How does the screener shows " The comany is expected to give good quarter"? Is there any formula it uses or some methodology behind the same?
Posts in category Value Pickr
iStreet Networks – Flipkart kind of business (24-09-2015)
Hi Ravi,
Did you get a chance to dig any further into this (despite your workload)? Can you please share any latest information you might have gathered?
This looks like an exciting prospect to me and I am planning to take a small position.
Lycos internet – way to digitalization (24-09-2015)
Lots of positive developments going around in the company:
1. JV with Apollo International; Lycos will hold a 49% stake with Apollo's share at 51%
2. Michael Mauldin, founder and inventor of Lycos has rejoined the company after 17 years. http://www.mediapost.com/publications/article/256827/lycos-inventor-michael-mauldin-returns-as-company.html
3. Venturing into wearable technology and IoT
Chairman & CEO Suresh Reddy is confident of 20-25% revenue and EPS growth in FY16 and also planning a UK/US listing on NASDAQ. https://www.youtube.com/watch?v=tTdWIJ0Nsb0
Stock has taken a lot of beating despite decent results and is available at a P/E of 4!!
Disclosure: Invested
Motherson sumi : Recent opportunity to buy (24-09-2015)
Regarding the valuation part of Motherson sumi I would like to add that it always traded at premium because it has very ROCE ( 35% - 40% ), so obviously one has to pay the premium of such companies ( eg HDFC BANK, GRUH FINANCE,EICHER MOTORS, PAGE INDS ) to name few.
Also motherson sumi has always consistently feature in the Motilal Oswal wealth creation study. ( It has given around >30% CAGR growth ).
Kitex Garments another Page industries? (24-09-2015)
yes you are right that Lamaze International is a non profit organisation, there tie up with kitex garments also states some minimum sales agreement ( quantity or value I need to dig out ).
But Kitex garments stated that they are very much confident of meeting the minimum sales agreement but also re-iterated of double sales with respect to agreement quantity.
Lamaze international being a non profit organisation does not matter to kitex garments ( they will get their volume,profit and also strong foot hole for the further brand licensing ).
Varun 2020 portfolio – 2 strategies (24-09-2015)
Manoj - Difficult to say anything on Care. Its a low volume counter
anyways with high FII holding. Continuous daily low volume selling
suggest someone trying to get out.
Motherson sumi : Recent opportunity to buy (24-09-2015)
Plz chk the company website for consolidated results for FY15 rather than screener. Infact always do chk the company website only. The TTM eps is 9+ and if you adjust to bonus its 6+.
Stovec Industries Ltd – Manufacturer of Textile Printing (24-09-2015)
Thank you Dheeraj for pointing out the other thread, I had searched for "Stovec" before starting this thread. Apologies for duplicate thread. Request admin to take appropriate action.
I am a bit skeptical on "Textile Industry revival", can you please help me with some data/ground report that says textile industry is on upswing? Pardon my skepticism.
Also I have few more questions, if you know answers any of them, please provide them.
- Who are Top 5 customers of Stovec?
- What is the price of say one Textile printing machine, one rotary screen, one sugar screen etc.? How does that compare with competition?
- What is the life of these parts (1 year? 2 years? 3 years? more?)? Does newer generation of products have better technology/better productivity than older parts? Do companies have motivation to move to newer parts?
I am trying to find answers to these questions. If you do, please share with us.
Thanks,
Rupesh
Duke Offshore – Hidden Gem? (24-09-2015)
Hi All,
The trade receivables as a percentage of revenue have gone up from 8.2% to 23.4%. What can be the reason for this?
The accountants have made a mistake while calculating the cash flow from operations- adjustments for trade and other receivables (See page 33 of the Annual Report’15). These must be subtracted and not added as the receivables have increased compared to the previous year. Can we overlook this mistake as a one off error?
Disc: Not invested
Kaveri Seeds – Temporary thread for clarifications (24-09-2015)
What I understand is most of the seeds sold (>90% volumes) are BG II version which is "seems" to be patented by Monsanto and most news articles continue to talk only about BG I.
First post article - Copying some text from the news
Quote: Monsanto India’s CEO Shilpa Divekar Nirula says in "assessment less than five percent" of Bt cottonseed used in India has the off-patent gene. The rest is Bollgard II, which "offers a broader spectrum of control" as it has two insecticidal proteins. This ‘event’ was approved for commercial release in 2006. Currently, Mahyco-Monsanto is conducting trials on Bollgard III, which has a combination of three Bt genes, but the one immediately in the pipeline is a seed with both insect resistance (Bt) and herbicide tolerance.
"Labour and the availability of labour at specific times in the crop cycle is becoming increasingly challenging," says Nirula. Though wages rates have moderated of late and commodity prices have fallen, "they are trending upwards," she says. Earlier, weeding was done manually but "a lot of times we find farmers leaving weeds in the field."
Labour cost is the biggest component in the cost of cotton cultivation, according to the official national sample survey.
"We spend a lot on weeding and on spraying chemicals," says Rustam Jamaluddin Turak of village Selsura in Wardha district. "We have to pay Rs 300 a day. Earlier, I used to spray myself but I am 68 years old. I did not engage labourers but now I cannot manage it and my children do not like to work on the farm."
"We need technology that can deal with pests that curls the leaves, and kills weeds," says Jayantibhai Gajera of village Biliyara in Rajkot district. "I heard it is going to come," he adds.
But the attitude of state governments to agricultural biotechnology and private seeds is quite unhelpful. Instead of getting out of the way when not part of the solution, they have become part of the problem.