tata Motors etc delivering as high as more than 80% return. 

Junjhunwala's some of the favorite stocks also fared very well which helped him corner hundred's of crores of portfolio gains. His largest holding Titan Industries went up around 50% last year making his total holding in the company worth around Rs. 2,500 crores. Compared to his last year portfolio at the start of 2012, the net worth of Rakesh jhunjhunwala has gone up by around Rs. 900 crores.

As per the portfolio tracked by moneycontrol Rakesh jhunjhunwala holds following stocks worth 3483 crores as on 3rd January 2013.

Indian Stock Market - Outlook 2013

The year 2012 ended on an optimistic note for Indian Stock Markets with Nifty up around 27% in rupee terms and up 24% in dollar terms and people on the street are gungho about the Indian stock markets in 2013 and expecting another 15% to 20% return this year. However if you see the markets in the context of what happened in 2011 you might want to temper your euphoria a bit.

In 2011 Nifty was down 43% in dollar terms and 24% in rupee terms. So 2012 was a kind of upward correction and markets recovered around 50% of what it lost in 2011. With rupee being expected to stay under pressure due to high fiscal and current account deficit, FIIs, who are the major players in our market, are not likely to gain much on currency. Also the developments in United States such as debt ceiling which needs to be resolved after years of monetary easing could also be a dampening factor as far as external liquidity is concerned.

Back in India monetary easing beyond 200 bps in 2013 seems unlikely considering the negative real rate of return on fixed deposits due to more than 9 percent of consumer inflation. Also the year being the last year of the present govt, the budgets could be somewhat populist and investors might want to stay light due to elections.

Beside fundamentals one more thing that raises my eyebrows is the positiveness built in the environment. Each and every analyst on the market seems bullish and expects market to make new high. This is where I think a little bit of bad news could break the knees of the market as people will rush to protect their profits they made in 2012.

So conclusively I am not that bearish but also not very bullish on the markets in general in 2013. However selectively individual stories would play out and would deliver good returns provided you do not chase rally and buy into them whenever correction happens.

InvestorZclub is very eager to know your view on the markets. So please vote and express your opinion in comments.

Biggest Gainers and Losers in NSE Nifty - 2012

With NSE Nifty delivering around 26% return in 2012 in rupee terms the year has been spectacular for investors in general but at the same time it has been highly polarized year in terms of individual stock performances. 

If you have been in the right sector and stocks you might have delivered far more than the broader markets. Within the benchmark index itself there has been huge divergence in performance of individual stocks. For example IDFC is up 82% in 2012 while Infosys is down 16% in the same year.

Income Tax Calculator Excel (FY 2013 - 2014)

With financial year ending on 31st March 2013, if you have been thinking of how much is your income tax liability for the current financial year then here is a calculator in excel format to help you with that. It's an extremely easy to use calculator and helps you not only in assessing your income tax liability for the current financial year 2013-14 but also let's you tweak numbers under different head and plan investments accordingly. 

The income tax slabs were revised in budget 2012 and the limits were raised marginally. However there will be more savings for people earning more than 8 lakh per annum.The revised slab for the current assessment year i.e AY 2013 - 2014 is:

IIFCL Tax Free Bonds

India Infrastructure Finance Company Limited (IIFCL) will open its public issue of Tax Free Bonds of the face-value of 1,000 each in the nature of secured, redeemable, non-convertible bonds, having benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961, aggregating up to a total of Rs. 1,500 Crores with an option to retain an over subscription upto the shelf limit (i.e. 9,251 Crores ) (CBDT notification authorises IIFCL to issue Bonds for an amount aggregating to  10,000 Crores during FY13. IIFCL has already raised  785 crores on private placement basis).

Mahindra Finance Fixed Deposit

Income Tax Savings under Rajiv Gandhi Equity Saving Scheme - 80CCG

From the financial year ending March 31, 2013, there is an opportunity to save up to 50% of the amount invested in notified equity schemes under newly inserted Section 80CCG for Rajiv Gandhi Equity Saving Scheme. The income tax savings under this can be a maximum of INR 25,000.

Sell Sesa Goa 170 Dec Put option at 0.50 Premium

This month's trading idea could generate around 1.9% in 10 days or 69% annualised return and has huge probability of success considering the buoyancy in the markets and the developments happening around iron ore mining in Goa. 

Even after Supreme Court's ruling the stock refuses to go below 180 which indicates stronger long term hands might be accumulating stocks as things can go only better from current situation as far as iron ore mining in India is concerned.

Sesa Goa was our investment pick as well in November when we recommended buy on the stock in the range of 165-175.

Free online courses on Stock Market Investing and Equity Valuation

If you have a desire to learn how to value stocks and shares then the course titled "Introduction to Valuation and Investing" from Alison would definitely solve the purpose. 

This free online course on Investing is an introduction to valuation and investing and aims to take the fear-factor out of stocks and shares by explaining the concepts behind valuing and investing in a clear and simple manner.

After this course the learner is expected to Understand Income Statements; - Understand Return On Assets (ROA); - Understand Return On Equity (ROE); - Understand Price-to-Earnings ratio; - Understand depreciation; - Understand amortization;

Rural Electrification Corporation (REC) Tax Free Bonds

Rural Electrification Corporation Limited or REC opens its public issue of Tax Free Bonds of the face-value of  1,000 each aggregating up to a total of  4,500 crores. The income by way of interest on these Bonds is fully exempt from Income Tax under Section 10(15)(iv)(h) of the Income Tax Act, 1961 and shall not form a part of the total income.

The issue has 2 investment options - 7.72% p.a. (10 Yrs) & 7.88% p.a. (15 Yrs) for investments upto  10 Lakhs and 7.22% p.a. (10 Yrs) & 7.38% p.a. (15 Yrs) above 10 Lakhs. 

The issue starts on December 3, 2012. Allotment will be on a first come first serve basis across all categories.The REC issue has been rated "CRISIL AAA/Stable" by CRISIL, "CARE AAA" by CARE, "IND AAA" by IRRPL and "[ICRA] AAA" by ICRA.

These bonds are tradable and are not subjected to any lock-in.

Bharti Infratel IPO : Price Band, Size, Valuation

Bharti Infratel Ltd, the tower arm Bharti Airtel Ltd, is set to raise up to INR 4,500 crores in the month of December through it IPO. The company set a price band of 210-240 rupees per share for its IPO, which will open on Dec.10 for cornerstone investors and a day later for the public, closing on Dec. 14, it said on Friday. At the upper end of the price band, Bharti Infratel would raise about 45.3 billion rupees ($825 million).

In the sale of 188.9 million shares, or 10 percent of the company, Bharti Infratel will sell about 146 million new shares, while four of its stockholders, including arms of Singapore state investor Temasek and Goldman Sachs, are selling 42.7 million shares, according to the regulatory filing.Bharti Airtel, which owns about 86 percent of Bharti Infratel, will not sell any shares.

Goldman Sachs view on India - 2013

Goldman Sachs raised India to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead pegging December 2013 Nifty target at 6,600. 

Recent reform initiatives have created a sense of optimism among the domestic investor base for the first time in over a year, and the risk of policy missteps in 2013 has been lowered," said Goldman Sachs in a report.

The investment bank added that MSCI India's valuation was well below the 5-year average of 14.9 times, affording an attractive entry point into one of the stronger structural growth markets in the region.

Free Online Course on Finance with Certification

If you are willing to do an online course on finance which helps you get a foothold on the basic of finance and asset valuation and also provides a certificate on completion then there is a very good news for all of us willing that. 

University of Michigan is offering a free online course on Introduction to finance through Coursera which is expected to introduce you to frameworks and tools to measure value; both for corporate and personal assets. It will also help you in decision-making, again at both the corporate and personal levels. 

Free Course on Investing: MIT Sloan School of Management

If you ever wanted to attend or read lectures on investing from one of the top tier international Institution/University but couldn't do so for some reason then here is your chance to do an offline course on Investing from MIT Sloan School of Management. The full course can be downloaded directly from the link given below and it includes comprehensive set of lecture notes for all 23 lectures to explain core concepts along with the assignments and exams.

Gap Trading Strategies: How to trade gaps in stocks?

For novice traders gaps are not easy to digest due to sheer psychological reasons but seasoned traders know it's importance and how to trade it. An active trader should know the basic Gap trading strategies as they are simple to apply and produce positive outcomes most of the time. 

If you have been wondering what is meant by a gap then here is the simple definition. A gap is a change in price levels between the close and open of two consecutive days. In trading terminologies there are in general four types of gaps - Full Gap Up, Full Gap Down, Partial Gap Up, Partial Gap Down.

A Full Gap Up occurs when the opening price is greater than yesterday's high price while A Full Gap Down occurs when the opening price is less than yesterday's low. A Partial Gap Up occurs when today's opening price is higher than yesterday's close, but not higher than yesterday's high while a Partial Gap Down occurs when the opening price is below yesterday's close, but not below yesterday's low.

IPOs in December 2012

With the successful IPO issue of Mumbai based Tara Jewels, IPO market seems to have seen the light at the end of the tunnel. The issue, which closed on 23rd November, was oversubscribed 1.97 times. 

There are some five to six IPOs lined up for subscription in December which includes popular names like Bharti Infratel and CARE among others. Following are the details of issues up for grab in the following month:

Behavioural Economics - Mental Accounting for Profits and Losses

While reading Moneycontrol online I stumbled upon a very interesting article on Mental Accounting which in my view is a must read for everyone. The article explains about how people categories and treat money differently depending on where it comes from, where it is kept and how it is spent. 

I think if one can overcome this fallacy he will have altogether different perspective on Assets, Liabilities, Income and Expenditure.

Free Technical Analysis Software for Indian Stock Market

If you are an existing trader in Indian Stock Markets or just learning technical analysis to start trading, you require a software where you can plot basic as well as as advanced indicators such as Moving Averages, RSI, Bollinger Bands etc on different charts such as Line, Bar etc so that you can predict the direction and quantum of next move.

Well there are many paid as well as free software available for download but being a trader and investor for past 8 years I feel the free technical analysis software provided by some of the largest online stock brokers in India are more than sufficient for even seasoned traders as they are capable of doing both basic as well as advanced level of technical analysis.

Buy Sesa Goa in the range of 165 - 175

The recent announcement of iron ore mining ban being lifted selectively in Karnataka has triggered this buy call by InvestorZclub. It seems that all the negatives are priced in the stock of Sesa Goa, India largest iron ore mining company which derives 80% of it's ores from Goa.

Now the selective removal of mining ban will augur well for the stocks like Sesa Goa, as the news flow for the sector as a whole can only get better from here and couple of months down the line the mining ban in Goa will also be removed.

Mahurat Trading on Diwali

On the auspicious occasion of deepawali, which marks the beginning of new Samwat for hindus, Indian stock exchanges conduct Muhurat trading where the markets are open for trade for a period of 45 minutes. As diwali is also considered as the day for Goddess Laxmi, it is believed to be extremely lucky for the entire year if you buy some stocks or at least do some trade. 

For this year National Stock Exchange (NSE) announced that special Muhurat trading session will be conducted on account of Diwali on November 13 between 1545 hours and 1630 hours on the day.

Stock that could benefit from Hurricane Sandy

Hurricane Sandy is believed to the worst storm ever that has affected millions of Americans. However if you are an investor or trader in american stocks then this storm does bring some ideas for investment.  

First company that would benefit the most is Home Depot (HD). People who lost their homes and mobiles need to repurchase these products. Companies within the home improvement industry should benefit from the hurricane. Home Depot being the largest company in that category gets benefited the most.

InvestorZclub launches Forum for its Readers

After having received number of suggestions from readers regarding providing a platform for discussions related to investing and trading, InvestorZclub is extremely happy to announce an integrated discussion board for it's readers named INDIBO - Investors Discussion Board. 

The forum is based on Tal.ki and is extremely easy to use and post. Unlike other stock market forums, no registration is required here and one can login instantly with their existing facebook, google or yahoo IDs. Amit Agarwal will be actively participating in this forum and will try his best to provide value to it's loyal readers. 

You can access the forum from here: Indian Stock Market Forum

Now let's talk stocks! 

Suggestions are highly appreciated. 

Thanks a ton.

Vijay Mallya Net worth: 2012 - 2013

Vijay Mallya, also some times referred as King of good times due to his flamboyant life style, is having nothing but bad times lately. He is out of Forbes Indian billionaires list with net worth down to $ 800 million in 2012 from $ 1.1 billion as per 2011 Forbes Billionaire list. 

Vijay Mallya is the owner and chairman of the United Breweries Group. United Breweries is the second largest spirits group in the world. He has invested heavily in sports, which includes an IPL team and a Formula One team worth 88 million euros. Mallya has for himself a vintage car collection of over 250 cars. In 2009 he bought Gandhi’s wire rimmed spectacles, pocket watch and other personal possessions being sold in an auction in New York for $1.8 million USD.

Goldman Sachs View on Crompton Greaves

Goldman Sachs has upgraded Crompton Greaves to buy from neutral and has raised its target price to Rs 155 from Rs 120, citing better prospects of domestic orders and margins. 

The investment bank says the company would benefit from the balance sheet restructuring of state electricity boards and power sector reforms as over 25% of its revenues are driven by domestic power transmission and distribution capex. The investment bank also said that the company is trading at attractive valuations.

Sun TV enters IPL at huge premium: Acquires Deccan Chargers

Sun TV has bought the Deccan Charges franchise for Rs 85.05 crore a year, by out bidding PVP Ventures which placed it's bid at Rs 69.03 crore. Sun TV's price represents a 100 per cent premium over what was paid by Deccan Chronicle.

Being a shareholder I didn't liked this decision for couple of reasons. The number one being it's not an asset but a recurring cost which wipes out more than 10% of what the company could deliver in terms of profit for fiscal year 2013. Above that there is the recurring cost of acquiring players and coaches and maintenance of the team which could take away another 25 crores per annum. 

ITC: It's time to sell

ITC reported very good set of numbers for the second quarter of Fy 2013 with profit rising 21% YoY and sales rising 18% YoY. The stock reacted positively and touched all time high of 299.20 a tad below the psychological 300 mark. Everything seems to be going perfect for the company but the bigger question is should we buy the stock now? I think ITC is priced to perfection and it's time to sell if you have the stock or avoid if you don't have the stock in your portfolio. 

It's not that I am bearish on the stock, but being a contra investor I think the company is very near to its major long term top and the risk reward ratio is not in favor of investment at this level. Consider the following points:

1. ITC has 80% market share in cigarettes business which is almost at the top and cannot be increased further. So volume growth in this segment will be difficult to attain.

Reliance Industries (RIL) Q2 FY 2012 - 2013 Result and Valuation Analysis

Mukesh Ambani's flagship company Relaince Industries reported a 6% fall in net profit at Rs 5,376 crores YoY but a rise of 20% QoQ inline with street expectations. The company reported a net profit of Rs 5,703 crore in the same period a year ago. 

However, total income in the second quarter of current financial year 2012 - 2013 increased 16% to Rs 92,447 crore as against Rs 79,671 crore a year ago. The GRM for the quarter stood at $9.5 per barrel also in line with expectations. 

For the full year RIL is expected to do a PAT of around 21,000 crores which values the company, at the current market price of Rs.825, at a PE multiple of around 12.7 times which seems reasonable and neither cheep nor expensive due the recent run up in stock price from 700 levels to 840 levels and issues related to KG D6.

Is academic degree required to succeed in stock markets?

If you have been thinking that you cannot start investing in stocks markets just because you have knowledge or specialization in other field and no formal degree or qualification in finance and investing, then you should change that thinking and start right away. People from engineering, dance and other backgrounds who have nothing to do even remotely with finance and investing have been far more successful than people who have direct qualification in finance. In the following candid interview (excerpt taken from Business Standard), Vijay Kedia of Kedia Securities talks about his journey from trader to investor and how to identify multibagger stock ideas.

There is saying that if you start investing early the chances of claiming success in the markets are high. Vijay Kedia, who started his investing lessons at the age of 14 has many things to share. He speaks with Jitendra Kumar Gupta about his journey from a trader to investors and how he identifies some of the multibagger stock ideas. Kedia is director at Kedia Securities and currently runs his proprietary portfolio and holds stake in some of the companies as Agis Logistics, Godrej Properties, Cera Sanitaryware and Atul Auto among others.   

Corporate FDs Yield Comparison Table

An increasing number of investors are choosing to invest in corporate fixed deposits either to balance other riskier investments like equity or to park their funds for fixed returns acting as a safe guard of one's hard-earned money. Prudent customers are making the best of the current opportunities and freezing their investments in corporate FD's which provides higher rates than Bank FD's.

Following is the calculation of maturity value of 1 Lakh in DHFL, Mahindra Finance and Shriram Transport Finance Fixed Deposits in the below table for reference. 

Krishna Karpal Blog: Online Money Making Fraud

You might have come across an advertisement about making $6000 a month on a website which will take you to the following link: http://newsonlineweekly.com/india/finance/tf.htm

The article is completely a misleading article and many people have already fell victim to this another Internet scam. The article featuring Krishna Karpal from Bombay claims that she is making more than $7,000 a month online. The article also claims that the company is getting around thousands of people joining them every day, mostly with very little computer experience. This is a huge scam and please do not fall victim to such easy money making method. Even the snapshot of the cheque is fake as you can compare the images of cheques on these two sister pages:

Sell Maruti 1500 Oct Call Option at 10.00 Premium

This months trading idea is on a stock which is being loved by the street these days but the trade idea is on the contra side. The incremental set of good news, after the lockout at Manesar was lifted, has played it's role and the stock went up from the low of 1080 in mid July 2012 to 1390 as on 4th October 2012, an appreciation of almost 30% in 2.5 months time frame. 

CLSA downgrades Infosys - Target price 1566

CLSA in its global research report said Infosys stock could fall 40% from the current levels in 12 months. The report has fixed the price target at Rs 1,566. The report further added that sector multiples are likely to keep de-rating. The recent appreciation in the Indian currency might prove negative for the sector as well as for Infosys and its prices could fall. A 4% strengthening of the rupee will hurt Infosys earnings by about 5%. And a 13% move in the rupee would reduce earnings by 17%. In the first half of the year 2012, most of the Infosys earnings came from the nearly 8% rupee weakening. 

How to make money in stocks ebook pdf

One of best book for beginners, William O'Neil has combined both Technical & Fundamental Analysis in this best selling book which gives you a very good framework for building your own stock market investing approach. 

How to make money in stocks is a guide to understand how the Stock Market really works and it is full of clear examples and a very structured approach. O’Neil’s powerful CAN SLIM  Investing System—a proven 7-step process for minimizing risk and maximizing gains—has influenced generations of investors. William J. O'Neil is the founder and chairman of Investor's Business Daily