Saturday 4 July 2015

Hats off for the Green Initiative !!

For the past many decades, developed countries are trying to replace natural products with alternative options.

One such alternative natural friendly material for construction is Cellular glass. One such company manufacturing cellular glass and related products  is, Switzerland based Misapor A G, incorporated in 1982.







The products are related to insulating materials for construction activities made from glass waste.





Cellular glass having great properties and at the same time is very light weighted (table given below) makes it one f the best option to replace rock. 



Material
(kg/m3)
Dirt, loose dry
1220
Clay, dry
1600
Clay, wet
1760
Gravel, dry
1680
Gravel, Wet
2000
Limestone
2560
Rock, well blasted
2480
Cellular Glass
130
Concrete
2400
Concrete with Cellular Glass
950 -1250
Steel
7850
Gold
19320

To reach the company home page  CLICK HERE


To see the product development procedure  CLICK HERE


In a latest development announced at BSE / NSE, ACP is entered in to MOU with Misapor for manufacturing these products by setting up a joint venture.

Hatts off to ACP for making this great green attempt!!



Friday 27 March 2015

A story of wisdom with a magical touch!


[A base version seen in MMB - reproducing with few modification]


Many hundreds of years ago in the faraway lands of the East there lived a renowned master who was widely revered for his esoteric wisdom. One day he called his four disciples and said, "Sons, I believe it is now time to see what you have really learnt from me. I am going to give each one of you a seed. I want you to plant it and water it. When you think the plant is ready you may come back and share your experience. That shall be your test. Just remember all you have to do is plant the seed, water it regularly and keep fertilizing the soil. The seed will do its job." 






The four disciples, enthused to perform this simple-looking task, left in four different directions to find fertile patches of soil where they could plant the seed. 

Each one was pleased to find a fertile ground where they could carry out the assigned task. The work commenced with a lot of energy and excitement. The disciples watered the seed with a lot of care. 

A few weeks passed away. 

There was no sign of any plant emerging from the earth where they had sowed the seed.




But they had faith in their master`s words. So they continued doing what was told to them. In this manner, many months passed away. 

At the end of the first year, one of the four disciplines got dejected and resigned from the task. He thought the seed had probably perished. Maybe the master had missed out some critical information. So he just accepted defeat and headed back. 

At the end of the second year, another disciple quit after he was convinced that this task had been an absolute waste of precious time. He was angry at his master for making a fool of him. 

At the end of the third year, the third disciple still saw no signs of any green shoot from the ground. Passers-by had now started mocking at him for being on a foolish assignment. One stranger who empathized with his predicament remarked that he would have been more productive and appeared less foolish if he had invested his time planting other trees instead. He followed the advice. 

Three disciples had already quit. And at the end of the fourth year, the fourth disciple still saw no signs of the plant. He had endured four long years, watering and nurturing the ground with utmost care. Of course, there were moments of doubt, bouts of frustration, feeling of failure. But he held on. He knew that the master was a very wise man. He wouldn`t send them on a pointless assignment. This disciple had followed the master`s advice very diligently. So he kept going... 

Then sometime during the fifth year, something incredibly magical, something that he had never ever seen in his life, began to unfold before his very eyes. 

In a matter of just five weeks, he saw a giant 90 feet tall tree standing before him. Yes, 90 feet in just five weeks! He was deeply ecstatic at this culmination of his years of toil and patience. 



Let us tell you, dear reader, the tree that the story talks about is no mythical tree. It`s the Chinese bamboo tree. It is a very unique plant. Its growth patterns are unlike most plants that, more or less, display linear growth patterns. So it is indeed true that cduring the first four years, there is absolutely no sign of the tree above the ground. And then in the fifth year, the tree emerges from the ground and can go as high as 90 feet in just five weeks. 



Now, you might be thinking: Did the small tree loll inactive for four years and then just decides to grow dramatically on the fifth? I think the answer is quite clear for us to see. The little tree was actually developing itself underground by expanding its root system to make it tough enough to sustain its impending external growth in the fifth year and even beyond.


Now, had the tree failed to build up a strong and able underground foundation, it would be impossible for it to keep on growing when it is time to sprout outside into the outside world.


The Chinese bamboo tree offers many vital life lessons to us. But what is even more striking is the similarity this tree`s growth pattern has to the movements of individual stocks in the stock market!!

Wednesday 4 February 2015

Arrow Coated Product : Result Update

Hi,

I was receiving few queries about ACP, during the last month or so, but I restrained from replying. Just because I don't want to make anybody speculating over it. 

Finally I think its time to give my few points towards ACP on the eve of Q3 result publication.

NOTE : This is not a BUY / HOLD / SELL recommendation. [As per SEBI guide lines, you have to register as an research analyst to do that; and I am not intending to do that :-) , but I am trying to build/  implement a generalized portfolio approach majority can follow, and working towards that in present days]. So this is just my reflections based on the latest developments and result.

Major events happened during the last two months:

1. Promoters sold shares above Rs. 500/-
2. One HNI invested in the same and his other holdings are decent and futuristic
3. Company increased its borrowing limit to Rs. 100 Cr

Now based on the Q3 result

Only standalone result is published.

But it shows an increasing trend  based on revenue and profit.

That's all for now from the present results. 

There may not be any need to analyse the next result I think, since it will be on a consolidated basis and stock may find its proper value based on that result.

Sunday 18 January 2015

Where are you putting your Eggs?

Every bull market contains a lot of increased operator activities, and lot of little known craps becomes operators darling, finally to trap inexperienced & innocent retail traders / investors.

The following article is a selected portion from economic times article.

Courtesy : Economic Times

Several small caps trading at eye-popping valuations


When little-known Tilak Finance made it to the MSCI Small Cap index, it stunned many on Dalal Street. The company's turnover for the year ended March 31, 2014 was Rs 6.42 crore, while its market capitalisation — value of outstanding shares — was Rs 3,861 crore on Friday. The company's only asset is the 19.2 lakh shares, worth Rs 86 lakh, it owns in Esaar India (not Essar Group).

The inclusion of Tilak Finance along with a couple of others into the MSCI index has put the spotlight on small-cap stocks — many of which are trading at eye-popping valuations. Market watchers said the abnormal values of these stocks suggest operators are active in many of them.

Some interesting ones















Complete article may be assessed from HERE


It's clear as shown in the table itself that, lot of shares are trading at abnormal valuations without having any background and trading at 3000 to 5000 PE, as a conventional valuation parameter!! The only way to escape from these type of companies is to be vigilant with you investment decisions.

Thursday 25 December 2014

Arrow Coated Products : Update

Hi friends,
Lately receiving lot of queries regarding Arrow about its valuation and new agreements.

The major development and rationale may be as

1. Increased borrowing limits : Obliviously to increase the quantum of business

2. Listing in NSE : To get better visibility in investor community

3. Agreement with Careli

Initially struggled to get details (as any companies announcement, I usually try to cross check and verify the facts Vs blah blah), main reason as the company having Spian origin, one with the website created with Spanish language. 

And once I was able to get in to some level of details, it was mind blogging.

You can get details from 

http://www.careli.es/

And much more details from their FB page

 LINK : https://www.facebook.com/floppcareli

[Use translate option by using right click to read in English]

These information gives a view that the company is in existence for long, with a very good portfolio of products.

PS: But still unable to get the Market Cap related info of Careli. Once I get those info, I will update as a separate post.

Saturday 13 December 2014

Factor 2: Business opportunity, scalability and sustainability

Out of the six factors I mentioned earlier, this is the most difficult part to identify and predict properly. i.e. identifying an upcoming sunrise sectors at reasonably early stage. Other five factors can be analyzed either quantitatively or qualitatively with much better precision, with the past available data. Where this second factor requires little imagination and bit luck too.

Inorder to succeed in identifying gems based on this criteria, you requires to have the required imagination skills to forecast 10 or 20 years future outcomes and trends.

A simple example: If you were able to identify a revolutionary change in mobile technology and invested in leaders like Airtel a decade back, it might have turned a 20 Bagger by this time, still with lot of gunpowder left in it!

Another classy example I would like to pen is about two companies from the same sector with legacy products, where one turned to be a huge huge multibagger while the other is still drowning in mid sea!

HINDUSTAN MOTORS  Vs  EICHER MOTORS

Or

Amby

Vs

Bullet !!












These two initial UKproducts, later turned to be Indian, suffered a lot in the past to survive and both products only changed little during its life span. One is out of production and the other is still the favorites of the youth!

The success in investment / share market also will depend on your prediction analyzing who will win the race?!

A decade back (say in 2001), if you have invested Rs. 10 thousand, both will speak differently now, similar to the demand of the products!

Company
Inv Year
Avg Share Price
CMP
Inv amount
Present Value






Hindustan Motors
2001
Rs 4/-
Rs 8/-
10,000/-
20,000/-
Eicher Motors
2001
Rs 24/-
Rs 14000/-
10,000/-
5,800,000/-
(Rs 58 Lakh)

I just gave this example to show that how much difficult is to identify winners from the total pack.

Here in this case both companies having products with outdated technology and both products were never changed much in its life time. Still one became the favorite of youth due to its own reasons and at the mean time, the other one parked in our minds with good old memories!

Similarly, in the whole world sectors like Motors, Pharma, Computer , IT excelled in the past. NEXT BIG THEME MAY BE ROBOTICS!!!

Have enough imagination! (Nothing more can be said about this factor)

Happy investing!!



Thursday 11 December 2014

Arrow Coated Products: Update

Hi,

This is the update I received from the Arrow Coated Products Meltz Team.




I think its very important development going forward.

[Information from the Meltz Team Facebook page : LINK HERE]

Earlier Posting in Arrow Coated Products

1. Last result update 

2. Arrow-coated-product-update-based-on-shp.html

3. Arrow-coated-products-update-based-on-ar.html

4. SIP - Sep -2014 

5. SIP - July - 2014

6. SIP - Jun -2014

Happy investing All!