VIEWER'S VIEWS: Facebook's Exorbitant Valuations-A new era of tech/dotcom bubble in the making?

How much a website is worth? Face Book’s high valuations are ‘exorbitant’-

          Recently, there seems to be going around a sort of facebook mania on the internet and now well into investment world as well.

             This website founded in year Feb 2004, by 25 yr old Harvard student Mark Zuckerberg, enjoying 500 million users as on July 2010; is making headlines for investors interests and fund raising deals valuing it higher and higher on each deals. But however, this does not seem anyone to be reminding of the dotcom bubble era.

                     Recently, the rounds of investment in Facebook by Goldman Sachs and DigitalSky Technologies assumingly valued the social networking site at around 50 billion dollars.

Phases of Market Movements and Human Psychology

According to general wisdom, there are these few types of phases in terms of psychology in markets.

This gives the understanding of human behavior/psychology with regard to movements of markets.

Below are the so called phases and their brief explanation,

1.    Optimism

2.    Excitement

3.    Thrill

4.    Euphoria

5.    Anxiety

6.    Denial

7.    Fear

8.    Desperation

9.    Panic

10. Capitulation

11. Despondency

12. Depression

13. Hope

14. Relief

15. Optimism

Warren Buffet in India and what he said

Warren Buffet, the world renowned investor, on his visit to India talked about various things. Following is summary of his interviews,

Buffett started his visit on 22^nd March, 2011 in India.

Buffets’s visit marks the entry of Berkshire Hathaway the holding company of several businesses, insurance being main business; the alliance with Bajaj-Allianze Insurance.

Berkshire India, a majority-owned unit of Berkshire Hathaway Inc. has been incorporated to sell and distribute general insurance products in India through their online distribution portal.

Berkshire India will sell insurance directly to the consumer by utilizing the internet portal (berkshireinsurance. com) and tele-marketing. Initially, the focus will be on Motor Insurance, but the Company will continuously update its business model to meet the needs of the fast evolving Indian insurance sector.

He will also engage with Bill Gates, in a ‘Giving Pledge’ drive, meet Wealthy Indians.

Warren Buffet in India and what he said:

He said, business men should not get tempted away to diversify and run into more businesses because boredom and excess cash. It I better that they focus on their businesses in expanding them.

He also mentioned that now when Berkshire Hathaway is USD200 Bln Company, so they would look for big acquisition than smaller ones. They will think how to get to USD300 or USD400 bln mark.

All price-rises inevitably end up in bubble, But all price-rises are not bubble

All price rises inevitably end up in bubble. But all price-rises are not bubbles-

            We funnily see reporters like Udayan Mukherji when talking with international economist/experts and such other market participants and serious-facedly talking about bull-run eventually turning up into a bubble or ‘possibly’ ending up in bubble. And the interviewee also respecting his answer generally responds into affirmation. And many times using diplomatic languages in even talking about the most obvious thing.

            Many times we are fed up with the ‘dramas’ of the business tv channels reporters. But as we have mentioned in our earlier articles, that they poor guys have to ‘fill the airtime’.

            After all they are not paid to teach the investors or given salary out of SEBI’s investor protection fund! May be SEBI should think of starting investor protection tv channels! Or may be not!

Let’s come to point.

            We want to talk about the

HOTCALLS STOCK FUTURES: intraday, btst, short-term Stock Futures calls: by Megha Investments & Research Team

MAIN FEATURES

•  2-4 intraday stock (futures segment) trading calls with CLEAR entry, exit, stoploss and target levels.
•  4-8 positional/btst/stbt (holding duration clearly mentioned) calls during the week.

ANCILIARY FEATURES

• Updates are sent for all the trading sms given at any time.
• Premarket SMS of international markets update and expected opening of Indian markets. (common feature for all services)
• Premarket Trading calls depend on market conditions.
• The Week Gone By-Market this week summary sms sent every Friday Evening.
• The Week Ahead-Market expected move in new week sms sent every Monday Morning.
• Important News updates sent as and when.
• Short-term/Mid-Term/Long-term investment buy/sell/avoid recommendation sent as and when.
• Such other free value-added services-as sent to all paid members List.

FEE STRUCTURE:

Duration	Actual Fee Rs.	You Save Rs.	You Pay Rs.
1 month	8,000	-	8000
3 months	24,000	4800	19200
6 months	48000	14400	33600
12 months	96000	36400	59600

The Gujarat Private Equity Summit-2011

1 DAY PROGRAMM ON SUBJECT- “THE POWER OF PE”

THE GUJARAT PRIVATE EQUITY SUMMIT 2011.

FEBRUARY 19, 2011.

VENUE, AHMEDABAD MANAGEMENT ASSOCIATION, OPPOSITE TO IIM-A, AHMEDABAD.

          Megha Investments and Research team had the opportunity to participate in this 1 day summit on the subject ‘THE POWER OF PE’ ‘THE GUJARAT PRIVATE EQUITY SUMMIT 2011’.

          Amongst the distinguished guests and speakers were the who’s who of business and finance world. It included,

• Padma Shree Dr. Bakul Dholakiya as Chief Guest,  former IIM-A Director and presently advisor to Adani Group, and also the present director of Adani Inst.of Infrastructure Management
• Yatindra Sharma, Past AMA President
• Kalpana Morpariya, Guest of Honour, CEO of JP Morgan (India and South Asia), formerly with ICICI Bank.
• Mr. J M Trivedi, Partner and Head, South Asia, ACTIS
• Shankar Narayanan, MD, CARLYLE GROUP
• Dr. Rajiv Lall, MD & CEO, IDFC
• Ameet Desai, Executive Director, Adani Power, Formerly with Ranbaxy
• Mrs. Zia Mody, founder and senior partner, ABZ & Partners
• Mihir Joshi, MD, GVFL (Gujarat Venture Finance Limited)
• Samir Palod, Partner, 3i

Price-less Quotes by Warren Buffett

Please note that many quotes are contextually. Many of them are meant for and to America and Americans. Many are said in various interviews at different times. Warren Buffett has never written any books.

• “When a manager with a reputation for excellence tackles a business with their reputation for poor economics, it is the reputation of business that remains intact.”
• A public-opinion poll is no substitute for thought. 
• Beware of geeks bearing formulas. 
• Chains of habit are too light to be felt until they are too heavy to be broken. 
• Derivatives are financial weapons of mass destruction. 
• Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel. These once unthinkable dosages will almost certainly bring on unwelcome after-effects. Their precise nature is anyone's guess, though one likely consequence is an onslaught of inflation. 
• I always knew I was going to be rich. I don't think I ever doubted it for a minute. 
  I buy expensive suits. They just look cheap on me. 
  I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over. 
• I just think that - when a country needs more income and we do, we're only taking in 15 percent of GDP, I mean, that - that - when a country needs more income, they should get it from the people that have it. 
• I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years. 
• I think the most important factor in getting out of the recession actually is just the regenerative capacity of - of American capitalism. 

Broker's Pack: All in one Monthly Pack for Stock-brokers/Sub-brokers/Advisories/Others

Mixed Pack/All-in-1 Pack/Broker’s Pack

All the Services for 1 month offered. Ideal for Big traders, Stock/Sub Brokers, Professionals.

Please check out all the SERVICES FOR TRADERS and SERVICES FOR INVESTORS as all of them are offered for 1 month under this MIXED PACK/ALL-IN-1 PACK.

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Why Stock Brokers, Sub-brokers, remisers, portfolio managers like this pack much?

            Stock-brokers/sub-brokers/remisers basically run broking offices. And their income is brokerage generated out of the transaction executed by clients.

Your business consists of two activities.

You have to (1) obtain clients (investors/traders) and (2) sustain them.

            The obtaining part purely depends on your network and marketing efforts.

            While the more important part is sustaining the clients.

            This involves,

(1)   Giving Quality of Delivery of Services, and

(2)  Monetary Benefit (profit) to clients by your (broker’s) market expertise.

Here the quality of Delivery of Services part will depend upon your efficient infrastructure and manpower set up.

While, all will agree that 2^nd part is More important i.e. of benefiting/profit to clients (weather investors/traders or both) by your market expertise.

This is also universal truth that broker is the first and default advisor to client.

         ---------------------

Now Friends,

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If they are Traders then by providing profitable,

Intraday—Futures—Options—Positional Calls—Sureshot Calls

Insider Tips—Hedging—BTST—STBT—Short Term Calls

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LongTerm Calls—Mutual Fund Advice—Insider Tips

Hedging—MediumTerm Calls— Portfolio Reshuffling Advice

Bear Market Exit—Bull Market Entry— LowRisk Calls

Fee Structure:

Duration	Actual Fee Rs.	You Save Rs.	You Pay Rs.
1 month	25,000	-	25000
3 months	40,000	10,000	40000
6 months	1,50,000	37500	112500
12 months	3,00,000	105000	195000

Activate MEGHA INVESTMENTS AND RESEARCH’S MIXED PACK/ALL IN 1 PACK/Broker’s Pack...

ILO warns on stubborn global unemployment rate

It seems that the 1930’s depression era rare 9%+ unemployment rate in the USA is supposedly being taken for granted.  Amid this the International Labour Organization has warned that the recent so called off-shoots and advocated spanned economic recovery is not translating into job creation in the glob as the jobless rate in the globe remained at an all-time high of 205 million for the year 2010.

This rate has not changed from

CONTRIBUTE AN ARTICLE: Write on our blog-site

           

            MEGHA INVESTMENTS AND RESEARCH has launched this new initiative of inviting readers to contribute article to our site. Please join this movement. Read ahead to find out more about this ‘contribute and article’ initiative.

Concerns on Mushrooming stock trading advice blogs

Concerns on Mushrooming stock trading advice blogs-

Recently with the spread of knowledge amongst internet enthusiasts about blogging, there has been a huge jump in online BlogSpot blogs which are free, and very to easy update information like a website.

The problem is the anonymous people using this to lure online investors and traders community by making such multiple blogs which literally cost them nothing. They simply start updating tips and selling subscription.

One clear thing about their being unscrupulous is simply the

GOLD hit all-time high rising $260+ as forecasted clearly on 11 April 2010

Click below link to read the post given on 11 April-2010, clearly stating about Gold prices to hit New High when it was trading at 1161 USD..

 click below for proof..

http://www.meghainvestments.com/2010/04/comex-gold-to-hit-all-time-high.html

You can also see it in the comex 1 year gold chart given herewith...

 IF YOU ARE A COMMODITY TRADER OR IN ANYWAY NEED BETTER COMMODITY PRICES FORECASTING/ADVISORY/TRADING CALLS SERVICE THEN PLEASE CLICK HERE FOR DETAILS..

COMMON AND MUST TO KNOW RULES FOR TRADERS

• Always have a trading plan. Never trade without a trading plan (a trading plan consists of a trading system which is made of few components)
• Never trade without a StopLoss (Repeat 10 times).
• Never ever hold on to a losing position. Never average/add to a losing position. (Repeat this 10 times).
• Let your profits growing. Add to your winning trades.
• Trade on Rumors and Exit at news. But

How deep and wide Indian Stock Markets are? SHOCKING FIGURES FROM NSE

In a recent interview with CNBC renowned fund manager Samir Arora expressed his disappointment of Indian investors in equity markets by saying “Indian investors are world’s biggest losers”.

He adds that in a year when FII have poured in USD29 bln on the back of fundamental growth and resilience of Indian economy after 2008 global credit crisis; while the domestic investor’s participation have remained below average.

He also added that since Jan 2000, Foreign Investors have put a USD91 bln in Indian markets. While the mutual fund investments has been a meager at only USD 2 bln during this same 11 years span.

He goes on to contend that real public only owns 1% equity in India. Also citing a morgan Stanley report only 3% of average indian’s total assets are in equities.

DAILY VOLUMES:

BSE CASH SEGMENT- between 2000 to 5000 cr. (all mainly cash segment)

NSE CASH PLUS DERIVATIVE SEGMENT- around 1,30,000 cr.

NSE FIGURES PRESENTED IN PARLIAMENT GIVING DATA OF TRADING AND INVESTING ACTIVITY ALSO UNCOVERED THE SHALLOWNESS OF INDIAN MARKETS AND LACK OF PARTICIPATION BY AVERAGE INDIAN:

The data were presented by Mr.Meena, Minister of State for Finance, on 10 Aug, 2010 in Parliament in response to questions asked by two MPs.

The analysis of data is shocking and startling. You will find out in reality how shallo, narrow, concentrated our stock markets are.

VIEWER'S VIEWS: A Section where everyone expresses their views on topics

VIEWER’S VIEWS:

The tag-line for this can be “Express yourself” or “What you say on this?”

We will put a topic and put our view and then open it for viewers to write their views.

It is recommended that views be short and precise.

One viewer can reply to someone’s view as well.

You can as well suggest us a topic too.

All views or comments are moderated to check for abuse an improper content. The comments are moderated but posted on site within few hours of your posting your comment.

This whole process can take the form of whole discussion, debate, arguments, or even a brainstorming as well.

All topics would be available to read and post under this link ‘viewer’s views’ on our home page as well.

Usually we will initiate discussion on fresh new topics every week Friday Evening at before 05:00 PM.

Below is our 1^ST  topic,

"WHAT COULD BE THE IMPACT OF ANIL AMBANI DROPPING HIS NAME FROM THE ADAG CORPORATE LOGO?"

Below is a news item from business-standard to give some hints to viewers to write their comments and views.

Anil drops ADAG from corporate logo

BS Reporter / Mumbai December 31, 2010, 1:17 IST

Anil Ambani has dropped his name from the corporate logo for Reliance Anil Dhirubhai Ambani group, set up after the split of the Reliance empire in 2005.

The line ‘Anil Dhirubhai Ambani Group’, written under the logo, has made way for the just the company name. It will now on be known as the Reliance Group. The colour of the logo, too, has been changed from light blue to navy blue. And the red coloured arrow of the brand has been transformed to a triangle.

The design change has been done by Singapore-based Bonsey Design.

The websites of the group are already showcasing the new identity.

Head (branding) of the group, Sanjay Behl says, "Reliance is a rightful-brand for us. We are just contemporising it". He says the group is now adding the Reliance master brand focus to Anil Ambani group of companies.

He said the ADAG group’s identity remains, but it will not be the master brand. The difference with the other Reliance, of Mukesh Ambani, is stylistic. While Mukesh Ambani-led Reliance is written in small letters, the ADAG Reliance is in capitals.

Behl said the focus of rebranding is to strengthen the brand identity and de-clutter it. In terms of magnitude, this will be much larger than the last branding exercise the group did in 2006.

The group now works in seven sectors with almost 27 businesses and most of these are consumer-facing ones.

About 250 million people are being contacted by some Reliance business or the other almost on a daily basis.

S P Tulsian, an independent stock analyst said this agreement must have been reached when the non-compete clause was dismantled between the brothers last year.

"Anil Ambani is superstitious, so he must have waited for the right time. But this does not mean there is any merger with his brother (Mukesh) and there will be no impact on markets," he says.
http://www.business-standard.com/india/news/anil-drops-adagcorporate-logo/420230/

 ...Start Posting your views...below in Comments box...
...PLEASE NOTE THAT YOU WILL HAVE TO CLICK ON THE TITLE OF THE POST TO BE ABLE TO READ EXISTING COMMENTS AND WRITE YOUR COMMENTS...

New FREE Feature in our INVESTORS SERVICES: Get ALERTS for "Wealth Destroying Stocks"

New FREE Feature in our INVESTORS SERVICES:

Alert for Negative List (Wealth Destroying) Stocks-

             Majority of investors have had the bitter experience of getting stuck into stocks that go down consistently and considerably from their buy price and seldom recover, or recover above their purchase price when it has been so many years that they have already lost on inflation, and interest rates on their capital as well as the opportunity costs that they would have earned out of other investments.

            At MEGHA INVESTMENTS AND RESEARCH, our approach to investing has always given paramount importance to Warren Buffets Philosophy of investing. He said: Rule no.1 is to Never lose money and Rule no.2 is to Never forget rule no.1. Our version of this rule can be: “Return of Capital is important than Return on Capital”.

            Times and again we have always Alerted our visitors about the stocks that destroy their wealth. From now we have made this approach and part of our activity as –A Feature in our “Services for Investors”

            Thus from now on any one activating any of our “Investor based Services” will get this Negative List of WEALTH DESTROYING STOCKS probably with lower targets as well.

            Why Do you at all Need “Alert for Wealth Destroying stocks”?

About correction and more-2

About correction and more-2

(Please click on below link to Read "correction and more -part 1"

http://www.meghainvestments.com/2010/11/about-market-correction-and-more.html
Many investors complained us that we didn’t throw enough light on ‘correction’ thing in our previous post.

Well, let’s start by defining.

To go further into anything which has attributes of understanding we must define it.

What is the meaning of correction?

{

We take it like this. It says ‘correction’ literally meaning ‘something of a process or act of correcting i.e. making it right which is or was hitherto wrong. But when we apply this definition or meaning to word correction and its use in markets, we do not see integrity.

}

{Because the word is used only for declines in prices and it is never used when prices are rising! (This translates that when markets rise after falling on wrong note, it should be called a correction!)}

……This is interesting with respect to how we want to understand the meaning. Mind it. This is not a time pass or ‘intellectual jargon busting’. We believe this whole contemplation will take us through the understanding of markets and its behaviors…….

So when there is any excess of increase in markets, it is ‘incorrect’ and need to decline i.e correct.