Hot Links: April 4, 2012

Some stuff I am reading this morning:

Ten Things to know about Home Insurance (Moneycontrol)

Hedge funds try new approach in India (WSJ)

The Japanese Professor who is teaching India Inc (ET)

Mutual Funds lose 36,000 Crores worth of assets (Financial Express)

Court frames charges against RIL officials, Mukesh Ambani let off (SuchetaDalal)

The BRICS summit-the Chinese ate all the mutton chops (Bloomberg)

A paradox-Avoid correlation by following all the trends (Allaboutalpha)

Warren Buffett:Hypocrite Extraordinaire? (DailyReckoning)

(Technorati Claim: WEKR4Y4RD7RW )


Satta Stocks

The “Satta” Stock

Nagarjuna Oil is part of the Nagarjuna group and has set up a 6 Million Tonne Refinery in Tamil Nadu.

This refinery was supposed to be commissioned in March 2012 but has been delayed.

Now, the funny thing is that the financials of this company are not available on the NSE website nor on the BSE web site nor on the company’s own website.

The only thing we know is that around 42.81 Crores shares are outstanding which gives it a market cap of around 325 Crores.

Despite the lack of details or perhaps because of the lack of details, this stock is up around 37% today.

In many ways, the stock reminds me of RNRL. It has all the ingredients for being- in Dalal Street terms-a “satta” (aka punting/gambling) stock:

1.A low price (around 7.55) allowing even the smallest of punters a chance to speculate

2.Potential of huge profits for the company

3.Impending news (In this case, the commissioning of the refinery)

4.Well known and politically connected promoters

Off to the races then !


FIIwale Disco DIIwale Khisco

In this quarter, FIIs are doing all the disco (buying) and DIIs are doing all the khisco (selling)


Hot Links: April 03, 2012

Hot links of the day:

India is closed for business (Firstpost)

Can the Tatas hold on to their Taj property in Delhi ?(ET)

Record FII flows in 2012 ?( Business Standard)

RBI Watch:Study of State Finances 2011-12 (RBI)

Insight is not advice (The Reformed Broker)

Whitney Tilson’s March 2012 Letter to Investors (InvestingNotebook)

Is US the new Middle East ? (Bloomberg)

The most expensive real estate in the world (WSJ)


Fortunes of War

In an earlier post, had discussed the consequences of Israel attacking Iran.

In most wars, the biggest beneficiary is the one who has not taken part in the war

For example, the biggest winner in the Korean War and the Vietnam War was Japan as the US military used it as a base for their operations

In the US-Afghanistan war, the biggest monetary winner was Pakistan as the NATO supply lines went thru its territory.

In the Iraq war, the biggest winner was Dubai.No wonder it saw a huge boom during that period.

So if the Iran-Israel war breaks out, the country not taking part in the war will be the biggest beneficiary.In my opinion, that country will be…Saudi Arabia.It will benefit by a weakened Iran and/or a weakened Israel and the best part will be that oil prices will remain elevated.

So its probably time to stock up on some Saudi Arabian Riyals !