ya it could rise viciously provided it again start to run on the same 25+ sales & growth track. Actually last qtr. result was the main reason why its soo weak. Moreover everyone is waiting for a imaginary fall of Nifty towards 6800 and delaying the purchase. can't find a fault there.
Posts in category Value Pickr
International Investing (15-09-2015)
Different perspectives, needs, necessities make the market!
I agree with your above thinking. It looks like you will now have more money to invest and have a chance to increase portfolio size. Do what makes you feel better and at the same time with the present correction good quality stocks are at good accumulation prices in Indian markets, so invest a bit here too at these prices!
All the best and looks like you could be relatively young and nice to see matured thinking on savings and investment.
Page industries (15-09-2015)
May be we should look at past data - Page touched 200 day moving average during the August 2013 correction. The present correction reminds me of that time. We are a bit below 200 moving average now and Page getting into F&O will have its impact on volatility both on the downside and upside. I think even on the upside Page could rise viciously.
International Investing (15-09-2015)
Also, over years the allocation will go down from 20% to probably less than 10% as I need an absolute amount as emergency funds (like 4 months salary). NOT necessarily 20% of portfolio!
Thanks, please feel free to advice. It is always great to get another perspective!
International Investing (15-09-2015)
I completely agree with you. However, I prefer to have at least 20% of my portfolio in such securities which I can sell in case of urgent needs. The following are some points which made me consider developed/US markets:
- I don't need to pay any short-term capital gain tax in US compared to 17% in India. So freedom to liquidate holdings quickly.
- Indian equities are volatile (I agree equally rewarding as well), so I cannot be sure if I will get a good price for my shares or not in the short term.
- Currency conversion, other costs to send funds from India back to UAE will be quite high and tedious.
- Usually in times of crisis, INR depreciates along with Indian stocks, which basically paralyzes your Indian portfolio for at least 1-2 years. During these periods, a US portfolio will at least not be in such a bad shape. Hence, providing me the opportunity to take some cash out in case of any urgent needs.
- I can satisfy my urge to trade due to lower transaction costs!
Honsetly, it is an alternative to keeping my emergency funds in UAE accounts, which give me absolutely no returns.
I understand that I can open an account in India for a family member and take care of most of the issues above, but I prefer not to go that way. My portfolio is increasing significantly due to my ongoing savings (not stock gains ) so I don't think it is a good idea to transfer a lot of funds on someone else's name. That can create needless security and tax issues.
Page industries (15-09-2015)
I got wrapped on the knuckles a bit, when I did comment once on price based discussion but yes, Page appears weak. I am very concerned since it has not fallen this much in recent times, from the peak levels....I am planning to add more (already my largest holding), if it comes around 12k
International Investing (15-09-2015)
If you do not mind me offering an advice - Please stick to Indian markets. Indian markets have a long way to go in the long term. We do not need diversification into developed markets. The time to invest in developed markets was in 1980s, not now! Though you can find multi-baggers in any market, broadly Indian markets should outperform US and other markets by a large margin - again on a long term (at least 5 years) basis.
Disclosure: I'm a normal retail guy not an investment professional and not authorised to provide any investment advice.
International Investing (15-09-2015)
Hope people are still considering international equities for investment.
I recently opened an account with Danish broker Saxobank. They allow investing in all developed market equities.
I am living in the UAE and have a USD account here. The process was quite straightforward for me and it took just 3 days to get the account open.
I am considering investing in US equities, as a diversification from Indian equities and Indian Rupee. Although, I do not intend to have more than 25-35% of my portfolio in US.
Page industries (15-09-2015)
I feel for a quality company like page with a strong cash flow business model we should value it for FY17. I might give an EPS of 310-320 for FY17. so currently its trading nearly at about 40PE for FY17. If some wants to load it its the time to accumulate again.Disc. Holding it for a long (since 2010) and largest holding in the portfolio.