Monday, November 2, 2009

Stock Market Investment Strategies - Telecom stocks, Good time to buy!!!

All telecom stocks have taken a beating in the stock market. Do-Co-Mo started all this with its per second billing plan. All operators came under pressure to comply with per second billing. After DoCoMo it was Airtel which launched with per second billing and then Idea and so on. Everyone seems to be going for per second billing. The operating margins of the telecom companies which was greatly reduced due to the entry of players was even more compressed.

The Central Bureau of Investigation's probe into the 2G spectrum allocation scam further pulled down the telecom stocks. This scam has stopped the allocation of the spectrum for 3G which was to be held in a couple of months time. Presently all telecom stocks seems to be playing the number's game to attract more customers which would enable them to get larger share in the spectrum.


Bharti Airtel also saw disappointing Q2 results which reduced the stock to Rs 292.90 a 52-week low. Reliance communications also saw its stock value decrease to 176.

This presents a great opportunity for the investor to invest in telecom stocks. These stocks seem to have bottomed out already. If you have a long term view it would fetch good returns. However, in a couple of months you would be a able to see a clear picture of where the telecom stocks are heading.

Monday, October 26, 2009

Stock Market Investment Strategies - trading 9 to 5 to become a reality

SEBI has allowed the stock exchanges to extend trading hours of equity markets. When this is implemented, stock exchanges will start trading from 9am and close at 5pm. This is aimed at aligning Indian stock markets with international ones in a bid to woo more trades.

Most of the international stock markets work for eight hours a day, compared to Indian markets that are open for only five and a half hours. Presently India's stock markets work between 10 to 3.30.

The main hurdle for this to happen is of banks. Bank timings also needs to coincide with market timings since the transactions will have to go through it. This will also put tremendous pressure on the brokerage offices.

With this the volatility may come down which is observed in the Indian stock markets and also trading volumes will increase.

Thursday, October 1, 2009

Stock Market Investment Strategies - Mindtree buys Kyocera

Mindtree one of the largest software services company in India has made a deal with San-Diego based Kyocera to buy its indian Subsidiary Kyocera wireless India.

Mindtree would make an upfront payment of $6 million to buy this firm. The IT firm expects the acquisition to contribute about $9 million in revenues for the period Oct 2009 to March 2010, with profit after tax expected to be in the range of 13-15 percent. This acquisition makes Kyocera a major strategic client for MindTree. Kyocera wireless india (KWI) which is based in Bangalore will continue to provide engineering services to San Diego-based Kyocera Wireless Corporation (KWC) and other Kyocera entities on a contract basis after the sale. Mindtree had earlier acquired Aztec and added 2.5k employees to its fold. The indian subsidiary of Kyocera employs about 600 people. This increases the total employee count to more than 10k.

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