Day Trading Stocks & Futures

[Smart_trade]

In my view in stock market it is the money made or lost decides what is right and what is wrong.....this is a practical place ...no theoratical arguments work here....

People were finding DMart expensive when it was Rs 700..people found Asian Paints expensive at Rs 1100.....people also found Bajaj Finance expensive at Rs 900....now Bajaj Finance is at 3900 and 50-100 points down people start thinking " look I knew this stock will come down..." so everyone is most welcome to his views...only put your money on your views...and prosper...

ST

 

[siddhant4u]

Are we Indians fixated so much on Real Estate? Some years ago, I was working with one of the largest wind turbine companies. I visited their European HQ. I was told that the company's policy is never to buy Real Estate and cars. They believe in just focusing on their core business. They had a large office tower in the city of Madrid and they leased it in. They leased every factory they had in the world. I was impressed. The company is very successful. But retail could be a different ball game. Maybe it is also an Indian thing.I still like asset light companies. These days many businesses including hotels do not own Real Estate. Once our Indian mind-set gets over this and focuses on core business India may see a different quality in its corporates.

PS: Many FMCG companies in India are asset light.

Mcdonald is a real estate firm... their revenue model is buy property outright in town centres and lease it to franchise. On top get cut from revenue.

Renting model is flawed for big super markets and we have seen in tier 2/3 cities where many shops had to be closed down in shopping malls! Greedy landlords asks for huge rent which doesn't equate to footfall and/or revenue in small cities. You will need to go to tier 3 cities to see the impact.

In Western world, property are cheap to develop land cost is minimum and rents are realistic. Also if chain goes under trouble they renegotiate rent deals for existing lease. India doesn't have good track record on law cases on real estate and many companies would like to avoid this.

 

[siddhant4u]

This is a useful post. I'll try to point out drawbacks with this line of argument.

"India me abhi tak supermarket hi nahi ayye bhai..."

The say the intelligent learn from their own mistakes, but the wise learn from others' mistakes. We have a unique opportunity to learn from the mistakes of others. As an informed investor, why re-hash a 20-30 year old business model from other markets to compete with kirana shops? Because of a lack of any better ideas?

The advantage of SLBS is it allows investors to re-allocate poorly allocated capital. Imagine if you could sell DMart receive the proceeds (minus a small fee obv) and re-invest it in something that actually creates a new market or product/service or attempts to solve some genuine problem rather than engage in a zero-sum contest with kirana shops.

There's currently no efficient way to express this relative view. Have a nice weekend all.

where there is profit, industries will flow in. India lacks infrastructure for cheaper prices. There are lots of middle men buying goods from likes of HUL and distributing it to wholesalers in Cities who in turn sell it to kirana stores. Now tell if if this is efficient model? No, right. So there is gap to fill in. India can't jump directly from wholesaler to deliver to home as we don't have delivery infrastructure ready. Govt's own report says we waste 50% Vegetables and Fruits in transit !! Western World has other problem, this 50% fruits and veg rots in consumers fridge.

So road, chilled trucks, cold storage in every village/city and then we can move on to direct to home delivery. Until then there is 8-9% of margin to be earned. Mind you Walmart is biggest firm and earns on 3% margin.

 

[sridhga]

Mcdonald is a real estate firm... their revenue model is buy property outright in town centres and lease it to franchise. On top get cut from revenue.

Renting model is flawed for big super markets and we have seen in tier 2/3 cities where many shops had to be closed down in shopping malls! Greedy landlords asks for huge rent which doesn't equate to footfall and/or revenue in small cities. You will need to go to tier 3 cities to see the impact.

In Western world, property are cheap to develop land cost is minimum and rents are realistic. Also if chain goes under trouble they renegotiate rent deals for existing lease. India doesn't have good track record on law cases on real estate and many companies would like to avoid this.

In the USA, I had observed that malls collect part of the rent as a % of sales of the store. This is how the landlord and tenants are aligned in their businesses. But high street rentals are a different case.

I guess India will evolve for better. All we need is a good kick in the back in the form of real estate crash. Money should flow into real businesses and stock markets. High real estate rentals are killing our businesses/investments. I hope the day comes when people are weaned off from their obsession with FDs and real estate.

 

[tortoise]

where there is profit, industries will flow in. India lacks infrastructure for cheaper prices. There are lots of middle men buying goods from likes of HUL and distributing it to wholesalers in Cities who in turn sell it to kirana stores. Now tell if if this is efficient model? No, right. So there is gap to fill in. India can't jump directly from wholesaler to deliver to home as we don't have delivery infrastructure ready. Govt's own report says we waste 50% Vegetables and Fruits in transit !! Western World has other problem, this 50% fruits and veg rots in consumers fridge.

So road, chilled trucks, cold storage in every village/city and then we can move on to direct to home delivery. Until then there is 8-9% of margin to be earned. Mind you Walmart is biggest firm and earns on 3% margin.

DMart isn't in supply/cold chain/logistic service business.

"Until then there is 8-9% of margin to be earned."

I'm sorry but I find it difficult to get excited about equity in a highly leveraged businesses with 8-9% margin only visible for the immediate future.

I'm not saying there's no money to be made. It's just there's so many more exciting businesses in the world today. Also I'm sure you have many more exciting things to do this weekend rather than debate unexciting DMart. I'm done here - have a nice weekend!

 

[siddhant4u]

In the USA, I had observed that malls collect part of the rent as a % of sales of the store. This is how the landlord and tenants are aligned in their businesses. But high street rentals are a different case.

I guess India will evolve for better. All we need is a good kick in the back in the form of real estate crash. Money should flow into real businesses and stock markets. High real estate rentals are killing our businesses/investments. I hope the day comes when people are weaned off from their obsession with FDs and real estate.

Completely agree.

If someone say city is getting new airport, people will flock to buy real estate in the area. Same goes with “outer ring road” etc. Whereas elsewhere property prices would crash

 

[DanPSup]

Some serious information about properties from all over the word you will find in the following link with "Country analyses", "News", "Trends&Stats", "Comparison", "Buy property" and "Investments":

Global property guide

By the way: Have a nice weekend

 

[sumosanammain]

From this month, the stock options are going to be delivery settled....any impact on stock prices in short run ?

You may want to look up the Rhumotoid Model for a better grip on the issue. I personally found it t simplifies my decision making keeping in mind the above issue.

 

[Smart_trade]

You may want to look up the Rhumotoid Model for a better grip on the issue. I personally found it t simplifies my decision making keeping in mind the above issue.

Thanks...but I don’t tax my little brain so much...there are great intellectuals here...easier way is toss a question and let intellectuals debate....you also participate in the debate with your take on Rhumotoid Model....

ST

 

[sumosanammain]

Thanks...but I don’t tax my little brain so much...there are great intellectuals here...easier way is toss a question and let intellectuals debate....you also participate in the debate with your take on Rhumotoid Model....

ST

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