In this midst of fear and speculation that “telecom companies would not be able to make good profit for next couple of years” should we invest in them ?
Today as I see on TV every brokerage house is downgrading the earning estimates of all the stocks in Telecom sectors and some have downgraded the EPS of FY11 to as low as 50% of their earlier estimates and so in this midst of fear and speculation that “telecom companies would not be able to make good profit for next couple of years” it could be a good option to start investing in them. I would not say you start immediately but you should keep an eye on them and invest wisely. Remember you are trying to catch the falling knife and so bound to have pain in hand for quite sometime.
My views on Telecom
Telecom, only history or an Oppurtunity !!! Posted on March 13th, 2009
Telecom Sector in India Posted on September 15th, 2009
I would prefer to invest in the market leaders when it comes to crisis situation and so if you want to play safer Bharti Airtel and if you want to go for high Beta Stock go for Reliance Communication.
Shabir,
NET WORTH (March 2010) : 1,391.08 crore ( 11% more than last year)
Quarterly results out. 20.12 crore net profit.There is small improvement in its quarterly profit when compared with June 2010 result.
Debt equity ratio: Less than 1 ( Good)
Debt profit ratio : Comes within 3 ( Good)
Compared to last year, this company has not done that great. However, it is still making profit and its current market price is far lesser than its BV (189). P/E ratio is far below than Industry P/E. These all points make this stock worth buy at this level.
The only doubt i have about this company is about its fundamental business growth. How is caustic soda market look like?
Waiting to see your comment on these.
Salm, When investing in a small company the only could be with either management or business fundamentals.
Thanks for your opinion. I wonder why it is not going up becuase its price is attractive and this company making good profit as well.
To be frank, my small investment in this scrip has appreciated around 10% in one quarter. Not so bad! Shabir sir, keep an eye on this scrip. May be, this one could be one of those hidden gems! Not sure.
Salman
Will do to the extent possible.
Hello Sir,
Greetings!
I would like to seek your opinion about Gujarat Alkalies and Chemicals. This stock is trading at very attractive price.
Sir, what is your opinion about this one? I am holding this few and made little profit over a couple of months.
What is your view on its fundamentals and future prospects?
Regards,
Salman
I don’t track that stock and so cannot comment on the management or fundamentals but it looks like this stock has not done anything in the last 1 year and is stuck is the range of 120 to 160 and so I will avoid this stock
Ashish, I do not believe in the theory that someone can create wealth for you and so I do not recommend anything in that line.
Hi Shabbir, It goes without a doubt that you are doing a very noble and humble job of educating retail investors like us with your immense wealth of experience in the stock markets. Keep it up dude!!!
One thing i wanted to know is, would you recommend for someone to go for Discretionary Portfolio Management systems? If yes, can you recommend some good PMS with basic ticket of 5L as nominated by SEBI. I am interested in this aspect as i come from the same fiels as yours and generally time is difficult to find for analysis and would rather prefer something of this sort which offers the comfort of not having to manage the portfolio yet stand to gain on the basis of the expertise with PMS managers.
Ashish, I do not believe in the theory that someone can create wealth for you and so I do not recommend anything in that line.