tag:blogger.com,1999:blog-5601296915030971762024-03-07T01:32:18.664+05:30INVESTO BLOGPersonal Finance & Everything else.Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.comBlogger326125tag:blogger.com,1999:blog-560129691503097176.post-80936241359366576182011-04-29T14:37:00.001+05:302011-04-29T14:37:00.170+05:30Western Union Fees too high- use Promotional Codes, Coupons, 2010<h3> Western Union Rates and Fees - the biggest disadvantage<br /></h3>Western Union is a trusted method of money transfer and with over 350,000+ <a href="http://www.westernunion.com/info/agentLocator.asp?country=global">agent locations</a>,<br />one almost always manages to find a Western Union branch near the person to whom you are sending money. If you have never used Western Union before, click on <a href="http://niftyprediction.blogspot.com/2009/05/western-union-money-transfer-review.html#how">How to send Money using Western Union</a> to learn more.<br /><br />However the biggest disadvantage of Western Union is its <span style="font-weight: bold; color: rgb(153, 0, 0);">fees</span>. For example, Western Union charges about $12 fee for sending $500 from United States to Philippines. Even for sending money within United States, Western Union charges around $12 for transferring an amount up to $200 ! These charges are ridiculously high. The foreign Exchange Rates offered by Western Union are, however, quite good. The exact amount of fees charged by Western Union depends on the exact locations and to find out exactly how much fees you will be charged, and also about Western Union Rates (exchange rates) click on <a href="http://www.westernunion.com/WUCOMWEB/priceShopperRedirectAction.do?method=load">Western Union Fees and Exchange Rates Calculator</a>. If this link does not work then go directly to <a href="http://www.westernunion.com/">Western Union homepage</a> and click on Price Service (a button on the top right column). Remember to select your correct country first.<br /><h3> Using Western Union Promotional Codes and Coupons to cut down fees and charges </h3>Sometimes, or rather several times one has the option of getting a Western Union promotional code or a coupon. This is number which you enter while transferring money and then an appropriate discount applies. You can try to get one such Western Union promotional code from one of the following websites.<br /><ol><li><a href="http://www.retailmenot.com/view/westernunion.com">Retailmenot.com Western Union Coupon Codes</a>: This website is by far your best bet. Remember not every code here may work for you. The newer the code the better are its chances of getting through. </li><li><a href="http://www.couponchief.com/westernunion">CouponChief Western Union Codes</a>: I don't know anyone personally who used a code here successfully, but worth a try if the promotional codes in the above do not work.<br /></li></ol>If any Western Union promotional code does work for you, please share the source of the coupon in a comment for other readers. If no working coupons are available and high Western Union Fees remain your concern, then I recommend looking at some Western Union Alternatives.<br /><h3>Western Union Money Transfer Overview</h3> Western Union Money Transfer is a fast an reliable remittance service to send money abroad to your friends relatives or any other person. Money Sent by Western Union Money Transfer is available for pick up at an agent location, i.e. the person to whom you send money will have to personally collect it from a Western Union Location. Western Union has over 300,000 locations or branches world wide, so it is quite likely that a convenient agent location is available for you. Click on <a href="http://www.westernunion.com/info/agentLocator.asp?country=global">Western Union Locations</a> to find out the most convenient agent location for you. Or continue reading for more on how to transfer money using Western Union, what are the exchange rates and fees charged by Western Union, is Western Union really better than other alternatives like Moneygram etc., and many more related things.<br /><br /><br /><h3> Western Union Alternatives: What is better- Western Union or MoneyGram? </h3> Western Union and <a href="http://niftyprediction.blogspot.com/2009/05/moneygram-international-money-transfer.html">MoneyGram</a> function in much the same way, but Western Union is a much bigger money transfer service with nearly 3 times more agent locations than MoneyGram. As far as fees and charges are concerned, there is no clear answer as to which is more cheaper, Western Union or Moneygram. Read my posts on <a href="http://niftyprediction.blogspot.com/2009/06/comparison-of-moneygram-western-union.html">Western Union versus Moneygram</a> or <a href="http://niftyprediction.blogspot.com/2009/04/how-to-send-money-overseas-tips-for.html">Best Options to send money overseas</a> to find out more about other alternatives to Western Union like Bank wire-transfer, <a href="http://niftyprediction.blogspot.com/2009/05/send-money-by-xoom-review-of-global.html">Xoom</a>, <a href="http://niftyprediction.blogspot.com/2009/05/ikobo-visa-card-review-money-transfer.html">Ikobo</a>, etc.<br /><div id="how"><h3>How to send money using Western Union?</h3></div><ul><li>Go to an Western Union Agent Location. Pay the agent the money that you want to send overseas. You will also choose a Western Union agent location from where the receiver will collect his/her money.<br /></li><li>The person to whom you are sending money by Western Union goes to the chosen agent location from where he/she can pick up the money by simply showing an identity card. </li></ul>I also remember seeing an Advertisement saying you can <span style="font-weight: bold;">send money directly to a Bank using Western Union Money Transfer</span>. Please check Western Union website for more about this possibility.<br /><div id="creditcard"><h3>Using Western Union to Send Money using Debit / Credit Card</h3> You can also send money online using Western Union by a Visa or Mastercard Debit or Credit card if you are located in one of the countries listed below. If your country is appears in this list, this click on that link below, then click on "Money Transfer" tab on the top right, and then finally click on "Price service" to find out more about Western Union Exchange Rates and fees to Send Money online using credit card.<a href="http://www.westernunion.com/" target="new"><img style="margin: 0pt 0pt 10px 10px; padding: 25px; float: right; cursor: pointer; width: 200px; height: 72px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5mXnmsyw3lxZwMH8WpkNU7H_CCx41beJwkKhW3jIGEWY6ntI15cFruvZ_2VpzoJcQhPTP5wy0QMjE16F7JyACGKJMfwKSKc7s85d5KbtzADb8IzAdx1idIPKMiGfMu0shBpcaekMJj44/s400/images.gif" alt="Western Union Money Transfer" id="BLOGGER_PHOTO_ID_5342322190970356434" border="0" /></a><br /><br /><a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=AU&origination=global">Australia</a> <a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=AT&origination=global">Austria</a> <a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=CA&origination=global">Canada</a> <a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=FR&origination=global">France</a> <a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=DE&origination=global">Germany</a> <a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=IE&origination=global">Ireland</a> <a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=IT&origination=global">Italy</a><a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=NL&origination=global"> Netherlands</a> <a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=NZ&origination=global">New Zealand</a> <a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=NO&origination=global">Norway</a> <a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=ES&origination=global">Spain</a> <a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=SE&origination=global">Sweden</a> <a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=GB&origination=global">United Kingdom</a> <a href="http://www.westernunion.com.au/info/osMoneyTransferOptions.asp?country=US&origination=global">United States</a><br /><br /><br /><h3> Western Union Money Transfer Tracking Status </h3> You can also track the status of your money sent by Western Union by click on the following link : <a href="https://wumt.westernunion.com/asp/orderStatus.asp?country=global">Western Union Money Transfer Tracking Status</a><br /><br /><h3>Western Union Money Transfer Agent Locations</h3> Go to <a href="http://www.westernunion.com/info/agentLocator.asp?country=global">Western Union Locations</a>.<br /><div id="pros"><h3>Some advantages of Sending Money by Western Union<br /></h3> </div>There are two clear advantages of transferring money by Western Union.<br /><ol><li><span style="font-weight: bold;">Trusted Money Transfer Service</span>. I remember that once i even paid some fees to the U.S. Government for a visa using Western Union. This will give you an idea of how trusted Western Union Money Transfer Service is. Your Money is safe with Western Union.</li><li><span style="font-weight: bold;">Quickest Method of Money transfer</span>- This method of Global Money Transfer where the person you are sending money to collects cash from an agent location is sometimes called Cash Transfer method. This is the fastest method of sending money because usually the money you send is available for pick up within a couple a hours (or even minutes?). This beats even the speed of Bank Wire Transfer.<br /></li></ol>However, as mentioned before, high Western Union Fees remain its biggest disadvantage. Depending on which country you are sending money to, for e.g. Philippines, India, etc. there maybe some cheaper or even *free* money transfer or remittance services. Thus unless you want to send money quickly, you can try some of the other cheaper services (listed on the right column of this page).<br /><br /><h3> Western Union Alternatives </h3><br /><br /><div style="position: absolute; top: 700px; right: -290px;"><table style="color: rgb(0, 0, 0);" border="0" width="275"><tbody><tr align="left" valign="top"><td><br /><span style="font-weight: bold; color: rgb(0, 0, 153);">Quick Links For this Post</span><br /><div style="font-size: 110%;"><ul><li><a style="color: rgb(0, 0, 255);" href="http://niftyprediction.blogspot.com/2009/05/western-union-money-transfer-review.html#rates">Western Union Exchange Rates and Fees</a></li><li><a href="http://niftyprediction.blogspot.com/2009/05/western-union-money-transfer-review.html#how">How to send money using Western Union?</a></li><li><a href="http://niftyprediction.blogspot.com/2009/05/western-union-money-transfer-review.html#creditcard">Send Money Online using a Credit Card using Western Union.</a></li><li><a href="https://wumt.westernunion.com/asp/orderStatus.asp?country=global" target="_blank">Western Union Tracking Status Link</a></li><li><a href="http://www.westernunion.com/info/agentLocator.asp?country=global" target="_blank">Find Convenient Western Union Agent Locations or Branches.</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/05/western-union-money-transfer-review.html#pros">Pros and Cons of sending money by Western union</a></li></ul></div><span style="font-weight: bold; color: rgb(102, 0, 0);"><br /><span style="color: rgb(0, 0, 153);">Articles on Western Union Money Transfer </span></span><br /><br /><li><a href="http://niftyprediction.blogspot.com/2009/05/western-union-money-transfer-review.html">Western Union Rates, Fees, Locations.</a></li><li><a href="http://niftyprediction.blogspot.com/2009/06/comparison-of-moneygram-western-union.html">Comparison of Western Union and MoneyGram</a></li><li><a href="http://niftyprediction.blogspot.com/2009/07/how-to-send-money-using-western-union.html">How to Send Money using Western Union?</a></li><li><a href="http://niftyprediction.blogspot.com/2009/07/western-union-send-money-to-philippines.html"> Western Union Philippines</a> </li><p style="color: rgb(0, 0, 153);"> <span style="font-weight: bold;">Articles on Money Transfer</span></p><li><a href="http://niftyprediction.blogspot.com/2009/04/how-to-send-money-overseas-tips-for.html">Send Money Overseas or Abroad</a>: The most popular and best ways to send money to your home country.<br /></li><li><a href="http://niftyprediction.blogspot.com/2009/05/send-money-by-xoom-review-of-global.html">Xoom Money Transfer Review</a></li><li><a href="http://niftyprediction.blogspot.com/2009/05/ikobo-visa-card-review-money-transfer.html">Ikobo Visa</a> - A new way to send money abroad where you send a re-loadable visa card to the beneficiary.<br /></li><li><a href="http://niftyprediction.blogspot.com/2009/05/moneygram-international-money-transfer.html">MoneyGram</a> Money Transfer and Money Order service.<br /></li><br /><span style="font-weight: bold; color: rgb(102, 0, 0);"><span style="color: rgb(0, 0, 153);">Online Remittance to India</span><br /></span><li><a href="http://niftyprediction.blogspot.com/2009/04/sbi-remit-review-remittance-and-online.html">SBI Remittance Review</a> - My most preferred method of sending remitting money to India. Good exchange rates.<br /></li><li><a href="http://niftyprediction.blogspot.com/2009/05/remit2india-money-transfer-to-india.html">Remit2India</a> Options to Send money to India</li><li><a href="http://niftyprediction.blogspot.com/2009/04/receive-and-send-money-to-india-by.html">Send Money to India by Paypal</a></li><li><a href="http://niftyprediction.blogspot.com/2009/04/hdfc-quick-remit-review-of-online-money.html">HDFC QuickRemit</a> </li><br /></td></tr><tr><td style="background-color: rgb(200, 230, 255);" align="left" valign="middle" width="100%"> <span style="font-weight: bold;">External Links</span></td></tr><tr><td valign="middle"><a href="http://www.westernunion.com/">Western Union Money Transfer</a> -<br />A trusted way to send money where beneficiary collects cash from a Western Union location.<br /></td></tr><tr><td style="background-color: rgb(200, 230, 255);" align="left"><a href="http://www.moneygram.com/">MoneyGram</a> - International Money Transfer and Money Order. You send money, beneficiary collects cash from a chosen MoneyGram agent or location.<br /></td></tr><tr><td valign="middle"><a href="https://www.ikobo.com/">iKobo - Send Money Worldwide</a><br />Money Transfer by ATM Card. Useful for those who have to send money frequently. Check foreign exchange rates on the homepage of iKobo.</td></tr><tr><td style="background-color: rgb(200, 230, 255);" align="left"><a href="http://www.xoom.com/">Xoom Money Transfer</a> - Online Remittance from United States to various other countries. Xoom Fees are around $8 per transaction.<br /></td></tr><tr><td style="vertical-align: top;"><br /></td></tr><tr><td style="background-color: rgb(200, 230, 255);" align="left" valign="middle" width="100%"><span style="font-weight: bold;">Send Money to India</span><br /></td></tr><tr><td style="background-color: rgb(255, 255, 255);" align="left" valign="middle" width="100%"><a href="http://www.icicibank.com/pfsuser/icicibank/ibank-nri/nrinewversion/faq_powertransfer.htm">ICICI Remit</a> to India<br />Online Money Transfer to India.<br /><span style="font-size:78%;"><a href="https://m2inet.icicibank.co.in/m2iNet/exchangeRate.misc">ICICI Exchange rates</a>.</span><br /></td></tr><tr><td style="background-color: rgb(200, 230, 255);" align="left" valign="middle" width="100%"><a href="http://www.onlinesbi.com/glsus/">SBI Remittance</a><br />Online Money Transfer to India.<br /><span style="font-size:78%;"><a href="https://www.onlinesbi.com/glsus/exchangerateusheader.htm">SBI exchange rates</a>.</span><br /></td></tr><tr><td style="background-color: rgb(255, 255, 255);" align="left" valign="middle" width="100%"><a href="http://www.timesofmoney.com/remittance/jsp/home.jsp">Remit2India</a><br />Online Money Transfer to India.<br /><span style="font-size:78%;"><a href="http://www.remit2india.com/remittance/jsp/r2i_exchangeRate_india_US.jsp?tab=US&sendercountry=US&sendercurrency=USD&uiId=TOML&partnerId=TOML">Remit2India exchange rates</a>.</span><br /></td></tr><tr><td style="background-color: rgb(200, 230, 255);" align="left" valign="middle" width="100%"><a href="http://www.hdfcbank.com/NRI/remittances/default.htm">HDFC Quick Remit</a><br />Remit Money to India online from U.S., U.K., Europe and Singapore.<br /><span style="font-size:78%;"><a href="http://www.timesofmoney.com/remittance/jsp/remitExchangeRate.jsp?partnerId=HDFC&uiId=HDFC">HDFC Quick Remit exchange rates</a>.</span><br /></td></tr><tr><td style="background-color: rgb(255, 255, 255);" align="left" valign="middle" width="100%"><a href="https://www.online.citibank.co.in/portal/newgen/nrindex.htm">CitiBank Online Remit</a><br />Remit Money to India from US.<br /></td></tr><tr><td style="background-color: rgb(200, 230, 255);" align="left" valign="middle" width="100%"><br /></td></tr><tr><td style="background-color: rgb(255, 255, 255);" align="left" valign="middle" width="100%"><br /></td></tr><tr><td style="background-color: rgb(200, 230, 255);" align="left" valign="middle" width="100%"><span style="font-weight: bold;">Disclaimer</span></td></tr><tr><td align="left" valign="top">I have been sending money to India for quite a few years. I have been involved in at least 50 money transfers to India and used 4 to 5 different methods of online remittance. Although I do make efforts to provide accurate information about services related to online remittance, none of the opinion, experience or reviews in this post should be used for making any decisions to remit money to India or any other country. It is easily possible that my experience or opinion about a particular remitting service is different from yours. It is your money that you want to remit. So please verify the information from your own authentic sources before making a choice for remitting your money. I do not accept any liability for incorrect or inaccurate information. Some of the links in the posts may be affiliate links, however the opinions and reviews presented in the post remain honest and unbiased.<br /></td></tr></tbody></table></div></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-38535512082095291062010-07-06T10:03:00.002+05:302010-07-06T10:05:41.445+05:30Avoid Temptation Foods and Compact Disc India - Fraud, Fake companies<h3> Temptation Foods - Amazing valuation </h3>I was shocked when I found a company with the balance sheet of <a href="http://www.temptationfoods.com/">temptation foods</a> selling so low - almost close to its EPS. Although it is possible to find several stocks current market which are 'value for money' a company which has such a decent growth as Temptation Foods and which is selling at a P/E of around 1.2 - makes me feel suspicious. Ok, let me be honest, this time, I was less suspicious and more excited at first about the investment opportunity. However, as I continued finding our more about Temptation Foods - I have decided to stay away from this stock. Here are two quick reasons: <a name='more'></a><br /><ol><li>Temptation Foods had manipulated it balance sheet to show that it holds 11% stake in Kohinoor Foods, when it actually held 5% stake. A SEBI notice regarding this sent the stock plummeting to hit the lower circuit. Consequently all FII's have dumped this stock, and rightly so.</li><li>The company now wants to double the equity by issuing warrants at Rs. 36. The EPS of the company is Rs. 25. There is no way the management can justify a price as low as Rs. 36. This is clearly a dubious money-making attempt of the management of Temptation Foods India.</li></ol>I would like to add a note that probably Temptation Foods is not a fake company. Which means it seems to actually have products in the market (unlike Compact Disc India mentioned below). However, with the given management, it is a wise decision to avoid investing in this stock. Remember, a fraudulent management can really leave the investors in a shock (remember what Satyam's managers did to that company?). You will hear a lot of things about Temptation Foods - for e.g. it being the next possible acquisition target for Nestle etc. While this may or may not be true- with this kind of managers, I would get rid of this stock - NOW!.<br /><h3> Compact Disc India - a step further in Fraud </h3><a href="http://www.compactdisc.co.in/">Compact disc india</a> looks even a bigger fraud than Temptation Foods. From what I read, this looks like a completely fake company !<br /><br />The promoter of this company - Suresh Kumar has a dubious record. Mumbai police has written to SEBI about Suresh Kumar floating fake companies to make money. The details are summarized very well in <a href="http://www.tarkeshwar.com/2010/01/compact-disc-india-stock-research.html">Tarkeshwar's blog</a>. So I won't elaborate further.<br /><br />Please avoid Compact disc india if you love your hard earned money !Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com3tag:blogger.com,1999:blog-560129691503097176.post-58776380961283922392010-07-05T12:16:00.010+05:302010-07-06T09:44:28.753+05:30Best Dividend Paying Stocks in India - highest dividend payout ratio<h3>Dividend yield versus Dividend payout ratio.<br /></h3> In this post I will list some of the best stocks in india which have highest dividend payout ratio. Whenever a company earns profit, it distributes part of the profit as dividend to stock holders.<br />The amount of dividend paid out by the company is best measured by "<span style="font-weight: bold;">Dividend Payout Ratio</span>" which is defined as the ratio of <span style="font-style: italic;">dividend distributed</span> by the company to PAT - the total profit earned (after tax). Companies with a dividend payout ratio of over 50% can be considered as those who distribute the dividend generously.<br /><a name='more'></a><br />However, there is an alternative way of measuring how much dividend you get on a stock - called the "<span style="font-weight: bold;">Dividend Yield</span>". This is nothing but the amount of dividend you get per stock divided by the price you pay. Note that dividend yield changes as the price of the stock changes. A dividend yield of a stock can be high, either because the company has a high dividend payout ratio, or simply because its price is very low.<br /><h3> Best Dividend Paying stocks with highest dividend yield </h3>In any case, if what matters to you is how much dividend you get per amount of money invested, then <span style="font-weight: bold;">you should look at 'Dividend yield'</span>. Here are some good stocks which have good dividend yields as of July 2010. I have also made sure that the stocks have some good fundamentals like ROE of 15%+, high interest cover, and good future prospects.<br /><br />Dividend yields, at the time of writing this post (july 2010). I will update this list every quarter.<br /><br /><table style="border-collapse: collapse;" width="500px" border="1"><tbody><tr align="center"><td width="70%"><span style="font-weight: bold; color: rgb(102, 0, 0);">Name of the Company / Stock</span><br /></td><td width="30%"><span style="font-weight: bold; color: rgb(102, 0, 0);">Dividend Yield</span><br /></td></tr><tr align="center"><td width="70%"><a style="font-weight: bold;" href="http://www.srf.com/">SRF Ltd</a>.</td><td width="30%">6%<br /></td></tr><tr align="center"><td width="70%"><a style="font-weight: bold;" href="http://www.blogger.com/httpwww.hclinfosystems.in">HCL Infosystems</a></td><td width="30%">4.6%<br /></td></tr><tr align="center"><td width="70%"><a style="font-weight: bold;" href="http://www.niit-tech.com/">NIIT Technologies</a></td><td width="30%">4%<br /></td></tr><tr align="center"><td width="70%"><a style="font-weight: bold;" href="http://www.tnpl.com/">Tamil Nadu Newsprint and papers</a></td><td width="30%">4%<br /></td></tr><tr align="center"><td width="70%"><a style="font-weight: bold;" href="http://www.jklakshmi.com/">J K Lakshmi Cement</a></td><td width="30%">3.9%<br /></td></tr><tr align="center"><td width="70%"><a style="font-weight: bold;" href="http://www.chini.com/">Ballarpur Chini Mills</a></td><td width="30%">3.5%<br /></td></tr><tr align="center"><td width="70%"><a style="font-weight: bold;" href="http://www.graphiteindia.com/">Graphite India</a></td><td width="30%">3%<br /></td></tr><tr align="center"><td width="70%"><a style="font-weight: bold;" href="http://www.castrol.com/castrol/castrolhomepage.do?categoryId=3230">Castrol India</a></td><td width="30%">2.9%<br /></td></tr><tr align="center"><td width="70%"><a style="font-weight: bold;" href="http://www.tatasteel.com/">Tata Steel</a></td><td width="30%">2.8%<br /></td></tr><tr align="center"><td width="70%"><a style="font-weight: bold;" href="http://www.greatship.com/">GE Shipping</a></td><td width="30%">2.8%<br /></td></tr></tbody></table><br />My personal choice (also considering the future growth prospects of the company, and not just dividend yield)<br /><ol><li>Graphite India</li><li>Tamil Nadu Newsprint and Paper ltd.</li><li>NIIT Technologies (this stock will be risky if debt crisis in Europe worsens).<br /></li></ol><h3>List of best, highest dividend paying stocks in India with not just highest dividend payout ratio, but strong fundamentals</h3> As mentioned above, Dividend yield is price dependent, and you must check the latest price to get correct idea of dividend yield in the above list. However, a dividend payout ratio is something which is price independent and reflects the policy of the company in paying dividends. Below is a list of stocks with high dividend payout ratio.<br /><br />In compiling the list below, I have not just focused on the dividend payout ratio, but also on other key financial ratios which ensure that the company is sound and safe, and has good growth prospects. Here are some of the factors that have been considered.<br /><ol><li>Dividend payout ratio of at least 30%. This is the ratio of dividend distributed by the company to the total amount of profit after tax earned.<br /></li><li>Market capitalization of 500 crore+<br /></li><li>Interest cover of 3 or above.</li><li>ROE of 15% or above.</li><li>Qualitative factors which focus on future growth and prospects for the company.<br /></li></ol>So here is the list. I think these stocks really make a good investment option.<br /><br />Typically, well established FMCG companies top the list of high dividend paying stocks, as can be seen in the list below. However the list of good dividend paying stocks mentioned below also includes companies from other sectors like Pharma, IT, consumer durables, Power/Energy, etc.<br /><ol><li><a style="font-weight: bold;" href="http://www.hul.co.in/">Hindustan Unilever (HUL)</a> - This is the biggest FMCG company in India. It has a <span style="font-weight: bold;">dividend pay out ratio of about 65% - 85%</span> ! one of the highest in the industry. Other positives for this stock include - less sensitive to economic downturns, low debt, highest ROE (over 120% - indicating a highly efficient business model), and decent growth. However, note that recently HUL has been losing market share to Godrej Consumer Products, especially in rural areas. So although I wouldn't put all my money on this stock, this is definitely a stock you want to have in your portfolio if you are focusing on dividend.</li><li><a style="font-weight: bold;" href="http://www.tatatea.com/">Tata tea</a> - Again, one of the good FMCG stocks to have in your portfolio. <span style="font-weight: bold;">Dividend payout ratio of over 75%.</span></li><li><a style="font-weight: bold;" href="http://www.castrol.com/castrol/castrolhomepage.do?categoryId=3230">Castrol India</a> - This is a debt free company with a <span style="font-weight: bold;">dividend payout ratio of over 75%</span> on average. Other attractive numbers - ROE of over 70%, almost debt free. The company has been growing at modest pace of 10% in the past 3 years (due to recession), however bottom line has grown by over 30%.</li><li><a style="font-weight: bold;" href="http://www.nestle.in/">Nestle India</a> - Again, a good FMCG stock with average <span style="font-weight: bold;">dividend payout ratio of over 70%</span>.<br /></li><li><a style="font-weight: bold;" href="http://niftyprediction.blogspot.com/2010/06/godrej-consumer-products-gpcl-best-fmcg.html">Godrej Consumer Products Limited (GPCL)</a> - Godrej has better growth prospects than Hindustan Unilever, I think. It is also a good dividend paying stock, with <span style="font-weight: bold;">dividend payout ratio of over 65%</span>.</li><li><a style="font-weight: bold;" href="http://en.wikipedia.org/wiki/ITC_Limited">ITC</a> - Indian Tobacco Company - average <span style="font-weight: bold;">dividend payout ratio of about 65%</span>, in 2009, it was 94%!.</li><li><a style="font-weight: bold;" href="http://niftyprediction.blogspot.com/2009/01/gsk-pharma-glaxo-best-pharma-stock-to.html">Glaxo Smithkline Pharma (GLAXO)</a> - a good pharmaceutical company, with <span style="font-weight: bold;">dividend payout ratio of over 60%</span>. I had mentioned this stock in the list of best stocks to invest in 2009, and it has indeed given over 2 times the index returns.<br /></li><li><a style="font-weight: bold;" href="http://www.hcltech.com/">HCL Technologies</a> - A good IT stock. <span style="font-weight: bold;">Dividend payout ratio of over 60%</span>. However, note that IT stocks are in general vulnerable to slowdown in Europe, US.</li><li><a style="font-weight: bold;" href="http://www.clariant.com/">Clariant Chemicals</a> - This is also a good value stock. <span style="font-weight: bold;">Dividend payout ratio of over 60%</span>.<br /></li><li><a style="font-weight: bold;" href="http://www.in.alstom.com/home/">Alstom Projects India</a> - This is one stock I am planning to put my money on, not just for its high <span style="font-weight: bold;">dividend payout ratio of 35%-40%</span>, but also because this is one company which is going to benefit by the possible 'nuclear energy boom' in the country. With the Indo-US nuclear deal passed, India will see lot of investments in building Nuclear reactors. Alstom is one (of the several other) players to be benefited by this.<br /></li><li><a style="font-weight: bold;" href="http://niftyprediction.blogspot.com/2010/05/crisil-best-stock-to-buy-for-long-term.html">CRISIL</a> - Crisil is the leading credit rating agency in India with a market share of over 60%. Crisil has a <span style="font-weight: bold;">dividend payout ratio of around 45%</span>. Must have stock in your portfolio.</li><li><a style="font-weight: bold;" href="http://bluestarindia.com/">Blue Star</a> - Blue star is the market leader in India in commercial air conditioner business. It has a <span style="font-weight: bold;">dividend payout ratio of over 35%</span> and a highly efficient business model with ROE of nearly 50%. Moreover, with increasing summer temperatures throughout india, Air conditioners is something you can bet a portion of your money on.<br /></li></ol>The above is not an analysis or recommendation to buy the stocks, but it is certainly a good list from which you can pick your 'best dividend paying stocks'. I myself own several of the above stocks. Especially the last 3 stocks in the list are not exactly 'best dividend paying', but they are good dividend paying stocks which have one of the best growth prospects.<br /><br /><div style="position: absolute; top: 700px; right: -300px;"><table width="275" border="0"><tbody><tr valign="top" align="left"><td><br /><span style="font-weight: bold;">List of Best Stocks by category :</span><br /><li> <a href="http://niftyprediction.blogspot.com/2010/07/5-best-dividend-paying-stocks-in-india.html">Best Dividend Paying Stocks</a></li><li>Best Small Cap stocks (coming soon!)</li><li>Best MidCap Stocks (coming soon!).</li><li>Best Stocks across all categories (coming soon!).<br /></li><br /><p> Posts related to the theme "<span style="font-weight: bold;">Best Stocks to Buy Now</span>" (2010)<br /></p><ul><li><a href="http://niftyprediction.blogspot.com/2010/07/suzlon-wind-energy-and-repower-detailed.html">Suzlon Energy - Best Wind Energy Stock</a> for 3-5 yr investment.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/05/crisil-best-stock-to-buy-for-long-term.html">Crisil - Best Stock</a> for Long term Investment</li><li><a href="http://niftyprediction.blogspot.com/2010/06/ttitan-industries-best-stock-in.html">Titan Industries - Best Consumer Durables Stock</a> for long term Investment</li><li><a href="http://niftyprediction.blogspot.com/2010/05/apollo-hospitals-good-stock-to-buy-for.html">Apollo Hospitals - Good Stock</a> to buy for Long term investment.</li><li><a href="http://niftyprediction.blogspot.com/2010/06/godrej-consumer-products-gpcl-best-fmcg.html">Godrej Consumer Products - Best FMCG stock</a> to Invest Now<br /></li></ul><br />Stocks which were "<span style="font-style: italic;">Best Stocks to Invest</span>" for year 2009, but now, the analysis may or may not apply, as prospects for the current year have changed.<br /><ul><li><a href="http://niftyprediction.blogspot.com/2009/01/best-stocks-to-buy-in-2009-safe-best.html">Best Stocks to buy in 2009</a>.</li><li><a href="http://niftyprediction.blogspot.com/2009/01/gsk-pharma-glaxo-best-pharma-stock-to.html">Glaxo - Best Pharma Stock</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/investing-in-cipla-good-pharma-stock-to.html">Cipla - Good Pharma Stock</a></li><li><a href="http://niftyprediction.blogspot.com/2009/01/tata-tea-best-fmcg-stock-safe-stock-to.html">Tata Tea- Best FMCG Stock</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/hero-honda-best-auto-stock-to-invest-in.html">Hero Honda - Best Auto Stock for 2009</a>.</li><li><a href="http://niftyprediction.blogspot.com/2009/01/hindustan-unilever-fmcg-safe-stock.html">Hindustan Unilever - Safe FMCG stock </a></li></ul><span style="font-weight: bold;">Posts on Investment Basics </span><br /><li><a href="http://niftyprediction.blogspot.com/2009/01/pe-ratio-what-why-how-etc.html">Understanding the P/E Ratio</a></li><li><a href="http://niftyprediction.blogspot.com/2010/06/roe-return-on-equity-roce-how-to.html">Return on Equity (ROE), ROCE and Shareholder's Equity</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2008/10/consolidated-results-versus-standalone.html">Consolidated results vs. Standalone Results</a>.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/06/topline-vs-bottomline-growth-what-is.html">Topline Growth vs Bottomline Growth </a></li><br /></td></tr></tbody></table></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com7tag:blogger.com,1999:blog-560129691503097176.post-76593743488053476032010-07-01T11:28:00.011+05:302010-07-15T10:11:51.830+05:30Suzlon Energy and RePower - Best Wind Energy Stock - detailed Analysis<h3> Wind Energy </h3> I am bullish on <a href="http://en.wikipedia.org/wiki/Wind_power">Wind Energy</a> - and other <a href="http://en.wikipedia.org/wiki/Renewable_energy">green energies</a> like those from <a href="http://en.wikipedia.org/wiki/Biofuel">Biofuels</a>. There are several reasons for this and some of them are discussed in my earlier post on Investing in Wind Energy Stocks. No doubt, other forms of energies like Nuclear energy will also play an increasing role. However, there are strong reasons why I think that we will soon see a period where there will be a 'boom' in wind energy, with several companies trying to set up their own <a href="http://en.wikipedia.org/wiki/Wind_farm">wind farms</a> and <a href="http://en.wikipedia.org/wiki/Wind_turbine">wind turbines</a> to satisfy their energy requirements. In this post I am going to analyze a Wind Turbine manufacturing company '<a href="http://www.suzlon.com/">Suzlon Wind Power</a>' (together with <a href="http://www.repower.de/index.php?id=347&L=1">Repower</a>, its subsidiary) and explain why at current valuations, this company offers the best investment opportunity, with a time frame of 3 to 5 years. Even if you are not located in India, you can buy stocks of Indian companies, for e.g. by registering with <a href="http://www.interactivebrokers.co.in/en/main.php">Interactive Brokers</a>.<br /><a name='more'></a><br /><h3> Suzlon Wind Energy and Repower- best Wind Energy Stock<br /></h3> Suzlon owns 90% of the Repower, and Suzlon Repower combine are the third largest wind turbine manufacturers by market share. Suzlon acquired Repower in 2009, by aggressively outbidding Areva. Read more about <a href="http://en.wikipedia.org/wiki/Suzlon-REpower">Suzlon acquires Repower</a>. Here is the general business overview of Suzlon and Repower.<br /><ol><li>Suzlon manufactures wind turbines in the range of upto 2.1 MW capacity and targets developing and emerging economies like India, China, Latin America, etc. In 2009, Suzlon held a market share of 53% in India. See Suzlon Products Portfolio on <a href="http://www.suzlon.com/">Suzlon's homepage</a>.<br /></li><li>Repower manufactures turbines in from 2.5 MW to 6.15 MW capacity and mainly targets developed nations like Europe, UK, US, etc. Repower 6.15 MW turbines are highly suitable for offshore wind farms, something we will see more in the coming years - as building large wind farms in the sea becomes more economically viable option than using up the expensive land area. See Repower products Portfolio on Repower's homepage.<br /></li></ol><a title="Suzlon Wind Energy Stock" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.suzlon.com/"><img style="display: block; margin: 0px auto 10px; text-align: center; cursor: pointer; width: 200px; height: 134px;" src="http://www.suzlon.com/images/Media_Center_Photo_Gallery_Images/19Minnesota_image1.jpg" alt="Suzlon Wind Energy Stock" border="0" /></a> Although the above is only a rough guideline, note that Suzlon also has sold several wind turbines in developed world e.g. U.S., Australia, etc. To dig deeper into Suzlon's business model, i recommend reading <a href="http://suzlon.com/pdf/investor_p/Suzlon_Energy_Limited_Investor_Presentation.pdf">Suzlon's Investor Presentation</a>.<br /><br /><span style="font-weight: bold; color: rgb(102, 0, 0);">Note on REPOWER wind energy stock</span> : Note that REPOWER stock can be bought separately (but not in India, in German stock exchanges). Since the offshore wind farms are expected to see a 'boom', Repower alone also in my opinion is one of the best wind energy stocks available at the moment. This is given the fact that Repower margins are expected to improve because of the advantage of Suzlon's marketing network.<br /><h3> Suzlon Wind Energy stock - financials </h3><ol><li>Suzlon's current Debt equity ratio is about 1.5.<br /></li><li>ROE for the years 2005 to 2008 has been 38%, 29%, 28%, 20%. From 2008 to 2010 Suzlon has not had a profitable year.</li><li>Exepected topline growth is about 20% in Wind industry, once the global economy recovers.</li><li>EBITDA margins during 2005-2008 were about 8% to 10%. In 2008, and 2009, margins have dropped to less than 4% due to various reasons like lower volumes, recall of some of its problematic blades, etc.<br /></li></ol>EBITDA margins are expected to grow as volumes increase (at least this is what Suzlon Wind Energy claims in one of its presentation). Suzlon is doing a lot for managing its debt, it has achieved a 24% reduction in debt in the previous financial year by sale of 35% stake in Hannsen Gearbox. In the financial year 2010-2011, it has launched a 2:15 rights issue, which again it plans to use to reduce its debt.<br /><br /><h3> Suzlon Wind Energy stock - Positives </h3><a title="Offshore Wind Farm" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1kk77hXRHOvaeh6n68-SMKcdOscH4lXR16Iqm-iE8FpLL_hmKoTe9qJxaS8JJr0tmCUbenVZVZUJKUTApWRFJrAJP9rtgMbuHZ-QqAlsGwHv9YcQRCItsXf7pJyzoYksxToSAKBDTcAA/s1600/800px-DanishWindTurbines.jpg"><img style="display: block; margin: 0px auto 10px; text-align: center; cursor: pointer; width: 400px; height: 140px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1kk77hXRHOvaeh6n68-SMKcdOscH4lXR16Iqm-iE8FpLL_hmKoTe9qJxaS8JJr0tmCUbenVZVZUJKUTApWRFJrAJP9rtgMbuHZ-QqAlsGwHv9YcQRCItsXf7pJyzoYksxToSAKBDTcAA/s400/800px-DanishWindTurbines.jpg" alt="Offshore Wind Farm" id="BLOGGER_PHOTO_ID_5488816407745818786" border="0" /></a><ol><li>Suzulon's products are nearly 20%-25% cheaper than other leading wind turbine manufacturers. Since initial cost for setting up wind farms is quite significant, this is a great advantage.</li><li>Suzlon is a <a href="http://en.wikipedia.org/wiki/Vertical_integration">vertically integrated company</a>, and can leverage its network to increase sales of Repower products too.</li><li>Suzlon held a 53% market share in India, a fast growing market for Wind turbines.</li><li>Management of Suzlon has been very aggressive in expansion of the company. The company started with merely 3 employees in 1995 and went on to become the third largest in the industry by 2009.</li><li>Several governments have and are likely to provide tax incentives to encourage clean energy options like Wind Energy.</li></ol> <h3> Suzlon Wind Energy stock - Risks, Negatives.<br /></h3><ol><li>There is extremely high competition in the industry with several different players.</li><li>Suzlons blades have been a major problem in the past with almost all blades supplied to the US developing cracks. These had to be replaced costing Suzlon over Rs. 2000 crore.</li><li>Suzlon has <span style="font-weight: bold;">serious debt problems</span>. It has $500 million in zero coupon FCCB (foreign currency convertible bonds) due on June 2012 and Oct 2012. Suzlon has managed to bring down the floor price of this bond. However, if the company does not do well by June 2012, and these bonds do not get converted, then the company is in deep trouble in paying back the money. Moreover, even if all the FCCB get converted, there will be about 20% equity dilution.<br /></li><li>Any slowdown in China, US and Europe will impact sales.</li></ol>In all, it is worth investing in Suzlon only if you understand these risks.<br /><h3> Suzlon Wind Energy stock- summary </h3>Concerns about the quality of its blades and high debt remain the main risk factors in investing Suzlon Wind Energy stock. However one should note that recalls and problems with products is something which has been experienced by other large companies, - remember the largest car company <a href="http://news.bbc.co.uk/2/hi/business/10484639.stm">Toyota recalled more than 8 million vehicles worldwide?</a>. That does not necessarily mean the company cannot overcome the problem. Moreover, at current valuations (1.6 times Book Value), Suzlon Wind energy stock is attractively priced and I think of this as the Best Stock available and makes a great investment opportunity.<br /><br /><div style="position: absolute; top: 700px; right: -300px;"><table width="275" border="0"><tbody><tr valign="top" align="left"><td><br /><p> Recent Posts related to the theme "<span style="font-weight: bold;">Best Stocks to Buy Now</span>" (2010)<br /></p><ul><li><a href="http://niftyprediction.blogspot.com/2010/07/suzlon-wind-energy-and-repower-detailed.html">Suzlon Energy - Best Wind Energy Stock</a> for 3-5 yr investment.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/05/crisil-best-stock-to-buy-for-long-term.html">Crisil - Best Stock</a> for Long term Investment</li><li><a href="http://niftyprediction.blogspot.com/2010/06/ttitan-industries-best-stock-in.html">Titan Industries - Best Consumer Durables Stock</a> for long term Investment</li><li><a href="http://niftyprediction.blogspot.com/2010/05/apollo-hospitals-good-stock-to-buy-for.html">Apollo Hospitals - Good Stock</a> to buy for Long term investment.</li><li><a href="http://niftyprediction.blogspot.com/2010/06/godrej-consumer-products-gpcl-best-fmcg.html">Godrej Consumer Products - Best FMCG stock</a> to Invest Now<br /></li></ul><br />Stocks which were "<span style="font-style: italic;">Best Stocks to Invest</span>" for year 2009, but now, the analysis may or may not apply, as prospects for the current year have changed.<br /><ul><li><a href="http://niftyprediction.blogspot.com/2009/01/best-stocks-to-buy-in-2009-safe-best.html">Best Stocks to buy in 2009</a>.</li><li><a href="http://niftyprediction.blogspot.com/2009/01/gsk-pharma-glaxo-best-pharma-stock-to.html">Glaxo - Best Pharma Stock</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/investing-in-cipla-good-pharma-stock-to.html">Cipla - Good Pharma Stock</a></li><li><a href="http://niftyprediction.blogspot.com/2009/01/tata-tea-best-fmcg-stock-safe-stock-to.html">Tata Tea- Best FMCG Stock</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/hero-honda-best-auto-stock-to-invest-in.html">Hero Honda - Best Auto Stock for 2009</a>.</li><li><a href="http://niftyprediction.blogspot.com/2009/01/hindustan-unilever-fmcg-safe-stock.html">Hindustan Unilever - Safe FMCG stock </a></li></ul><span style="font-weight: bold;">Posts on Investment Basics </span><br /><li><a href="http://niftyprediction.blogspot.com/2009/01/pe-ratio-what-why-how-etc.html">Understanding the P/E Ratio</a></li><li><a href="http://niftyprediction.blogspot.com/2010/06/roe-return-on-equity-roce-how-to.html">Return on Equity (ROE), ROCE and Shareholder's Equity</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2008/10/consolidated-results-versus-standalone.html">Consolidated results vs. Standalone Results</a>.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/06/topline-vs-bottomline-growth-what-is.html">Topline Growth vs Bottomline Growth </a></li><br /></td></tr></tbody></table></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com2tag:blogger.com,1999:blog-560129691503097176.post-829668100820900552010-06-30T08:19:00.006+05:302010-07-05T22:05:15.082+05:30HR 5623 - Home buyer tax credit extension till Oct. 2010 likely !<h3> H.R. 5623 and tax credit extension </h3> H.R. 5623 is a bill which the Congress has come up with extend the Home buyer tax credit by further 90 days (till 01 October 2010) and consequently stop the further deterioration of the housing market in United States. For details of the bill visit <a href="http://www.gop.gov/bill/111/2/hr5623">Tax credit extension - October 2010</a>. This bill has indeed been passed by the house - read <a href="http://www.reuters.com/article/idUSN2916439020100629">US House backs 2010 tax credit extension</a>. It has to be still passed by the senate. However, it is expected to be passed by the Senate today.<br /><a name='more'></a><br /><a href="http://www.gop.gov/bill/111/2/hr5623">H.R. 5623: Homebuyer Assistance and Improvement Act - Legislative Digest - GOP.gov</a><br /><blockquote>H.R. 5623 would extend the home-buyer tax credit of up to $8,000 for the purchase of a principal residence <b>before October 1, 2010</b>. The current benefits apply to cover buyers who enter into contracts before April 30 and close by June 30. This bill would extend the closing date to September 30, 2010.<br /><br />The bill would provide any home-buyer who entered into a contract on a home by April 30, 2010, but have been unable to go to closing within the required 60 days; the provision would extend the closing date for an additional 90 days. This provision is estimated to cost $140 million.<br />....<br /></blockquote><br />For knowing more about the Home buyer tax credit, read my detailed post on <a href="http://niftyprediction.blogspot.com/2009/02/8000-home-buyer-tax-credit-explained.html">Tax credit and its extension</a>.<br /><br /><div style="position: absolute; top: 700px; right: -300px;"><table width="275" border="0"><tbody><tr valign="top" align="left"><td><p><span style="font-weight: bold;">Federal Tax Breaks</span>, <span style="font-weight: bold;">IRS Tax Credits</span>, <span style="font-weight: bold;">Tax Rebates</span> in <span style="font-weight: bold;">2009 Economic Stimulus Package</span> that maybe of interest to you </p><li>H.R. 5623 - <a href="http://niftyprediction.blogspot.com/2010/06/hr-5623-home-buyer-tax-credit-extension.html">Extension of Housing Tax credit</a> to October 2010.<br /></li><li><a href="http://niftyprediction.blogspot.com/2009/07/cash-for-clunkers-is-it-useful.html">Cash for Clunkers</a> - Is it Useful?<br /></li><li>Will there be a <a href="http://niftyprediction.blogspot.com/2009/07/will-there-be-second-stimulus-plan-or.html">Second Stimulus Plan</a> in 2009 or 2010?<br /></li><li>2009 <a href="http://niftyprediction.blogspot.com/2009/02/obama-economic-stimulus-package-details.html"> Obama Stimulus Package</a> details explained.</li><li>New Car Purchase <a href="http://niftyprediction.blogspot.com/2009/02/new-car-purchase-stimulus-explained.html"> Auto Stimulus</a> details explained- Excise and Sales Tax deduction for new purchase of new vehicles. </li><li>Cars- <a href="http://niftyprediction.blogspot.com/2009/07/cars-cash-for-clunkers-details.html">Cash for Clunkers</a> - Car tax credit when you trade your old fuel inefficient car for a new one and get a rebate of $3500 or $4500.<br /></li><li>$8000 First Time <a href="http://niftyprediction.blogspot.com/2009/02/8000-home-buyer-tax-credit-explained.html"> Home Buyer Tax Credit</a> details- 2009 Housing Stimulus Bill in Economic Plan proposed by Obama.</li><li><a href="http://niftyprediction.blogspot.com/2009/02/800-making-work-pay-tax-credit-how-does.html">$800 Making work pay</a> tax credit stimulus- details explained ($400 working tax credit for individuals and $800 tax credit for married taxpayers).</li><li><a href="http://niftyprediction.blogspot.com/2009/03/250-social-security-payment-check-in.html">$250 Social Security Stimulus Check</a> in 2009 Economic Stimulus Package.</li><li><a href="http://niftyprediction.blogspot.com/2009/04/2009-cobra-stimulus-package-health.html">2009 Cobra Stimulus Package</a> 65% Reduction in Cobra Health Insurance Premium for qualifying individuals. </li><li><a href="http://niftyprediction.blogspot.com/2009/02/irs-2009-stimulus-check-recovery-rebate.html">2009 Stimulus Checks?</a> Economic Stimulus Payment</li><li>$1000 <a href="http://niftyprediction.blogspot.com/2009/02/1000-child-tax-credit-details-explained.html"> Child Tax Credit, Dependent Tax Credit</a> 2009 extension.</li><br />FAQ: <span style="font-weight: bold;">Can you claim your $8000 first time home buyer tax credit in 2008 tax return itself or do you have to wait till you file 2009 tax return?</span> The law allows any qualified purchases made in 2009 to be treated as if the purchase was made on December 31 2008. You can claim the $8000 first time home buyer tax credit in 2008 tax return itself by filing form <a href="http://www.irs.gov/pub/irs-pdf/f5405.pdf">5405</a> according to the latest IRS ruling. Thus you can get the benefit of $8000 in 2008 tax return itself.<br /><br /><span style="font-weight: bold; color: rgb(0, 0, 255);">Income Tax tip for first time home-buyers</span>: If you know you qualify for the $8000 home buyer credit there is no need to wait to file your 2009 tax return in order to get benefit of this housing stimulus. First time home buyers are actually permitted to reduce their income tax withholding by the amount equal to housing credit, i.e. $8000. You can then use this 'extra cash' got by increase in your take home pay for down-payment.<br /><br /><span style="font-weight: bold;font-size:130%;" ><span style="color: rgb(0, 0, 153);">Quick Answers to common queries</span>:</span><br /><li><span style="font-weight: bold;">Question</span>: When will the $8000 home buyer tax credit end? <span style="font-weight: bold;">Answer</span>: April 30, 2010 for general public and April 30 2011 for Government employees in Military, Foreign Service and Intelligence Community.</li><li><span style="font-weight: bold;">Question</span>: Can I purchase a house from my parents or relative and still qualify for the tax credit? <span style="font-weight: bold;">Answer</span>: No. please read the 7 important points in detail.</li><li><span style="font-weight: bold;">Question</span>: I am married and filing separately and I have not owned a principal residence in last three years. Do I qualify? <span style="font-weight: bold;">Answer</span>: For married people, whether filing jointly or separately, both the partners have to be 'first time home buyers' according to the definition mentioned in 7 important points.<br /></li><br /><br /><br /></td></tr></tbody></table></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-86959401163922560872010-06-28T10:06:00.002+05:302010-06-28T10:10:33.903+05:30The Future of Wind Power - invest in Wind Energy stocks<h3> Wind energy - The best green, renewable energy of the future </h3>The Wind Industry has been growing at the rate of about 20% annually in the past few years (at least if you exclude the years of global recession). One can try to expect similar growth figures in the future. But what this article does is to present (with rigorous support of facts) that there will much greater growth in wind industry by 2015-2020. In other words, the coming decade will witness a BOOM in wind energy. Is Wind power 'the next Big thing?'. Continue reading the post and if you have any more insight to offer, please share it in a comment with the readers.<br /><a name='more'></a><br /><h3> Fossil Fuels - A predictable end </h3>The addiction of Human kind to Fossil Fuels is very disturbing. There are two problems with Fossil Fuels. First, it is highly polluting, environmentally damaging - and as oil companies dig deeper and deeper for more oil reserves, the chances of devastating oil spills like the one caused by BP in the Gulf of Mexico will increase. However there is also another big problem with Fossil Fuels and Oil - they are simply not going to last !. If you look at <a href="http://en.wikipedia.org/wiki/Oil_reserves#Estimated_reserves_by_country">current oil reserves</a> , you will notice how most oil reserves will last only for the next 50-100 years. Of course, new reserves are being found and there are also some even more environmentally damaging alternatives like <a href="http://en.wikipedia.org/wiki/Heavy_crude_oil">heavy crude oil</a>. But clearly, all these are not enough to meet the growing requirements of the world economy. Currently more than 50% of the worlds power is generated by Fossil Fuels (including coal). These non-renewable energy sources, although may not get 'finished' very soon, will become more and more expensive. A glimpse of this was seen at the end of 2007, when oil prices reached $140 per barrel. Thus Fossil Fuels are heading towards a very predictable end - slowly they will get more and more expensive and there will be a 'tipping point' when investments in alternative energy sources like wind energy, solar energy, bio fuels will attract a lot of attention. Fossil Fuels are supposed to remain dominant until 2030, but slowly their importance will be reduced.<br /><br /><h3> Wind Energy Facts </h3>Wind energy is one of the best, abundantly available renewable energy source on this planet. Here is a list of Wind Energy Facts which will convince you why this is the best green energy that human kind should start investing in.<br /><ol><li>According to a <a href="http://en.wikipedia.org/wiki/Wind_power#Theoretical_potential_-_World">wind study done in 2005</a>, the total quantity of wind energy on earth is roughly five times our total energy requirement ! Wind energy is abundant, convinced?<br /></li><li>Energy required to construct and install wind energy equipments (like turbines, towers etc.) is paid off back in less than 9 months of time. Thus this is truly a green energy.<br /></li><li>The current wind power usage (as of 2009) shows that the wind energy accounts for only 2% of the total power generated in this world. Thus plenty of room for a 'big boom' in wind energy.<br /></li></ol>Before explaining how to financially benefit from this possible future boom of wind energy, let me first list some of the advantages and disadvantages of wind energy.<br /><h3> Wind Energy - Pros and Cons </h3><span style="font-style: italic;">Wind energy advantages</span> -<br /><ol><li>Renewable, plentiful available energy source.</li><li>Wind turbines operate 24/7, unlike solar energy which can only produce power during the day.<br /></li><li>Zero pollution - completely environmentally friendly, green energy.</li><li>Wind farms can also be built in the sea (offshore wind farms).<br /></li></ol><span style="font-style: italic;">Wind energy disadvantages</span> -<br /><ol><li>Building large on shore wind farms may require a lot of land, thus it is usually not economically viable to build wind farms near big cities.<br /></li><li>Visibility- some people complain that wind farms do not look very pleasant (minor disadvantage - from my viewpoint).</li><li>Wind farms, wind turbines, occasionally kill birds when they pass through the blades. (but the number of birds killed by fossil fuel pollution is much greater than this)<br /></li></ol>In the next post, I will list some of the best wind energy stocks, along with their analysis.Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com1tag:blogger.com,1999:blog-560129691503097176.post-39410082101027974992010-06-17T14:32:00.009+05:302010-07-01T17:57:31.223+05:30TTitan Industries - best stock in Consumer Durables for long term<h3>Titan Industries - best stock to buy now </h3>This article plans to convince the reader with facts that <a href="http://www.titan.co.in/">Titan industries</a> is one of the best stock available in Consumer durables, (or even when compared to stocks in other sectors). This stock was listed as the <a href="http://niftyprediction.blogspot.com/2009/01/best-stocks-to-buy-in-2009-safe-best.html">Best stock to buy in 2009</a>, and since Jan 2009 (when that post was written) the stock has gained over 150% (as compared to 80% returns given by the index over the same period). The core business of Titan Industries is manufacturing and retailing of <a style="font-weight: bold;" href="http://en.wikipedia.org/wiki/Watch">wrist watches</a> and <span style="font-weight: bold;">Gold jewelry</span> (Tanishq). Titan is also emerging as an important player in <span style="font-weight: bold;">Eye-wear</span> retailing (Titan Eye Plus). Below is a review of Titan Industries (including comments about its subsidiaries Tanishq and Titan Eye +), its financials, risk and business outlook. <a name='more'></a><br /><h3> Titan World - Wrist Watches </h3>The current core business of Titan Industries, Titan Watches is expected to grow at the rate of 20%-25% in the coming few years. One biggest plus point of Titan, is that being a market leader, it enjoys a competitive advantage. Moreover, the management takes continuous efforts to maintain/increase market share, for example:<br /><ol><li>Titan Releases one stylish watch design every month.<br /></li><li>Titan, with the recent launch of <a href="http://www.titanworld.com/collections/series/Zoop">Titan Zoop</a> has aggressive plans in place to capture the currently untapped market for kids watches.</li></ol><h3>Tanishq - Gold and other Jewelery </h3><a href="http://www.tanishq.co.in/">Tanishq</a> is a fully owned subsidiary of Titan Industries. Tanishq expects its <a href="http://niftyprediction.blogspot.com/2010/06/topline-vs-bottomline-growth-what-is.html">topline</a> to grow by 30% to 40% in the coming few years, faster than the watch segment. The market for Jewelery in India is evergreen and growing and although there is high competition in this segment, Tanishq is the only player selling branded products.<br /><h3> Titan Eye + </h3>Titan was again quick to realize that the market for Eye-wear - frames, glasses and lenses, also lacks branded items. <a href="http://www.titaneyeplus.com/">Titan Eye +</a> or Titan Eye plus is a fully owned subsidiary of Titan Industries and being an extremely new player has more scope for growth. Titan Eye plus currently has 85 stores across 42 cities. It plans to expand this to 300 stores in the next 3-4 years. I expect margins to significantly improve in the coming 3 for years, so the bottomline will grow faster than the topline.<br /><h3> Titan Industries - Financial ratios, Risks and drawbacks </h3>Here are the key financial ratios of Titan industries.<br /><ol><li><a style="font-weight: bold;" href="http://niftyprediction.blogspot.com/2010/06/roe-return-on-equity-roce-how-to.html">ROE</a> of about 30%, consistently in the past 5 years.<br /></li><li><span style="font-weight: bold;">Long term debt equity ratio</span> of 0.2.</li><li><a style="font-weight: bold;" href="http://en.wikipedia.org/wiki/Profit_margin">Operating Profit Margins</a> have been slightly above 8% which is not bad as compared to other retail industries.<br /></li><li><a style="font-weight: bold;" href="http://niftyprediction.blogspot.com/2009/01/pe-ratio-what-why-how-etc.html">P/E ratio</a> of about 39 (At the current Market price of 2200). This is a bit high and thus the stock may not be an excellent buy from short term or medium term perspective.<br /></li></ol> Thus the meaning of "BEST Stock" in the title should be understood as Best stock for Long term investment (3 to 5 years or more). It is best to 'accumulate' this stock, i.e. buy on every dips in small portions, rather than buy lump-some.<br /><h3> Titan Industries - overseas expansion plans </h3> Titan watches have a strong market presence in South East Asia and Middle East and some African countries like Kenya. About 10% of its revenues from watch segment come from outside. However recently Titan has clarified that it has put its plans to expand overseas on hold (read <a href="http://news.franchiseindia.com/retail/Titan-Industries-No-plans-to-expand-overseas-1988/">Titan news</a> ). Its attempt to launch brand Tanishq in United States has failed to obtain the desired response and hence the stores have been closed. Although currently Titan is focused on the Indian Market, since it is constantly looking for growth opportunities, may think of overseas acquisition or expansion plans especially in China and Russia. In any case, this is the kind of stock that I like to buy and hold, without worrying too much about market movements (after I have bought the stock). Disclosure- I have started buying this stock in small portions. I plan to buy a big chunk if the price falls below Rs. 2000.<br /><br /><div style="position: absolute; top: 700px; right: -300px;"><table width="275" border="0"><tbody><tr valign="top" align="left"><td><br /><p> Recent Posts related to the theme "<span style="font-weight: bold;">Best Stocks to Buy Now</span>" (2010)<br /></p><ul><li><a href="http://niftyprediction.blogspot.com/2010/07/suzlon-wind-energy-and-repower-detailed.html">Suzlon Energy - Best Wind Energy Stock</a> for 3-5 yr investment.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/05/crisil-best-stock-to-buy-for-long-term.html">Crisil - Best Stock</a> for Long term Investment</li><li><a href="http://niftyprediction.blogspot.com/2010/06/ttitan-industries-best-stock-in.html">Titan Industries - Best Consumer Durables Stock</a> for long term Investment</li><li><a href="http://niftyprediction.blogspot.com/2010/05/apollo-hospitals-good-stock-to-buy-for.html">Apollo Hospitals - Good Stock</a> to buy for Long term investment.</li><li><a href="http://niftyprediction.blogspot.com/2010/06/godrej-consumer-products-gpcl-best-fmcg.html">Godrej Consumer Products - Best FMCG stock</a> to Invest Now<br /></li></ul><br />Stocks which were "<span style="font-style: italic;">Best Stocks to Invest</span>" for year 2009, but now, the analysis may or may not apply, as prospects for the current year have changed.<br /><ul><li><a href="http://niftyprediction.blogspot.com/2009/01/best-stocks-to-buy-in-2009-safe-best.html">Best Stocks to buy in 2009</a>.</li><li><a href="http://niftyprediction.blogspot.com/2009/01/gsk-pharma-glaxo-best-pharma-stock-to.html">Glaxo - Best Pharma Stock</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/investing-in-cipla-good-pharma-stock-to.html">Cipla - Good Pharma Stock</a></li><li><a href="http://niftyprediction.blogspot.com/2009/01/tata-tea-best-fmcg-stock-safe-stock-to.html">Tata Tea- Best FMCG Stock</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/hero-honda-best-auto-stock-to-invest-in.html">Hero Honda - Best Auto Stock for 2009</a>.</li><li><a href="http://niftyprediction.blogspot.com/2009/01/hindustan-unilever-fmcg-safe-stock.html">Hindustan Unilever - Safe FMCG stock </a></li></ul><span style="font-weight: bold;">Posts on Investment Basics </span><br /><li><a href="http://niftyprediction.blogspot.com/2009/01/pe-ratio-what-why-how-etc.html">Understanding the P/E Ratio</a></li><li><a href="http://niftyprediction.blogspot.com/2010/06/roe-return-on-equity-roce-how-to.html">Return on Equity (ROE), ROCE and Shareholder's Equity</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2008/10/consolidated-results-versus-standalone.html">Consolidated results vs. Standalone Results</a>.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/06/topline-vs-bottomline-growth-what-is.html">Topline Growth vs Bottomline Growth </a></li><br /></td></tr></tbody></table></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-263429666454204242010-06-16T15:56:00.002+05:302010-06-16T15:57:23.355+05:30How much money should I invest in Mutual Funds?<h3> Every person should invest in Mutual Funds, except.. </h3><a href="http://niftyprediction.blogspot.com/2008/08/introduction-to-mutual-funds.html">Mutual Fund investments</a> are one of the best options for a beginner or even most advanced investors for investing in stock market. Although I pick and buy stocks of good companies myself, I also invest a portion of my money in Mutual Funds, and overall in my past years experience there is nothing I have found to regret about my investment strategy. In spite of all the talk on global recession, subprime etc. my investments made before the recession have earned good positive returns. If you are a beginning investor, I recommend reading the article <a href="http://in.news.yahoo.com/columnist/deepak_shenoy/7/riding-the-equity-wave">Riding the Equity Wave</a> for you. Having said this, the first step in investing is to decide how much to invest in mutual funds or stock markets. In my opinion every person should invest in Mutual Funds or stock markets except those who do not have any risk appetite. And here's a simple recipe to find your '<b>monthly risk appetite</b>'. <a name='more'></a><br /><h3> Determining your monthly risk appetite </h3> No matter, how many success stories you hear, mutual fund or stock market investments are always risky, especially in the short term. In other words, the principal you invest is at a 'risk'. For e.g. Rs. 1Lac invested on Dec 2007 in most Mutual funds was less than Rs. 50K a year after that (but now it is more than Rs. 1Lac again). Thus you simply cannot invest money from your salary that you need in the near future (say 5 years). Use the following simple formula.<br /><br /><div align="justify"><b>Monthly Risk appetite = portion of your monthly income you can you set aside for the next 5 years </b></div><div align="justify"><br />Let me give you my example. My current monthly salary is Rs. 45K. Including expenses for me and my wife, plus a monthly support i give to my parents, my expenses are around 15-20K. Apart from this my wife and I are expecting a baby in the coming year and we also plan to buy a car. For this, in addition to the savings I already have, I am saving at the rate of 5K per month. This takes out about 25K from my salary. For emergencies, add an additional 5K-10K per month. So I am left with around 10K from my monthly salary which I will not need in the coming 3 to 5 years. So my monthly risk appetite is around 10K. Note that I already have enough savings to support me and my family for 2 years,<br /><br />In similar manner above, you should first determine a monthly amount you can set aside for the next 5 years. Remember to take into account all possible emergencies and also save at least 10-20% of your salary in safe investing options like fixed deposits or bonds. So after reading this paragraph, we assume you can now calculate your monthly risk appetite. lets move on to the next step.<br /><h3> Keeping a margin for stock market collapse </h3> An obvious choice would be to invest all the money you have set aside in the above step in mutual funds or stock markets. I however recommend that you keep aside some portion of it (say 10% - 25%) further for investing when the <b>stock market crashes</b>. Remember that money invested in <a href="http://en.wikipedia.org/wiki/Stock_market_crash">stock market crash</a> gives much more returns than investments made when the stock market is at its peak (obviously). I follow the simple rule that whenever the stock market falls below 15% from its peak value, I invest about 20-25% of the money I have set aside for stock market crash.<br /><h3> Start an SIP - Systematic Investment Plan </h3> It is best (risk-minimizing) to make small investments every month rather than large lump-some investments in Mutual Funds. Lump-some investments are also great if they are made when the stock markets crash. Thus from the above two step you now know how much to invest in Mutual Funds every month - simply<br /><br /><div align="center"><b>Monthly Mutual Fund investments = You 'monthly risk appetite' x 0.8 </b></div><br />Start an <a href="http://en.wikipedia.org/wiki/Systematic_Investment_Plan">SIP</a> once you determine your risk appetite. The 20% of the cash you set aside from your monthly risk appetite can be set aside and kept in a bank and invested only if the stock market crashes. This simple strategy can work wonders if followed for a stretch of 5 to 10 years.</div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-61306182806249659482010-06-15T19:14:00.002+05:302010-06-15T19:15:56.665+05:30Crisil Mutual Funds CPR Ratings - what they tell us<h3> Crisil - Credit ratings agency </h3> <a href="http://www.crisil.com/index.jsp">Crisil</a> is a credit rating agency which rates various companies for their ability to repay back debt. You can read about more about <a href="http://en.wikipedia.org/wiki/Credit_rating_agency">Credit rating agencies here</a>. In addition to this, Crisil also rates <a href="http://en.wikipedia.org/wiki/Mutual_fund">mutual funds</a>. Crisil is a well known and reputed company and is a market leader in India (followed by ICRA). Thus the ratings assigned by CRISIL can be taken seriously.<br /><a name='more'></a><br /><h3> CRISIL CPR ratings </h3> The ratings assigned to Mutual Funds by Crisil are CPR1, CPR2, ... with CPR1 being the topmost rating - for the Best Mutual Fund, according to predetermined criterion used by Crisil. Crisil uses the following criterion to rate a mutual fund.<br /><ol><li>Past Performance of the Mutual Fund as compared to its peers in the past 2 years - (75% weightage) </li><li>Sector concentration of the portfolio of that Mutual Fund<br /></li><li>Industry concentration<br /></li><li>Liquidity</li></ol>Note that the rating is not merely on the basis of past performance. Thus a BEST Mutual Fund according to CRISIL CPR ratings may not be the best performing mutual fund. However the other factors considered in the rating are criterion are also important as they are 'risk-minimizing factors'. It is best to split your investments in 2 to 5 mutual funds to further minimize risk (all having CPR 1 ratings). I highly recommend investing in Mutual Funds with CPR 1 ratings, unless you know what you are doing.<br /><br />To find out the best rated Mutual Funds by CRISIL, click on <a href="http://www.crisil.com/research/latest-mutual-fund-cpr-composite-performance-rankings.htm">CRISIL CPR ratings</a>.<br /><br /><h3>Choosing the best from different Fund Families<br /></h3> Crisil groups mutual funds into different categories, Large Cap, Equity Diversified, Small and Midcap, and assigns ratings within each category. if you do not know what category to choose, it is always best to choose "Equity Diversified" (unless you are doing it for a tax saving purpose, in which case you should go for Tax Saving ELSS funds). If you have a larger investment appetite, then I recommend investing in 2 to 3 Equity Diversified Mutual Funds and one Midcap/Small cap Fund.Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-84605729912403277022010-06-13T15:10:00.003+05:302010-06-17T15:12:44.848+05:30DSP BLackRock Micro Cap Fund Review and latest news<h3> DSP BlackRock Micro Cap - Introduction<br /></h3> <a href="http://www.dspblackrock.com/product/micro_cap_features.asp">DSP BlackRock Micro Cap Fund</a> is the best mutual fund in 'equities diversified' category (best as per according to <a href="http://nseindia.moneycontrol.com/mutualfundindia/performance_tracker/snapshot.php?option=eqd&op1=ab">NSE MF Tracker</a>. Note that this rating 'best' is only based on the past performance of the mutual fund, unlike <a href="http://www.crisil.com/research/latest-mutual-fund-cpr-composite-performance-rankings.htm">CRISIL CPR ratings</a> which not only take into account not just performance but also other risk minimizing factors like sector concentration, industry concentration and liquidity. However, DSP BlackRock Micro Cap Fund is not rated by <a href="http://www.crisil.com/">Crisil</a> yet. In any case, I personally think that this is the one of the best mutual funds to invest in (especially SIP - Systematic Investment Plan) in the coming years. Moreover, this mutual fund makes an even more attractive investment options in view of the latest news (see below) which says that DSP Blackrock Micro Cap Fund will now be converted into an open ended scheme. Earlier SIP in this scheme was not possible. Below are some of the highlights of this micro cap mutual fund scheme. <a name='more'></a><br /><br /><h3> Highlights and key points of DSP BlackRock Micro Cap Fund </h3><ol><li><b>Open Ended scheme</b> - with no entry and exit load. An exit load of 0.25% will be charged if units are redeemed before 7 days.<br /></li><li><b>Investment idea - Micro Cap Stocks</b> - DSP Blackrock Micro Cap Fund invests company's which are 'small' in the sense that these companies do not belong to the top 300 companies by market capitalization. Let us call these stocks as micro cap stocks. According to information on Blackrock page, 65%-100% of the portfolio will consist of micro cap stocks while 0-35% of the portfolio may consists of other equities. Click on <a href="http://www.dspblackrock.com/product/portfolios/html1/may10port/microcap.htm">DSP BLackrock micro cap portfolio</a> to check out its portfolio at various available dates in the past. </li><li><b>Fund Recurring expenses</b> - The fund recurring expenses are about 2.5% (annual).</li><li><b>Mutual fund Past performance</b> - Click on <a href="http://nseindia.moneycontrol.com/mutualfundindia/snapshot.php?im_id=MDS076">DSP BlackRock Micro Cap NAV and past performance</a> to find out more.<br /></li></ol><h3> DSP Blackrock Micro Cap Fund now an open ended scheme from June 15 2010 - latest news </h3>The following is an announcement directly on DSP blackrock funds page.<br /><br /><a href="http://www.bluebytes.info/newscheck/Dsp_DetailedNews.aspx?compid=378&id=906385">DSP Merrill Lynch Mutual Fund News</a><br /><blockquote>DSP BlackRock Mutual Fund has announced that DSP BlackRock Fund, which is currently a close ended scheme, will be converted into an open ended scheme. The change will be effective from 15th June, 2010. The scheme will offer regular and institutional plan with growth option. The minimum application amount under regular plan is Rs. 1000 and for institutional Rs.5 crore. The scheme will be managed by Mr. Apoorva Shah and Mr. Vinit Sambre. The scheme will charge 0.25 per cent exit load, if units are redeemed within 7 days from the date of allotment. Investors, who do not agree to the revision, have an option to redeem or switch their units on or before 14th June, 2010 without paying any exit load.<br /></blockquote>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-2394298757358329382010-06-13T09:43:00.014+05:302010-06-13T12:08:29.266+05:30Understanding ROE, ROCE and Shareholder's Equity<h3> Return on Equity (Return on Net worth)<br /></h3> <a href="http://en.wikipedia.org/wiki/Return_on_equity">Return on Equity</a> (<span style="font-weight: bold;">ROE</span>), also called as Return on Net Worth, is one of the key <a href="http://en.wikipedia.org/wiki/Financial_ratio">financial ratios</a> which indicates how well the management has been efficient in managing the company's assets. In my early days in the investing world, this is the ratio which confused me the most. Return on Equity is defined by the following formula<br /><br /><a name='more'></a> <a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://upload.wikimedia.org/math/9/8/6/986916ede0f86de432459ce102e7dd22.png"><img style="display: block; margin: 0px auto 10px; text-align: center; cursor: pointer; width: 251px; height: 47px;" src="http://upload.wikimedia.org/math/9/8/6/986916ede0f86de432459ce102e7dd22.png" alt="Return on Equity" border="0" /></a><br />What is confusing in the above formula for beginners is the meaning of '<a href="http://www.investopedia.com/terms/s/shareholdersequity.asp">Shareholder's equity</a>'. Shareholder's equity should not be confused with 'total value of all the equities, i.e. shares'. The later is called market capitalization of the company. Shareholder's equity is defined by<br /><br /><div style="text-align: center;"><span style="font-size:130%;">Shareholder's equity = Total Assets - Total Liability<br /></span></div><br />In other words, Shareholder's equity is nothing but the amount of money that the company would be worth if it were to go bankrupt at this very moment. This is also called as book value.<br /><h3> How to calculate ROE?</h3>In order to calculate ROE, Return on Equity, lookup any financial portal or the company's annual report for the following<br /><ol><li><a href="http://en.wikipedia.org/wiki/Earnings_per_share">EPS</a> - the earning per share of the company.</li><li><a href="http://en.wikipedia.org/wiki/Book_value">Book Value</a> - The book value of the company per share (i.e. shareholder's equity divided by the number of shares).</li></ol>Then to calculate <a href="http://www.investopedia.com/terms/r/returnonequity.asp">ROE</a> you simply divide EPS by Book Value. ROE is typically expressed as a percentage (i.e. multiply by 100 and put a "%" sign).<br /><br /><span style="font-style: italic;">Example of Return on Equity</span> : Let us say a company earns Rs. 100 per share and the book value of the company is Rs. 300. Then the Return on equity is 33.3%.<br /><br /><h3> Typical values of Return on Equity and what it means </h3> As a general rule of thumb, you should be careful while investing in any company whose ROE is less than 10%. I personally prefer stocks which give a return on equity of at least 20% or more. Obviously return on equity is a direct measure of how well the company is generating cash with the amount of 'shareholder's money' it has. There is one more thing which ROE tells you and which most financial websites don't mention. ROE also tells you how easy it is for the company to profitably expand its business. For example, let us take a situation where the company does not have any debt. Then an ROE of 25% means that the company is producing Rs. 25 for every Rs. 100 of assets it has. Thus if the company were to expand its business, then for every Rs. 100 spent on expansion, it would earn Rs. 25, which is greater than the usual interest rates. If ROE is roughly the same as the bank interest rates, then it means that even if the company expands, it will take a long time for it to make its investments in expansion profitable.<br /><br /><h3> Variations: Return on Average Equity </h3>The Book Value of a company can significantly change during a given year. In these circumstances, one can calculate the average book value (average of the book value in the beginning of the year and at the end of the year) and use it to calculate ROE.<br /><br /><h3> What ROE does not tell you </h3> ROE, like any other financial ratio is very far from being perfect. For example, ROE does not tell you anything about the debt of the company. As explained before it does say something about the potential of the company to expand its business, but does not actually tell you anything about the possible or expected growth of the company. Nevertheless, ROE is a very basic ratio, and used in addition with few other indicators like topline growth and financial ratios like P/E, Debt/Equity and <a href="http://en.wikipedia.org/wiki/Operating_margin">profit margins</a> can give a reasonable good and quick overview of the company.<br /><h3> ROE versus ROCE </h3> A related ratio to Return on Equity is <a href="http://en.wikipedia.org/wiki/Return_on_capital_employed">Return on Capital Employed</a> (ROCE) or also called by the name of Return on Capital Invested (ROCI). ROCE is defined to be<br /><br /><div style="text-align: center;"><span style="font-size:130%;"><span style="font-weight: bold;">ROCE</span> = Operating Profit / <a href="http://en.wikipedia.org/wiki/Return_on_capital_employed">Capital Employed</a>.<br /></span></div><br /><a href="http://en.wikipedia.org/wiki/Operating_income">Operating Profit</a> means profit before tax, depreciation, interest and exceptional items. While Capital Employed is the cash (& assets) that was actually used to do the business in that year. The formula for calculating Capital Employed is<br /><br /><div style="text-align: center;"><span style="font-size:130%;"><span style="font-weight: bold;">Capital Employed</span> = Total Assets - <a href="http://en.wikipedia.org/wiki/Current_liability">Current Liabilities</a><br /></span></div><br />Note that Current Liabilities are those liabilities which the company has to meet immediately (in the coming year). ROCE can sometimes give a slightly accurate picture than ROE, but I have found that overall if you look at the values of ROE for the past 5 years, you get roughly the same picture of the company as you would get by looking at values of ROCE. Moreover, ROE is easier to calculate.<br /><div style="position: absolute; top: 700px; right: -290px;"><table width="275" border="0"><tbody><tr valign="top" align="left"><td><h3>Related Posts on Financial concepts and Investment Basics<br /></h3> <li><a href="http://niftyprediction.blogspot.com/2009/01/pe-ratio-what-why-how-etc.html">Understanding the P/E Ratio</a></li><li><a href="http://niftyprediction.blogspot.com/2010/06/roe-return-on-equity-roce-how-to.html">Return on Equity (ROE), ROCE and Shareholder's Equity</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2008/10/consolidated-results-versus-standalone.html">Consolidated results vs. Standalone Results</a>.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/06/topline-vs-bottomline-growth-what-is.html">Topline Growth vs Bottomline Growth </a></li> </td><br /></tr></tbody></table></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-59742175811292884942010-06-11T14:05:00.003+05:302010-07-02T09:27:12.218+05:30Topline vs BottomLine Growth - what is a better indicator? Investment Basics)<h3> Topline vs Bottom Line Growth </h3> (Anticipated) Growth of a company is an extremely important parameter in deciding the valuation of the company's stock. When a company grows, there are however various parameters which 'grow' when a company 'grows'. Among the most important of these are <a name='more'></a><br /><ol><li>Growth of a company's sales - This is called as <b>Topline Growth</b> for the simple reason that in accounting the sales of a company are written on the first line 'top line'.<br /></li><li>Growth of company's net profit - This is called as <b>Bottomline Growth</b>, for the simple reason that Net profit of a company is written at the bottom, after writing figures of sales, expenditures, revenues, interest, depreciation, tax, etc.<br /></li></ol><h3> Topline vs bottomline - simple example </h3>Topline growth, or growth in sales represents the potential for the business to grow. Bottomline growth or growth in net profit, however can be caused either by increase in sales, or decrease in expenditure/raw material or various combinations including exceptional items (i.e. items which are one-time expenditures/income). Let us take the example of a steel company. If its sales grow by 25%, then topline growth is 25%. It show that the demand for steel, the basic output of that company is growing by 25%. However, it could happen that at the same time, prices for raw material, in this case coal or iron ore also go up by 15%. Other factors remaining same, the increase in net profit will be much less than 25%.<br /><br /><h3> What number to look at while analyzing a stock - topline or bototmline ?</h3>As far as getting an idea of how the company is growing, i think it is a good idea to look at topline growth. Various factors which come into play while calculating bottomline growth (e.g. raw material costs, etc.) are also important, but in my experience i have found it very convenient to analyze them by looking at financial ratios like operating profit margins (or ebitda margins) or net profit margins.<br /><div style="position: absolute; top: 700px; right: -290px;"><table width="275" border="0"><tbody><tr valign="top" align="left"><td><h3>Related Posts on Financial concepts and Investment Basics<br /></h3> <li><a href="http://niftyprediction.blogspot.com/2009/01/pe-ratio-what-why-how-etc.html">Understanding the P/E Ratio</a></li><li><a href="http://niftyprediction.blogspot.com/2010/06/roe-return-on-equity-roce-how-to.html">Return on Equity (ROE), ROCE and Shareholder's Equity</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2008/10/consolidated-results-versus-standalone.html">Consolidated results vs. Standalone Results</a>.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/06/topline-vs-bottomline-growth-what-is.html">Topline Growth vs Bottomline Growth </a></li> </td><br /></tr></tbody></table></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-29733578525146602772010-06-08T10:34:00.002+05:302010-06-08T10:36:18.077+05:30How to buy stocks in USA, China or overseas from India?<h3> Indian Investors looking to invest in stock markets abroad </h3>Have you been looking for investing opportunities beyond the Indian Stock markets (NSE, BSE)? For e.g. investing in Oil ETFs, or other mutual funds exclusively available in select developed countries like United States or Europe, UK, etc? Or thinking of buying stocks in China? Read on.. the answer to these questions is much simpler than what one would have imagined.<br /><a name='more'></a><br /><h3> RBI allows $25000 foreign investment per annum </h3>RBI has several restrictions on buying and selling rupee. For example, you are still not allowed to trade forex in india, unless it is for hedging purpose. However, fortunately, RBI has allowed every indian to invest up to $25000 overseas. This means you can use this much money to either buy real estate, stocks, mutual funds, or simply put that money in a savings account in USA, China or any other country (this last option does not make economical sense, because interest rates in India are higher). Thus trading in stocks in world markets either in USA, Japan, China, Europe, or any other country is now extremely Easy. All you do is start by registering with an online broker who allows you to trade in world markets of your choice.<br /><br /><h3> Registering with an Online broker </h3>An example of such an online broker is <a href="http://interactivebrokers.co.in/en/main.php">Interactive Brokers</a>. This is just one example. There are several other online brokers which allow you to trade in world wide markets from India. Even <a href="http://www.icicidirect.com/">ICICI Direct</a> allows you to invest in stocks in USA or other countries. Google a little or keep your eye on advertisements. Good brokers usually advertise aggressively highlighting their plus points. The following things need to be kept in mind.<br /><ol><li>Trading in world markets may require a larger appetite. For example when you open an account with Interactive brokers, you have to start with $5000 for investing in world markets like NYSE. </li><li>There is a verification procedure when you open your account where you may have to submit/post some documents. The overall approval procedure may take a couple of days or more. </li><li>The money you invest in foreign stocks is kept in dollars (or other currency). Thus apart from stock market fluctuations you are also exposed to the risk of currency fluctuations. </li></ol>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-3168088265105655232010-06-06T15:18:00.004+05:302010-07-01T17:58:16.792+05:30Godrej Consumer Products (GPCL) - best FMCG stock<h3> Godrej Consumer products - best FMCG stock </h3> <a href="http://www.godrej.com/godrej/GodrejConsumerProducts/index.aspx?id=5">Godrej consumer products</a> is a leading FMCG company based in India which manufactures soaps, personal and hair care items, and other home care products like insecticide, hand sanitizers, etc. Some of the popular brands of Godrej include Cinthol (soap), Renew (Hair Color), Colour Soft (Hair Color), Hit (insecticide), Goodknight (mosquito repellent - insecticide), Brylcream (hair styling gel), etc.<br /><a name='more'></a><br /><h3> Godrej 3x3 strategy and recent acquisitions </h3> Godrej Consumer products has been talking about its 3 x 3 strategy - a strategy to spread to 3 continents (Asia, Africa, South America) in 3 areas of Home Care, Personal Care and Hair care. Godrej has been aggressive in its expansion plans to the above mentioned continents (frequently referred to as the emerging markets) and its recent five acquisitions include<br /><ul><li>Acquisition of the Issue group (hair color) in Latin America.</li><li>Acquisition of Tura Brand in Nigeria.</li><li>Acquisition of Megasari group in Indonesia.</li><li>Acquisition of the remaining 51% stake in Godrej Sara Lee (a joint venture)</li><li>Acquisition of Argencos (hair styling cream) in Latin America.</li></ul><h3> Godrej Consumer products - stock price and financials </h3> Godrej consumer products stock is currently (as I write this post) selling at a price of about Rs. 343 which is at about 40 P/E. 40 P/E is very high. It looks likely that godrej will grow at about 20-25% in the coming years, which vaguely speaking justifies a P/E of about 20-30. However, despite the high P/E, the stock seems to be cheap, especially because of its current acquisitions. According to a press release by Godrej, it expects to see revenues of Rs. 4000 crore in the coming financial year as a result of the coming acquisitions. This is more than 3 times its current revenues. This together with the anticipated growth of 20% in the coming years points out about 50% possible upside in this stock. The debt arising from the above acquisitions is not likely to decrease the valuations so much because of a healthy ROCE (of about 30%). Especially because of the acquisition and the current valuations, this stock is likely to provide over 30% returns per annum for the next two years.<br /><h3> Competition with HUL </h3> Hindustan Unilever remains a market leader in several segments (like soap) in India. However HUL seems to be slowly loosing its market share to Godrej, which has slightly less expensive prodcuts. Moreover profit margins of Godrej are significantly higher than those of HUL. This is what makes GodrejCP one of the best FMCG stocks available right now in Indian stock market.<br /><br /><div style="position: absolute; top: 700px; right: -300px;"><table width="275" border="0"><tbody><tr valign="top" align="left"><td><br /><p> Recent Posts related to the theme "<span style="font-weight: bold;">Best Stocks to Buy Now</span>" (2010)<br /></p><ul><li><a href="http://niftyprediction.blogspot.com/2010/07/suzlon-wind-energy-and-repower-detailed.html">Suzlon Energy - Best Wind Energy Stock</a> for 3-5 yr investment.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/05/crisil-best-stock-to-buy-for-long-term.html">Crisil - Best Stock</a> for Long term Investment</li><li><a href="http://niftyprediction.blogspot.com/2010/06/ttitan-industries-best-stock-in.html">Titan Industries - Best Consumer Durables Stock</a> for long term Investment</li><li><a href="http://niftyprediction.blogspot.com/2010/05/apollo-hospitals-good-stock-to-buy-for.html">Apollo Hospitals - Good Stock</a> to buy for Long term investment.</li><li><a href="http://niftyprediction.blogspot.com/2010/06/godrej-consumer-products-gpcl-best-fmcg.html">Godrej Consumer Products - Best FMCG stock</a> to Invest Now<br /></li></ul><br />Stocks which were "<span style="font-style: italic;">Best Stocks to Invest</span>" for year 2009, but now, the analysis may or may not apply, as prospects for the current year have changed.<br /><ul><li><a href="http://niftyprediction.blogspot.com/2009/01/best-stocks-to-buy-in-2009-safe-best.html">Best Stocks to buy in 2009</a>.</li><li><a href="http://niftyprediction.blogspot.com/2009/01/gsk-pharma-glaxo-best-pharma-stock-to.html">Glaxo - Best Pharma Stock</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/investing-in-cipla-good-pharma-stock-to.html">Cipla - Good Pharma Stock</a></li><li><a href="http://niftyprediction.blogspot.com/2009/01/tata-tea-best-fmcg-stock-safe-stock-to.html">Tata Tea- Best FMCG Stock</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/hero-honda-best-auto-stock-to-invest-in.html">Hero Honda - Best Auto Stock for 2009</a>.</li><li><a href="http://niftyprediction.blogspot.com/2009/01/hindustan-unilever-fmcg-safe-stock.html">Hindustan Unilever - Safe FMCG stock </a></li></ul><span style="font-weight: bold;">Posts on Investment Basics </span><br /><li><a href="http://niftyprediction.blogspot.com/2009/01/pe-ratio-what-why-how-etc.html">Understanding the P/E Ratio</a></li><li><a href="http://niftyprediction.blogspot.com/2010/06/roe-return-on-equity-roce-how-to.html">Return on Equity (ROE), ROCE and Shareholder's Equity</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2008/10/consolidated-results-versus-standalone.html">Consolidated results vs. Standalone Results</a>.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/06/topline-vs-bottomline-growth-what-is.html">Topline Growth vs Bottomline Growth </a></li><br /></td></tr></tbody></table></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-24664278183484510442010-05-27T14:12:00.003+05:302010-05-27T14:17:55.351+05:30Why Is Sesa Goa price falling? - 2 quick reasons<h3> Sesa Goa </h3> Sesa goa was supposed to be an outperformer by many analysts. However past 3 months have seen over 35% erosion of the stock price of Sesa Goa. Sesa Goa's main business consists of mining and exporting iron ore. However apart from iron ore the company is also into production of metallurgical coke.<br /><a name='more'></a><br /><h3> First main reason for Sesa Goa fall -Falling iron ore prices </h3> Iron ore prices have fallen significantly from their peak prices in the last year. This is one of the main reason for the price drop in Sesa Goa. Read more about <a href="http://en.wikipedia.org/wiki/Iron_ore#Iron_ore_market">How Iron ore prices work</a>.<br /><br /><h3> Second main reason for Sesa Goa Fall - China regulations </h3> China is one of the largest importers of iron ore. Recently, the Chinese Government has banned import of low quality iron ore (one which contains less than 60% of iron). This has direct adverse consequences for Sesa Goa.<br /><br /><h3> Will Sesa Goa stock see some action ? </h3> There can be various speculations and theories regarding this. My personal opinion is that the stock will see some action ( by which I mean about 20%-25% rise once iron ore prices rise. However the following comment from <a href="http://www.livemint.com/2010/04/20224845/Uncertainties-weigh-heavily-on.html">livemint</a> is worth noting about valuations on Sesa goa.<br /><blockquote>At first, Sesa’s projection of a 20-25% increase in deliveries in fiscal 2011 may seem weak compared with the previous year’s 36% growth. But this higher growth has been mainly achieved due to the contribution of iron ore from its Dempo acquisition. Adjusted for that, sales growth was 12% and 11% in the full year and March quarter, respectively. Dempo’s figures reflect in Sesa’s results from June 2009. The base effect will fade after the June quarter.</blockquote>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-86558468342773076792010-05-27T10:15:00.003+05:302010-05-27T10:37:18.506+05:30Apollo Hospitals - Why should stock split result in price jump?<a href="http://www.bseindia.com/stockinfo/anndet.aspx?newsid=%7B14741F28-0E3D-46D3-B975-89F5E54C3A37%7D&param1=1">Announcements</a><br /><blockquote> Apollo Hosp - Board to consider Stock Split | 27/05/10 09:50 <br /> With reference to the earlier announcement regarding Board Meeting on May 28, 2010, Apollo Hospitals Enterprise Ltd has now informed BSE that in the agenda of the Board Meeting scheduled to be held on May 28, 2010, to consider and approve sub-division (Split) of equity shares of the Company and other matters connected therewith.<br /></blockquote><br /><a name='more'></a><br />Apollo hospitals is up 10% today. The only relevant news I found was the above coroporate announcement on BSE.<br />The company as such does not undergo any change. Why should the price jump 10%? Or am I missing something?<br /><br />- update - it turns out I was missing something. I checked the price on finance.google.com. THere is some bug there where it is showing a jump of 10% where as the price has jumped only 3.8%.Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-53955923189397043602010-05-26T16:54:00.003+05:302010-05-26T16:57:07.220+05:30How to invest in stock market? - Short Listing stocks<h3>Stock Market movements and emotions </h3> A typical week for an early investor -<br /><br /><blockquote>You are new to stock market. The stock market index has recently gained over 10% in the past one month. Being excited about the movement you have a look at top gainers in the past week. You pick one or two stocks and then justify why these stocks are one of the best available, and also why the price is reasonable. You buy them, wait for a day or two. Unfortunately the stock market retreats and you lose over 10% of your invested value. You then start doubting your stock picks and mange to find a flaw. You decide to rearrange your portfolio and sell a portion of it and buy some of the other stocks which have been relatively stable during the recent market fall. But alas, in the coming week, the stock market rebounds and you realize that had you kept your earlier stocks, you could have done better... frustrated, you start searching the internet for investing strategies..</blockquote><br />Does this sound familiar? This is what typically happens to new investors in stock market who do not have a fixed investment strategy.<br /><a name='more'></a><br /><h3> Have a fixed criterion to short list stocks </h3>It is important to have a fixed idea of what is the minimum you expect from a company whose stock you may consider for buying. As an example, I will give the following criterion which I try to follow.<br /><ol><li>The company must be fully functional and shown a positive net profit for at least 5 years.</li><li>The average topline growth of the company must be at least 15% in the past 5 years.</li><li>Minimum Operating Profit margin of 10% and ROCE (return on capital employed) of 12%.</li><li>The current stock price must not be more than 80% of the 52 week high price. (this is to avoid past experiences where I have invested right when the price was at its maximum, and had to pull out when the price plummeted).<br /></li></ol><br />It is also good to follow other rules of diversification (not putting most of your money in your top favorite stock), always keeping some cash ready to buy more if the price drops further etc. These other strategies will be discussed in later posts.Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-68066223186765899372010-05-23T10:13:00.004+05:302010-07-01T17:57:09.083+05:30Crisil - Best Stock to buy for Long Term Investment<h3> Crisil - why is this one of the best stocks ? </h3><a href='http://www.crisil.com/index.jsp'>Crisil</a> - or Credit Rating and Information Services India Limited - assigns ratings to various financial instruments like bonds, debt and even mutual funds. <a href='http://en.wikipedia.org/wiki/Credit_rating_agency'>Credit Rating Agencies</a> like CRISIL are important for market efficiency because investors rely on their ratings for risk assessment. For e.g. if you want to buy bonds of a company or say even invest in a mutual fund, it would be very difficult for individual investors to conduct individual study. Crisil is a market leader in India with 60% market share in domestic bond market and 53% market share in bank loan market segment. <br /><a name='more'></a><br /><h3> Growth prospects and financial info </h3>Crisil is currently trading at a P/E of 25 as I write this post. To check the latest P/E go to moneycontrol.com or <a href='http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx'>BSE PLUS</a>. Crisil sales have been growing at an alarming rate of about 80% in the past five years. Although this amount of growth may not be sustainable in the long term, as more and more companies want to raise capital through bond market, I expect CRISIL to grow at 30% or more. Crisil is a debt free company with operating profit margin of about 50%.<br/><br/><img src='http://chartfeed.icharts.in/ShowChart.php?symbol=CRISIL&period=Daily&pr_period=6M&chart_size=600&uind1=SMA&uind1_param=50&uind2=SMA&uind2_param=200&lind1=RSI&lind1_param=14&lind3=Vol&chart_type=OHLC' style='max-width: 400px;' alt='CRISIL price' title='CRISIL'/><br/><br/>disclosure: I own this stock.<br /><br /><div style="position: absolute; top: 700px; right: -300px;"><table width="275" border="0"><tbody><tr valign="top" align="left"><td><br /><p> Recent Posts related to the theme "<span style="font-weight: bold;">Best Stocks to Buy Now</span>" (2010)<br /></p><ul><li><a href="http://niftyprediction.blogspot.com/2010/07/suzlon-wind-energy-and-repower-detailed.html">Suzlon Energy - Best Wind Energy Stock</a> for 3-5 yr investment.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/05/crisil-best-stock-to-buy-for-long-term.html">Crisil - Best Stock</a> for Long term Investment</li><li><a href="http://niftyprediction.blogspot.com/2010/06/ttitan-industries-best-stock-in.html">Titan Industries - Best Consumer Durables Stock</a> for long term Investment</li><li><a href="http://niftyprediction.blogspot.com/2010/05/apollo-hospitals-good-stock-to-buy-for.html">Apollo Hospitals - Good Stock</a> to buy for Long term investment.</li><li><a href="http://niftyprediction.blogspot.com/2010/06/godrej-consumer-products-gpcl-best-fmcg.html">Godrej Consumer Products - Best FMCG stock</a> to Invest Now<br /></li></ul><br />Stocks which were "<span style="font-style: italic;">Best Stocks to Invest</span>" for year 2009, but now, the analysis may or may not apply, as prospects for the current year have changed.<br /><ul><li><a href="http://niftyprediction.blogspot.com/2009/01/best-stocks-to-buy-in-2009-safe-best.html">Best Stocks to buy in 2009</a>.</li><li><a href="http://niftyprediction.blogspot.com/2009/01/gsk-pharma-glaxo-best-pharma-stock-to.html">Glaxo - Best Pharma Stock</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/investing-in-cipla-good-pharma-stock-to.html">Cipla - Good Pharma Stock</a></li><li><a href="http://niftyprediction.blogspot.com/2009/01/tata-tea-best-fmcg-stock-safe-stock-to.html">Tata Tea- Best FMCG Stock</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/hero-honda-best-auto-stock-to-invest-in.html">Hero Honda - Best Auto Stock for 2009</a>.</li><li><a href="http://niftyprediction.blogspot.com/2009/01/hindustan-unilever-fmcg-safe-stock.html">Hindustan Unilever - Safe FMCG stock </a></li></ul><span style="font-weight: bold;">Posts on Investment Basics </span><br /><li><a href="http://niftyprediction.blogspot.com/2009/01/pe-ratio-what-why-how-etc.html">Understanding the P/E Ratio</a></li><li><a href="http://niftyprediction.blogspot.com/2010/06/roe-return-on-equity-roce-how-to.html">Return on Equity (ROE), ROCE and Shareholder's Equity</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2008/10/consolidated-results-versus-standalone.html">Consolidated results vs. Standalone Results</a>.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/06/topline-vs-bottomline-growth-what-is.html">Topline Growth vs Bottomline Growth </a></li><br /></td></tr></tbody></table></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-2354555901179434082010-05-22T15:35:00.005+05:302010-07-01T17:57:53.692+05:30Apollo Hospitals - Good stock to buy for Long term<h3> Apollos Hospitals - Company Overview </h3> Apollo hospitals group, started in 1983 in Chennai, is an integrated healthcare organization which currently runs over 50 hospitals across India and overseas. Its operations include a chain of Apollo Pharmacies and neighbourhood diagnostic clinics. However, Apollo hospitals is planning to divest at least 50% of Apollo pharmacies, its retail pharmacy industry.<br /><a name='more'></a><br /><h3> Apollo hospitals - Growth </h3> Apollo hospitals limited has been growing at a rate of about 35 to 35% in the past 5 years. Although Operating Profit margins have decreased over the past 5 years, they are still at a comfortable 15%. It looks likely that Apollo Hospitals, the largest such company in south asia, and with its expanding overseas operations, can sustain about 25% to 30% growth in the coming few years. Apollo hospitals has also entered into a joint venture with Cisco to revolutionize healthcare (or telemedicine) using Communications technology.<br /><br />I would enter the stock at its current valuation (690 @ 28P/E).<br />disclosure: I already own this stock. The investment time frame I have in mind is 3 years.<br /><br /><div style="position: absolute; top: 700px; right: -300px;"><table width="275" border="0"><tbody><tr valign="top" align="left"><td><br /><p> Recent Posts related to the theme "<span style="font-weight: bold;">Best Stocks to Buy Now</span>" (2010)<br /></p><ul><li><a href="http://niftyprediction.blogspot.com/2010/07/suzlon-wind-energy-and-repower-detailed.html">Suzlon Energy - Best Wind Energy Stock</a> for 3-5 yr investment.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/05/crisil-best-stock-to-buy-for-long-term.html">Crisil - Best Stock</a> for Long term Investment</li><li><a href="http://niftyprediction.blogspot.com/2010/06/ttitan-industries-best-stock-in.html">Titan Industries - Best Consumer Durables Stock</a> for long term Investment</li><li><a href="http://niftyprediction.blogspot.com/2010/05/apollo-hospitals-good-stock-to-buy-for.html">Apollo Hospitals - Good Stock</a> to buy for Long term investment.</li><li><a href="http://niftyprediction.blogspot.com/2010/06/godrej-consumer-products-gpcl-best-fmcg.html">Godrej Consumer Products - Best FMCG stock</a> to Invest Now<br /></li></ul><br />Stocks which were "<span style="font-style: italic;">Best Stocks to Invest</span>" for year 2009, but now, the analysis may or may not apply, as prospects for the current year have changed.<br /><ul><li><a href="http://niftyprediction.blogspot.com/2009/01/best-stocks-to-buy-in-2009-safe-best.html">Best Stocks to buy in 2009</a>.</li><li><a href="http://niftyprediction.blogspot.com/2009/01/gsk-pharma-glaxo-best-pharma-stock-to.html">Glaxo - Best Pharma Stock</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/investing-in-cipla-good-pharma-stock-to.html">Cipla - Good Pharma Stock</a></li><li><a href="http://niftyprediction.blogspot.com/2009/01/tata-tea-best-fmcg-stock-safe-stock-to.html">Tata Tea- Best FMCG Stock</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/hero-honda-best-auto-stock-to-invest-in.html">Hero Honda - Best Auto Stock for 2009</a>.</li><li><a href="http://niftyprediction.blogspot.com/2009/01/hindustan-unilever-fmcg-safe-stock.html">Hindustan Unilever - Safe FMCG stock </a></li></ul><span style="font-weight: bold;">Posts on Investment Basics </span><br /><li><a href="http://niftyprediction.blogspot.com/2009/01/pe-ratio-what-why-how-etc.html">Understanding the P/E Ratio</a></li><li><a href="http://niftyprediction.blogspot.com/2010/06/roe-return-on-equity-roce-how-to.html">Return on Equity (ROE), ROCE and Shareholder's Equity</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2008/10/consolidated-results-versus-standalone.html">Consolidated results vs. Standalone Results</a>.<br /></li><li><a href="http://niftyprediction.blogspot.com/2010/06/topline-vs-bottomline-growth-what-is.html">Topline Growth vs Bottomline Growth </a></li><br /></td></tr></tbody></table></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-54970688735279037972010-05-21T11:50:00.001+05:302010-05-23T10:16:50.474+05:30Investment Opportunity lying ahead<div xmlns='http://www.w3.org/1999/xhtml'><h3> European debt crisis </h3>Although the european debt crisis could potentially get out of control and a logical possibility of a disaster exists, it is unlikely that any disaster will take place in the next couple of quarters. Thus, in my opinion, the next 3 or 4 quarters are likely to be of healthy growth with double digit IIP. Only economic indicator which will be slightly out of favor will be inflation. But the fear of debt crisis and slowing of activity in several European countries due to austerity measures are likely to keep fuel prices low, and thus help keeping inflation under control. In any case, to summarize, I do think the markets will make a new 52 week high in the coming 3 quarters. <br /><a name='more'></a><br /><h3> Investment Opportunity lying ahead </h3>The above logic doesn't mean that the markets won't fall. There are various reasons for market to fall in the short term. One of the principal reasons is pulling out of funds by FII's. I think it is possible we may see 4500 levels for Nifty in the coming month. If that happens, I believe it will be a wonderful opportunity for medium term investment. I am sitting on some cash, waiting to see if Nifty does fall to 4500 level. I am simply going to put all the cash in a Mutual Fund (currently the ones I have in mind are Reliance Growth Fund, Birla Sun Life Midcap Fund and Sundaram Paribas Select Midcap Fund). That would be a wonderful investment opportunity. If you are thinking along similar lines, don't forget to book your profits in 6 months, because the future ahead, who knows...</div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com1tag:blogger.com,1999:blog-560129691503097176.post-52982170803572808952010-05-19T15:33:00.000+05:302010-05-19T15:34:22.015+05:30Is the European Crisis good for India too?<div xmlns='http://www.w3.org/1999/xhtml'>An interesting article from <a href='http://economistsview.typepad.com/economistsview/2010/05/is-the-european-crisis-a-net-positive-for-the-us.html'>Economists View</a> - claiming that the European crisis will actually be profitable for US, at least in the short term (a couple of quarters). <br/><br/><a href='http://economistsview.typepad.com/economistsview/2010/05/is-the-european-crisis-a-net-positive-for-the-us.html'>Economist's View: "Is the European Crisis a Net Positive for the US?"</a><br/><blockquote>Yes, per usual, two economists, three opinions. In any event, one would have to consider the positive impact of the Greek crisis against any trade drag. And yes, there are positive implications. First, the weaker Euro has taken a bite out of oil prices, which fell back below $70 today. Make no mistake - keeping a lid on oil prices offers continued support for US consumers.<br/></blockquote>This logic applies to India too !<br/></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-90916360670408388242010-04-21T15:31:00.004+05:302010-04-22T01:23:39.570+05:30401(k) Rules explained - Tax, Withdrawals, Loans, Rollovers, limits<h3> What is 401(k) retirement savings plan ?<br /></h3><a href="http://en.wikipedia.org/wiki/401%28k%29">401(k)</a> is a retirement savings plan for a working individual in United States of America. 401(k) plans are sponsored by your employer. In this post you will find out a quick overview of the rules and regulations and the most important things you need to know about 401(k) investments.<br /><h3>401(k) investment options<br /></h3> <a title="401k retirement savings plan" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjlZc__uRZxiNV1lgAa8QqQ3Jh4JsebIkyb_0uIA0kIirDqjnJn2F640Spgd-c9W48WMrmtxM6m4wteSGVChE20hxOMxCi3E2-dPWyQq2Wj1963-uUafTM1jAbcobq2Q-uks_bUkkpr0YU/s1600/401.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 125px; height: 125px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjlZc__uRZxiNV1lgAa8QqQ3Jh4JsebIkyb_0uIA0kIirDqjnJn2F640Spgd-c9W48WMrmtxM6m4wteSGVChE20hxOMxCi3E2-dPWyQq2Wj1963-uUafTM1jAbcobq2Q-uks_bUkkpr0YU/s400/401.jpg" alt="401k retirement savings plan" id="BLOGGER_PHOTO_ID_5462526429996693554" border="0" /></a> Money contributed to 401(k) plans is invested in various mutual funds investing in <a href="http://en.wikipedia.org/wiki/Stock">Stocks</a>, <a href="http://en.wikipedia.org/wiki/Bond_%28finance%29">Bonds</a> or <a href="http://niftyprediction.blogspot.com/2008/10/money-market-instruments-what-why-how.html">Money market investments</a>. There are two types of 401(k) plans based on who has control on how the money is invested.<br /><ol><li><span style="font-weight: bold;">Participant-directed 401k plans -</span> These are plans in which as an employee you can choose how much portion of your money is invested in which particular financial instrument. Most 401k plans are of this type.<br /></li><li><span style="font-weight: bold;">Trustee-directed 401k plans- </span>choice of investment options is made by the employer. </li></ol>It is best to find out from your employer if your plan is indeed of the first type (the most common category).<br /><h3> 401(k) tax exemption rules<br /></h3>It is important to understand the tax consequences of your 401(k) contributions. The key points to remember are:<br /><ol><li>Investments in 401(k) plans are<span style="font-weight: bold;"> tax deferred</span>. i.e. you do not pay income tax on your 401(k) contributions (at the time of the contribution), but you pay tax at the time of withdrawal.</li><li><span style="font-weight: bold;">The returns on your 401(k) are tax-exemp</span>t : You earn from your 401(k) investments in the form of interest or dividend or capital gains. The biggest advantage of 401(k) retirement plans is that these <span style="font-weight: bold;">earnings are not taxable</span>.</li></ol><h3> 401(k) rules for early withdrawals </h3> <ol><li><span style="font-weight: bold;">Pay income tax on 401(k) withdrawals</span>: As explained above in 401(k) tax rules, you have to pay tax on the 401(k) withdrawal amount when you withdraw money.<br /></li><li><span style="font-weight: bold;">401(k) hardship withdrawals</span>: Many employers allow 401(k) withdrawals only if there is a financial hardship, e.g. 1) pay medical expenses, 2) pay college tuition fees, 3) for payment or installments etc. in order to avoid eviction or foreclosure of primary residence 4) for funeral of a family member. What exactly qualifies as financial hardship for the case of 401(k) withdrawals is decided by your employer usually based on predetermined criterion.<br /><span style="font-weight: bold;"></span></li><li><span style="font-weight: bold;">10% Excise tax for premature 401(k) withdrawals</span>: Withdrawals from your 401(k) account before you turn 59.5 years old and (while you are still in service of the company) involves a <span style="font-weight: bold;">penalty</span> in the form of 10% excise tax on the withdrawal amount. Note that this excise tax is in addition to the income tax you pay on the invested amount. However you do not have to pay this 10% excise tax in the case when you are leaving your company after you are 55 years old or if you become disabled.<br /></li></ol><h3>401(k) rules for loans</h3> Although direct withdrawals from 401(k) involve a penalty, several (but not all) 401(k) plans allow you to take a loan on your 401(k) contributions at a predetermined interest rates. The 401(k) rules for taking loan (if it is allowed) are as follows.<br /><ol><li>The <span style="font-weight: bold;">amount of loan</span> you can avail is the minimum of 50% of your 401(k) balance or $50,000.</li><li>The 401(k) loan has to be <span style="font-weight: bold;">repaid in 5 years</span>, unless it is meant for purchase of a primary residence.</li><li>In case you take a 401(k) loan and decide to <span style="font-weight: bold;">quit your job</span>, you may have to pay back the outstanding loan balance in full. Otherwise the outstanding balance may be treated as a premature 401(k) withdrawal and maybe subject to 10% excise tax as mention above.</li></ol><h3> 401(k) maximum limit rules and regulations<br /></h3> There is a maximum limit on the amount you can invest in all 401(k) plans in a given year and it is the minimum of the following two:<br /><ol><li>The maximum percentage of contribution limit set by your employer.</li><li>The maximum 401(k) limit as prescribed by the federal government. The 2010 401(k) maximum contribution limit is <span style="font-weight: bold;">$16,500 for employees below the age of 50</span> years and <span style="font-weight: bold;">$5,500 for employees over the age of 50</span>.</li></ol><h3> 401(k) Rollover rules and options<br /></h3>You have the following options to deal with 401k contributions in case you retire, quit or change your job and do not want to leave your 401(k) assets with your former employer.<br /><ol><li><span style="font-weight: bold; color: rgb(102, 0, 0);">401(k) Rollover Option 1</span>: You can choose to rollover your entire 401(k) contribution to an IRA account, which you will have to setup before the rollover.<br /></li><li><span style="font-weight: bold; color: rgb(102, 0, 0);">401(k) Rollover Option 2</span>: You may be able to make a rollover of your 401(k) assets to a retirement savings plan offered by your new employer (which could be another 401(k)).</li><li><span style="font-weight: bold; color: rgb(102, 0, 0);">401(k) Rollover Option 3</span>: You can choose to receive all your 401(k) assets, without making a rollover. However, remember that you will have to pay income tax according to 401(k) tax rules mentioned above. Moreover it is mandatory for your employer to withhold 20% on the amount of your 401(k) withdrawal for Federal Income tax. You are supposed to pay the remaining tax (after this 20% withholding) when you file your income tax return. In addition to the income tax, you also have to pay 10% excise tax if your age is below 59.5 years (as mentioned in 401(k) early withdrawal rules).<br /></li></ol><h3> 401(k)- additional benefits like matched contributions </h3> Several employers, as part of their pay-package, match the contributions in 401(k) account. I.e. if you invest $1000, your employer will invest an additional $1000 on your behalf, thus doubling your investment. It is worth finding out if indeed your employer matches you 401(k) contribution by directly asking your employer.<br /><div style="position: absolute; top: 700px; right: -290px;"><table border="0" width="275"><tbody><tr align="left" valign="top"><td><br /><span style="font-weight: bold; color: rgb(51, 51, 255);">External useful links related to 401(k) contributions</span><br /><li><a href="http://www.irs.gov/taxtopics/tc424.html"> IRS 401(k) plan</a></li><li><a href="http://en.wikipedia.org/wiki/Roth_401%28k%29">What is Roth 401(k) plan?</a></li><li><a href="http://en.wikipedia.org/wiki/401%28k%29#Withdrawal_of_funds">Additional details on 401(k) withdrawals</a></li><li>Learn more about <a href="http://www.irs.gov/faqs/content/0,,id=200069,00.html">IRA - Individual Retirement Arrangements</a> from IRS website.</li><li><a href="http://en.wikipedia.org/wiki/Roth_IRA#Income_limits">Income limits on Roth IRA contributions</a></li><li><a href="https://401k.fidelity.com/public/content/401k/Home/Landing/">401(k) fidelity</a> - Fidelity Personal workplace and Investing is the largest provider of 401(k) plans in USA.<br /></li><br /><br /><p><span style="font-weight: bold;"><span style="color: rgb(51, 51, 255);">Other posts related to Tax breaks, tax deductions and tax credits that you may find useful.</span><br /></span></p><table border="0" width="275"><tbody><tr align="left" valign="top"><td><br /><li>New Car Purchase <a href="http://niftyprediction.blogspot.com/2009/02/new-car-purchase-stimulus-explained.html"> Auto Stimulus</a> details explained- Excise and Sales Tax deduction for new purchase of new vehicles. </li><li>Cars- <a href="http://niftyprediction.blogspot.com/2009/07/cars-cash-for-clunkers-details.html">Cash for Clunkers</a> - Car tax credit when you trade your old fuel inefficient car for a new one and get a rebate of $3500 or $4500.<br /></li><li>$8000 First Time <a href="http://niftyprediction.blogspot.com/2009/02/8000-home-buyer-tax-credit-explained.html"> Home Buyer Tax Credit</a> details- 2009 Housing Stimulus Bill in Economic Plan proposed by Obama.</li><li><a href="http://niftyprediction.blogspot.com/2009/02/800-making-work-pay-tax-credit-how-does.html">$800 Making work pay</a> tax credit stimulus- details explained ($400 working tax credit for individuals and $800 tax credit for married taxpayers).</li><li><a href="http://niftyprediction.blogspot.com/2009/03/250-social-security-payment-check-in.html">$250 Social Security Stimulus Check</a> in 2009 Economic Stimulus Package.</li><li><a href="http://niftyprediction.blogspot.com/2009/04/2009-cobra-stimulus-package-health.html">2009 Cobra Stimulus Package</a> 65% Reduction in Cobra Health Insurance Premium for qualifying individuals. </li><li><a href="http://niftyprediction.blogspot.com/2009/02/irs-2009-stimulus-check-recovery-rebate.html">2009 Stimulus Checks?</a> Economic Stimulus Payment</li><li>$1000 <a href="http://niftyprediction.blogspot.com/2009/02/1000-child-tax-credit-details-explained.html"> Child Tax Credit, Dependent Tax Credit</a> 2009 extension.</li><br /><br /><br /><span style="font-weight: bold;">Disclaimer</span> The author of this web page is neither a legal consultant nor a tax professional. This article on 401(k) retirement savings plan is meant only as a general outline and may contain inaccuracies or errors.<br /></td></tr></tbody></table></td></tr></tbody></table></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-28622424359330749182010-04-14T14:51:00.008+05:302010-04-15T14:58:50.649+05:30Maruti Suzuki A-star review - Price, Mileage details<h3> Maruti Suzuki A-Star review</h3>This article is my own short review of Maruti-Suzuki A-star. This review contains details of A-star price, A-star features, A-star mileage and other factors that you need to consider if you are planning to buy a car. Perhaps before even beginning with the features I should start with<br /><div style="clear:both;"></div><br /><h3> Maruti Suzuki A-star price </h3> A-star comes in 3 variants. Lxi, Vxi, Zxi where Lxi being the base model and Zxi the top end model.<br /><div style="text-align: center;"><span style="font-weight: bold; color: rgb(0, 0, 0);font-size:130%;" >A-star Lxi on-road Price</span> : Rs. 3.8 lakh (base model)<br /><span style="font-weight: bold; color: rgb(0, 0, 0);font-size:130%;" >A-star Vxi on-road Price</span>: Rs. 4.08 lakh<br /><span style="font-weight: bold; color: rgb(0, 0, 0);font-size:130%;" >A-star Zxi on-road Price</span>: Rs. 4.56 lakh. (top end model)<br /></div><a title="A-star exterior design" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 276px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj2a8QstIwuR-d5seHMVxTCFhUSA-Cs6KN83u79Wy-3jEe_snQCbDHallRg4yUqFU7W4fI5FNVuS8_iQYM0hzwzNOX9v0N0fO39aH_mGHVqfajH2t-yxMchj3v8e2Ib-gQG5ATJD9mhcDc/s400/astar2.png" alt="A-star exterior design" id="BLOGGER_PHOTO_ID_5459915608220367570" border="0" /></a><br />The prices given above are are <span style="font-weight: bold;">on-road prices</span> (i.e. the approximate final price you pay including taxes, insurance etc.) and are approximate. They may vary according to your region and other factors. For ex-showroom prices. Visit <a href="http://www.marutisuzukiastar.com/">official website of A-star</a>.<br /><h3>Three biggest plus points of A-star</h3><ol><li><span style="font-weight: bold;">A-star mileage</span>: A-star gives a mileage of around 20 km / litre (of petrol) (under ideal conditions). This is among the best mileage in the market.</li><li><span style="font-weight: bold;">A-star is cost-effective</span>: Even the top-end model of A-star, A-star zxi has an on-road price of around 4.5 lakh rupees. This is a very good deal considering the amount of features A-star has. (read below for details).<br /></li><li><span style="font-weight: bold;">A-star reliability</span>: A-star is exported by Maruti-Suzuki to Europe. Nissan buys A-star and resells it as Nissan Pixo. An advantage of this is that A-star confirms to European safety and quality standards. I think of this as a plus point.</li></ol><a title="A-star exterior design" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}"></a><h3> The one big disadvantage of A-star<br /></h3><ol><li><span style="font-weight: bold;">A-star space problem</span> (internal design): A-star is small compact car and if you read reviews you will see that a lot of people complain about the shortage of space in the car. Indeed, the luggage space is short and you may find this a problem depending on your needs. As far as the leg-space or space for seating is concerned though, I think this is just fine, unless you are dealing with more than average obese people. So if you are looking for a family car where you want to carry lot of people or lot of luggage, perhaps it may be worthwhile considering other options. Have a look at a picture of the interior space for yourself<a title="A-star interior design" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 279px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoMlh5a2Y8DfGNXni8Zr9HKdpgCQyswaJP28gVdajgthsP_5aDBArShyphenhyphenbU0KvsoAQC4F7o34uFJpQaWt1v5veu0VDKDyWLZIk1XcgbLCk9NmPJ8Zc0TdnLWqZFbGHLBuyBckhTUowsXio/s400/astarinterior.png" alt="A-star interior" id="BLOGGER_PHOTO_ID_5459915691986541794" border="0" /></a></li></ol>There is also another slight disadvantage, however this is a personal opinion. A-star's design is not among the best in the market. Especially the protruding headlights, I really think they could have done better. Compare this with Nissan Pixo, which is A-star car marketed by Nissan in the European markets. Below is how A-star looks. You can decide for yourself if you like it or not.<a title="A-star" onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 219px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh6b2mOy9xDfk7-kVclyZUqLcPr7ppx7YetQP1j-R0Jj30JA_dDfHL3CG2twil1iuVWe0nA76HPEI88G17Bxlo_8Kn_LQS2KSnVsv3kvqpXDoFUzTIaxCxayyMoi_aiXT9uSUnOVnC1Qgg/s400/astar1.png" alt="A-star price" id="BLOGGER_PHOTO_ID_5459915535076963730" border="0" /></a><br /><br /><h3>A-star fuel Options and A-star Mileage</h3> A-star (unfortunately) comes only in the petrol option. Other fuel options like CNG, LPG or diesel would have made A-star an even more attractive choice. A-star gives a mileage of about 19.5 km per litre under ideal conditions (e.g. on highway).<br /><h3>A-star technical specifications and features </h3>All A-star models come with basic features like Air-conditioner, power steering etc (visit <a href="http://www.marutisuzukiastar.com/">A-star specifications</a> for a detailed list).. The high end Zxi comes with a CD player, stereo system with 4 players, dual driver/passenger airbags. The engine capacity is about 1000cc which is slightly lower than other cars int he market, but enough for most purposes.<br /><div style="position: absolute; top: 700px; right: -290px;"><table width="275" border="0"><tbody><tr valign="top" align="left"><td><h3>Posts related to Cars</h3><li><a href="http://niftyprediction.blogspot.com/2010/04/maruti-suzuki-star-review-price-mileage.html">Maruti Suzuki A-star</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2010/04/hyundai-i20-review-models-era-magna.html">Hyundai i20 </a></li><li>Hyundai i10</li><li>Hyundai Santro</li><li>Fiat Punto</li></td></tr></tbody></table></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-43737134022990546972010-04-13T10:16:00.013+05:302010-04-13T10:56:04.671+05:30India Income Tax Slabs - Direct Tax Code 2011-2012<h3>New Direct Tax Code in 2011-2012, India<br /></h3>Government of India has proposed a new Direct Tax code or Direct Taxes Code to replace the old <a href="http://niftyprediction.blogspot.com/2009/02/indian-income-tax-act-tax-deductions.html">Indian Income Tax Act of 1961</a>. This Direct Tax code is an attempt to simply the tax-life of an individual. The way it works is that the income tax slabs are increased, however several deductions (e.g. deduction on housing loan) and tax-breaks are taken away. A detailed post will be written about Direct Tax Code. Below you will find the proposed income tax slabs under the Direct Tax code will be debated in the Parliament and if approved, will be implemented in 2011-2012.<br /><div style="clear: both;"></div><h3>Income Tax rates or Tax Slabs under Direct Tax Code : Table </h3><center style="font-weight: bold;">Direct Tax Code slabs, 2011-2012, Men<br /><table width="100%" border="1"><tbody><tr style="background-color: rgb(213, 234, 255);" align="center"><td width="50%">Income: upto 1.6 lacs </td> <td width="50%">no income tax<br /></td></tr><tr align="center"><td width="50%">Income : 1.6 lacs to 10 lacs<br /></td> <td width="50%">10 %<br /></td> </tr><tr style="background-color: rgb(213, 234, 255);" align="center"><td width="50%">Income : 10 lacs to 25 lacs<br /></td> <td width="50%">20 %<br /></td> </tr><tr align="center"><td width="50%">Income : above 25 lacs<br /></td> <td width="50%">30 %<br /></td> </tr></tbody></table><span style="font-weight: bold;"><br />Direct Tax Code slabs 2011-2012, Women</span><br /><table width="100%" border="1"><tbody><tr style="background-color: rgb(213, 234, 255);" align="center"><td width="50%">Income : upto 1.9 lacs </td> <td width="50%">NO TAX<br /></td></tr><tr align="center"><td width="50%">Income : 1.9 lacs to 10 lacs<br /></td> <td width="50%">10 %<br /></td> </tr><tr style="background-color: rgb(213, 234, 255);" align="center"><td width="50%">Income : 10 lacs to 25 lacs<br /></td> <td width="50%">20 %<br /></td> </tr><tr align="center"><td width="50%">Income : above 25 lacs<br /></td> <td width="50%">30 %<br /></td> </tr></tbody></table><span style="font-weight: bold;"><br />Direct Tax Code slabs 2011-2012, Senior Citizen</span><table width="100%" border="1"><tbody><tr style="background-color: rgb(213, 234, 255);" align="center"><td width="50%">Income : upto 2.4 lacs </td> <td width="50%">NO TAX<br /></td></tr><tr align="center"><td width="50%">Income : 2.4 lacs to 10 lacs<br /></td> <td width="50%">10 %<br /></td> </tr><tr style="background-color: rgb(213, 234, 255);" align="center"><td width="50%">Income : 10 lacs to 25 lacs<br /></td> <td width="50%">20 %<br /></td> </tr><tr align="center"><td width="50%">Income : above 25 lacs<br /></td> <td width="50%">30 %<br /></td> </tr></tbody></table><br /></center><h3> Education cess and surcharge on total income tax </h3>It is not clear whether education cess and surcharge will be applicable on income tax collected under direct tax code. According to the current indian income tax act, in addition to the income tax calculated according to the above income tax slabs, a 3% of <span style="font-weight: bold;">Education cess</span> is charged on the total Income tax paid (not on the total taxable income). If the taxable income exceeds Rs. 10 lacs, a <span style="font-weight: bold;">10% surcharge</span> on the total income tax (not on the total taxable income) is also charged.<br /><div style="position: absolute; top: 700px; right: -290px;"><table width="275" border="0"><tbody><tr valign="top" align="left"><td><h3>Posts related to Income Tax rates in India</h3><li><a href="http://niftyprediction.blogspot.com/2010/04/indian-income-tax-slabs-direct-tax-code.html">Direct Tax Code Rates 2011-2012</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2010/04/income-tax-slabs-20102011-it-slabs-10.html">Income Tax Rates for year 2010-2011</a><br /></li><li> <a href="http://niftyprediction.blogspot.com/2009/02/india-income-tax-slabs-20092010.html">Income Tax Rates for year 2009/2010</a></li><li><a href="http://niftyprediction.blogspot.com/2009/02/india-income-tax-slabs-20092010.html">Income Tax Rates</a> India - Financial Year 2008/2009 and 2009/2010. The IT slabs for 2009/2010 are the same as the slabs in 2008/2009.<br /></li><li><a href="http://niftyprediction.blogspot.com/2008/08/income-tax-calculator.html">Income Tax Calculator</a> - 2008/2009 (also good for A.Y. 2009/2010 since the tax slabs are unchanged for 2009/2010). This Income Tax Calculator is in Excel Spreadsheet format.<br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/indian-income-tax-act-tax-deductions.html">India Income Tax deductions</a> - Various Income Tax deductions under section 80C, section 80D, section 80DD, section 80G, section 80GG, section 80E, section 24, etc. and their max. tax exemption limits allowed under the Indian Income Tax Act discussed in this post. All Indian IT deductions in one single post.</li><li>Tax deduction under <a href="http://niftyprediction.blogspot.com/2009/03/section-80c-how-to-save-upto-rs-33000.html">Section 80C</a>: The most common income tax deduction for Indians discussed in detail. Use this for your personal tax planning and save upto Rs. 33,000 Income Tax.</li><li><a href="http://niftyprediction.blogspot.com/2009/02/how-to-pay-your-income-tax-online.html">How to pay your Indian Income Tax online?</a></li><li><a href="http://niftyprediction.blogspot.com/2009/02/how-to-check-your-indian-income-tax.html">How to check your Income Tax Refund Status online?</a></li></td></tr></tbody></table></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0tag:blogger.com,1999:blog-560129691503097176.post-26994729043346717852010-04-13T09:57:00.016+05:302010-04-15T14:47:26.862+05:30Income Tax Slabs 2010/2011 - Tax rates 10-11<h3> Income Tax Rates 2010-2011 </h3>Below you will find Indian Income Tax slabs decleared in Budget 2010, for the financial year 2010-2011. These ITslabs have been increased slightly (i.e. the <a href="http://en.wikipedia.org/wiki/Income_tax_in_India#Tax_Rates">tax rate</a> has been reduced) as compared to the IT slabs for 10-11. Below you will find a detailed table of Income Tax slabs for men, women, and senior citizen. These tax rates are applicable for the financial year 2010-2011, i.e. effective from 1st April 2010 to 31st March 2011.<br />You may also like to use the quick-easy-to-use this <a href="http://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx">Income Tax Calculator</a> on the website of <a href="http://www.incometaxindia.gov.in/">IT department</a> or download this <a href="http://niftyprediction.blogspot.com/2008/08/income-tax-calculator.html">Tax Calculator</a> (Excel Spreadsheet) for calculating your tax for A.Y. 2010/2011.<br /><div style="clear: both;"></div><h3> Income Tax rates or Tax Slabs 10-11 : Table </h3><center style="font-weight: bold;"><span style="font-weight: bold;">Income Tax Slabs 2010/2011 for Men</span><br /><table width="100%" border="1"><tbody><tr style="background-color: rgb(213, 234, 255);" align="center"><td width="50%">Income: upto 1.6 lacs </td> <td width="50%">no income tax<br /></td></tr><tr align="center"><td width="50%">Income : 1.6 lacs to 5 lacs<br /></td> <td width="50%">10 %<br /></td> </tr><tr style="background-color: rgb(213, 234, 255);" align="center"><td width="50%">Income : 5 lacs to 8 lacs<br /></td> <td width="50%">20 %<br /></td> </tr><tr align="center"><td width="50%">Income : above 8 lacs<br /></td> <td width="50%">30 %<br /></td> </tr></tbody></table><span style="font-weight: bold;"><br />Income Tax Rates 2010/2011 or Women</span><br /><table width="100%" border="1"><tbody><tr style="background-color: rgb(213, 234, 255);" align="center"><td width="50%">Income : upto 1.9 lacs </td> <td width="50%">NO TAX<br /></td></tr><tr align="center"><td width="50%">Income : 1.9 lacs to 5 lacs<br /></td> <td width="50%">10 %<br /></td> </tr><tr style="background-color: rgb(213, 234, 255);" align="center"><td width="50%">Income : 5 lacs to 8 lacs<br /></td> <td width="50%">20 %<br /></td> </tr><tr align="center"><td width="50%">Income : above 8 lacs<br /></td> <td width="50%">30 %<br /></td> </tr></tbody></table><span style="font-weight: bold;"><br />Income Tax rates 2010/2011 for Senior Citizen</span><table width="100%" border="1"><tbody><tr style="background-color: rgb(213, 234, 255);" align="center"><td width="50%">Income : upto 2.4 lacs </td> <td width="50%">NO TAX<br /></td></tr><tr align="center"><td width="50%">Income : 2.4 lacs to 5 lacs<br /></td> <td width="50%">10 %<br /></td> </tr><tr style="background-color: rgb(213, 234, 255);" align="center"><td width="50%">Income : 5 lacs to 8 lacs<br /></td> <td width="50%">20 %<br /></td> </tr><tr align="center"><td width="50%">Income : above 8 lacs<br /></td> <td width="50%">30 %<br /></td> </tr></tbody></table><br /></center><h3> Education cess and surcharge on total income tax </h3>In addition to the income tax calculated according to the above income tax slabs, a 3% of <span style="font-weight: bold;">Education cess</span> will be charged on the total Income tax paid (not on the total taxable income). If the taxable income exceeds Rs. 10 lacs, a <span style="font-weight: bold;">10% surcharge</span> on the total income tax (not on the total taxable income) is also charged.<br /><span style="font-weight: bold;">Related</span>: <a href="http://niftyprediction.blogspot.com/2009/02/indian-income-tax-act-tax-deductions.html">Indian Income Tax Act - Tax Deductions, Tax Exemptions, Section 80C,80D,80DD,80E, etc</a>.<div style="position: absolute; top: 700px; right: -290px;"><table width="275" border="0"><tbody><tr valign="top" align="left"><td><h3>Posts related to Income Tax Rates India</h3><li><a href="http://niftyprediction.blogspot.com/2010/04/indian-income-tax-slabs-direct-tax-code.html">Direct Tax Code Rates 2011-2012</a><br /></li><li><a href="http://niftyprediction.blogspot.com/2010/04/income-tax-slabs-20102011-it-slabs-10.html">Income Tax Rates for year 2010-2011</a><br /></li><li> <a href="http://niftyprediction.blogspot.com/2009/02/india-income-tax-slabs-20092010.html">Income Tax Rates for year 2009/2010</a></li><li><a href="http://niftyprediction.blogspot.com/2009/02/india-income-tax-slabs-20092010.html">Income Tax Slabs</a> India - Financial Year 2008/2009 and 2009/2010. The IT slabs for 2009/2010 are the same as the slabs in 2008/2009.<br /></li><li><a href="http://niftyprediction.blogspot.com/2008/08/income-tax-calculator.html">Income Tax Calculator</a> - 2008/2009 (also good for A.Y. 2009/2010 since the tax slabs are unchanged for 2009/2010). This Income Tax Calculator is in Excel Spreadsheet format.<br /></li><li><a href="http://niftyprediction.blogspot.com/2009/02/indian-income-tax-act-tax-deductions.html">India Income Tax deductions</a> - Various Income Tax deductions under section 80C, section 80D, section 80DD, section 80G, section 80GG, section 80E, section 24, etc. and their max. tax exemption limits allowed under the Indian Income Tax Act discussed in this post. All Indian IT deductions in one single post.</li><li>Tax deduction under <a href="http://niftyprediction.blogspot.com/2009/03/section-80c-how-to-save-upto-rs-33000.html">Section 80C</a>: The most common income tax deduction for Indians discussed in detail. Use this for your personal tax planning and save upto Rs. 33,000 Income Tax.</li><li><a href="http://niftyprediction.blogspot.com/2009/02/how-to-pay-your-income-tax-online.html">How to pay your Indian Income Tax online?</a></li><li><a href="http://niftyprediction.blogspot.com/2009/02/how-to-check-your-indian-income-tax.html">How to check your Income Tax Refund Status online?</a></li></td></tr></tbody></table></div>Investo Bloghttp://www.blogger.com/profile/11241415365457707635noreply@blogger.com0