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My latest blogs are posted at http://www.sathyamurthy.com . The site is enhanced with added features for visitor interactions with me.

All the blogs that I have here in this URL have also been ported to that new site.

I welcome you to the new site.

Thank you and have a great day!

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Some predictions made in the field of technology

1. "Nobody would ever need more than 640 KB of memory on their personal computer." – Bill Gates in 1981

2. "No need for a computer in the home." – Ken Olsen, founder of Digital Equipment Corp in 1977

3. "Spam will be solved." – Bill Gates in 2004

4. "The iPod will never take off" – Sir Alan Sugar (English businessman) in 2005

5. "TV won't last because people would soon get tired of staring at a plywood box every night." – Darryl Zanuck (American producer, writer, actor and director) in 1946

Indian IRONY - Post Mumbai Terror Attacks

Post Mumbai Terror, there is a new found, but very justified love for the Indian Army.  They are at last kept at the esteem they deserve.  Here is a question to ponder that I received on my email.

An Olympic shooter wins Gold (Only a game) & Government gives him 3 Crores

Another Shooter dies, fighting with terrorists (Saving our country and our live) & government pays his family 5 lakhs.

Another irony of India is that the Chief Minister of Kerala, who ridiculed the father of slain Major Sundeep Unnikrishnan, went to the Late Major's house with his security guards and sniffer dogs to ensure that the place was secure enough for him to visit.  When that is the case why should the Late Major's father allow this Cheap Minister get in?

Hamareliye Koyi Mushkil Nahin Hai!

At the end of the terrorist cleanup operation at Taj Hotels in Mumbai, seeking a sound bite, a Times Now TV reporter asked a Commando of the Indian Army "Kya bahut mushkil tha?" (Was it very difficult?)

The Commando, all smiles, replied her back "Hamareliye Koyi Mushkil nahin" (Nothing is difficult for us)

That is the attitude we all must have. 

When you attempt something and show commitment as if your life is at stake and remain selfless, nothing is difficult.

Chaos Theory in action?

No, I am not talking about Kamal Hasan's magnum opus "Dasavatharam".  Its all about Nano that Mamta said "Nah, No" and Modi said "Wah, Aah".
 
Anand in Sanand while sadness in Singur

Nano has moved out of Singur and with it, the hopes of landowners in and around Singur. As per reports, real estate prices have come crashing down in this town of the state of West Bengal on account of pullout of the project. A handful of brokers that had cornered a huge chunk of land and had rode the wave of prosperity over the past of couple of years are now finding it hard to sell the same even at vastly reduced prices. This has however proved to be a blessing in disguise for people owning land near Sanand in Gujarat, the new home of the project. Despite lying on the outskirts of the city of Ahmedabad, where real estate has taken a real beating, some brokers are hopeful that the relocation of the plant would give a much-needed boost to the real estate scenario even in the heart of the city. This is indeed a testimony to how one big thing could lead to another. Some politicians in West Bengal however chose to go the other way.

With the net, everyone of us is immortal

Its a holiday and I was just browsing around the net.  I wanted to see what results I get by googling my son's name.

I was pleasantly surprised to find these two poems written by him almost eight years back.  It brought a smile in my place.  This also establishes the fact that like the scriptures we find on stone the messages that we post on the web get some kind of immortality. 

Reptiles - by S. Niranjan, V - D, Vidya Mandir, Mylapore, Chennai.

With sticky tongue,
They wander around the sun,
Let us see them and have some fun.
 
Let us see the reptiles,
How they change their color,
They look so scary,
But not hairy!

They can change their color to the color of everything
They can change their color to including the color of tin
 With poisonous tongue,
Look out everyone!
See the reptiles and have some fun.
************************
************************
New Little Baby Brother - by S. Niranjan, V - D, Vidya Mandir, Mylapore, Chennai.
 
Cuddly and cute,
Sleeping in my mother's lap,
Lay a pleasant surprise,
For my father, and me
A little baby brother.

Sweet tiny baby,
For me and my father,
When he woke up,
With his small little eyes,
 Like cute little moles.

I gave my sweet brother,
A loving gentle tap,
And a small woolen cap,
As he cuddled in my mother's lap.

We have to just google with the name of our relatives and friends, live or dead, to get what is engraved about them or by them on the net.  Interesting.

Wanna trade places with your wife?

A man was sick and tired of going to work every day while  his wife stayed at home. 

He wanted her to see what he went through so he prayed, "Dear  Lord, I go to work every day and put in eight hours while my wife merely  stays at home.  I want her to know what I go through,so please create a trade in our  bodies." 

God, in His infinite wisdom,granted the man's wish. 

The next morning, sure enough, the man awoke as a woman. 

He arose, cooked breakfast for his mate, awakened the kids, set out their school clothes, fed them breakfast, packed their lunches, drove them to school, came home and picked up the dry cleaning, took it to the cleaners and stopped at the bank to draw out money to pay the power bill and telephone bill, drove to the power company and the phone company and paid the bills, went grocery shopping, came home and put away the groceries. He cleaned the cat's litter box and bathed the dog. 

Then it was already 1:00 p.m. and he hurried to make the  beds, do the laundry, vacuum, dust, and sweep and mop the  kitchen floor. He ran to the school to pick up the kids and got into an  argument with them on the way home. He set out cookies and  milk and got the kids organized to do their homework,then set up  the ironing board and watched TV while he did the ironing.

At 4:30 PM he began peeling potatoes and washed greens for salads, breaded the chops and snapped fresh beans for supper.

After supper, he cleaned the kitchen, ran the dishwasher, folded laundry, bathed the kids, and put them to bed. At 9:00 PM he was exhausted and though his chores weren't finished,he went to bed where he was expected to make love, which he managed to get through without complaint.

The next morning, he awoke and immediately knelt by the bed  and said, Lord, I don't know what I was thinking. I was so wrong to  envy my wife's being able to stay home all day.  Please, O Lord please, let us trade back."

The Lord, in his infinite wisdom, replied, "My son, I feel you have learned your lesson, and I will be happy to change things back to the way they were. You'll have to wait 9 months, though.  You got pregnant last night!!!"

Go Sachin Go!

Dear Mr. Tendulkar,

You have achieved a lot on the cricket field. Whatever you have achieved so far is fantastic. You have done lot of good things for the Indian Cricket. You have given so much pleasure over the many years to millions of cricket followers around the world. You have received rich accolades from greats such a Late Sir Donald Bradman, Sir Sobers and many many more contemporary cricketers.

Lot of records have been made by you, number of centuries, number of man of the match awards, world cup appearances and runs etc. etc. The list is endless.

However, it is undeniable that in the past two or three years you have clearly shown signs of fading. You seem to be not accepting that you have become a pale shadow of yourself on the field. Too many injuries, too many lay offs from active cricket and too little trouble to the scorers off late prove the point.

You are no more the authoritative batsman you were say about three years back. The decline is very visible. You deserve to go out on a high and with good respect.

There is no big deal in achieving the highest test run getter post. When it appears very clear that it is not going to stand for long. Because, much more aggressive, authoritative and still in touch batsman like Ricky Ponting is just breathing down your neck to surpass you within few tests of you achieving it. In your current batting form and ability it does appear to many of us that he may even reach that post earlier than you though you only required 175 odd runs when you went to Sri Lanka and now only require just 67 runs to reach there after the first innings of the ongoing Bangalore Test.

In your prime, 67 runs would have come probably come in a single session of a test match with the help of may be 8 fours, 1 six and some intelligently run singles and ones converted to twos. But, in the current form? I am sorry to say, but it appears that it might take six or seven test matches.

You deserve to go with respect. So go now.

You will not be one day late.

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"Fall" Collection

I got this mail from one friend:

**************************
I am sad to share with you untimely demise of our beloved dynamic duo SENSEX and NIFTY

They were unwell since last few months due to constant fluctuation of Oil and $ count. Though recently it stabilised and was improving but last weekend they got sudden blow from bankruptcy virus called LEHMYAIG. It's a deadly combination of Lehman, Merill Lynch and AIG. The blow from this virus proved fatal. Coupled with epidemic effect of the above and Wa Mu, Wach and Goldman infection SENSEX and NIFTY just could not be saved.  

May god give peace to soul of their beloved family members.

SENSEX & NIFTY - 1970 to 2008

Children: Reliance, Infosys, ICICI, Bhel, L& T and 40 others
Cousin: Hang Seng, KOSPI, NIKKEI
In laws: Dow Jones and NASDAQ

You are requested to pay tribute to them by looking at your portfolios for 5 minutes

**************************

I replied back to him this:

If only they heeded to advise of elders and "Exercised" caution regularly, they would have lived for some more years.  But they were "Banking" too much on "Power" and had little "Healthcare".  The body looked sound but the internal "Infrastructure" was very bad may be because of "Engineering" faults or "Cellular" problems.  Some even felt that "Biotechnology" could have saved them with the support of data gathered using "Information Technology" which in turn used "Computer Hardware".  They even tried to "Outsource" some of the life support systems and by "Auto"mating some organs but  nothing could strengthen and "Cement" the situation.  But despite the efforts every "OTHER" thing tried failed.

The "real estate" left behind them are staring at us in our portfolios as strong immovables.

We can only look to buy some "Capital Equipment" to build a nice monument for these departed souls and make a ever burning light with some "OIL" and pass "Gas" looking at the monument.

May their souls rest in peace.

What they don't teach you in B-Schools

You don't have to study in B-Schools or turn to the B-School experts to know how to save your money, earn better returns and enjoy your life.

Good advice comes from people who have lived their life in a disciplined way and have followed simple but effective rules.

I was watching today on Television an interview of Mrs. Raja Sulochana one of the famous actresses of South Indian cinema who is now retired.

She said that she leads a happy life and is comfortable following what her father told. Here is what her father told her:

a) Set aside a per centage of your earnings for your old age. Think that you never earned it.

b) Set aside a per centage of your earnings for paying your taxes to Government. It is what you contribute to the society.

c) Then don't think twice about spending the balance. Spend that amount to get the fullest happiness that you can afford with that money

Mrs. Raja Sulochana is not and her father was not B-School graduates. But, they seemed to know what is good and what is bad.

How simple and easy our life will be, if we followed these simple rules.

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Let this dream see the light of the day

Engineering student’s solution to power crisis



Invention: The windmill developed by K. Senthilkumar

SATHYAMANGALAM: Of the 400-plus computers at the Bannari Amman Institute of Technology, 20 are greener. They do not run on the conventional power the college gets. Powering the machines, instead, is a small windmill, put up by K. Senthilkumar, a second year engineering student.

The wind turbine is designed to run in winds blowing at three miles an hour. The regular ones operate at 23.5 miles per hour. “I wanted the windmill to run in low speeds, be small, compact and home-usable,” the budding engineer explains.

At a wind speed of three miles an hour, the turbine makes 60 rotations per minute, which is enough to generate around 850 watts. Greater the wind speed more is the power produced.

Mr. Senthilkumar, pursuing computer science and not mechanical or electrical engineering, says with the wind speed, all household electrical equipment, including a two-tonne air conditioner, compressor for drawing water and grinder, can be operated. “In my calculation, a household requires about 1,000 watts a day, which the windmill can easily provide. The excess power the windmill generates is sent to a battery with an eight-hour backup,” says the boy who pursues computer science and not mechanical or electrical engineering.

He says the windmill can be set atop any building and in open space as well, as it requires only 16 sq.ft. “It will work even in congested residential areas because it has been designed to operate at low wind speeds.”

Designing the windmill took him about a year and Rs. 75,000. “I got the idea at my farm, on seeing the water flowing out of a compressor. Initially it started as a water turbine and then became a wind turbine.”

He did it as part of an engineering competition.

Source: http://www.hindu.com/2008/09/14/stories/2008091454880600.htm

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Retiring gracefully

Navjot Singh Sidhu has said several times on air that only two Indian Cricketers have retired gracefully from international cricket, Sunil Gavaskar and Javagal Srinath. They retired and people asked "Why?".

Those two were quite surely unlike many other cricketers who announce retirement for the record.

I said retirement announcement for the record since overlooking them from team selection usually precedes such retirement announcement. And despite that "overlooking" these cricketers still nurse hopes of a comeback failing miserably in self-assessment. These guys test the patience of the talented youngsters waiting in the wings. And probably frustrate some of the youngsters to announce retirement.

I think these aging cricketers, past their prime, continue to crave for records and that is the reason why they announce their retirement for "record". They go not by making people ask "why?" but when a chorus (which might include voices of their own die-hard fans) erupts asking "When?".

The very same cricketers who in their prime make people travel miles to watch their talent at display travel miles and miles and miles to score those extra few runs or take those extra few wickets. They look a pale shadow of their past but still drudge on. At the very least it looks ugly.

And to think that they come from this country of philosphers and Gurus who preach to the world the benefits of containing desires, is surprising.

Mr. Sachin, Mr. Rahul & Mr. Saurav - "When?"

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Warne admits he was not a good husband

Successful people are not successful in whatever they do. World has seen many examples of people who are extremely successful and popular in professional career come a cropper in personal life. However, very few have the courage to admit that they weren't as much successful in personal life.

Share Warne, the legendary leg spinner, seems to be an exception. It takes enormous courage to accept one's faults and it takes even more courage to accept it in public. Hats off to you Warnie! But, this time, off the field.

New Delhi: Australian spin legend Shane Warne has revealed that he maintains a "good relationship" with ex-wife Simone but accepted that he was never a good husband.

"My kids are unreal; I've got a good relationship with my ex-wife, Simone. I've always been a good father. I may not have been a wonderful husband, but even during the difficult times, Simone always said I was a good father. Brooke is 11 now, Jackson 9, Summer 7, I love them to death, would do anything for them," Warne was quoted as saying by The Sun.

Warne, who quit international cricket last year, had a string of affairs with women while he was married to Simone.

The wily leg-spinner has been involved in several sex scandals during his playing days, including a romp with models while on tour to England during the famous 2005 Ashes series, which Australia lost.

The champion Australian, who continues to play first-class cricket, was a huge hit when he led his IPL team the Rajasthan Royals to victory in the inaugural event.

Now he says he is in better shape than he has been for a long time and feels he is in a good place at the moment.

He says looks forward to the Champions League with the Royals and to next season's IPL.

Warne added that if he stays fit and stays on top of his game, he would continue his stint with the Rajasthan Royals for the love of the game.

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Airlines shed weight as fuel costs soar

Savings start on Board

NEXT time you take to the skies you may find there are fewer pages in your in-flight magazine, your fork is slimmer and your plate feels different. Blame it on soaring oil prices.

The seat you are sitting on may be lighter. Perhaps there's less water on board for the bathroom taps and toilets. The drinks trolley coming your way probably weighs less too.

It's all part of efforts by airlines to shed weight and conserve fuel, running in tandem with more radical steps such as cutting routes and capacity.

"Individually they may sound quite trivial but they all add up," said Andrew Herdman, director general of the Association of Asia Pacific Airlines.

"Obviously, the more expensive the fuel, the more the savings translate into. Given that oil prices are at a record high and have quadrupled over the past few years, there's even more effort" to reduce weight, he said.

Japan Airlines (JAL), Asia's largest carrier, is among carriers that are putting fewer pages into their in-flight magazines.

It has also slimmed the handles of its forks and spoons, reducing their weight by two grams each, said JAL spokesman Hisanori Iizuka.

The weight of a freight container has been cut by 26kg, reducing the burden of a flight by one tonne.

Even the porcelain in business class on international flights is 20 per cent lighter since the manufacturer put tiny bubbles inside.

"It's important to make every little effort, which matters when you carry hundreds of passengers on a flight and operate 365 days" a year, said Iizuka.

"The heavier the plane is, the lower its fuel efficiency. This is part of our efforts to slim down everything possible."

It's not the only airline looking to shed weight. Qantas is also considering similar steps to conserve fuel.

"We don't want to compromise our product or service," but the carrier is looking at lightweight meal carts, alternative packaging and examining "what we carry to remove waste, that type of thing," a spokeswoman said.

Singapore Airlines has introduced lightweight drink trolleys and serviceware on board new aircraft such as the A380 superjumbo and the Boeing B777-300ER.

"These carts and serviceware will be on all new aircraft which join the fleet in the future. As for magazines, based on crew feedback, titles not in demand were removed," a spokeswoman for the carrier said.

All Nippon Airways has also been reducing the weight of seats, tableware, trolleys used by cabin attendants and other items.

"By introducing lighter porcelain for first and business classes, we have reduced the weight by an average 66kg on one flight," a spokeswoman said. "We're always looking for items whose weight can be reduced."

Even paint adds weight to an aircraft, so some carriers have been experimenting with only polishing the exterior, particularly for cargo planes.

Airlines worldwide face total losses of at least $2.39 billion this year due to soaring fuel costs, according to the International Air Transport Association, which says the industry is in "crisis".

At least two dozen carriers around the world have gone bust this year.

Some carriers have begun charging passengers a fee for checked luggage.

And there is even speculation that the passengers might eventually have to step on the scales before boarding a plane, with heavier travellers paying more to fly, although experts say that day is not here just yet.

"I don't think we've quite got to the point of passengers being weighed," said Herdman.

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What to buy now?

When greed is high one has to sell and when fear is high one has to buy is a wise advise from share investment gurus.

Still the problem remains of identifying what to buy and what to sell during fear and greed times. Easy way out is to look for the underlying value offered by the scrips. That will help you to get out of the useless scrips that have multiplied due to greed and fantastic scrips that get undervalued in times of fear.

Since the current market is one of fear, it makes sense to look for some valuable buys. I am not going to specify here what to buy. Rather, I am trying to give a guide for selecting the scrips:

a) Low Debt Equity (when rates are going up, these companies will be least affected)

b) Market leaders in their business (irrespective of the market condition, they will continue to stay on top)

c) Continuous dividend record over a period of say 6 to 8 years (this might exclude new companies but it is better to go for some company with a track record than some thing that is still not proven). Six to eight years track will help us to identify the consistency over a period of time by which one can expect a company to have seen one bad cycle and one good cycle.

d) A company may have a policy of not distributing dividend and instead use that cash to fund their business. One can identify such companies by looking at continuous period of profitability (once again 6 to 8 years)

e) See the book value, market price and 52 week high and low besides what was the price of the share before the bull cycle started. How far or near is the current price to that price? If the business has grown from the time bull run started and the price has gone back closer to the price at the beginning of the bull run, it is a must buy share.

Happy investing!

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Small walk is useful, small talk isn't

Tips to incorporate exercise into your lifestyle

A healthy lifestyle is an active one. As well as planned exercise (e.g. 30 minutes three times a week) you should also incorporate activity into your day-to-day life. The following are some ideas to help you to incorporate physical activity into your lifestyle.

• Take the stairs instead of lifts or elevators.
• If you work in a large office, walk to talk to your colleagues, rather than picking up the phone.
• If you use buses, get off a stop or two earlier and walk.
• Don't worry about finding a car park next to the supermarket or shop entrance. By the time you have found a close park you could have walked from a further, empty and less stressful space!
• For small amounts of shopping or other errands use a bicycle instead of the car, saving you money and the hassle of finding a park. If you live in a town, you will probably save time and if you live in the country you can enjoy the countryside.
• If you have a cordless phone, walk and talk.

Best of walk!

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The Ant & The Grasshopper - A modern Indian View

What the political parties and media do in India and whom they protect or detest is difficult to understand many a times.  While it is important to protect and help those who really deserve it, when it becomes a right or some kind of default entitlement people may just tend to take it for granted and may not work hard enough to excel.

 

Read this interesting sybolic story.

 

Ant & Grasshopper

The Ant works hard in the withering heat all summer building its house and laying up supplies for the winter.

The Grasshopper thinks the Ant is a fool and laughs & dances & plays the summer away.

Come winter ,the Ant is warm and well fed. The Grasshopper has no food or shelter so he dies out in the cold.
Indian Version

The Ant works hard in the withering heat all summer building its house and laying up supplies for the winter.

The Grasshopper thinks the Ant's a fool and laughs & dances & plays the summer away.

Come winter, the shivering Grasshopper calls a press conference and demands to know why the Ant should be allowed to be warm and well fed while others are cold and starving.

NDTV, BBC, CNN show up to provide pictures of the shivering Grasshopper next to a video of the Ant in his comfortable home with a table filled with food.

The World is stunned by the sharp contrast. How can this be that this poor Grasshopper is allowed to suffer so?

Arundhati Roy stages a demonstration in front of the Ant's house .

Medha Patkar goes on a fast along with other Grasshoppers demanding that Grasshoppers be relocated to warmer climates during winter .

Amnesty International and Koffi Annan criticizes the Indian Government for not upholding the fundamental rights of the Grasshopper.

The Internet is flooded with online petitions seeking support to the Grasshopper (many promising Heaven and Everlasting Peace for prompt support as against the wrath of God for non-compliance).

Opposition MPs stage a walkout. Left parties call for "Bharat Bandh" in West Bengal and Kerala demanding a Judicial Enquiry.

CPM in Kerala immediately passes a law preventing Ants from working hard in the heat so as to bring about equality of poverty among Ants and Grasshoppers.

Lalu Prasad allocates one free coach to Grasshoppers on all Indian Railway Trains, aptly named as the 'Grasshopper Rath '.

Finally, the Judicial Committee drafts the ' Prevention of Terrorism Against Grasshoppers Act' [POTAGA], with effect from the beginning of the winter.

Arjun Singh makes 'Special Reservation ' for Grasshoppers in Educational Institutions & in Government Services.

The Ant is fined for failing to comply with POTAGA and having nothing left to pay his retroactive taxes,it's home is confiscated by the Government and handed over to the Grasshopper in a ceremony covered by NDTV.

Arundhati Roy calls it ' A Triumph of Justice'.

Lalu calls it 'Socialistic Justice '.

CPM calls it the ' Revolutionary Resurgence of the Downtrodden '

Koffi Annan invites the Grasshopper to address the UN General Assembly .

Many years later...

The Ant has since migrated to the US and set up a multi-billion dollar company in Silicon Valley ..

100s of Grasshoppers still die of starvation despite reservation somewhere in India ....

As a result of loosing lot of hard working Ants and feeding the Grasshoppers, India is still a developing country!!! 

IPO prospectus for better insight

Time to time you may want to read an IPO prospectus of a company that you are researching. Below is the link for downloading prospectuses of companies that have made a public issue or planning one.

A prospectus will be a great source of information and disclosures and will give you very good insight into the company, besides disclosures about all risk factors one may need to consider. Though these risk factors are tabulated for information of the investors considering investment thru the IPO it will also be very helpful for those who are planning to buy the shares of the Company in the secondary market. It will also be useful for the investor to contact the Company and ask relevant questions regarding the plans and prospects, armed with the information contained in the prospectus.

Happy Investing!

http://www.sebi.gov.in/Index.jsp?contentDisp=Department&dep_id=1

Mistakes of stock market traders

Interesting and informative article

"7 Big Trading Mistakes"
The following is a list of things you want to avoid at all costs. Anyone of them can literally destroy your financial dreams and goals! 1. Trading with money you can't afford to lose One of the greatest obstacles to successful trading is using money that you really can't afford to lose. Examples of this would be money that is supposed to be used to pay the mortgage, bills or your child's college tuition. This is sometimes referred to as "trading with scared money" and there is a very good reason for that. Ultimately what happens is that when someone knows in the back of their mind that they are risking the borrow money, they trade out of fear and emotion versus logic and no emotion. If you are in this situation we highly recommend that you stop trading until you earn enough to put into an account that you truly can afford to lose without causing major financial setbacks. 2. The need to be "certain" We all have the need to make sure that the trade we want to make is going to be a good one. Therefore we look for signs that will give us a confirmation to enter. This can come in several forms, for example… Tuning into any Busniess Channel or the Newspapers to give us news that our script is on the move or waiting for a couple of extra days to make sure that the script is really flying and just not on a false breakout. Other traders will get opinions from friends, family or broker. Others will wait for ten technical indicators to line up and give the "green light". All of these are okay to a point, however the big mistake to avoid is taking so much time that you let the trade take off without you. Interestingly, what ends up happening as a result of waiting too long is that you actually increase your risk. This is because as a script moves higher and higher there are fewer buyers left in the market and it can come tumbling down until more buyers step in. It is like a game of musical chairs; eventually someone gets caught without a chair. Traders who wait and wait and wait to make extra sure are usually the ones buying the top tick just before the stocks sells off. They then beat themselves up thinking they picked the wrong script. The thing to keep in mind is that there can be no absolute certainty in any given trade. All we ever can do is take a very educated risk along with a leap of faith!
3. Words that will kill you! HOPE---WISH---PRAY If you ever find yourself doing one or more of the above while in a trade then you are in big trouble! As We have already said, the market doesn't give a damn. All the hoping, wishing and praying in the world is not going to turn a losing trade into a winning one. When you are wrong just use a simple 4-letter word to correct the situation-SELL! 4. Not Acting on your plan A big source of trouble arises when a trader starts to deviate from their strategy. Maybe for a week they will trade according to one set of rules and the next use something entirely different. You must never deviate from your methodology once you start. As long as it is a good one statistically there is absolutely no reason to change it. The way to make money from it is to trade it over and over again to exploit the edge it gives you. 5. Not knowing how to get out of a losing trade It's amazing how many people we have talked to who don't have any clear escape plan for getting out of a bad trade. Once again they hope, pray wish and rationalize their position. As we keep saying the market does not care what you think. It does what it does and when you are wrong you are wrong! The easiest way to keep a bad trade from going really bad is to determine before you get in, where you will get out. 6. Having an ego We have seen a number of individuals enter the trading game that were extremely successful in other business ventures. Because of this they had a fairly big ego and thought they couldn't fail. Their egos became their downfall because they couldn't except that they were wrong and refused to bail out of bad trades. Once again, whoever or wherever you came from does not concern the markets. All the charm, powers of persuasion, number of diplomas or business savvy will not budge the market when you are wrong. 7. Falling in love with a sector or script Numbers of people are always involved with a particular sector or a script. And they are of the view that this sector or script always proves Lucky for them. And they love trading in that script without managing any risk. They are so much confidant that their every trade in that particular script will always result in to a winning or successful trade. But ………… To avoid the situation after but…, never fall in love with a particular sector or stock, It can cost you dearly! Note: If you have any question regarding this letter please email us at info@fortunatemangement.co.in. And if you have any comments or suggestions please inform us. We will highly appreciate your suggestions and comments. Disclaimer: Trading in Stock Exchange is not suitable for everyone. Past Performance is not indicative of Future Result.

AAADD syndrome

Anyone else have this problem?

I have recently been diagnosed with AAADD - Age Activated Attention Deficit Disorder.

This is how it goes.....

Its my weekend and I decide to organize myself. I need to tidy up a lot. I decide to start with my Car. It needs a washing. So I decide to wash the car. I walk towards the garage. Then I reaslise I need to pick up the keys, to clean the interior of the car. I go back and remember I kept the car keys on the working table.

I go near the table and notice there are lots of mails that I have to open and read. I decide, I will wash the car, but first, let me clear those mails. I pick up the mails, I decide to first sort out the junk mails. If I clear them then I can go thru only those that are relevant.

I pick up the junk and throw them to the wastepaper basket. As I do I notice the trash is full. It needs to be cleared. I decide to see the mails but before I should clear the trash. I pick the trash can walk and I notice there are bills to be paid, kept on the dining table. Oh, its better I pay these. I will empty the trash, but before that, let me first write out checks for those bills. I keep the basket down, pick up the bills.

Let me go to the working table to write the checks.

Yes, Now where is the check book?

Oops... there's only one check left. Where did I put the extra checks?

Oh, there's my empty plastic cup from last night on my desk.

I'm going to look for those checks...BUT FIRST I need to put the cup back in the kitchen.

I head for the kitchen, look out the window, notice the flowers need a drink of water, I put the cup on the counter and there's my extra pair of glasses on the kitchen counter.

What are they doing here? I'll just put them away...BUT FIRST need to water those plants.

I head for the door and...

Aaaagh! Someone left the TV remote in the wrong spot.

Okay, I'll put the remote away and water the plants...

BUT FIRST I need to find those checks.

END OF DAY: car not washed, bills still unpaid, cup still in the sink, check book still has only one check left, lost my car keys; and, when I try to figure out why nothing got done today, I'm baffled because...I KNOW I WAS BUSY ALL DAY!

I realize this condition is serious... I'd get help...BUT FIRST... I think I'll check my e-mail, I have to clear that inbox.

Realised my condition?

Do you have this syndrome?

Then can you make an appointment with the doctor for both of us?

Wait, first, let us find a doctor. Google? Ah, the connection is fast, let me check the bank account to see the credits and debits....

Invest in Gold

I strongly consider Gold to be an excellent investment opportunity for the coming years. And my conviction has increased even more after reading Mr. Ajit Dayal at http://www.equitymaster.com/ . He has given the rationale on why Gold should move up.

I subscribe to his views. Besides the various statistics and points put forth by Mr. Ajit Dayal, my reason for "investing" in gold are below: (mind you, I am saying "investing" and not buying the metal for your wife! - that is illiquid and usually make you to make a "spirited" run to the liquids of largely golden color):

1. Its a scarce commodity

2. Two of the world's most populous nations (China & India) and the women in the monied Arab world have enormous love for the yellow metal

3. It has not revalued itself for the inflationary effects - the price is almost inflation neutral for the past 27 years.

4. A scarce commodity with so much demand, must pick up speed in the price

5. If you are someone dealing in Indian Markets, the most important reason to buy Gold will be that neither the Government or the Left front can do anything about a Gold price increase!

I suggest that one takes a serious look at the Gold Exchange Traded Funds and invest in Gold. Some of the listed funds are - Reliance Gold Fund, Benchmark Gold Fund etc.

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Reliance on Power?

The markets seem to be powering ahead and attaining the pinnacle of glory from the Reliance Power issue.

The market is being electrified by such powerful issues. Companies with nothing in their books of accounts issue paper (well in demat times, not even paper) for big prices and the electrified investors queue up to gobble the shares on offer.

I read in one of the websites dedicated to stock markets that it is not worthwhile to apply for the impending high priced public issue of Reliance Power as it will get obscenely oversubscribed. So there will be no value in subscribing. (Don't know if they intended pun as regards the "value").

In these charged up times, it is difficult to find or hear sane voices. However, I heard one. Thanks to http://www.equitymaster.com for echoing the voice of the master, as below:

Buffett in his 2000 letter to shareholders mentions “Investors, mesmerized by soaring stock prices and ignoring all else, piled into these enterprises. It was as if some virus, racing wildly among investment professionals as well as amateurs, induced hallucinations in which the values of stocks in certain sectors became decoupled from the values of the businesses that underlay them. This surreal scene was accompanied by much loose talk about "value creation." What actually occurs in these cases is wealth transfer, often on a massive scale. But a pin lies in wait for every bubble. And when the two eventually meet, a new wave of investors learns some very old lessons: First, many in Wall Street- a community in which quality control is not prized-will sell investors anything they will buy. Second, speculation is most dangerous when it looks easiest.”

That was at the height of the previous great boom.

Do we see history repeating itself?

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Mera Bharath Mahan

TATA

You have made India Proud

You have made Indians proud

Pehle aap Indica Car banaya!

Ab aapne Indian ca Car banadiye!

(Earlier you made Indica Car! Now you have made Indian's Car!)

We are feeling head and shoulders above in the world

We salute your Engineering Marvel

Hats off to you!!!

Normally we say TATA to say bye

We now say TATA to Welcome.

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Tata Chem & Orchid Chem

Happy New Year my dear readers.

For the Indian stock market enthusiasts (Or should I call them old fashioned - Investors?) looking for that great stock or two, here is some choice from Sharekhan.

Bullish on Tata Chem & Orchid Chem: Sharekhan

2008-01-01 15:53:30 Source : CNBC-TV18

Hemang Jani, AVP, Sharekhan, said he is bullish on Orchid Chemicals and Tata Chemicals from the midcap space.

Orchid Chemicals exports formulations to the US and Europe, he said. "The company is venturing into the non-antibiotic space. It has identified over 80 products across various segments. Orchid Chemicals has marketing alliances with Actavis, Stada (Dava), and Par Pharma." The company is trading at 17.5 times the estimated earnings of FY08 and 12.8 times the estimated earnings of FY09, he added.

Soda ash prices are up by 60%, which will benefit Tata Chemicals, he said. "The soda ash capacity addition will lead to volume growth. The company has an investment portfolio of Rs 4,600 crore, which works out to about Rs 187 per share." The company is trading at 13.5 times estimated FY09 earnings with an EV/EBIDTA of 6.6 times, he added.

Excerpts from CNBC-TV18’s exclusive interview with Hemang Jani:

Q: Why do you like Tata Chemicals and what is the kind of price target that you are setting?

A: We like this stock because it is one of the world’s largest producers of soda ash. Prices of soda ash have moved up over the last six-months. They have gone up by about 60%. Currently, they are in the range of about USD 260-300 per tonne. Due to this, Tata Chemicals would be able to report a very good growth over the next 1-2 years.

Apart from that, there is also going to be windfall gains because of the debottlenecking of urea capacity. Tata Chemicals also has an investment portfolio of Rs 4,600 crore, which works out to about Rs 187 per share. Currently, it is available at a very reasonable valuation of about 14 times 2009 diluted earnings. We have set a price target of about Rs 535 for Tata Chemicals.

Q: Orchid Chemicals is the other stock that you like. How much of a run up do you think will come in from here? What are the factors in it favour?

A: Orchid Chemicals would do extremely well in 2008. In fact, people are looking out for stocks, which are available at a reasonable valuation and where the growth is going to be quite strong.

Orchid has displayed exceptionally good performance in the first half of 2008, mainly because of its focus on some niche products, where the competition is minimal and margins are high in the generic market. Orchid’s much awaited entry into Europe is very close now. They are going to be launching a Tazo-Pip formulation there, which should be a big blockbuster drug for it.

There will also be a host of Para IV filings. We feel the company should be able to do exceptionally well. Currently, it is available at about 18 times 2008 and about 13 times 2009 earnings. We have set a target of about Rs 375 on the stock.

Q: Any disclosures on both of them?

A: Personally, I don’t hold the stocks. But both these ideas are under our coverage, so our clients would be holding them.

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