With all this talk about Nifty PE ratio and what is most likely going to be a deteriorating earning season, I decided to have a look at how expensive/ cheap each stock on the Nifty really is. Of course, in absolute numbers, now at 9,266; historically speaking, Nifty is fairly valued at a P/E multiple…
value investing
3 Reasons Why Stock Markets Are Rallying – And what you should do about it?
These days I see a lot of investors and perhaps fund managers running out of ideas. The general view seems to be that stocks are either too expensive or not worth owning because of poor fundamentals. My view differs to the extent that large caps that are not overburdened with debt will either continue to…
5 Investing Rules You Should Follow to Achieve Investing Success
Investing Rule 1: It’s no different anytime The guy who initiated the mutual fund landscape (Sir John Templeton) said: The four most expensive words in the English language are, ‘this time it’s different‘. Years have passed and landscape has changed tremendously. Back when Templeton first said the above, news did not flow as smoothly as…
ONGC Stock Offers Pure Value at Current Price
At Rs 190/ share, Oil & Natural Gas Corporation Limited (ONGC) remains one of my strongest buy ideas in the current market environment. ABOUT ONGC ONGC is the second largest oil and gas exploration and production company in the world and ranks 23rd among leading global energy majors. The Company’s primary business includes exploration and…
Why Value Investing Does Not Work Anymore
Over the last few months, I have received far too many mails expressing views on value investing and stocks that are undervalued, often deeply undervalued in the opinion of the writers. One of the best comments I received came from a 65 year old lady, who wrote this: I have done a little research of…
Should You Start Buying Oil Stocks? – Look For These 3 Things
Next time when crude oil price hits U.S. $ 90 / barrel mark, it may well be attributable to “the risk posed by the emerging markets of India, China and Brazil, where increasing affluence resulted in more and more mid income consumers to become automobile owners.” Over the last few days, I must have read…
How to Judge Investor Sentiment in Stock Market
What markets do day to day is overwhelmingly driven by random chance. Ascribing explanations to short term moves is like trying to explain lottery numbers. It’s no secret that in the short term – investor sentiment is arguably the only driver of stock prices. Their sentiment may turn positive or negative based on news flow,…
Picking Value Stocks – My Best Stock Purchase Decision
May be I have written so much about stocks which did not do well, asset classes (like Gold) which are certain to destroy investor wealth and about other negative biases about investing that I have started receiving mails like this: Sir – I follow your blog regularly but over the past few weeks you have…
A Simple Rule to Calculate Fair Value of Stock
Updated on 27 December 2016 On 1 December 2016, Sunil Hitech issued 10:1 stock split and 1:1 bonus issue shares. For the purpose of this article, consider Sunil Hitech price as 20 times of its current market price. If you have been reading my posts or of any other fundamental stock analyst, you would have noticed…
Blue Chip vs. Growth Stock–Difference is Subtle
In recent times the talk of growth stocks has almost taken over the whole idea of value. What differentiates them from value stocks? Very briefly — as the name suggests, growth stocks are shares of companies whose earnings are expected to grow at a rate higher than the market rate. Value stocks on the other…
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