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Adidas- from the name of the founder Adolf (Adi) Dassler.
Adobe- came from name of the river Adobe Creek that ran behind the houses of founders John Warnock and Chuck Geschke .
AltaVista- Spanish for "high view".
Amazon.com - Founder Jeff Bezos renamed the company to Amazon (from the earlier name of Cadabra.com) after the world's most voluminous river, the Amazon. He saw the potential for a larger volume of sales in an online bookstore as opposed to the then prevalent bookstores. (Alternative: It is said that Jeff Bezos named his book store Amazon simply to cash in on the popularity of Yahoo at the time. Yahoo listed entries alphabetically, and thus Amazon would always appear above its competitors in the relevant categories it was listed in.)
AMD- Advanced Micro Devices.
Apache- The name was chosen from respect for the Native American Indian tribe of Apache (Indé), well-known for their superior skills in warfare strategy and their inexhaustible endurance. Secondarily, and more popularly (though incorrectly) accepted, it's considered a cute name that stuck: its founders got started by applying patches to code written for NCSA's httpd daemon. The result was 'a patchy' server â€" thus the name Apache.
Apple- for the favourite fruit of co-founder Steve Jobs and/or for the time he worked at an apple orchard. He was three months late in filing a name for the business, and he threatened to call his company Apple Computer if his colleagues didn't suggest a better name by 5 p.m. Apple's Macintosh is named after a popular variety of apple sold in the US . Apple also wanted to distance itself from the cold, unapproachable, complicated imagery created by the other computer companies at the time had names like IBM, NEC, DEC, ADPAC, Cincom, Dylakor, Input, Integral Systems, SAP, PSDI, Syncsort and Tesseract. The new company sought to reverse the entrenched view of computers in order to get people to use them at home. They looked for a name that was unlike the names of traditional computer companies, a name that also supported a brand positioning strategy that was to be perceived as simple, warm, human, approachable and different. Note: Apple had to get approval from the Beatle's Apple Corps to use the name 'Apple' and paid a one-time royalty of $100,000 to McIntosh Laboratory, Inc., a maker of high-end audio equipment, to use the derivative name 'Macintosh', known now as just 'Mac'.
AT&T- American Telephone and Telegraph Corporation officially changed its name to AT&T in the 1990s.
Bauknecht- Founded as an electrotechnical workshop in 1919 by Gottlob Bauknecht .
BBC- Stands for British Broadcasting Corporation.
BenQ- Bringing ENjoyment and Quality to life
Blaupunkt- Blaupunkt (Blue dot) was founded in 1923 under the name Ideal. Their core business was the manufacturing of headphones. If the headphones came through quality tests, the company would give the headphones a blue dot. The headphones quickly became known as the blue dots or blaue Punkte. The quality symbol would become a trademark, and the trademark would become the company name in 1938.
BMW- abbreviation of Bayerische Motoren Werke (Bavarian Motor Factories)
Borealis - The Northern Lights or Aurora Borealis, is the celestial phenomenon that features bursts of light in colourful patterns dancing across the night skies of the north. Borealis, inspired from the shining brilliance of the Northern Lights, was formed in 1994 out of the merger between two northern oil companies, Norway's Statoil and Finland 's Neste.
BP - formerly British Petroleum, now "BP" (The slogan "Beyond Petroleum" has incorrectly been taken to refer to the company's new name following its rebranding effort in 2000).
BRAC- abbreviation for Bangladesh Rural Advancement Committee, world's largest NGO (non governmental organization) . It works in development programs around the world.
Bridgestone- named after founder Shojiro Ishibashi. The surname Ishibashi (??) means "stone bridge", i.e. "bridge of stone".
Bull- Compagnie des machines Bull was founded in Paristo exploit the patents for punched card machines taken out by a Norwegian engineer, Fredrik Rosing Bull.
Cadillac- Cadillac was named after the 18th century French explorer Antoine Laumet de La Mothe , sieur de Cadillac, founder of Detroit , Michigan. Cadillac is a small town in the South of France.
Canon- Originally (1933) Precision Optical Instruments Laboratory the new name (1935) derived from the name of the company's first camera, the Kwannon, in turn named after the Japanese name of the Buddhist bodhisattva of mercy.
CGI- from the first letter of Information Management Consultant in french (Conseiller en Gestion et Informatique) .
Cisco- short for San Francisco. It has also been suggested that it was "CIS-co" -- Computer Information Services was the department at StanfordUniversityt hat the founders worked in.
COBRA- Computadores Brasileiros, "Brazilian Computers", electronics and services company, was the first state-owned designer and producer of computers in the 1970s, later acquired by the Banco do Brasil.
Coca-Cola- Coca-Cola's name is derived from the coca leaves and kola nuts used as flavoring. Coca-Cola creator John S. Pemberton changed the 'K' of kola to 'C' for the name to look better.
Colgate-Palmolive- formed from a merger of soap manufacturers Colgate & Company and Palmolive-Peet. Peet was dropped in 1953. Colgate was named after William Colgate, an English immigrant, who set up a starch, soap and candle business in New York Cityin 1806. Palmolive was named for the two oils (Palm and Olive) used in its manufacture.
Compaq- from "comp" for computer, and "pack" to denote a small integral object; or: Compatibility And Quality; or: from the company's first product, the very compact Compaq Portable.
Comsat - an American digital telecommunications and satellite company, founded during the President Kennedy era to develop the technology. Contraction of Communications Satellites.
Daewoo- the company founder Kim Woo Chong called it Daewoo which means "Great Universe" in Korean.
Dell- named after its founder, Michael Dell. The company changed its name from Dell Computer in 2003.
DHL - the company was founded by Adrian Dalsey, Larry Hillblom , and Robert Lynn , whose last initials form the company's moniker.
eBay- Pierre Omidyar, who had created the Auction Web trading website, had formed a web consulting concern called Echo Bay Technology Group. " EchoBay" didn't refer to the town in Nevada, the nature area close to Lake Mead, or any real place. "It just sounded cool," Omidyar reportedly said. When he tried to register EchoBay.com, though, he found that Echo Bay Mines, a gold mining company, had gotten it first. So, Omidyar registered what (at the time) he thought was the second best name: eBay.com.
Epson - Epson Seiko Corporation, the Japanese printer and peripheral manufacturer, was named from "Son of Electronic Printer"
Fanta - was originally invented by Max Keith in Germanyin 1940 when World War II made it difficult to get the Coca-Cola syrup to Nazi Germany. Fanta was originally made from byproducts of cheese and jam production. The name comes from the German word for imagination (Fantasie or Phantasie), because the inventors thought that imagination was needed to taste oranges from the strange mix.
Fazer - named after its founder, Karl Fazer.
Fiat- acronym of Fabbrica Italiana Automobili Torino (Italian Factory of Cars of Turin).
Fuji- from the highest Japanese mountain Mount Fuji.
Google- the name is an intentional misspelling of the word googol, reflecting the company's mission to organize the immense amount of information available online.
Haier- Chinese ? "sea" and ? (a transliteration character; also means "you" in Literary Chinese)
HP- Bill Hewlett and Dave Packard tossed a coin to decide whether the company they founded would be called Hewlett-Packard or Packard-Hewlett.
Hitachi- old place name, literally "sunrise"
Honda- from the name of its founder, Soichiro Honda
Honeywell- from the name of Mark Honeywell founder of Honeywell Heating Specialty Co. It later merged with Minneapolis Heat Regulator Company and was finally called Honeywell Inc. in 1963.
Hotmail- Founder Jack Smith got the idea of accessing e-mail via the web from a computer anywhere in the world. When Sabeer Bhatia came up with the business plan for the mail service, he tried all kinds of names ending in 'mail' and finally settled for Hotmail as it included the letters "HTML" - the markup language used to write web pages. It was initially referred to as HoTMaiL with selective upper casing. (If you click on Hotmail's 'mail' tab, you will still find "HoTMaiL" in the URL.)
HSBC- The Hongkong and Shanghai Banking Corporation.
Hyundai- connotes the sense of "the present age" or "modernity" in Korean.
IBM- named by Tom Watson, an ex-employee of National Cash Register. To one-up them in all respects, he called his company International Business Machines.
ICL- abbreviation for International Computers Ltd, once the UK's largest computer company, but now a service arm of Fujitsu, of Japan.
IKON - copier company name derived from I Know One Name.
Intel- Bob Noyce and Gordon Moore initially incorporated their company as N M Electronics. Someone suggested Moore Noyce Electronics but it sounded too close to "more noise" -- not a good choice for an electronics company! Later, Integrated Electronics was proposed but it had been taken by somebody else. Then, using initial syllables from INTegrated ELectronics, Noyce and Moore came up with Intel. To avoid potential conflicts with other companies of similar names, Intel purchased the name rights for $15,000 from a company called Intelco. (Source: Intel 15 Years Corporate Anniversary Brochure)
Interland - a web hosting provider formally known as Micron Computer, Inc. which was named either after InternetLandor the combination of the largest acqusition it performed, Interliant with the word Land.
Kawasaki- from the name of its founder, Shozo Kawasaki
Kodak- Both the Kodak camera and the name were the invention of founder George Eastman . The letter "K" was a favourite with Eastman; he felt it a strong and incisive letter. He tried out various combinations of words starting and ending with "K". He saw three advantages in the name. It had the merits of a trademark word, would not be mis-pronounced and the name did not resemble anything in the art. There is a misconception that the name was chosen because of its similarity to the sound produced by the shutter of the camera.
Konica- it was earlier known as Konishiroku Kogaku. Konishiroku in turn is the short for Konishiya Rokubeiten which was the first name of the company established by Rokusaburo Sugiura in the 1850s.
Korg - Formed from the surnames of the founders, Tsutomu Katoh and Tadashi Osanai, combined with the letters "rg" from the word organ.
LG- combination of two popular Korean brands Lucky and Goldstar. (In Mexicopublicists explained the name change to the public as an abbreviation to LÃÂnea Goldstar Spanish for Goldstar Line)
L'Oréal- In 1907, Eugène Schueller, a young French chemist, developed an innovative hair-color formula. He called his improved hair dye Auréole.
Lotus Software- Mitch Kapor got the name for his company from 'The Lotus Position' or 'Padmasana'. Kapor used to be a teacher of Transcendental Meditation technique as taught by Maharishi Mahesh Yogi.
Lucent Technologies- a spin-off from AT&T, it was named Lucent (meaning "luminous" or "glowing with light") because "light as a metaphor for visionary thinking reflected the company's operating and guiding business philosophy," according to the Landor Associates staff who chose the name. Source: Design Management Journal 8:1 (Winter 1997).
Lycos- from Lycosidae, the family of wolf spiders.
Mazda Motor- from the company's first president, Jujiro Matsuda . In Japanese, no syllables are ever stressed and some inner syllables are virtually skipped. Thus, Matsuda is pronounced "Matsda". To make the name fly better outside of Japan, the spelling was changed to Mazda.
McDonald's- from the name of the brothers Dick McDonald and Mac McDonald, who founded the first McDonald 's restaurant in 1940.
Mercedes- This is the first name of the daughter of Emil Jellinek, who worked for the early Daimler company around 1900.
MGM- Metro-Goldwyn- Mayer was formed by the merger of three picture houses Metro Picture Corporation, Goldwyn Pictures Corporation and Louis B. Mayer Pictures. Goldwyn Picture Corporation in turn was named after the last names of Samuel Goldfish and Edgar and Archibald Selwyn.
Micron- computer memory producer named after the microscopic parts of its products. The official name was Micron Computer, Inc. Since, the company has become Interland, a web hosting provider, after selling/spinning off its RAM division and closing down its computer division, licensing the name. The company is now headquartered in Atlanta.
Microsoft- coined by Bill Gates to represent the company that was devoted to MICROcomputer SOFTware. Originally christened Micro-Soft, the '-' was removed later on.
midPhase- the post-dotcom era gave using the .com in a companies official name untrendy. A new dotcom company may be named traditionally, in midPhase's case it was named midPhase Services, Inc., the midPhase stands for Middle Phase, or middle of the road.
Mitsubishi- The name Mitsubishi (??) has two parts: mitsu means three and hishi (changing to bishi in the middle of the word) means water chestnut, and from here rhombus, which is reflected in the company's logo.
Motorola- Founder Paul Galvin came up with this name when his company (at the time, Galvin Manufacturing Company) started manufacturing radios for cars. Many audio equipment makers of the era used the " ola" ending for their products, most famously the "Victrola" phonograph made by the Victor Talking Machine Company. The name was meant to convey the idea of "sound" and "motion". The name became so recognized that the company later adopted it as the company name.
Mozilla Foundation- from the name of the web-browser that preceded Netscape Navigator. When Marc Andreesen , founder of Netscape, created a browser to replace the Mosaic browser, it was internally named Mozilla (Mosaic-Killer, Godzilla) by Jamie Zawinski.
MRF- Madras Rubber Factory, founded by K M Mammen Mappillai in 1946. He started with a toy balloon-manufacturi ng unit at Tiruvottiyur, Chennai (then called Madras). In 1952, he began manufacturing tread-rubber, and in 1961, tyres.
Nero - Nero Burning ROM named after Nero burning Rome.
Netscape- named by first marketing employee Greg Sands, in a panic when the Universityof Illinoisthreatened to sue the new company for its original name, Mosaic. Netscape then paid Landor $50,000 to design a logo.
Nike- named for the Greek goddess of victory.
Nikon - the original name was Nippon Kogaku, meaning "Japanese Optical".
Nissan- the company was earlier known by the name Nippon Sangyo which means "Japanese industry".
Nokia- started as a wood-pulp mill, the company expanded into producing rubber products in the Finnish city of Nokia. The company later adopted the city's name.
Nortel - The Nortel Networks name came from Nortel (Northern Telecom) and Bay Networks. The company was originally spun off from the Bell Telephone Company of Canada Ltd in 1895 as Northern Electric and Manufacturing, and traded as Northern Electric from 1914 to 1976.
Novartis- after the Latin expression "novae artes" which means something like "new skills".
Oracle - Larry Ellison, Ed Oates and Bob Miner were working on a consulting project for the CIA (Central Intelligence Agency). The code name for the project was Oracle (the CIA saw this as the system to give answers to all questions or some such). The project was designed to help use the newly written SQL database language from IBM. The project eventually was terminated but they decided to finish what they started and bring it to the world. They kept the name Oracle and created the RDBMS engine. Later they changed the name of the company, Relational Technology Inc, to the name of the product.
Pepsi- Pepsi derives its name from (treatment of) dyspepsia, an intestinal ailment.
Philips - Royal Philips Electronics was founded in 1891, by brothers Gerard (the engineer) and Anton (the entrepreneur) Philips .
Qantas- From its original name, Queensland And Northern Territory Aerial Services.
Red Hat- Company founder Marc Ewing was given the Cornell lacrosse team cap (with red and white stripes) while at college by his grandfather. People would turn to him to solve their problems, and he was referred to as 'that guy in the red hat'. He lost the cap and had to search for it desperately. The manual of the beta version of Red Hat Linux had an appeal to readers to return his Red Hat if found by anyone.
Reebok- another spelling of rhebok (Pelea capreolus), an African antelope.
SAAB- founded in 1937 in Swedenas "Svenska Aeroplan aktiebolaget" (Swedish Aeroplane Company) abbreviated SAAB.
Samsonite- Samsonite was launched as a brand in 1941, receiving its name from the Biblical character Samson, renowned for his strength.
Samsung- meaning three stars in Korean.
Sanyo- The Japanese translation is disputed, although the Chinese name is "??" (literally, "Three Oceans")
SAP- "Systems, Applications, Products in Data Processing", formerly "SystemAnalyse und Programmentwicklung " (German for "System analysis and program development" ), formed by 4 ex- IBM employees who used to work in the 'Systems/Applicatio ns/Projects' group of IBM.
SEGA- "Service Games of Japan" (SeGa) Founded by Marty Bromley (an American) to import pinball games to Japanfor use on American military bases.
Sharp- Japanese consumer electronics company named from its first product, an ever-sharp pencil.
Shell - Royal Dutch Shell was established in 1907, when the Royal Netherlands Petrol Society Plc. and the Shell Transport and Trading Company Ltd. merged. The Shell Transport and Trading Company Ltd. had been established at the end of the 19th century, by commercial firm Samuel & Co (founded in 1830). Samuel & Co were already successfully importing Japanese shells when they set up an oil company, so the oil company was named after the shells Samuel & Co were importing.
Siemens - founded in 1847 by Werner von Siemens and Johann Georg Halske: the company was originally called Telegraphen- Bau-Anstalt von Siemens & Halske.
Sprint- from its parent company, Southern Pacific Railroad INTernal Communications. Back in the day, pipelines and railroad tracks were the cheapest place to lay communications lines, as the right-of-way was already leased or owned.
Sun Microsystems- its founders designed their first workstation in their dorm at StanfordUniversity, and chose the name Stanford University Network for their product, hoping to sell it to the college. They didn't.
Suzuki- from the name of its founder, Michio Suzuki
Tesco- Founder Jack Cohen, who from 1919 sold groceries in the markets of the London East End, acquired a large shipment of tea from T. E. Stockwell and made new labels by using the first three letters of the supplier's name and the first two letters of his surname forming the word "TESCO".
Toshiba- was founded by the merger of consumer goods company Tokyo Denki (Tokyo Electric Co) and electrical firm Shibaura Seisaku-sho (Shibaura Engineering Works).
Toyota- from the founder's name Sakichi Toyoda. Initially called Toyeda, it was changed after a contest for a better-sounding name. The new name was written in katakana with eight strokes, a number that is considered lucky in Japan.
Unisys- made-up name for the company that resulted from the combination of two old mainframe computer companies, Burroughs and Sperry [Sperry Univac/Sperry Rand]. It "united" two incompatible ranges. Unisys was briefly the world's second-largest computer company, after IBM.
Verizon- A portmanteau of veritas (Latin for truth) and horizon.
Vodafone- is a multinational mobile phone operator with headquarters in the United Kingdom. Its name is made up of VOice, DAta, TeleFONE. Vodafone made the UK 's first mobile call at a few minutes past midnight on the 1 January 1985 .
Volvo- From the Latin word "volvo", which means "I roll". It was originally a name for a ball bearing being developed by SKF.
Xerox- The inventor, Chestor Carlson, named his product trying to say `dry' (as it was dry copying, markedly different from the then prevailing wet copying). The Greek root `xer' means dry.
Yahoo!- a "backronym" for Yet Another Hierarchical Officious Oracle. The word Yahoo was invented by Jonathan Swift and used in his book Gulliver's Travels. It represents a person who is repulsive in appearance action and is barely human. Yahoo! founders David Filo and Jerry Yang selected the name because they jokingly considered themselves yahoos
Godfrey Phillips India Ltd.
CMP - Rs. 1140
NSE Symbol - GODFRYPHLP
BSE Code -500163
Strong Bonus Candidate
Godfrey Phillips is today the second largest player in the Indian cigarette industry (after ITC) and owns popular cigarette brands like Red and White, Four Square, Jaisalmer, Cavanders, Tipper and Prince. The company has made new launches and brand variants in recent years - I-Gen, premium brand targeted at free spirited youth and has unisexual appeal; Four Square Lights;
The company was promoted in 1936 by Godfrey Philips, London has business presence in manufacture and marketing of Cigarettes and branded tea. The company is now a part of KK Modi Group of companies. Phillips Morris, a major cigarette producer in the world had acquired full ownership in GPIL through its wholly owned subsidiary Phillips Morris International Financila Corporation(
The company has its manufacturing facilities located in Ghaziabad (near Delhi) and in Andheri (in Mumbai), a state of the art R&D centre in Mumbai. The company has a tobacco-buying unit in Guntur (Andhra Pradesh). The company's factory at Andheri, Mumbai has been awarded a certificate of ISO 14001. The certification takes into account the Environmental Management System in place in the factory enabling it to conserve natural resources. During 2004-05, the company set up a new pilot Research & Development plant in Andheri factory. The R&D facility is recognized by the Department of Science & Technology, Government of India, and is one of a kind in India. Godfrey Phillips has for the last 10 years used the Haichi-Ban, 5S, Kaizen Teian (a continuous improvement programme) & TQM (Total Quality Management) procedures.
In 1987, it diversified into the blending and manufacture of branded tea at Guntur, Andhra Pradesh. In 1987, the company commenced the sale of specially blended and branded loose tea from an exclusive franchised outlet called Tea City, in Delhi. Distribution network for Tea City was further expanded to Bihar, Madhya Pradesh, Andhra Pradesh and Rajasthan.
During 2004-05, the company expanded its installed capacity of Cigarettes by 109 million Nos., and the installed capacity of cigarettes increased to 3377 million Nos.
Its products are distributed through an extensive India wide network comprising 484 exclusive distributors and over 800,000 retail outlets
Conclusion
Godfrey Phillips is part owned by Philip Morris, one of the largest tobacco companies in the world - manufacturing and selling many of the world's best-selling cigarette brands including Marlboro and Virginia Slims . The company has achieved consistent growth year on year and has also increased the dividend payouts every year - the latest being 225% for FY 05-06. The recent imposition of VAT will be a short term dampener for the stock, however cigarette companies have the ability to pass on the cost to the customer without a significant fall in demand. The company has achieved an increase of 12% in its topline and 22% in bottomline in the first 9 months of the current FY. For full year, we expect the PAT at Rs.85 crores which would lead to an EPS of Rs.85. One can expect higher dividend on the back of higher earnings.
With its small Equity Capital of Rs.10 crores and Sales revenues of around Rs.700 crores, the company enjoys a high Sales to Equity ratio. The company has over Rs.200 crores invested in units of various Mutual Funds. With the current year profits, the Book Value of the company will jump to over Rs.400. The company thus is a very strong BONUS CANDIDATE.
Investors can accumulate the stock at the current price and on declines.
The book, “How Buffet Does It”, is a step-by-step guidebook for investing like Buffet in any market environment.
This book presents 24 ideas Buffet has followed from day one.
Your reviewer enumerates below these twenty-four ideas with his comments for your ready reference:
1. Choose Simplicity over Complexity
When investing, keep it simple. Do what’s easy and obvious.
If you don’t understand a business, don’t buy it.
2. Make Your Own Investment Decisions
Don’t listen to the brokers, the analysts, or the pundits. Figure it out for yourself.
Become a value investor. It’s proven to be a very rewarding technique over the long term.
3. Maintain Proper Temperament
Let other people overreact to the market.
To succeed in the market, you need only ordinary intelligence. But in addition, you need the kind of temperament to help you ride out the storms and stick to your long-term plans. If you can stay cool while those around you are panicking, you can surely prevail.
4. Be Patient
Think 10 years, rather than 10 minutes
Don’t dwell on the price of stocks. Instead, study the underlying business, its earnings capacity and its future.
If the question is, “How long will you wait?” – “If we’re in the right place, we’ll wait indefinitely” says Buffet.
5. Buy Business, Not Stocks
Once you get into the right business, you can let everyone else worry about the stock market.
Business performance is the key to picking stocks. Study the long-term track record of any company that is on
your buy list. Buffet looks for following five main things before investing in a company.
(i) Business he can understand
(ii) Companies with favorable long-term prospects
(iii) Business operated by honest and competent people
(iv) Businesses priced very attractively
(v) Business with free cash flow
Don’t think about “stock in the short term.” Think about “business in the long term”.
6. Look for a Company that is a Franchise
Some businesses are “franchises”. Franchise generates free cash flows.
7. Buy Low-Tech, Not High-Tech
Successful investing is rarely a gee-whiz activity. It’s less often about rockets and lasers and more often about bricks, carpets, paint, shaving blades and insulation.
Do not be tempted by get-rich-quick deals involving relatively complex companies (e.g., high-tech companies).
They are the most unpredictable in the long run. Look for the absence of change. Look for the business whose only change in the future will be doing more business, e.g Gillette Blades.
8. Concentrate Your Stock Investments
A the “Noah’s
Portfolio concentration – the opposite of diversification – also has the power to focus the mind.
If you’re putting your eggs in only a few baskets, you’re far less likely to make investments on impulse or emotion.
9. Practice Inactivity, Not Hyperactivity
There are times when doing nothing is a sign of investing brilliance.
Be a decade’s trader, not a day trader.
10. Don’t Look at the Ticker
Tickers are all about prices. Investing is about a lot more than prices. It is about value. It is about wealth.
Abstain from looking at share prices every day. Study the playing field and not the scoreboard. Know the value of something rather than the price of everything.
11. View Market Downturns as Buying Opportunities
Market downturns aren’t body blows; they are buying opportunities.
Change your investing mind-set. Reprogram your thinking. Learn to like a sinking market because it presents
great buying opportunity. Pounce when the three variables come together. When a strong business with an
enduring competitive advantage, strong management, and a low stock price come onto your investment screen.
12. Don’t Swing at Every Pitch
What if you had to predict how every stock in the Standard & Poor’s (S&P) 500 would do over the next few years?
In this scenario you have very poor chance of being correct. But if your job was to find only one stock among those 500 that would do well?
In this revised scenario you have a good chance. A few good investments are all that is needed.
13. Ignore the Macro; Focus on the Micro
The big things – the large trends that are external to the business – don’t matter.
It’s the little things, the things that are business-specific, that count.
It’s possible to imagine a cataclysm so terrible that the markets would collapse and not bounce back.
Externalities don’t matter – and you can’t predict them, anyway. And what can you do about them?
Focus on what you can know: the workings of a good business.
14. Take a Close Look at Management
The analysis begins – and sometimes ends – with one key question: Who’s in charge here?
Assess the management team before you invest. A investing in any company that has a record of financial or accounting shenanigans, (creative accounting, accounting jugglery). Weak accounting usually means weak business performance.
Strong companies do not have to resort to tricks.
15. Remember, The Emperor Wears No Clothes on
Wall Street
Ignore the charts.
A value investor is not concerned with charts. Invest like Benjamin Graham.
Graham told investors to “search for discrepancies between the value of a business and the price of small pieces of that business in the market.”
This is the key to value investing, and it’s far more productive than getting dizzy studying hundreds of stock charts.
Offer documents of most mutual funds say – in small print – that past performance is no guarantee of future success.
Buffet says the same thing about the market: If history revealed the path to riches, librarians would be rich.
16. Practice Independent Thinking
When investing, you need to think independently.
Make independent thinking one of your portfolio’s greatest assets. Being smart isn’t good enough, says Buffet.
Lots of high-IQ people fall victim to the herd mentality. Independent thinking is one of Buffet’s greatest strengths.
Make it one of your own.
17. Stay within Your Circle of Competence
Develop a zone of expertise, operative within that zone.
Write down the industries and businesses with which you feel most comfortable.
Confine your investments to them.
18. Ignore Stock Market Forecasts
Short-term forecasts of stock or bond prices are useless.
They tell you more about the forecaster than they tell you about the future.
Take the time you would spend listening to forecasts and instead use it to analyze a business’s track record.
Develop an investing strategy that does not depend on the overall movement of the market.
19. Understand “Mr. Market” and the “Margin of Safety”
What makes for a good investor?
A good investor is one who combines good business judgment
with an ability to ignore the wild swings of the marketplace.
When the emotions start to swirl, remember Ben Graham’s “Mr.Market” concept, and look for a “margin of safety”.
Make sure that you also understand Buffet’s concepts of Mr. Market and the margin of safety.
Like the Lord, the market helps those who help themselves. But, unlike God, the market doesn’t forgive those who “know not what they do”.
Bide your time, and wait for Mr. Market to get depressed and lower stock prices enough to provide a margin-ofsafety buying opportunity.
20. Be Fearful when Others Are Greedy and Greedy When Others Are Fearful
You can safely predict that people will be greedy, fearful, or foolish.
Trouble is you just can’t predict when or in what order.
Buy when people are selling and sell when people are buying.
21. Read, Read Some More, and Then Think
Mr. Warren Buffet spends something like six hours a day reading and an hour or two on the phone. The rest of the time, he thinks.
He therefore advises to get in the habit of reading. The best thing to start is to read Buffett’s annual reports and letters.
Finally, restrict your time only to things worth reading.
22. Use All Your Horsepower
How big is your engine, and how efficiently do you put it to work?
Warren Buffett suggests that lots of people have “400 – horsepower engines” but only 100 horsepower of output.
Smart people, in other words, often allow themselves to get distracted from the task at hand and act in irrational ways.
The person who gets full output from a 200-horse-power engine, says Buffett, is a lot better off.
Make sure that you have the right role models. Strive for rational behaviour, good habits, and proper temperament.
Write down the habits, practices and philosophies that you want to make your own.
Then be sure to keep track of them and eventually own them.
Financial success is a “matter of having the right habits”.
23. Learn from the Costly Mistakes of Others
This is self explanatory and need no comments!
24. Become a Sound Investor
Buffet says that Ben Graham was about “sound investing”. He wasn’t about brilliant investing or fads and fashions, and the good thing about sound investing is that it can make you wealthy if you are in not too much of a hurry, and it never makes you poor.
To become a sound investor, you need to develop sound investing habits.
Always fight the noise to get the real story.
Always practice continuous improvement.
It’s about finding and stepping over “one-foot hurdles” rather than developing the extraordinary skills needed to clear seven foot hurdles.
S.E.
Sharp rise in crude prices in last 2 years has led to huge activity in the offshore exploration industry in
SEAMEC has a 78% subsidiary of Technip of France. SEAMEC operates MSVs for diving and for providing underwater/subsea engineering and construction, maintenance, inspection of underwater structures, rescue-operations and fire-fighting and other support services for offshore oil and gas installations and other industries, located in India or abroad.
SEAMEC owns three (1,700 DWT, 2,100 DWT, and 2,100 DWT) of the only five MSVs owned by Indian companies. The other two belong to ONGC. SEAMEC added to its fleet another vessel, Oceanic Princess, on 12 June 2006.
Technip, the company's ultimate parent, is a French company and a leading player in engineering, technologies and construction services for the oil and gas, petrochemical and other industries. The CSO group, Technip's immediate parent, is a global leader in sub-sea engineering and contracts and has complete dominance of deep-sea underwater pipeline business in the world. CSOs international network and access to CSO's technology and experience have strengthened SEAMEC's position as the leading sub-sea contractor in
Financial Performance:
Rs. in Crs.
Trailing 4 Quarters
| | | | Quarter Ended | |
| | 31.12.06 | 30.9.06 | 30.6.06 | 31.03.06 |
| Total Income | 61.60 | 33.60 | 36.93 | 27.00 |
| Gross Profit | 30.79 | 5.00 | 20.75 | 18.46 |
| Depreciation | 4.63 | 4.26 | 3.24 | 2.78 |
| Net Profit | 25.86 | 0.50 | 17.10 | 15.11 |
| Equity | 33.90 | | | |
Rs. in Crs.
| | Y E A R E N D E D | |
| | 31.12.06 | 31.12.05 |
| Total Income | 163.63 | 87.30 |
| Net Profit | 58.57 | 19.32 |
| Equity | 33.90 | 33.90 |
| EPS (Rs.) | 17.28 | 5.70 |
Subsequently, company got raise in charter rates for its vessels which enabled to report bumper profits in Q4. Q4 alone EPS stands at 7.63.
Future Prospects:
| | YEAR ENDED |
| | 31.12.07E |
| Total Income | 275.00 |
| Net Profit | 105.00 |
| Equity | 33.90 |
| EPS (Rs.) | 31.00 |
| P.E. Ratio | 5.97 |
ONGC has drawn up significant plans for undertaking repairs and modifications of their existing oil fields and development of new infrastructure at Mumbai High. In addition to this, there is substantial work lined up for under-water pipe laying and expansion of existing pipelines. ONGC also intends to replace all its existing pipelines over next 10 years. SEAMEC is strategically well placed to seize these opportunities. Its parent company is bidding for exploration project of Reliance in K G Basin. If this materializes, there will be no looking back for SEAMEC and there could be a need for more investments in this company. Company may move up further in value chain by bidding for engineering projects by itself.
Revenues from fourth vessel should start flowing in from May 07. Moreover, full benefits of higher charter rates will be fully felt in CY07.
Valuations: Stock is trading at just 5.97 x CY07E earnings. Stock is hugely underpriced and offers good scope for sharp appreciation. Scrip like Shiv-vani is discounted 48 times. Alphageo with lacklustre performance trades at 20 times.
A debt-free French Company deserves much higher valuations. Our target:
1) Rs. 275/- by August '07.
2) Rs. 450/- by March '08.
A Must Buy for Everyone.
CMP :-44
Target :-100
Pls read the following points to get more information about the company.
1. Value unlocking will take place from the Unused Assets of the Mushroom division. Maharaja Brand of Mushroom which is its brand is a well known product throughout India and abroad.
2. The real Estate Value of the company's plants located in Madhya Pradesh, Maharastra and Andhra Pradesh cosidering that Real Estate prices are shooting over the roof specially in Maharastra and Andhra Pradesh. Also Real Estate Value fo its Mushroom firms are huge.
3. The company is into maintenance of Defence Equipments, where the deals are very lucrative and there is less chance of payments to the bills getting blocked like in Private Contracts.
.
4. The company's Specialised Product division has started operating and this has to some extent lifted the profits in the December, 2006 quarter.
5. The company has formed a Joint Ventures(JVs) with a number of Overseas firms in coutries where the margin is high. This shrewd policy of the company will give them huge returns in the days ahead.
6. The Company is mainly into domestic selling of Mushrooms and hence less affected by the appreciation of rupee unlike Agro Dutch Industries Ltd which is mainly into exports.
7. Defence allocation of the government in future will only increase to combat domestic insurgencies and also to thwart the attempts of the territoists coming from across the border.
8. Also due to the the rise in Terrorism, throughout the world, the defence budgets of all the countries are set to increase, boosting the sales of Private explosive making companies.
9. The company's main clients are Cement, Mining and Infrastructure Companies, who are booming due to government's increased stress in Infrastructure spendings.
10. Karvy Stock Broking firm which has earlier recommended the stock, with a price target of Rs.80 plus should revise their targets now to Rs.100 plus in view of the wonderful performance of the company in the last quarter, where it is seen that the margins of the company's business is increasing. There are also chance that the company could beat the Karvy's Estimate of Rs.7--8, EPS per shares as traditionally the 3rd and 4th quarters are the strongest for the company. The company has revamped its marketing and Sales division by the introdution of new professionals and this is paying them.
11. Its R & D division has been recognised by the government and is one of the best in the Industry and hence there are very few competitors of the company; as far as new product inititiatives are concerned.
Considering all these I think the stock at the current price of Rs.44, is highly undervalued and has a chance to shoot above Rs.100 in the days to come. If the company is able to sell the Assets of its Mushroom division fast then the price target could be achieved much earlier
The stock market is very volatile & will remain volatile for next four to five months.For investors it is right time to start accumulation of good stocks.Invest in small amounts consistently in following stocks to get decent returns in long term.
The list of stocks for investors includes:
#Jagran Prakashan
#Parsvnath Developers
#Unitech
#3i Infotech
#Tech Mahindra
#Ankur Drugs
#Action Construction
Most of the stocks above has huge order book which is to be executed in next few years.
These stocks are extremely good for two to three years perspective.
Thanks a Lot.
| BUY | Micro Technologies (India) | Current Price | Rs 189 |
| BSE Code | 532494 | Face Value | Rs 10 |
| NSE Symbol | MICROTECH | ||
| Micro Technologies over the years has developed wide range of Software Products especially for use in security systems. The company is expected to continue to grow at fast pace through product innovations, strategic tie-ups and geographical expansion. | |||
| Actual EPS for year ended March 2005 | Rs 6.7 | Projected EPS for year ended March 2007 | Rs 31.1 |
| Actual EPS for year ended March 2006 | Rs 16.6 | ||
