tag:blogger.com,1999:blog-47582157681263861512024-02-07T20:40:49.002-08:00U.S. Stock Market Analysis and Trading BlogAmit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.comBlogger23125tag:blogger.com,1999:blog-4758215768126386151.post-11131364217378337852014-08-08T09:28:00.002-07:002014-08-08T09:28:28.618-07:00Contrarian Documentary<div dir="ltr" style="text-align: left;" trbidi="on">
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Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-23051205668000682172013-09-26T11:35:00.000-07:002013-09-26T11:35:47.047-07:00Global Stock Markets in September<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibAwr3Mp0aO_WWkorAJ2qQbk7pzHdkOr7aeXUyhB052dSTpVuh3pJJIPQIkUqXyq_P_eULNp3jRpIfomD5DcOswF2JN2b0DkB2waSEyHGs8jxqsZXi32SGpabtPNfwT3ZQbSnc2e2JH-3-/s1600/Global+Markets+in+September.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="420" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibAwr3Mp0aO_WWkorAJ2qQbk7pzHdkOr7aeXUyhB052dSTpVuh3pJJIPQIkUqXyq_P_eULNp3jRpIfomD5DcOswF2JN2b0DkB2waSEyHGs8jxqsZXi32SGpabtPNfwT3ZQbSnc2e2JH-3-/s640/Global+Markets+in+September.jpg" width="570" /></a></div>
<br />
<div style="text-align: center;">
<div style="text-align: left;">
<span style="font-family: Georgia, Times New Roman, serif;">Performance snapshot of major global stock markets in September. Can this rally continue specially in emerging markets?</span></div>
</div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-24128684528139344692013-09-21T05:15:00.000-07:002013-09-21T05:15:00.769-07:00Wall Street Billionaire Traders Lifestyle<div style="text-align: justify;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhA64_DoEK25ZhA1OTNh_pYLscudx05LrVh0-ib5Fdifih5_h-pbS6lGJhQ4ptR75Q4YRB3-m7eUCdv8pbNDTOBBR9VRwfIf5E-4yfdrMXsstsfTMCuCwsXQjdSrDl0LMX__nQC3q6TyU43/s1600/Billionaire.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="Billionaire Trader" border="0" height="106" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhA64_DoEK25ZhA1OTNh_pYLscudx05LrVh0-ib5Fdifih5_h-pbS6lGJhQ4ptR75Q4YRB3-m7eUCdv8pbNDTOBBR9VRwfIf5E-4yfdrMXsstsfTMCuCwsXQjdSrDl0LMX__nQC3q6TyU43/s200/Billionaire.jpg" title="" width="200" /></a></div>
<span style="font-family: Georgia, Times New Roman, serif;">If you are an aspiring stock market investor or trader and want's a peek into the fortune and lifestyle of some of most successful traders like Steven Cohen, Paul Tudor Jones, Louis Bacon etc on wall street then the following documentary is for you. </span><br />
<span style="font-family: Georgia, Times New Roman, serif;"><br /></span>
<span style="font-family: Georgia, Times New Roman, serif;">As some one rightly said "<i>desire is the first step of any achievement</i>", this video is definitely going to stimulate your desire to be a billionaire. </span></div>
<br />
<a name='more'></a><br />
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='450' height='350' src='https://www.youtube.com/embed/ykbns1kj5Ic?feature=player_embedded' frameborder='0'></iframe></div>
<br />
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">Access the you tube link directly from <a href="http://www.youtube.com/watch?v=zo7fKmL7zqc" target="_blank">Wall Street Billionaire Trader Lifestyle Documentary</a></span></div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-76816538608004241072013-09-18T12:11:00.000-07:002013-09-18T12:18:20.737-07:00U.S long term Interest Rate Chart - 200 Years<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXwLF2octBbUbwgnTbqr5QftoEQNg_CfkqyrK7n9EfwswGT-SpfpOV0ogPVt0MtF6WYjilEfiDvwKDYJSpYXbvPMK0ma6i2qRFu-fBbHxPiSlVoOMg3YY6gLjg9wsOamzyllxTEeWT87ZO/s1600/U.S+Interest+Rate+Chart+-+200+years.PNG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="U.S Interest Rate Historical Chart" border="0" height="410" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXwLF2octBbUbwgnTbqr5QftoEQNg_CfkqyrK7n9EfwswGT-SpfpOV0ogPVt0MtF6WYjilEfiDvwKDYJSpYXbvPMK0ma6i2qRFu-fBbHxPiSlVoOMg3YY6gLjg9wsOamzyllxTEeWT87ZO/s640/U.S+Interest+Rate+Chart+-+200+years.PNG" title="" width="580" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">200 Years of U.S interest rate history</td></tr>
</tbody></table>
<br />
<span style="font-family: Georgia, Times New Roman, serif;"></span><br />
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">Bonds stayed in bull market since past 30 years and seems to be bottoming out now which ideally should lead to higher yields and lower stocks going forward.</span></div>
<span style="font-family: Georgia, Times New Roman, serif;">
</span>Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-12106251124825256192013-09-12T08:12:00.003-07:002013-09-12T08:28:09.249-07:00U.S GDP Historical Data & Quarterly Growth Rate<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3j9N8ruluCPg2T59VT28l75R6aQNu1YSv31oDRXnGvZPic3I6Z5sKzq4FJQfy1o2I3Uvjq-sWZiGj3JeaYaf9YVH32f8LFeagYgmjCaSiPO2kxuwqwCOOW-m4kYwghNhaweVPnV-QswA3/s1600/U.S+GDP+Growth+Chart.PNG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="United States Quarterly GDP Chart" border="0" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3j9N8ruluCPg2T59VT28l75R6aQNu1YSv31oDRXnGvZPic3I6Z5sKzq4FJQfy1o2I3Uvjq-sWZiGj3JeaYaf9YVH32f8LFeagYgmjCaSiPO2kxuwqwCOOW-m4kYwghNhaweVPnV-QswA3/s640/U.S+GDP+Growth+Chart.PNG" title="U.S GDP Chart" width="580" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">U.S GDP Growth Rate Chart since 2005</td></tr>
</tbody></table>
<br />
<ul>
<li style="text-align: justify;"><span style="font-family: Georgia, Times New Roman, serif;">The U.S Economy contracted for four consecutive quarters post financial crisis in 2008.</span></li>
</ul>
<ul>
<li style="text-align: justify;"><span style="font-family: Georgia, Times New Roman, serif;">The economy registered a growth rate of around 7% in the first quarter of year 2005, more than the GDP growth rate of many emerging economies today. Such high growth rate in U.S during 2005- 06 led to very high GDP growth rate of 8 to 10% in emerging Asian economies such as India, China and Brazil who benefited from increased exports. </span></li>
</ul>
<ul>
<li style="text-align: justify;"><span style="font-family: Georgia, Times New Roman, serif;">With moderated GDP growth rate in United States and Europe, Asian economies such as India and China has seen moderation in GDP growth rate post Lehman Crisis.</span></li>
</ul>
<a name='more'></a><span style="font-family: Georgia, Times New Roman, serif;"><br /></span>
<br />
<div style="text-align: left;">
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 305px;" x:str="">
<colgroup><col style="mso-width-alt: 3510; mso-width-source: userset; width: 72pt;" width="96"></col>
<col style="mso-width-alt: 3401; mso-width-source: userset; width: 70pt;" width="93"></col>
<col style="mso-width-alt: 4242; mso-width-source: userset; width: 87pt;" width="116"></col>
</colgroup><tbody>
<tr height="42" style="height: 31.5pt; mso-height-source: userset;">
<td class="xl27" height="42" style="height: 31.5pt; width: 72pt;" width="96"><span style="font-family: Georgia, Times New Roman, serif;">Quarter</span></td>
<td class="xl28" style="border-left: none; width: 70pt;" width="93"><span style="font-family: Georgia, Times New Roman, serif;">GDP ($ Trillion)</span></td>
<td class="xl29" style="border-left: none; width: 87pt;" width="116"><span style="font-family: Georgia, Times New Roman, serif;">GDP Growth
Rate(%)</span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt;" x:num="41455"><span style="font-family: Georgia, Times New Roman, serif;">Jun-13</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">16.67</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B2-B6)/B6*100" x:num="3.1559405940594156"><span style="font-family: Georgia, Times New Roman, serif;">3.16</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="41364"><span style="font-family: Georgia, Times New Roman, serif;">Mar-13</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">16.54</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B3-B7)/B7*100" x:num="3.117206982543641"><span style="font-family: Georgia, Times New Roman, serif;">3.12</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="41273"><span style="font-family: Georgia, Times New Roman, serif;">Dec-12</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">16.42</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B4-B8)/B8*100" x:num="3.792667509481678"><span style="font-family: Georgia, Times New Roman, serif;">3.79</span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="41182"><span style="font-family: Georgia, Times New Roman, serif;">Sep-12</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">16.36</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B5-B9)/B9*100" x:num="4.8046124279308131"><span style="font-family: Georgia, Times New Roman, serif;">4.80</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="41090"><span style="font-family: Georgia, Times New Roman, serif;">Jun-12</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">16.16</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B6-B10)/B10*100" x:num="4.52781371280724"><span style="font-family: Georgia, Times New Roman, serif;">4.53</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="40999"><span style="font-family: Georgia, Times New Roman, serif;">Mar-12</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">16.04</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B7-B11)/B11*100" x:num="5.2493438320209904"><span style="font-family: Georgia, Times New Roman, serif;">5.25</span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="40907"><span style="font-family: Georgia, Times New Roman, serif;">Dec-11</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">15.82</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B8-B12)/B12*100" x:num="3.8739330269205507"><span style="font-family: Georgia, Times New Roman, serif;">3.87</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="40816"><span style="font-family: Georgia, Times New Roman, serif;">Sep-11</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">15.61</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B9-B13)/B13*100" x:num="3.720930232558131"><span style="font-family: Georgia, Times New Roman, serif;">3.72</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="40724"><span style="font-family: Georgia, Times New Roman, serif;">Jun-11</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">15.46</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B10-B14)/B14*100" x:num="3.8978494623655915"><span style="font-family: Georgia, Times New Roman, serif;">3.90</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="40633"><span style="font-family: Georgia, Times New Roman, serif;">Mar-11</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">15.24</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B11-B15)/B15*100" x:num="3.8854805725971389"><span style="font-family: Georgia, Times New Roman, serif;">3.89</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="40542"><span style="font-family: Georgia, Times New Roman, serif;">Dec-10</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">15.23</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B12-B16)/B16*100" x:num="4.6016483516483513"><span style="font-family: Georgia, Times New Roman, serif;">4.60</span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="40451"><span style="font-family: Georgia, Times New Roman, serif;">Sep-10</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">15.05</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B13-B17)/B17*100" x:num="4.6592489568845608"><span style="font-family: Georgia, Times New Roman, serif;">4.66</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="40359"><span style="font-family: Georgia, Times New Roman, serif;">Jun-10</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">14.88</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B14-B18)/B18*100" x:num="3.7656903765690442"><span style="font-family: Georgia, Times New Roman, serif;">3.77</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="40268"><span style="font-family: Georgia, Times New Roman, serif;">Mar-10</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">14.67</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B15-B19)/B19*100" x:num="2.0166898470097299"><span style="font-family: Georgia, Times New Roman, serif;">2.02</span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="40177"><span style="font-family: Georgia, Times New Roman, serif;">Dec-09</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">14.56</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B16-B20)/B20*100" x:num="6.8728522336768294E-2"><span style="font-family: Georgia, Times New Roman, serif;">0.07</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="40086"><span style="background-color: #cc0000;"><span style="font-family: Georgia, Times New Roman, serif;">Sep-09</span></span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="background-color: #cc0000;"><span style="font-family: Georgia, Times New Roman, serif;">14.38</span></span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B17-B21)/B21*100" x:num="-3.0997304582210181"><span style="background-color: #cc0000;"><span style="font-family: Georgia, Times New Roman, serif;">-3.10</span></span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="39994"><span style="background-color: #cc0000;"><span style="font-family: Georgia, Times New Roman, serif;">Jun-09</span></span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="background-color: #cc0000;"><span style="font-family: Georgia, Times New Roman, serif;">14.34</span></span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B18-B22)/B22*100" x:num="-3.2388663967611366"><span style="background-color: #cc0000;"><span style="font-family: Georgia, Times New Roman, serif;">-3.24</span></span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="39903"><span style="background-color: #cc0000;"><span style="font-family: Georgia, Times New Roman, serif;">Mar-09</span></span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="background-color: #cc0000;"><span style="font-family: Georgia, Times New Roman, serif;">14.38</span></span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B19-B23)/B23*100" x:num="-1.9768234492160814"><span style="background-color: #cc0000;"><span style="font-family: Georgia, Times New Roman, serif;">-1.98</span></span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="39812"><span style="background-color: #cc0000;"><span style="font-family: Georgia, Times New Roman, serif;">Dec-08</span></span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="background-color: #cc0000;"><span style="font-family: Georgia, Times New Roman, serif;">14.55</span></span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B20-B24)/B24*100" x:num="-0.95302927161333428"><span style="background-color: #cc0000;"><span style="font-family: Georgia, Times New Roman, serif;">-0.95</span></span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="39721"><span style="font-family: Georgia, Times New Roman, serif;">Sep-08</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">14.84</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B21-B25)/B25*100" x:num="1.8531228551818775"><span style="font-family: Georgia, Times New Roman, serif;">1.85</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="39629"><span style="font-family: Georgia, Times New Roman, serif;">Jun-08</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">14.82</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B22-B26)/B26*100" x:num="2.066115702479344"><span style="font-family: Georgia, Times New Roman, serif;">2.07</span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt;" x:num="39538"><span style="font-family: Georgia, Times New Roman, serif;">Mar-08</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">14.67</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none; outline: 0px;" x:fmla="=(B23-B27)/B27*100" x:num="3.0196629213483126"><span style="font-family: Georgia, Times New Roman, serif;">3.02</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="39446"><span style="font-family: Georgia, Times New Roman, serif;">Dec-07</span></td>
<td class="xl25" style="border-left: none; border-top: none;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">14.69</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B24-B28)/B28*100" x:num="4.4065387348969383"><span style="font-family: Georgia, Times New Roman, serif;">4.41</span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="39355"><span style="font-family: Georgia, Times New Roman, serif;">Sep-07</span></td>
<td class="xl25" style="border-left: none; border-top: none;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">14.57</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B25-B29)/B29*100" x:num="4.7447879223580163"><span style="font-family: Georgia, Times New Roman, serif;">4.74</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="39263"><span style="font-family: Georgia, Times New Roman, serif;">Jun-07</span></td>
<td class="xl25" style="border-left: none; border-top: none;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">14.52</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B26-B30)/B30*100" x:num="5.2173913043478173"><span style="font-family: Georgia, Times New Roman, serif;">5.22</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="39172"><span style="font-family: Georgia, Times New Roman, serif;">Mar-07</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">14.24</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B27-B31)/B31*100" x:num="4.3223443223443212"><span style="font-family: Georgia, Times New Roman, serif;">4.32</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="39081"><span style="font-family: Georgia, Times New Roman, serif;">Dec-06</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">14.07</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B28-B32)/B32*100" x:num="5.1569506726457357"><span style="font-family: Georgia, Times New Roman, serif;">5.16</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="38990"><span style="font-family: Georgia, Times New Roman, serif;">Sep-06</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">13.91</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B29-B33)/B33*100" x:num="5.2990158970476857"><span style="font-family: Georgia, Times New Roman, serif;">5.30</span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="38898"><span style="font-family: Georgia, Times New Roman, serif;">Jun-06</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">13.8</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B30-B34)/B34*100" x:num="6.3174114021571661"><span style="font-family: Georgia, Times New Roman, serif;">6.32</span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="38807"><span style="font-family: Georgia, Times New Roman, serif;">Mar-06</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">13.65</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:fmla="=(B31-B35)/B35*100" x:num="6.4742589703588145"><span style="font-family: Georgia, Times New Roman, serif;">6.47</span></td>
</tr>
<tr height="21" style="height: 15.75pt; outline: 0px;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="38716"><span style="font-family: Georgia, Times New Roman, serif;">Dec-05</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">13.38</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:num="6.528662420382167"><span style="font-family: Georgia, Times New Roman, serif;">6.53</span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="38625"><span style="font-family: Georgia, Times New Roman, serif;">Sep-05</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">13.21</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:num="6.7906224737267724"><span style="font-family: Georgia, Times New Roman, serif;">6.79</span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="38533"><span style="font-family: Georgia, Times New Roman, serif;">Jun-05</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">12.98</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:num="6.5681444991789881"><span style="font-family: Georgia, Times New Roman, serif;">6.57</span></td>
</tr>
<tr height="21" style="height: 15.75pt;">
<td class="xl24" height="21" style="border-top: none; height: 15.75pt; outline: 0px;" x:num="38442"><span style="font-family: Georgia, Times New Roman, serif;">Mar-05</span></td>
<td class="xl25" style="border-left: none; border-top: none; outline: 0px;" x:num=""><span style="font-family: Georgia, Times New Roman, serif;">12.82</span></td>
<td align="right" class="xl26" style="border-left: none; border-top: none;" x:num="6.9224353628023358"><span style="font-family: Georgia, Times New Roman, serif;">6.92</span></td>
</tr>
</tbody></table>
</div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-88276316948595760362013-09-11T06:06:00.000-07:002013-09-11T06:12:45.805-07:00IT Service Companies Valuation comparison<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">With gradual US and Europe recovery, the most likely beneficiaries are global IT service companies and the stock of top 10 IT solution providers are already reflecting the optimism. Most of them are at 52 week high and are trading at the higher end of the last 5 years valuation range. </span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">However within IT space some companies, which have higher growth rates and superior return ratios, are commanding relatively much higher valuation than their peers. For instance TCS is trading at 27 times PE multiple vs it's closest comparative competitor Accenture which is trading at just 17 times based on trailing 12 months EPS. IBM the largest of the pack is trading at 12.4 times TTM EPS.</span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">TCS, with market value of $60 billion, is now the second most valuable company in the world after IBM which commands a market value of $202 billion. Accenture though larger in size than TCS in terms of revenue commands a market value of $50 billion. Having delivered more than 60% return this calender year, <a href="http://www.investorzclub.com/2013/08/clsa-outlook-on-tcs-stock-price.html" target="_blank">TCS is globally the most expensive stock in it's peer group</a>. TCS has the highest <a href="http://www.investorzclub.com/2011/09/it-software-companies-market-share-in.html" target="_blank">market share in Indian IT industry</a> in terms of revenue and has the market value equivalent to the market value of IT service companies in 2nd to 5th spot. </span></div>
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<table border="1" cellpadding="0" cellspacing="0" style="background-color: white; border-spacing: 0px; color: black; font-family: Tahoma, Arial, Georgia; font-size: 12px; line-height: 18px; width: 388px;"><tbody>
<tr height="20"><td colspan="3" height="20" style="height: 20px; width: 388px;"><strong> Global IT companies valuation comparison (2013 - 2014)</strong></td></tr>
<tr height="20"><td height="20" style="height: 20px;"><strong> Company</strong></td><td><strong> Market Cap ($/billion)</strong></td><td><strong> P/E Multiple*</strong></td></tr>
<tr height="20"><td height="20" style="height: 20px;">IBM</td><td align="right">202.6</td><td align="right">12.4</td></tr>
<tr height="20"><td height="20" style="height: 20px;">TCS</td><td align="right">60.0</td><td align="right">26.9</td></tr>
<tr height="20"><td height="20" style="height: 20px;">Accenture</td><td align="right">50.6</td><td align="right">17.1</td></tr>
<tr height="20"><td height="20" style="height: 20px;">H P</td><td align="right">43.0</td><td align="right">13.4</td></tr>
<tr height="20"><td height="20" style="height: 20px;">Infosys</td><td align="right">27.3</td><td align="right">19.0</td></tr>
<tr height="20"><td height="20" style="height: 20px;">Wipro</td><td align="right">24.7</td><td align="right">23.3</td></tr>
<tr height="20"><td height="20" style="height: 20px;">Dell</td><td align="right">24.3</td><td align="right">14.7</td></tr>
<tr height="20"><td height="20" style="height: 20px;">Cognizant</td><td align="right">23.6</td><td align="right">20.8</td></tr>
<tr height="20"><td height="20" style="height: 20px;">Cap Gemini</td><td align="right">9.1</td><td align="right">18.8</td></tr>
<tr height="20"><td height="20" style="height: 20px;"></td><td></td><td></td></tr>
<tr height="20"><td colspan="2" height="20" style="height: 20px;">Based on EPS in preceding 12-months</td><td></td></tr>
<tr height="20"><td colspan="3" height="20" style="height: 20px;"><br /></td></tr>
</tbody></table>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-69501457728169685022013-08-22T11:23:00.000-07:002013-08-22T11:23:31.224-07:00Advantages and dis-advantages of weak INR vs USD<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7UglrQ3P7aQ2Rek7cTg1mZnnrWJTTyCg1u5jenlwOIKscnp56pDERaQXG2wX8tqq9BCdYNK9hGEihX9tQCu9C7FInQ4_2orZDHcLWts_TX6NSJWtBn_lerUskyYZJBzhWepZZfh_WLaT9/s1600/USD-INR-ASR1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="USD vs INR" border="0" height="148" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7UglrQ3P7aQ2Rek7cTg1mZnnrWJTTyCg1u5jenlwOIKscnp56pDERaQXG2wX8tqq9BCdYNK9hGEihX9tQCu9C7FInQ4_2orZDHcLWts_TX6NSJWtBn_lerUskyYZJBzhWepZZfh_WLaT9/s200/USD-INR-ASR1.jpg" title="" width="200" /></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Sharply <a href="http://www.investorzclub.com/2013/08/usd-vs-inr-is-this-top.html" target="_blank">falling Indian Rupee</a>, which has crashed more than 20% since 1st May 2013, is giving sleepless night to importers and RBI but costly import due to currency depreciation is only one side of the coin. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">There are distinct advantages of weaker INR against USD beside having obvious problems. Following are the interesting pros and cons of weak INR vis-a-vis USD.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><b><u>Advantages:</u></b></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">1. The most obvious benefit is to the exporter, which in turn would revive economic growth. Textile sector is among the first off the block. The sector has witnessed strong growth which is reflected in the numbers disclosed by the ministry. In fact, the ministry has revised its export target by 20%. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">2. Foreign investment both through the secondary market and direct investment into sectors which are relatively sheltered from a weak currency can yield better returns over the long run. A stronger dollar would give the investor more rupees in his hand and thus an opportunity to buy more shares.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">3. Though India does not attract the massage seekers, a weak currency can make the destination attractive for in-bound traffic. Medical tourism can get a shot in the arm.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">4. A number of Indian companies now have sizeable international presence apart from direct exports. A stronger foreign currency helps boost their consolidated numbers. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">5. Import substitutable products get an indirect shelter on account of a weak currency. Metals, especially steel was affected by imports from other Asian countries, but a weak rupee has increased the landed price of these products. A number of sectors and companies that price their products on import parity basis will benefit. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><b><u>Disadvantages:</u></b></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">1. India imports key inputs like oil which is the fuel for its growth. Rising imports will increase the current account deficit. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">2. A weak rupee imports inflation as it increases the cost of imported goods. This will further reduce RBI's ability to lower key policy rates. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">3. Students looking to study abroad are severely hit as they have to shell out more rupees to meet the cost. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">4. Certain sectors which are dependent on imports become uncompetitive. With government discouraging imports of non-essential goods like Gold, a weak rupee can lead to rising unemployment.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">5. It affects those companies who have raised debt abroad and have not fully-hedged their position. </span></div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-9338649051642289452013-08-13T07:04:00.001-07:002013-08-13T07:04:35.105-07:00Tupperware Brands: Stock Analysis and Valuation<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIdTVjZEgLHL98O4nvTRsqp3NaZQEuf1fDocRTMac4nCCidEBJi1Iexw5aDDMj_vL8iyZo3KytrX3FZ9_m0iBXnuU9T-wXR_UHeugop1_D9idYMjeaS0jx25-HaNk_-dtM6eFxTw_S6-lK/s1600/Tupperware.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="Tupperware Image" border="0" height="140" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIdTVjZEgLHL98O4nvTRsqp3NaZQEuf1fDocRTMac4nCCidEBJi1Iexw5aDDMj_vL8iyZo3KytrX3FZ9_m0iBXnuU9T-wXR_UHeugop1_D9idYMjeaS0jx25-HaNk_-dtM6eFxTw_S6-lK/s320/Tupperware.jpg" title="" width="290" /></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;">When my sister in law became Tupperware's member recently and shared some of the business dynamics, and internals of the company I got so thrilled that I immediately bought $200 worth of products and went on to search if it is listed on Indian bourses. I found it listed in U.S markets as <a href="http://www.bloomberg.com/quote/TUP:US" target="_blank">TUP</a> and already hitting 52 week high. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">What struck me most is the Return on Equity that company is generating which is north of 70%. Tupperware has huge potential in India and other emerging economies as their products have become quite affordable in these economies due to rising per capita income. </span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOBxZseBeDKjQCtwwjpCWdg4EgQelIi_kdxB3QkxS07iiYTYx7f38gzaBBYW8pdI0-_BGRp8PeWQViWqatfoizFQuwQRS3_s5Ybufgv_IKO9yDysF8TVIh9kmJq1AOMD9kIWm7Bt6wOr0J/s1600/Tupperware+Stock+Chart.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Tupperware Brands Corp Stock Price Chart" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOBxZseBeDKjQCtwwjpCWdg4EgQelIi_kdxB3QkxS07iiYTYx7f38gzaBBYW8pdI0-_BGRp8PeWQViWqatfoizFQuwQRS3_s5Ybufgv_IKO9yDysF8TVIh9kmJq1AOMD9kIWm7Bt6wOr0J/s1600/Tupperware+Stock+Chart.JPG" title="" /></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;">As on 12th Aug 2013 the stock of <b>Tupperware Brands Corp</b> closed at $87.50 and had a market value of $4.7 billion. At this price the stock is trading at a PE multiple of around 16 times based on $5.5 estimated EPS for the year ending Dec 2013. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The multiples are not very cheap but in the context of expected double digit growth in revenues and superior return ratios, the stock is expected to continue to command higher multiples going forward. The stock is a strong portfolio candidate on any correction with a price target of $100 in 12 to 15 months.</span></div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-64274620278451102792013-08-11T05:04:00.000-07:002013-08-11T05:10:59.640-07:00Which is the best country for investment 2013 - 14?<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhC4mb55n-g97EKBYhiPJdIlHwg92OFsan3pvTn0EKxMVsynOutSnro-bK-jP0ZrxlMe9unWHPDqcJURyvZBnFwFRjLgcRH4fO_zauCdqKhT5IonmWAoGevYopOASc6C4bFnRJd0TFoP4F2/s1600/U.S+Investment+Poll.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="Best country for investment" border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhC4mb55n-g97EKBYhiPJdIlHwg92OFsan3pvTn0EKxMVsynOutSnro-bK-jP0ZrxlMe9unWHPDqcJURyvZBnFwFRjLgcRH4fO_zauCdqKhT5IonmWAoGevYopOASc6C4bFnRJd0TFoP4F2/s320/U.S+Investment+Poll.JPG" title="" width="292" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Yahoo Finance Poll result on<br />
Best country for investment</td></tr>
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<span style="font-family: Georgia, Times New Roman, serif;">According to a <a href="http://finance.yahoo.com/" target="_blank">Yahoo finance</a> poll conducted in August 2013, U.S is clearly the first choice among investors. Around 67% votes (62k voters+) went in favor of U.S while 10% voted for Europe. So far in 2013 U.S stock markets has been the best performing large sized market in the world while the flavor of the past year, BRIC nations, has performed very poorly. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">With rising employment, GDP and stability in the U.S economy it has again become the preferred choice for large investors who went scouting for investment avenues after the crisis hit U.S in 2008. Brazil, Russia, India, China, Turkey and many mid and large sized developing economies received huge inflows from funds and institutional investors from U.S. and European region for the sake of diversification and delta. </span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif;">The quantitative easing part 3 created mini bubbles in debt, equity and currency of many emerging economies which are now being punctured by the hawkish Fed tone to roll back QE3. Hardening 10 year treasury yields and outperforming U.S equities lead to massive debt & equities outflow from emerging economies in short period of time which created sell off in most of the developing economy currencies including India, Brazil, Russia etc. For Instance India saw an outflow of nearly $10 from debt & equity put together in the month of June and July 2013 and the currency depreciated more than 10% since the start of this year. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">There is no doubt that the american govt and Fed has handled the crisis very well and has done all the right things to boost consumer and investor's <b>confidence</b> back in the country, which I believe is the key to growth and stability for any country. Right now what emerging economies are facing is more of a crisis of confidence. With U.S economy and companies reporting increasingly better number in coming months, the confidence of investors globally seems to be heading only northward. </span></div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-78077524763499681372013-08-06T05:53:00.000-07:002013-08-06T05:53:02.626-07:00Warren Buffet Holding in Washington Post<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqFAMWoNUZhawpGvyx_KsOSvMWIBahtOXiGccauJ8AJYs8HKxTVxNvW6HA6lDQ7eEcDtM75l6O1GUapUm_Rvdn5V_l9IYYZI77AYSC94bTbhJhjIXvRzovFxeoc0CUNyR4xrJjnQj-9byo/s1600/Warren-Buffett-Washington-Post.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="110" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqFAMWoNUZhawpGvyx_KsOSvMWIBahtOXiGccauJ8AJYs8HKxTVxNvW6HA6lDQ7eEcDtM75l6O1GUapUm_Rvdn5V_l9IYYZI77AYSC94bTbhJhjIXvRzovFxeoc0CUNyR4xrJjnQj-9byo/s200/Warren-Buffett-Washington-Post.jpg" width="200" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><span style="font-size: xx-small;">Warren Buffet with Katharine Graham</span></td></tr>
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<span style="font-family: Georgia, Times New Roman, serif;">Warren Buffet, the billionaire investor and chairman of Berkshire Hathaway, has spent 25 years on Washington Post board while holding 1.7 million shares in the company. Buffet started accumulating post shares in 1973. As of 2004, he owned 1.7 million shares at a cost basis of $11 million. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">As per the <a href="http://www.sec.gov/Archives/edgar/data/1067983/000119312513222307/0001193125-13-222307.txt" target="_blank">Berkshire Hathaway's latest 13-F</a>, he still owns the same number of shares which at current market price of $568 is valued a little less then a billion dollar, $0.965 billion precisely. The Buffet's investment in Washington post has appreciated by whopping 8700% in less than 40 years, a CAGR of around 13%.</span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif;">Jeff Bezos, CEO and founder of Amazon, having worth over $25 billion, has recently bought the </span><a href="http://www.washingtonpost.com/national/washington-post-to-be-sold-to-jeff-bezos/2013/08/05/ca537c9e-fe0c-11e2-9711-3708310f6f4d_story.html" style="font-family: Georgia, 'Times New Roman', serif;" target="_blank">Washington Post for $250 million</a><span style="font-family: Georgia, 'Times New Roman', serif;">. Bezos, 49, who has invested in the paper on his own and not through Amazon, will take the company private, meaning he will not have to report quarterly earnings to shareholders or be subjected to investors’ demands for ever-rising profits, as the publicly traded Washington Post Co. is obligated to do now. The paper will also get a new name once the transaction is completed.</span></div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-7670107553863713292013-08-02T06:27:00.001-07:002013-08-02T06:35:29.491-07:00The U.S. unemployment rate at 7.4% in July 2013<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">For the month of July 2013 the U.S. payrolls went up by 162,000 workers and the unemployment rate fell to 7.4% from <a href="http://outside-trading.blogspot.in/2013/07/us-jobs-data-june-2013-highlights.html" target="_blank">7.6% in June 2013</a>. Last month payrolls went up by 195,000 workers. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The good news regarding jobs data in U.S. continued in July thereby increasing the chance of fed tapering from September onward.</span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">The rising bond yields will push up dollar and hammer both developed and emerging market equities.</span></div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-36375245873178058352013-08-01T07:18:00.001-07:002013-08-01T07:18:27.224-07:00ArcelorMittal's Steel and Profit Outlook 2013<div style="text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIMCGfZi8iiwepUHCwaSB82PEl17BDtJIhCS8SkssyzdEDn5o3UwC176RjQCXt3dinhM_j1mIBYp1dvLuP1tHTy0Wm9hgSHz1cqOEnTP5W8uwcwTZvxaXYi6exx3zrWSJYU1Wdv-qIJ5JM/s1600/ArcelorMittal.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="149" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIMCGfZi8iiwepUHCwaSB82PEl17BDtJIhCS8SkssyzdEDn5o3UwC176RjQCXt3dinhM_j1mIBYp1dvLuP1tHTy0Wm9hgSHz1cqOEnTP5W8uwcwTZvxaXYi6exx3zrWSJYU1Wdv-qIJ5JM/s200/ArcelorMittal.jpg" width="200" /></a><span style="font-family: Georgia, Times New Roman, serif;">The world's largest steelmaker, <b>ArcelorMittal</b>, has cut its 2013 <b>profit</b> guidance due to weaker than estimated steel demand in Europe and U.S. The company expects steel consumption in the United States to remain flat or rise by 1% at most in 2013 while the European market could shrink by 1.5 to 2.5%. Previously, it had seen US growth between 2 and 3% and European consumption falling between 0.5 and 1.5%. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Overall, the group sees steel shipments rising between 1 and 2% in 2013, driven by a 3% rise of global steel consumption. The company believes Europe will be the only region where demand will fall.</span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif; text-align: justify;">The firm expects it's EBITDA to be more than $6.5 billion in 2013, versus a previous forecast to beat the $7.1 billion reported in 2012. ArcelorMittal, which sold around 45% of its steel in Europe last year, said second-quarter EBITDA, or core profit, fell 33.5% year-on-year to $1.70 billion, below the analysts' average forecast of $1.75 billion in a Reuters poll. The company, which lost its investment grade credit rating last year, said that its net debt fell to $16.2 billion at the end of the second quarter but that this figure would rise to about $17 billion in the second half of 2013 because of investment in working capital and the payment of the annual dividend.</span><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh0hjigZmRp7qpEfPS82VR7W3NS8deVd-eNwloVpoIpalEUqJtVLJMKHoNFFEketGAWzDPkOFuymPdIPRuzes5AZCYAatjajmHrFq3sYsh7fKtHzL3-mM-mmSh7lO9Uf2YAaUA7JmwZMMFL/s1600/ArcelorMittal+Stock+Price+Chart.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh0hjigZmRp7qpEfPS82VR7W3NS8deVd-eNwloVpoIpalEUqJtVLJMKHoNFFEketGAWzDPkOFuymPdIPRuzes5AZCYAatjajmHrFq3sYsh7fKtHzL3-mM-mmSh7lO9Uf2YAaUA7JmwZMMFL/s1600/ArcelorMittal+Stock+Price+Chart.PNG" /></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Share of ArcelorMittal (<a href="http://www.bloomberg.com/quote/MT:US" rel="nofollow" target="_blank">MT</a>) has lost around 30% since 1st Jan 2013 and is currently hovering around $12 valuing the company at around $21.5 billion. With Enterprise value at around $38 billion the company share are trading at an EV to EBIDTA valuation of 5.8 times which is quite cheap compared to it's historical averages and replacement cost.</span></div>
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Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-26585304408003403212013-07-31T07:02:00.000-07:002013-07-31T07:02:52.195-07:00Jim Cramer's 25 rules of Investing pdf<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPxvreEKSGAF71gbEsDBPHBbeUtIROU6PeEAWfZ_oJ-FE07qTPIzB7V9DBWrz4e7tgUBKkt24HrVYngEPcHb3mlE0piAel00ozdccjdSiAHUKJmcD0qPnfLRkJ_RWAwoJzaPzEuQi9qCV2/s1600/Jim-Cramer.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPxvreEKSGAF71gbEsDBPHBbeUtIROU6PeEAWfZ_oJ-FE07qTPIzB7V9DBWrz4e7tgUBKkt24HrVYngEPcHb3mlE0piAel00ozdccjdSiAHUKJmcD0qPnfLRkJ_RWAwoJzaPzEuQi9qCV2/s200/Jim-Cramer.jpg" width="190" /></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><b>Jim Cramer</b> a popular name on Wall Street and CNBC and a successful trader and investors with decades of trading experience has set out 25 rules that any investor / trader must follow in order to stay in the game and make money trading markets. He is the </span><span style="font-family: Georgia, 'Times New Roman', serif;">co-founder & Chairman of <a href="http://thestreet.com/" rel="nofollow" target="_blank">thestreet.com</a>. </span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif;">Following is the list of rules which are self explanatory but for details on each rule you can use the link provided at the end to download the full pdf of "</span><b style="font-family: Georgia, 'Times New Roman', serif;">Jim Cramer's 25 rules of Investing</b><span style="font-family: Georgia, 'Times New Roman', serif;">"</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">1. Bulls Make Money, Bears Make Money, Pigs Get Slaughtered</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">2. It’s OK to Pay the Taxes</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">3. Don’t Buy All at Once</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">4. Buy Damaged Stocks, Not Damaged Companies</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">5. Diversify to Control Risk</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">6. Do Your Stock Homework</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">7. No One Made a Dime by Panicking</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">8. Buy Best-of-Breed Companies</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">9. Defend Some Stocks, Not All</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">10. Bad Buys Won’t Become Takeovers</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">11. Don’t Own Too Many Names</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">12. Cash Is for Winners</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">13. No Woulda, Shoulda, Couldas</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">14. Expect, Don’t Fear Corrections</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">15. Don’t Forget About Bonds</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">16. Never Subsidize Losers With Winners</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">17. Check Hope at the Door</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">18. Be Flexible</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">19. When the Chiefs Retreat, So Should You</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">20. Giving Up on Value Is a Sin</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">21. Be a TV Critic</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">22. Wait 30 Days After Warnings</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">23. Beware the Wall Street Hype </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">24. Explain Your Picks</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">25. There’s Always a Bull Market</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">To download the PDF containing detailed explanation with examples on each rule use the follwoing link: <a href="http://www.thestreet.com/files/m/white-paper/sb-72/prrg-0014_white_paper.pdf" target="_blank">Jim Crammer's 25 rules of Investing pdf</a></span></div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-72183159987426004392013-07-25T13:00:00.001-07:002013-07-25T13:00:45.284-07:00Facebook Near IPO Price - Stock @ 52 Week High<div style="text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEih2kzZlBLq6roIcza_zvJ-mIkYfo27jn24sD7LdjjG4inJvyjlDjwkqvIkxOzbSpEn3bE_iI9H_hlecHzQAdKBTGdBoX22N4qkziTSV2eJgbutRVfOjbgtfmxOADhWgPepV6hAV1iBubsb/s1600/Face4.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="Mark Zuckerberg" border="0" height="169" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEih2kzZlBLq6roIcza_zvJ-mIkYfo27jn24sD7LdjjG4inJvyjlDjwkqvIkxOzbSpEn3bE_iI9H_hlecHzQAdKBTGdBoX22N4qkziTSV2eJgbutRVfOjbgtfmxOADhWgPepV6hAV1iBubsb/s200/Face4.jpg" title="" width="200" /></a><span style="font-family: Georgia, Times New Roman, serif;">Facebook(<a href="http://finance.yahoo.com/q?s=FB%2C+&ql=1" target="_blank">FB</a>) Stock soared more than 30% on 25th July 2013 after announcing Q2 results which were far ahead of street estimates. Many were short on the stock ahead of earnings as analysts were expecting weak set of numbers from the social media giant. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Contrary to that Facebook surprised street by delivering better than expected performance on all parameters. Short Squeeze coupled with fresh interest in the counter led to a massive rally in the stock which added more than $20 billion to it's market value.</span></div>
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<span style="font-family: Georgia, 'Times New Roman', serif;">The stock made fresh 52 week high at $35 and is very close to it's IPO price. In May 2012 Facebook came out with an IPO at $38 per share valuing the company at over $100 billion. Soon after IPO the stock came down substantially due to several reasons and touched a low of $17.5, a fall of 54% from the IPO price.</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAIWtMBAspfr3tMl1B2pKaPZJTTfFi5iC5eynnUW_0vibE6uQZuhh7csRpG4jdz9CUiy2QaqBH7WfUDLAYYVYIDteQAsyVBjYfMGGKiO00cTTEf3gIO_SBuMjqW8BwK_rT52e8-9647vEx/s1600/Facebook.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Facebook at 52 week high" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAIWtMBAspfr3tMl1B2pKaPZJTTfFi5iC5eynnUW_0vibE6uQZuhh7csRpG4jdz9CUiy2QaqBH7WfUDLAYYVYIDteQAsyVBjYfMGGKiO00cTTEf3gIO_SBuMjqW8BwK_rT52e8-9647vEx/s1600/Facebook.JPG" title="" /></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;">After announcement of second quarter result the confidence of investors seems to be returning back in the company it appears that the stock will move past it's IPO price in few weeks. Long term investors must avoid the stock as the valuation of stock is way beyond the comfort zone and could crash if stock fails to showcase similar performance in subsequent quarters.</span></div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com1tag:blogger.com,1999:blog-4758215768126386151.post-70385114635288413362013-07-23T09:12:00.000-07:002013-07-23T09:12:10.507-07:00City of Detroit Bankruptcy and Interesting Facts<div style="text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9XXJLz_BhRfDKc2H8b6blkwhTUigFBDLoZdTI07hFJk4nHgFaJ1hN7_fH_P96-QKJ8Ir7rvuZRH5hQf_OFhTe4zTs1QbQnV9bjJ92SmE3FVD4Aa2ikoREfprMAMFNEu-wXmleQwFdV7zk/s1600/Detroit-City.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="119" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9XXJLz_BhRfDKc2H8b6blkwhTUigFBDLoZdTI07hFJk4nHgFaJ1hN7_fH_P96-QKJ8Ir7rvuZRH5hQf_OFhTe4zTs1QbQnV9bjJ92SmE3FVD4Aa2ikoREfprMAMFNEu-wXmleQwFdV7zk/s200/Detroit-City.jpg" width="200" /></a><span style="font-family: Georgia, 'Times New Roman', serif;">Once a city with 1.8 million people and highest per capita income in whole of United States, City of Detroit, in the state of Michigan, is now in a mess and has filed for Chapter 9 bankruptcy. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The city is now having highest crime rate, poverty and illiteracy. Below are some key interesting facts of once thriving city now in doldrums. </span><span style="font-family: Georgia, 'Times New Roman', serif;">Crime has gotten so bad in the city that even the police are telling people to “enter Detroit at your own risk“.</span></div>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">In 1960, the city of Detroit had the highest per-capita income in whole of United States.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">In 1950, there were about 296,000 manufacturing jobs in Detroit while today it's less than 27,000.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">Detroit was once the fourth-largest city in the United States, but over the past 60 years the population of Detroit has fallen by 63 percent.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">As of July 2013, the city of Detroit owes money to more than 100,000 creditors.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">Detroit is facing $20 billion in debt and unfunded liabilities. That breaks down to more than $25,000 per resident.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">Between December 2000 and December 2010, 48 percent of the manufacturing jobs in the state of Michigan were lost.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">At this point, there are approximately 78,000 abandoned homes in the city.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">There are lots of houses available for sale in Detroit right now for $500 or less.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">About one-third of Detroit’s 140 square miles is either vacant or derelict.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">An astounding 47 percent of the residents of the city of Detroit are functionally illiterate.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">Less than half of the residents of Detroit over the age of 16 are working at this point.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">It is estimated that 60 percent of all children in the city of Detroit are living in poverty.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">The city of Detroit is now very heavily dependent on the tax revenue it pulls in from the casinos in the city. Right now, Detroit is bringing in about 11 million dollars a month in tax revenue from the casinos.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">40 percent of the street lights do not work.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">Only about a third of the ambulances are running. Some ambulances in the city of Detroit have been used for so long that they have more than 250,000 miles on them.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">Two-thirds of the parks in the city of Detroit have been permanently closed down since 2008.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">The size of the police force in Detroit has been cut by about 40 percent over the past decade.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">When you call the police in Detroit, it takes them an average of 58 minutes to respond.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">Due to budget cutbacks, most police stations in Detroit are now closed to the public for 16 hours a day.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">The violent crime rate in Detroit is five times higher than the national average.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">The murder rate in Detroit is 11 times higher than it is in New York City.</span></li>
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<li style="text-align: justify;"><span style="font-family: Georgia, 'Times New Roman', serif;">Today, police solve less than 10 percent of the crimes that are committed in Detroit. </span></li>
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Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-75968795148250467622013-07-23T06:24:00.000-07:002013-07-23T06:24:22.721-07:00Netflix Valuation Unsustainable<div style="text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7QwIATyk6F01od0fIioSXTz4TwvV_87LyIgA6_lVuNIStoZ-jBoVHC4EeioaljJy5Pe_rsloX4KszNKhElweTXi72S8KvRcYXqyB9z7t1Ca7Bj994e-4DdPPjJuiTxRjrSo1pdKXVbhlX/s1600/Netflix+Logo.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="103" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7QwIATyk6F01od0fIioSXTz4TwvV_87LyIgA6_lVuNIStoZ-jBoVHC4EeioaljJy5Pe_rsloX4KszNKhElweTXi72S8KvRcYXqyB9z7t1Ca7Bj994e-4DdPPjJuiTxRjrSo1pdKXVbhlX/s200/Netflix+Logo.jpg" width="200" /></a><span style="font-family: Georgia, Times New Roman, serif;"><b>Netflix</b> (NFLX) is one of the hottest stock on wall street these days and why not when it has gone up 5 times from it's low of $53 in one year. The stock closed at $261 on 22nd July with 52 week high low for the stock at $270.3 and $52.8 respectively. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">For the second quarter of current financial year Netflix reported $1.07 billion of revenue and an earnings per share of 49 cents. For the year 2013 the company is expected to report an EPS of around $2.0 on revenues of approximately $4.3 billion. </span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">At current market price of $261, the common stock is valued at a PE multiple of over 130 times. </span><span style="font-family: Georgia, 'Times New Roman', serif;">With $14.7 in market value the stock is trading at 3.4 times 2013 sales and more than 13 times Price to Book. </span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbaQk2ykmGFDOepx3v9m657DjrmfI3ICEju787h4WVtTWVy7Kv75O2XduWx6JttswvZUltHtOetOHH4u3zLLNl401jZDzp9QUoMJJDcFeVbLd1jESJeOHaVUfdxEdcjjM9bDyVepB_Nuv3/s1600/Netflix+one+year+chart.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Netflix one year chart" border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbaQk2ykmGFDOepx3v9m657DjrmfI3ICEju787h4WVtTWVy7Kv75O2XduWx6JttswvZUltHtOetOHH4u3zLLNl401jZDzp9QUoMJJDcFeVbLd1jESJeOHaVUfdxEdcjjM9bDyVepB_Nuv3/s640/Netflix+one+year+chart.PNG" title="" width="560" /></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The current <b>valuation</b> of Netflix is discounting huge growth in subscribers, revenues and profits going forward as a result of new season of "Arrested Developments". Apple Inc Stock lost its ground due to the same kind of lofty expectations which made the stock crash from $700 to $400 in matter of weeks when company failed to deliver on those high expectations. The risk of same story getting repeated in case of Netflix is also very high as the valuations are way to high for a risky and unpredictable business model that Netflix depends upon.</span></div>
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Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-79686665069074201902013-07-22T10:35:00.000-07:002013-07-22T10:35:15.112-07:00McDonald Q2 2013 Result and Valuation Analysis<div style="text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhfmyBsxhrMKDw2HzslXHPtPmZsbizcC3bgTJ20a0a4PWL7kq2lvndgGaoR4-vVmptL326G6fUtNzqxpWQfVT6-ii-fcsxDacO1ocCXrTZ6MyWEzoL9M25CIA4TuqOG9On8ndAZkZfowGv_/s1600/Mcdonalds-logo.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="151" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhfmyBsxhrMKDw2HzslXHPtPmZsbizcC3bgTJ20a0a4PWL7kq2lvndgGaoR4-vVmptL326G6fUtNzqxpWQfVT6-ii-fcsxDacO1ocCXrTZ6MyWEzoL9M25CIA4TuqOG9On8ndAZkZfowGv_/s200/Mcdonalds-logo.png" width="200" /></a><span style="font-family: Georgia, Times New Roman, serif;">The Burger giant, McDonald (<a href="http://www.bloomberg.com/quote/MCD:US" rel="nofollow" target="_blank">MCD</a>) posted earnings of $1.38 per share, up from $1.32 a share in the year-earlier period. Revenue increased to $7.08 billion from $6.92 billion a year ago.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Domestic and total global sales rose by a percent, yet those gains were offset by relatively flat performance in Europe and Asia, Middle East and Africa.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The company is expected to report around $5.6 of EPS in 2013 and at $98 (Price as on 22nd July 2013) the stock is trading at a forward PE multiple of 17.5 times.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">With Market value to sales ratio at more than 3.5 times and Price to Earnings growth ratio (PEG) at 1.8 times, the stock seems expensive at $98, however an attractive dividend yield of more than 3% should provide support to the stock below $90. McDonald has increased dividend at 15% CAGR in last 5 years.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">52 week High / Low for the stock is 103.7 & 83.3 respectively.</span></div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-46275983059789331982013-07-22T09:25:00.005-07:002013-07-22T09:26:15.662-07:00Sell SPY 173 Call option at $0.64 premium<div style="text-align: justify;">
<span style="font-family: Georgia, 'Times New Roman', serif;"><b>SPY</b> at $169.50 is up 8% since 24th June due to short covering and fresh buying as the fear of immediate reversal of QE program subsided after Fed statement. The rally seems to have been sharp and quick and the upside seems limited from current levels. </span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRwUaQeaC98_2DeBMLdHbUdJZZ7Sg-YELasQ3Uvh6z8K-ugk5BurBm4Nei6PnL2f-Ilg_lrIJCTFZpqKaGWx5D0mpEzQw6pH_A00IQaZSe8U4Y1_j8_UOkoSpbxlb92_byNlQ-CWLAQ25D/s1600/SPY_1_YEAR_CHART.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="325" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRwUaQeaC98_2DeBMLdHbUdJZZ7Sg-YELasQ3Uvh6z8K-ugk5BurBm4Nei6PnL2f-Ilg_lrIJCTFZpqKaGWx5D0mpEzQw6pH_A00IQaZSe8U4Y1_j8_UOkoSpbxlb92_byNlQ-CWLAQ25D/s640/SPY_1_YEAR_CHART.PNG" width="580" /></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Technically the 1 year chart of SPY suggest that the rally that started mid November had periodic corrections and after every correction the index moved up anywhere between 8% - 9% before another correction sets in. Traders can utilize this trend to generate more than 2% return in less than 26 calendar days by selling 173 Call option of SPY at current price of $0.64 as SPY is not expected to move beyond 173 in August Series.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><u>Total Return from the Strategy</u></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Assuming a trader is able to sell 1 lot (100) of <b>SPY 173 Call option</b> of Aug 2013 series expiring on 17th August at $0.64, the return and margin equation is as stated below.</span><br />
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<span style="font-family: Georgia, Times New Roman, serif;">Margin Required - Around $2550 (roughly 15% of trade value)</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Total Premium Collected - $64</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Brokerage and other charges - $10</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Total Return from the trade = 2.11%</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Note: It must be noted that since this is a naked call option if SPY closes beyond 173.54, there will be a loss of $100 on every dollar rise beyond 173.54.</span></div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-16587520723976855992013-07-14T05:52:00.001-07:002013-07-14T05:56:43.782-07:00Long Straddle Google at 920 strike price for 17th Aug Expiry<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">Given the quarterly result on 18th July, one can consider adopting a <b>long straddle strategy</b> on Google which involves buying and selling of Call and Put Options of 920 strike price which are available at $30 and $28 respectively. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Even if there is fluctuation in premiums due to stock movements one can enter both the positions with around $58 to $60 investment in mind for a possible target of $65 in next 4 days. Stop loss can be kept at around $55 and the positions should be squared of on or before 17th July EOD. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Given the past track records of Google stock movement on result days, there are high chances of increase in Implied Volatility before results which will led to increase in premiums. It must be noted that since the lot size is 100 shares, this strategy would require an investment of around $5800 to $6000 depending on the premiums given.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Note: Since this strategy is assuming increase in premiums due to increase in IVs people should square off their position before results are announced because once the result event is over the uncertainties will will no longer be there and the IVs could fall sharply resulting in quick fall in premiums.</span></div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com1tag:blogger.com,1999:blog-4758215768126386151.post-55974165668352609032013-07-13T01:11:00.000-07:002013-07-13T01:41:36.732-07:00AT&T Dividend Yield at 5 Year Low<div style="text-align: justify;">
<b style="font-family: Georgia, 'Times New Roman', serif;">AT&T</b><span style="font-family: Georgia, 'Times New Roman', serif;"> paid around $1.8 as dividend in last 4 quarters on an EPS of around $2.35 resulting in a dividend payout of more than 75%. <a href="http://www.att.com/gen/investor-relations?pid=5675" target="_blank">AT&T's track record of divided payment</a> has been extremely good with an annual increase in dividend payout of around 2.85% since past 5 years. </span><br />
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<span style="font-family: Georgia, 'Times New Roman', serif;">At $36 the </span><b style="font-family: Georgia, 'Times New Roman', serif;">dividend yield</b><span style="font-family: Georgia, 'Times New Roman', serif;"> of AT&T (</span><a href="http://www.bloomberg.com/quote/T:US" rel="nofollow" style="font-family: Georgia, 'Times New Roman', serif;" target="_blank">T:US</a><span style="font-family: Georgia, 'Times New Roman', serif;">) looks quite attractive at around 5% when compared with 10 year T-Bill yield of 2.5%, but the 5 year historical chart of the stock's dividend yield tells a different story. While in absolute term it might look attractive but when compared with it's historical yields it doesn't</span><span style="font-family: Georgia, 'Times New Roman', serif;"> seem to be that great.</span></div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj32kHOcx5eJWCEoOLpnGt7Ea96rSSMxlmJTUTnJbPTmf_KjW0lvGTvTyZb9HLXC-YWYiU4eli9iGovZCT02r2Fi2xBvgy95jI1tGXYvOek9pu18OV0_GPzPBd9d4-Yip69K5sEK7nsOAos/s1600/AT&T+Dividend+Yield+Chart.PNG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="AT&T Dividend Yield Chart" border="0" height="147" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj32kHOcx5eJWCEoOLpnGt7Ea96rSSMxlmJTUTnJbPTmf_KjW0lvGTvTyZb9HLXC-YWYiU4eli9iGovZCT02r2Fi2xBvgy95jI1tGXYvOek9pu18OV0_GPzPBd9d4-Yip69K5sEK7nsOAos/s640/AT&T+Dividend+Yield+Chart.PNG" title="" width="600" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">AT&T Dividend Yield Chart for 5 years</td></tr>
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<a name='more'></a><span style="font-family: Georgia, 'Times New Roman', serif;">The above chart clearly suggest that the stock bounce up when the dividend yield goes above 6.0 percent and comes down when the yield is sub 5%. So technically the stock has a potential downside of 10% or more after which the dividend yield will start becoming compelling at around 5.75 % considering a 3% jump in dividend payout year on year. </span><br />
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<span style="font-family: Georgia, 'Times New Roman', serif;">The recent trend in prices also suggest that the weakness in stock which fell from $39 on 23rd April to $34 on 20th June, a fall of around 13% in 2 months, only to bounce back recently with the market and currently trading at around $36. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">As evident from the chart below, the stock has significant support in $31 - $33 range and one can target to accumulate the stock in this range.</span></div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjd5Z1hlOlY8znrDEH4ckGvKGKJayH0LvuSWU9wqjKHs40-rUcHv06L_UnUR-6PMqjMHRPFD2HPwKMy8Ae9_hvoS7-28TWn3joK7bvBV18NMSQlky1NpRjR2oL0P1y9KWcIJW14Dm6_vkeX/s1600/At&T+Chart.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img alt="AT&T Stock Chart" border="0" height="251" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjd5Z1hlOlY8znrDEH4ckGvKGKJayH0LvuSWU9wqjKHs40-rUcHv06L_UnUR-6PMqjMHRPFD2HPwKMy8Ae9_hvoS7-28TWn3joK7bvBV18NMSQlky1NpRjR2oL0P1y9KWcIJW14Dm6_vkeX/s400/At&T+Chart.JPG" title="" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">AT&T 3 Years Chart</td></tr>
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Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-60991437909063730122013-07-12T09:30:00.000-07:002013-07-12T09:30:25.402-07:00Top Free iPhone apps for Investors and Traders<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">For all those savvy investors and traders there are many iPhone apps that can help you stay updated and agile and make your informed moves. While on the go or a lunch break you might not want to miss out on important business news or market / stock movement and act swiftly if required. For this we bring you the following list of free financial apps for iPhones which will surely be of great help.</span></div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYYoeBoFZ0TliWNAl4kc-QGPi_wmkaQxZhRJIjHGTAJs2eopmjTBQZ0kTvcZZnRstpbwSs5iIiX_TrrJybCNmTtHdBljFFuOnoEQQSa4fcUCOvUlvPGZ1irVIp1SSvK1cA7xGiPhEgVCdX/s1600/CNBC+Realtime+App+IPhone.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="CNBC App for Iphone" border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYYoeBoFZ0TliWNAl4kc-QGPi_wmkaQxZhRJIjHGTAJs2eopmjTBQZ0kTvcZZnRstpbwSs5iIiX_TrrJybCNmTtHdBljFFuOnoEQQSa4fcUCOvUlvPGZ1irVIp1SSvK1cA7xGiPhEgVCdX/s200/CNBC+Realtime+App+IPhone.jpg" title="" width="112" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">CNBC App</td></tr>
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<span style="font-family: Georgia, Times New Roman, serif;"><u><i><b>CNBC Real-Time </b>(For Live News Videos)<b>:</b></i></u> It is the only free app that delivers Real-Time quotes before, during and after market hours (4 A.M - 8 P.M) direct from the NYSE and NASDAQ Stock Exchanges. </span><span style="font-family: Georgia, 'Times New Roman', serif;">Other noticable features of the app include watching CNBC video clips, viewing charts, and managing a stock watch list. To download the app on your iPhone use the following link: </span><a href="https://itunes.apple.com/us/app/cnbc-real-time/id334125582?mt=8&ign-mpt=uo%3D4" style="font-family: Georgia, 'Times New Roman', serif;" target="_blank">CNBC Real-Time App</a></div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhvAw23m9j06F6yvNSt2gc031ZzX0SiOkJCs2immWlL5TRbKuH1txee18zdXZGqvG435eV5V7MShF4gSE9zvrIXPJ7NC795idmT3qO8tk1v8ez-YkIczQj86wGT7OFGTb21xf_f9khFPU5l/s1600/Bloomberg+App+IPhone.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="Bloomberg App for Iphone" border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhvAw23m9j06F6yvNSt2gc031ZzX0SiOkJCs2immWlL5TRbKuH1txee18zdXZGqvG435eV5V7MShF4gSE9zvrIXPJ7NC795idmT3qO8tk1v8ez-YkIczQj86wGT7OFGTb21xf_f9khFPU5l/s200/Bloomberg+App+IPhone.jpg" title="" width="112" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Bloomberg App</td></tr>
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<span style="font-family: Georgia, Times New Roman, serif;"><i><u><b>Bloomberg </b>(For extensive online news coverage)<b>:</b></u></i> Best App for all your Business and Financial news hunger.It features latest market moving news across 35 news categories including: Economy, Politics, Bonds, Commodities, Currencies, Emerging Markets etc. The app also provides latest market data across major Equity Indices, Futures, Commodities, Bonds & Currencies. It also has tools to create and track companies and indices over time. This free app can be downloaded using the following link: <a href="https://itunes.apple.com/us/app/bloomberg/id281941097?mt=8&ign-mpt=uo%3D4" target="_blank">Bloomberg App for iPhone</a></span></div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKm1uj8VxoU5Uyl0Mdpxw7DmBmIPtX95UF4W1NvmFEib96BKbYLJvyxf5ErwHyXdCaV77yzIvVuaRN9oGLUvv76_dPdSWnef1egltdikuQPXn58vd1qgbmD0UZfm4MIWwBR-PqnBZoTMFr/s1600/Yahoo+Finance+App+IPhone.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="Yahoo Finance App for Iphone" border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKm1uj8VxoU5Uyl0Mdpxw7DmBmIPtX95UF4W1NvmFEib96BKbYLJvyxf5ErwHyXdCaV77yzIvVuaRN9oGLUvv76_dPdSWnef1egltdikuQPXn58vd1qgbmD0UZfm4MIWwBR-PqnBZoTMFr/s200/Yahoo+Finance+App+IPhone.jpg" title="" width="112" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Yahoo Finance App</td></tr>
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<span style="font-family: Georgia, Times New Roman, serif;"><u><i><b>Yahoo Finance </b>(For stock Quotes and Watchlist)<b>:</b></i></u> The best of Yahoo Finance in your iPhone. The App is just awesome and provides total coverage from your favourite financial source. Track your watch-list view Market Summary, Research Stocks, Detailed Stats and much more are available at this free iPhone App. To know more about the app check-out: <a href="https://itunes.apple.com/us/app/yahoo-finance/id328412701?mt=8&ign-mpt=uo%3D4" target="_blank">Yahoo Finance iPhone App</a></span></div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjE2p3d02avvUDtB9fhb5TMxm4pWjPMpvEoR7Mnp1D-G-hyWKNYE_zqzC6hzz81X2wBFrkX4fJAlD0oH_WLQ1tImtLDO4ENaTTdIeNtjtIszLxcQCMggKbcgGLJ1FvHIEj0Uj8vGKgICeXd/s1600/ETRADE+Mobile+App+IPhone.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="ETrade App for Iphone" border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjE2p3d02avvUDtB9fhb5TMxm4pWjPMpvEoR7Mnp1D-G-hyWKNYE_zqzC6hzz81X2wBFrkX4fJAlD0oH_WLQ1tImtLDO4ENaTTdIeNtjtIszLxcQCMggKbcgGLJ1FvHIEj0Uj8vGKgICeXd/s200/ETRADE+Mobile+App+IPhone.jpg" title="" width="116" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">ETrade App</td></tr>
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<span style="font-family: Georgia, Times New Roman, serif;"><b><u><i>E*TRADE Mobile</i></u></b> (For Online Trading on Mobile) : A full blown trading app for your iPhone. E*TRADE has one of the best mobile app for trading this free app for iPhones connects you to your E*TRADE account for trading anytime very easily. With E*TRADE Mobile, you can get real-time streaming quotes, place trades, manage your accounts, and more—all from your iPhone. To know more about this App and download it to your iPhone use the following link: </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><a href="https://itunes.apple.com/us/app/e-trade-mobile-pro/id313259740?mt=8&ign-mpt=uo%3D4" target="_blank">Online Trading Mobile App for iPhones</a></span></div>
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Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-7705640536741283122013-07-05T22:27:00.000-07:002013-07-05T22:27:49.829-07:00U.S Jobs Data June 2013 - Highlights<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5gvR_J7YfJsFfOknWBu38ABqe_oDkw0dZfU3K_lBK25gFenn0Bqk6Ty4ysWbTGU776DejBCuunmjW3_QudJddNVgDV-tTr26KrJ1vcA2Lmil-SUJQzBxiBLvAHG1_8ws9Iwy8_DyPZCNu/s1600/US+unemployment+rate+June+2013.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="U.S. Unemployment rate chart 2013" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5gvR_J7YfJsFfOknWBu38ABqe_oDkw0dZfU3K_lBK25gFenn0Bqk6Ty4ysWbTGU776DejBCuunmjW3_QudJddNVgDV-tTr26KrJ1vcA2Lmil-SUJQzBxiBLvAHG1_8ws9Iwy8_DyPZCNu/s1600/US+unemployment+rate+June+2013.PNG" title="" /></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><b>U.S. jobs data</b> for the month of June 2013 came in better than expectation and strangely pushed both bond yields and stocks higher on 5th July, a rare event when both bonds and stocks move in same direction. Stocks are inversely correlated with bonds and usually goes up when bond yield falls and vice versa. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">CBOE 10-year yield on T Note rose to the highest in almost two years at 2.72% while S&P 500 closed 1 percent higher on Friday. </span><br />
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<span style="font-family: Georgia, Times New Roman, serif;"><u>Following are the important highlights of the jobs data:</u></span></div>
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<li><span style="font-family: Georgia, 'Times New Roman', serif;">U.S. jobless rate close to a four-year low in June 2013</span></li>
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<li><span style="font-family: Georgia, 'Times New Roman', serif;">Payrolls rose by 195,000 workers against the forecast of 165,000</span></li>
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<li><span style="font-family: Georgia, 'Times New Roman', serif;">Factories reduced payrolls by 6,000</span></li>
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<li><span style="font-family: Georgia, 'Times New Roman', serif;">Construction companies added 13,000</span></li>
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<li><span style="font-family: Georgia, 'Times New Roman', serif;">Automakers increased employment by 5,100</span></li>
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<li><span style="font-family: Georgia, 'Times New Roman', serif;">Retailers added 37,100 jobs</span></li>
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<li><span style="font-family: Georgia, 'Times New Roman', serif;">The unemployment rate in June remained constant at 7.6% over previous month</span></li>
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Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com0tag:blogger.com,1999:blog-4758215768126386151.post-57727602270486176072013-07-05T11:35:00.000-07:002013-07-14T05:51:02.709-07:00Sell Google (GOOG) 20th July 970 Call option at current premium of $2.50<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">One with investment capacity of around $15000 (in cash or in shares as margin) for 8 days can sell 1 lot (100 shares) of Google (US:GOOG) 970 Call option expiring on 20th July at current market premium of $2.50 to generate a return of 1.6% on $15000 in 12 days, assuming a brokerage of $10.</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3NLTAzuKkDXX3OsiyzxaGP1qx3zCylIe88n2e_JgcC8Ui8DxCwf9mFM_IKb6Xoyvuu3hblomkHdLdaE7lDcltKa78RT9oApVRmBI2o7vIww1c8aoVPj2q_M6pbyGndXubKz-OcQbGUAlm/s1600/Google+Chart.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3NLTAzuKkDXX3OsiyzxaGP1qx3zCylIe88n2e_JgcC8Ui8DxCwf9mFM_IKb6Xoyvuu3hblomkHdLdaE7lDcltKa78RT9oApVRmBI2o7vIww1c8aoVPj2q_M6pbyGndXubKz-OcQbGUAlm/s1600/Google+Chart.JPG" /></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><u>The rationale behind the trade:</u></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">1. The stock at current market price of $894 is around 8.5% away from 970 and seems quite difficult given the run up in the stock since 25th June, 12 days to expiry and fat size of $300 billion market value.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">2. At the current market price the stock is trading at expensive valuations of around 20 times forward year earnings.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">3. 52 week high for the stock is $920 which could act as strong resistance for the stock in near term (at least till expiry).</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Note: Since this is a naked call strategy if google stock closes above $972.5 on 20th July, there will be a loss of $100 on every dollar rise beyond $972.5. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">However if one wants to hedge the risk of unlimited loss, which seems quite remote in this case, he/she can buy $1000 call at current premium of $0.50 which requires an additional investment of $50. By taking this protection the maximum loss in case google moves past $1000 would be $2800.</span></div>
Amit Agarwalhttp://www.blogger.com/profile/17507490232990482319noreply@blogger.com1