Archive for February 12, 2008

Investing – It’s Probably Overpriced

Publication: The Times Of India Mumbai; Date: Feb 19, 2008; Section: Your Money; Page: 44
One hopes that the recent string of spectacular IPO flops will bring investors back to the basics of investing

The week running up to February 11, 2008, marks a low point in IPO history. Since we are not good at remembering history, we often get nasty surprises whenit repeats itself. I wonder whether, three years on, if the Sensex reaches 30,000, anyone will remember this disastrous IPO week. First Wockhardt Hospital withdrew its IPO, as there were no takers despite steep price cuts. Next, Emaar MGF cut its price twice,
extended the deadline, and then withdrew, citing poor market conditions. And on February 11, the Reliance Power IPO fizzled out within seconds of listing. How clearly I remember the press conference at which Anil Ambani read out a list of firsts: subscribed in 58 seconds, 42 lakh shareholders (the largest in any company), and so on. The oversubscription to Reliance Power reflects the marketing muscle and brand equity of the group. The entire nation, it seems, opened demat accounts. High networth individuals leveraged themselves and pumped in several thousand crores of rupees. Even QIBs (qualified institutional buyers), probably the smartest of the lot, rushed in, like ants milling around a pot of sugar.

An expensive proposition

Publication: Business Standard, Mumbai;   Date: Feb 10, 2008;    Section: Product Analysis;   

Health Plus has a few positives but does not satisfy your basic insurance needs. A plain vanilla Mediclaim is still the best option. 
After the private insurance companies, Life Insurance Corporation of India (LIC) entered the health insurance space last week with “Health Plus”. The product enters the market at a time when only 11 per cent of Indian population has any form of health insurance. 
The main features of Health Plus plan are: 
•Hospital Cash Benefit (HCB) : Daily allowance between Rs 250 and Rs 2,500
» Read more..

Stocks are risky INVESTMENT

Publication: The Times Of India Mumbai; Date: Feb 12, 2008; Section: Your Money; Page: 42
If you are a conservative investor looking to earn better returns, don’t gamble on obscure stocks
I was having a discussion with Vikram Joshi—a retired corporate executive and a friend’s father—the other day. He kept repeating: “I am a conservative investor and I don’t want to loose money.” That is why I was surprised when I took a look at his » Read more..