Sunday, April 18, 2010

Random stock thoughts

Broad trends of the Indian equity market:
The most fashionable things for companies to do today is to get into other domains where they are not. And most fashionable is to get into the power sector.
All companies in the infrastructure/ capital goods/ conglomerate world  have or plan to have subsidiaries companies to generate power. Be it a company dealing with metals(sterlite) or in the oil refining business (Essar Oil parent) or biggies like Tata and ADAG.

All pharma companies in India are trying to make Generics of the Original drugs that are expiring and planning to export it to the US. In the coming few months, I guess the pressure of the ruppee appreciating is going to be a main concern for many exporting companies.

Oil & shipping and ship building sector update: Expected overcapacity in oil refining and excess ships in the markets are not allowing the stocks in these sectors to rise.
The dilemma with stock analysis is this: Past performance is not an indicator of future performance. Even though I try looking ahead, I am forced to look at its past records to get a sense of the future.

Dirty linen
Came across this humourous sentence: "Both Hindustan Unilever(HUL) and Procter & Gamble (P&G) are out to prove who can wash dirty linen cheaply and efficiently."

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