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Value Investing Lessons Relevant At All Times

  • Exotic Derivatives
    (Sep 2, 2010)This is the final article in the derivatives tutorial. So far, we have looked in detail at futures and options, how they are priced, and how they can be traded. Today, we’ll take a look at some of the exotic derivatives that have come up in financial markets today.
  • Options Trading Strategies - Part 2
    (Aug 26, 2010)Previously we examined some commonly used option trading strategies. These included outright directional strategies, protective puts, and covered calls.
  • Options Trading Strategies - Part 1
    (Aug 19, 2010)In the last two weeks, we discussed how options are priced and the various factors that affect option prices. In this and next week's article, we’ll discuss some commonly used option trading strategies.
  • Option Pricing - Part II
    (Aug 12, 2010)In the previous week's article, we discussed some of the basic tenets of options. These included how they operate, and the concepts of intrinsic and time value.
  • Option Pricing - Part I
    (Aug 5, 2010)Option pricing is a very popular topic for any students studying finance; it can get extremely technical and sometimes divorced from reality. Over the next two articles, my aim is to provide you with the tools to understand how options are priced, and what are the risks involved.
  • Futures trading strategies
    (Jul 29, 2010)In the previous week, we discussed the mechanics of trading futures, and provided some examples of how to trade them. This week, I'd like to talk about a few trading strategies that can be implemented through the use of futures contracts.
  • How does Futures pricing work?
    (Jul 22, 2010)As I discussed in the previous week, a futures contract is an agreement to buy or sell an asset on a particular date in the future.
  • Real estate: Have you looked at these key points?
    (Jul 15, 2010)The real estate pack has traditionally been a high beta play. Being cyclical in nature, the industry does not find favour amongst many value investors. The real estate pack as a whole is known for market outperformance when the economy is in boom.
  • Introduction to Derivatives
    (Jul 15, 2010)What is a derivative? A derivative is a financial instrument that derives its value from another financial asset. For example, the value of a crude oil futures contract depends on the value of the underlying asset, which is crude oil itself.
  • Key banking ratios-II: PSUs vs private
    (Mar 18, 2010)In one of our recent articles, we discussed about some of the key ratios relating to a bank's balance sheet statement.
  • Key banking ratios: PSUs versus private
    (Jan 8, 2010)In one of our recent articles, we discussed about some of the key ratios relating to a bank's profit and loss statement. Just to brush up our readers, some of the ratios that were discussed included:
  • A close cousin of the P/E ratio
    (Sep 3, 2009)Learning about stock market investing is a never-ending quest. There are several metrics that an investor can look at while selecting stocks. In this article, we discuss one of the many parameters that could help in making better investment decisions - Price-earnings to growth ratio (PEG ratio).
  • One ratio every investor must understand
    (Aug 25, 2009)Return on Equity (RoE) ratio is one of the most important ratios that every investor must understand. This is because it is used to measure the efficiency with which a company utilises the equity capital. In this article, we shall discuss what RoE is and how it is calculated with the help of an example.
  • P/E ratio simplified
    (Jul 10, 2008)We thought it would be a good time to write this article as the result season is just about to begin. Also, the understanding of this method could help one take a call on which stock to purchase, hold or sell.
  • Identifying a Retailing stock: Do's and Don'ts
    (Apr 9, 2008)Retail as a whole can be divided into various categories, depending on the types of products serviced. It covers diverse products such as food, apparel, consumer goods, financial services and leisure.
  • Identifying a textile stock: Do's and don'ts
    (Apr 9, 2007)The debt-laden Indian textile industry that was embroiled in BIFR cases until the early part of this decade, spun a turnaround with the lowering of interest rates and dismantling of the quota regime. Aided by lower interest rates, restructuring packages from financial institutions and the more recent Technology Upgradation Fund (TUF), the sector today is well poised to capture growth opportunities.
  • Identifying an auto stock: Dos and Don'ts
    (Apr 9, 2007)"It makes nearly 60m cars and trucks a year, and employs millions of people around the world. Its products are responsible for almost half the world's oil consumption, and their manufacture uses up nearly half the world's annual output of rubber, 25% of its glass and 15% of its steel. No wonder the car industry accounts for about 10% of GDP in rich countries."
  • Identifying a construction stock: Do's and don'ts
    (Mar 19, 2007)After being in the limelight for the past two years, stocks from the construction sector have witnessed tremendous pressure in the recent market meltdown with the pressure being aggravated by the Finance Minister's clarification that tax benefits under Section 80-IA would not be applicable for entities executing projects through work contracts (i.e. sub-contracting of projects won by the entities).
  • Identifying a sugar stock: Do's and Don'ts
    (Mar 8, 2007)Sugar being a commodity, the sugar industry is cyclical in nature. It is a typical cycle which is affected by cane supply and sugar demand. In this article, we take a look at how to identify a good sugar stock. Currently, with the sector looking bitter, it is even more important to identify the right stocks to sweeten the gains.
  • Identifying a telecom stock: Do's and Don'ts
    (Mar 6, 2007)Telecom has been one of the fastest growing sectors in India, with the performance of services providers being led by mobile telephony. From around 2.8% tele-density (connection per 100 population) in March 2000, the sector now connects around 17% of India's population through a host of services, which include mobile, fixed line and Internet. Thriving Indian businesses, especially the IT and BPO industries have also helped the strong growth in another segment called 'Enterprise services', which include wholesale proviosion of data and bandwidth services.