Friday, May 28, 2010

Mobius buys BRIC stocks, sees bull rally continuing .............

Mahmoud Kassem CAIRO
TEMPLETON Asset Management’s Mark Mobius said he’s been buying stocks in Brazil, Russia, India and China in the past month and called the slump in emerging-economy shares a “correction” in a bull market.
“Despite the fact that a lot of people think that we are entering into a bear market, we don’t believe so,” Mobius, who oversees about $34 billion in emerging markets as Templeton Asset Management’s Singapore-based executive chairman, said in an interview yesterday in Cairo. “This is a correction in an ongoing bull market.”
The MSCI Emerging Markets Index has dropped 15% from an April 15 high on concern China’s steps to slow inflation and European nations’ struggle to finance their deficits will derail a global economic recovery. The measure has climbed 96% from a four-year low in October 2008 and gained 3.2% on Wednesday, rebounding from the steepest drop since March 2009, on speculation valuations are attractive. “When the time comes, emerging markets will recover faster and in a big way,” Mobius said. “We’ve been buying because we have had net flows into our funds. And most of the buying has been in the BRIC countries.”
Templeton has also been buying equities in other nations, including Dubai and Egypt, he said. The firm hasn’t reduced holdings in South Korea because the companies it owns were “relatively inexpensive” when it purchased them and may benefit from international sales should South Korea’s economic rebound stall, Mobius said.

My Comments:
Now isn't that coinciding with my view that those who will remain in CASH will remain in CASH forever?What more one wants from this blog?
My views matching with non other then Mark Mobious...Now readers need to decide what they needs to do.....
 I know it is confusing when investors see many types of views...and not able to decide what to do.....but I have been writing here since long that we will be doing good.......and I have time and again given reasons for I hope there should be no confusion with my readers........Our path is clear, our goal is clear and what we need to do is also clear...... on dips....


    some people who sit on cash from 2008 due to fear factor and sing marathon song 'CASH IS KING'.i m fully agree with you who will remain in CASH will remain in CASH forever?
    in stock market never beleive in so called astrologer or expert.if u see or beleive in company future story and growth start buy in sip mode. Only (mahagyani)fool know highest and lowest level of market or any scrip.
    dont fear in any type of market.
    one old KAHAWAT is
    girte hain sahsawar hi maidane jung me
    moti dhhondne ke liye samundar me kudna parta hai samundar ki wave ginne walo ko moti nahi milte

  2. Raju bhai
    Guj nre cokeBSE: 512579 quoting @ 63.10 and Guj nre coke dvr bse code 500003 near 36.
    if i hold guj nre coke share at present why not i sell share of guj nre coke and buy guj nre dvr
    if i received div and bonus same.
    i m not intrested in voting.
    awaiting your early reply please.

  3. Sorry Ashok,
    I haven't gone through that as I do not track Guj NRE....and will be difficult to see it due to time contraint...

  4. Rajeev,
    I looked into the Jamna Auto. Though they are allocating the warrants, the share price has already reached the warrant price (Rs. 91)

    But the other aspect is they have joint venture with Ridewell suspension systems for Air Suspension systems.

    Currently there are very few players in India for air suspension systems.

    Also, Jamna auto is considering expansion plans by 2X and 30% export. Currently export is Nill.
    Considering the growth in air suspension demand, expansion and export in future, there can be good growth in the company.

    Is my understanding correct ?

    If this is not correct, could you please give a hint me on what made this attractive ?


  5. Prashnat,
    u r absolutely correct in your analysis.......Jamna Auto is a great pick at this level.....

  6. Rajeev,
    Thanks for your response.

    I will try to study the other stocks that you have recommended.

    This is helping me to gain confidence in stocks study.

    Thanks again.


  7. Rajeev,

    I think windsor machine is taken by Jain irrigation

  8. Dear Rajeev,

    EXCELENT RESULTS posted by PSL. Standalone Topline for this qtr stands around 850cr (much more than the previous three qyrs) and Stand alone NP close to 24cr ( again better than the previous three qtrs).

    The consolidated TOPLINE and NP for the march qtr is even more spectacular.

    They have reported a consol Top Line for the march qtr of Rs 1375 cr and consolidated NP for this qtr stands at Rs 45.69 cr therby resulting in an consolidated EPS for this qtr at a MINDBLOWING 8.72.

    For the full year the Consolidtaed EPS at 25 and to top it reserves of 920 cr.

    A company with such high reserves even after near completion of its capex is trading at a market cap of just 650 cr.

  9. A list of stocks you are no longer happy with would also be of help Rajeev...
    Also, SNL Bearings is is making my day. It is close to breaching the 50 Re. mark. Company has turned around smartly from the previous years' loss. Looks like some operators are having a field day too.
    Any other banks/financial companies you like, Srei infra is one you have rightly recommended.

    @Mitzz: Mitzz are you hearing anything these days about Om Metals? Prices have fallen in the last month.

  10. Dear JC,
    Om metal has fallen in line with the fall in small cap stocks. It went up from 26 to 39 and now back to 30. results were decent but its value lies in future value unlocking.

    They have huge real estate and also stake in pondicherry port and sez. promoter stake is very high and once any operator gets in it will be difficult to catch it.
    Also reliance has bought a lot at 60 and also at lower levels.

    I see that it has all the credentials to become a big outpeformer in the next five years.

    Other stocks that i am bullish apart from PSL and Om Metal are Rathi Steel, Rohit Ferro and Srei Infra (many of which are rajeev's recommendations)

  11. Wonder why PSL is not moving...any views?

  12. Hello Rajeevji,how are you doing? There are some messages on MMB regarding Navin, for cancelling the CER's because of non-calibration of some of the equipments, indeed it looks to be a very bad news, the stock was rock solid between the level of 300 to 330/- but now it is looking a bit weak, any one any other thoughts???