Ramesh S Damani on what will happen to the BPO business if John Kerry is elected the next US President.
Ramesh S Damani : Hello everyone thanks for joininglets start
sanujkadavil : sir do you have any idea about kabra extrusion . its in construction paying god dividend consistently , last year i:1 bonus. what is your call on these stock
Ramesh S Damani : construction stocks should have a good time ahead, I don't know much about Kabra
NRNPM : We have been on a year long debate in our campus. Here is the case. Let us take Infosys (we can take any company which is at P/E of 5 or above), let us assume the market price of each share is Rs. X, it is the price at which people are buying now. Total number of shares is N. Let us assume that business runs fine for next 4 years (we believe that it is foolish to predict the scenario for 4 years though). After 4 year total fixed assets and cash assets and any other assets is Rs. Z. Assume the business is running fine even after 4 year. Question here is, if we DIVIDE total assets (Rs.Z) by total number of shares (N), and distribute it to share holders, do you think the share holders will get the money they are investing now? Don't think they get even 1/5 of what they invest now. Don't you think that investors should know the value of each share (Value of recoverable assets / number of shares) and then buy or sell with 20% + or -. Then only it is a healthy market? Please Sir,
Ramesh S Damani : Let me think about your question and answer next time. A PE of 5 would imply that net of debt though. Other wise calculate PE on an EV basis.
vikas : INFOSYS : Great nos. and wonderful guidance. still no respite for tech stocks specially 2nd rung. what do u think
Ramesh S Damani : remember, they have had a good run up.
Newsbieatstock : sir were you a buyer into trading positions today, it looked to me more selling is still to come i could feel the pulse, your views
Ramesh S Damani : i did not do much today
chandra : sir, today's downfall does begins the short term correction which everyone is waiting for
Ramesh S Damani : looks like that
BASANTMAHESHWARI : Does the fungibility between FDI and FII ensure automatic FDI into sectors like retail, media, etc. Although the fine print is not yet out can one assume it to go that way?
Ramesh S Damani : with central govt's you never know
blazi : Sir, how much does price of a stock matter? For instance if A is priced at 40 and B is priced at 320. Is one share of B expensive to 8 shares of A? Or more number of shares give you more share/ownership in the company hence better?
Ramesh S Damani : calculate market cap X current price
intelligent_investor : I have Balaji Tele, BoB, BHEL, Canbank, Cholamandalam, Godrej Ind, GE Shipping, Hindalco, Infosys, Kirl. Oil Engines, Mcdowell, NDTV, Petronet LNG, SKF Bearings, SBI, SAIL, Sundaram Fin, Swaraj Engines, Syndicate Bank, TCS, Tata Elxsi, TISCO, D-Link, HLL, Dabur, Bank of India in my portfolio. Which ones should I buy, hold or sell at current valuation for 2-3 Yrs horizon from investment point of view? which other scrips should i buy at current valuations for 2-3 yrs horizon?
Ramesh S Damani : unfortunately i avoid commenting on individual portfolios
HelloDamani : Howz indo matsushita --- trading choice or investment choice for u? Can we say another multibagger identified by RSD?
Ramesh S Damani : it has to be an investment. hardly trades
sanujkadavil : sir, godrej ind consolidating current levels. stock got good support at 78-80 levels. what is your 2 year outlook for godrej . can we expect a 200 price. even at 200 price. it will value only 1000cr mkt/cap. so cheap for a 1800cr company holds lots of quality assets and huge properties
Ramesh S Damani : it is difficult to set price targets. they have made invt in BPO and Biotech which could be valuable
SHARAD : Sir, with the Infosys Result & guidence, Now everybody is sure about performance of IT sec for next few qty..and also of the performance of Big It comp,.like Info.Satyam,wipro,tcs etc...In your views which are the best picks where one can put their money in second & third line of IT companies (may be with little bit of Risk involved)?????
Ramesh S Damani : i would do that after q2 results only. Stocks to watch would be like Elxsi and Nucleus
drpk : sir you said that market will fall in 1st week Oct due to STT ? but markets didn't ? were were you wrong sir ? what do you say now ?
Ramesh S Damani : maybe they have started now
NRNPM : I am sure a lot of us want to felicitate you for the thousands of rupees of profits we made out of your suggestions, could you give us an opportunity to felicitate you in Chennai? If not our NRN, we wish you you are the PM or FM of India one day. Have you read the Biography of Clinton, it is a wonderful/inspiring life, his childhood at least.
Ramesh S Damani : thanks for your kind words. I enjoy doing what I do. It is a privilege. I will be in Chennai to address the CNBC Camp on Saturday
parthiv : Kerry is now winning the debates at least, what happens to BPO business if Kerry wins, he has spoken against it and will be difficult for him to backof.
Ramesh S Damani : i would not worry too much about it
chandra : Sir, do you think pipe companies can post good results this time .which one do you like among welspun,saw pipes and man ind???
Ramesh S Damani : results may be under pressure due to steel price
ak : Sir, Arvind Products at 11.5 - still buying?
Ramesh S Damani : no, just holding
baracuda : is RFID going to be big business going forward
Ramesh S Damani : Almost certainly
vikas : NUCLEUS : Cum bonus now is more than ex bonus still u would like to take bet , if yes whats the story and what should be the time frame
Ramesh S Damani : invest after Q2 results. Tie up with GMAC could change its fortunes
Newsbieatstock : sir investment rationale for navneet publications other than that its posted good results last few quarters
Ramesh S Damani : pretty cheap valuation
JoeGranville : JoeGranville says, ramesh, i know u like to read business histories and market physicology books. can u tell few on physciology side of it. thanks
Ramesh S Damani : The Wisdom Of Crowds And The Madness Of Crowds
ProfHAnriMasia : Now you have said that BSE index will reach 6200(over CNBC TV).i stand corrected if my remembrance is wrong. According to a computer simulation, the Sensex has the potential to reach by the end of 2005, a value of about 10,000 if the present conditions continue. Many of the FIIs are using computer simulations and it is high time our Mutual Funds and others start using these simulation models. One of the packages, quite commonly used in universities, is MATLAB. This for the information of all those who are following you.
Ramesh S Damani : markets are not so easy to predict. Mine is a guesstimate
ramesh : Dear Sir, What is the future of electronics hardware sector in India and specifically the prospects of dlink india considering the demand for network and BPO activities. can you give your views about dlink india
Ramesh S Damani : good co, i am invested in it
ANBU : when will be the balaji long waited big dividend?
Ramesh S Damani : Oct 15
vikas : Barcuda : what is RFID
Ramesh S Damani : Radio Frequency ID
chandra : sir do you have any trading bets at this time .please give one
Ramesh S Damani : no new ideas
BASANTMAHESHWARI : Have you looked at Reliance capital the market value of all investments exceeds its market cap and the booming flow of funds into the mutual funds comes ensures flow of cash from that business In case govt opens up banking it should benefit further?
Ramesh S Damani : i have, it is a good idea
Newsbieatstock : Sir when you entered the market did u work with some research firm , or in the states (just curious to know, if u don't mind me asking)?
Ramesh S Damani : no, learnt by meeting some famous people, my dad and a lot of reading
lavanya : Sir, please answer. Elxsi at 160, if they report good earnings on Friday, is it still a good time to enter it? Thanks
Ramesh S Damani : price is ahead of fundamentals. buy only after the results are out
blazi : Sir, what are the prospects of opto circuits? Why such a huge upswing from 57 to 140s? They dont have website, do they?
Ramesh S Damani : they do, new FDA approval adding to the stock rise
chengise : Ramesh-did you read the interview by the tata Elxsi CEO available o India infoline-surprisingly he talks very little about the visual computing business which I assumed was the animation piece- seemed more hung up on design etc
Ramesh S Damani : i did, it is in old interview
HelloDamani : sir , what abt ubh --- can it be added more ? i am not sure after mallaya's airline venture (read stupidity).is it rerating ..can it be entered at current levels? thanks
Ramesh S Damani : the airline does not make sense from a profit POV
UMreddy : Damaniji, How to attend/register for the CNBC Camp?
Ramesh S Damani : log into to moneycontrol
ANBU : can i go for iti thinking of divestment one day?
Ramesh S Damani : ceratinly possible
IIMStudent : Sir, Welspun Gujrat@42 and Aravind Pro@12. Are they still good?
Ramesh S Damani : i like the latter < Arvind
CandleStick : Sir, many times you have said that "you are invested all the time". I wanna know were you after 2000 crash and how you felt after stocks kept falling like nine pins.
Ramesh S Damani : that was when i was selling and holding cash. IT is rare though
nEWSBIEEATstock : Meeting famous people, can you elaborate a bit on that, (again curosity)
Ramesh S Damani : people who had made it in markets
kans : Do you think the worst is over for HLL - atleast interms of stock price (at 125 plus)
Ramesh S Damani : not till q2 results are out
ak : Sir, your views on Geometric software and Moser Baer.
Ramesh S Damani : geometric is a hold. i would avoid Moser
sanujkadavil : sir last sunday in bbc world business bite, vijay mallya says about the regulation in liquor industry. he says if one state start the de-regulation the others will follow then there is a possibility of huge upside in consumption... did u watch the program..] sir any new news on mcdowell and ub holding. we are waiting for a honey from the group.
Ramesh S Damani : yes, but keep praying that it willhappen
chinku : sir, when shud one sell in market. i had bought a lot of scrips 3-4 years back, and most of them r now 2-3 times from their buying price. shud i sell or not..
Ramesh S Damani : no one answer fits all stocks
amar : sir ur views on markets? please guide us sir ?
Ramesh S Damani : seem to be correcting
ak : Sir, any particular reason to avoid Moser?
Ramesh S Damani : raises too much money, results are nice div is poor
intelligent_investor : Why do banks trade at lower P/E ratio SBI has 5.77, Syndicate bank 4.47, canbank 4.81, BoB at 5.19?
Ramesh S Damani : they are stable not growth bsuiness
vikas : Elxsi : why dont you sell it and buy again if results are good as it is already ahead of fundamentals and ay disappointment will make it fall sharply. Am i not right
Ramesh S Damani : over time that has not been a good strategy. Market works on various parameters and I dont know all of them
nEWSBIEEATstock : sir if markets fall a bit any bargins you looking for, i almost never have a list of stocks, i always know i should buy into corrections and crazy crashes but its imperative to have a list of stocks, anything on yours.
Ramesh S Damani : i dont keep such a list
IIMStudent : Sir, are you going address NRNPM's question next time for sure. We are dying to get the answer?
Ramesh S Damani : i hope too
sanujkadavil : sir, sundarm finance , we can expect a bonus this year. do you think it will be a 25% compounder for next five years. are you fearing the rate wars is effecting their profitability. can a conservative investor who expect 20% in a year can buy sundaram at 250 levels for 3-4 year period
Ramesh S Damani : i think so. They should compound well over time. Look at the subs for value
ANBU : can you anticipate about tomorrow's market? most of us are thinking about fall but can increase 60 points. isn't it?
Ramesh S Damani : no i cant. thanks all or joining.see you next weekbye
