CHANGE IN INVESTERS OUTLOOK:

Many times, we might have not noticed many changes, which occurs dynamically or naturally.  Due to this un-noticed changes we fee odd among the group and may miss success rate.  But in practical,  change is inevitable and it may happened different to our individual taste or wish.   If we want to be comfortable, we have to accept these changes and update ourselves on  time to time.   Off late due to globalisation we had opportunity to work with different personalities and same time our traditional values/beliefs are dominated by others.  Naturally our stock market trades can't be different from this experience.  Some following outlook changes are this kind:

PREVIOUS	PRESENT
Use to be Long Term Investors	Mostly changed to Short Term Investors and Day Traders
Use to get IPOs without any premium.	Mostly IPOs issued with premium
Use to depend on Dividends & Bonus and try to accumulate stocks during this period.	Mostly Dividends Record time used to down load their short-term holdings.
Dividends and Bonus paying co. use to grade as good companies.	Now Dividend and Bonus issue cos. are being treating as non-aggressively managed cos.
After Dividend or Bonus, price of strips use to be get consolidated.	Now days, price is being corrected more than dividend and bonus value by considering tax benefits also.  In addition, % of dividend not has much value against market price.
More % of debits, use to treat as threat to companies Existing.	Excessive debit % is being looked as an opportunity to cut the cost in future there in possibility to improve PE Ratio.
Promoters holding co. use to treated as stabilised co. by considering their involvement.	Promoters holding cos. treated as ill-liquid cos. and un-professional cos.
More cash inflows (overseas credits) use to treat as extension of Break Even.	More cash in-flows (overseas credits) treated as opportunity to expansion of operations/products.
More cash reserves use to treat as cash rich company.	More cash reserves are looked as un-productive assets.
More products having companies use to treat as diversified company.	Now more products being treat as un-focused activity.
Traditionally Manufacturing sector Cos. use to attract more funds.	Presently Service Oriented Organisations being attract by investors.
Growth outlook use to measure against financial performance (eps).	Growth outlook measured against expectations & projections.
Promoters goodwill and Corporate Governance use to have more weight-age  while choosing co.	Liquidity, QoQ, YTY & PE dominates, while selecting strips.
Promoter Participative organisations use to prefer.	Promoter participative cos. treated as family concerns.  Looking for more professionals controlled cos.

OTHER OBSERVATIONS:

·         Many promoter-controlled cos. (technocrats’ promoted) have targeted by venture capital cos. or PE funds and exploited its capitalization.

·         Govt. continuing to relax FII/FDI investment limits to 50% and more levels, practically promoters will be losing their say because they may be reducing to minority stakeholders.  Once 25% allotted to public, 50%+ to FDIs allowed, promoters would left behind with minority stake of 25% or less only and obviously, concentration will reduce substantially. 

·         With dis-investment process, Govt. selling their property rights to private persons, and spending more on welfare schemes.   This is nothing but Selling Assets and Spending for Popularity.

·         One-way Govt. selling Govt. holdings to private, FDIs have welcomed with Red Carpet, but our Indian Promoters spreading their activities more in Overseas.   

·         We are paying thousand of rupees for Brand Loyalty on products (no technology required) like Soaps, Cool Drinks, Cell Phones, TV sets, Insurance Products, Retail outlets etc.

·         Many corporate (group companies) are maintaining holding companies and MF houses, which economic interest will be different from shareholders.

·         Due to globalization many organisations are forced to spend much time on managing funds than improving earnings in practical.

AAs we foresee the knowledge update is required from all sources, you may post your updates to us to enable to put tothe group. 

thanks 

ramesh

o