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Author: Raoji
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Weekend Mega Linkfest:Dec 08, 2012
Some interesting offbeat reads for the weekend:
The villain nobody knows (Open)
Ajit Pawar’s greed (Tehelka)
Exit Stage right (Outlook)
How Samir Jain created the modern Indian newspaper industry (Caravan)
Can you take it Tavleen Singh ? (Newslaundry)
Azim Premji: Outstanding philanthropist (ForbesIndia)
The long reach of Islamic fundamentalism (IDR)
Even Santa can’t find a job (SmartMoney)
The year in conspiracy theories (NewYorker)
Royal pregnancy prank and a suicide (Slate)
Tim Cook’s freshman year at Apple (Businessweek)
Life and death struggle (Economist)
Climate change may have driven Genghis Khan’s Army (Smithsonian)
Capturing Congo (ForeignAffairs)
Marc Anderson’s top 10 Tech predictions for 2013 (Forbes)
Chris Rock:Career, Weed, Wife (VanityFair)
Travelogue: Sasan Gir Lion (TeamBHP)
Presentation on Floats & Moats (FundooProfessor)
Britain’s European Destiny (TonyBlair)
Middle Class Indians celebrate FDI in retail (UnrealTimes)
Crisil is one of the most respected rating agencies in India.
So when they decided to enter the equity research field, I was quite enthused.I felt that finally we could get our grubby paws on unbiased world class research.
However, the results have been a disappointment.
Consider the case of Everest Kanto Cylinder.
In a research report dated Oct 08, 2010, Crisil Research gave a Fundamental Grade of 4/5 and a Valuation grade of 4/5 indicating it is a good buy.The then market price was 124 Rs/share and they valued the company at fair price of Rs.146/share indicating an upside.
Now fast forward 2 years to the present.Now EKC is trading at around Rs.30 per share…around 20% of the fair price indicated 2 years earlier !!
Now Crisil in its latest research report on EKC dated Nov 29, 2012 gives it a Fundamental Grade of 2/5 and a Valuation Grade of 4/5 with a fair value of Rs.33 per share !!
Crisil’s reports and quarterly updates on EKC indicates that they kept revising downwards the fair price in tandem with the falling stock price !!
Am reminded of this old Wall Street saying:
Who needs equity analysts?In a bull market you don’t need them and in a bear market, they’ll kill you
Feel strongly that kids today need to harden the f*** up !!
Courtesy of: MoneyRates.com