Great Indian Real Estate Scam in making

Now a days all newspapers are full of recovery in real estate prices and bottoming out. But this seem to method in this chorus as everybody is singing same song. All developers are launching page full of ads for new projects.

Some serious questioning-

1. What has happened to all the fancy projects launched in last 3 years? Is any of these near delivery?

2. If these realtors( including top5) have no money to complete projects launched three years back and are in near default to banks saved only by RBI's generosity in allowing debt restructuring to save banks, where is all the money gone?

3. No award for guess where money raised for new projects will go? to repay debt of banks and mutual funds who restructured their debt in Feb/March.

4. So how they will complete existing and new schemes?

5. DLF is coming with second phase of DLF Green in Delhi. Have they even put a stone in last six months in phase one, they so proudly declared to be sold out?

6. Affordable pricing ?? BIG nonsense. All projects located in god-forsaken locations where even ghosts will be scared to stay.

7. 30 mins from CP 10 mins from Delhi border. NOT by ROAD certainly? What about 1 hour traffic jam for free in between

7. How it happens that every project is just few kilometers from some dream Metro or Expressway? Somehow these developers have dreamed of 101 metros and expressways note seen by Government Planners

8. All ads advise you to buy or never? Interest rates rising soon. Prices will go up soon. If paper advice is not enough, there are international consultants thrown in- Like John Le Salle something kind all bunch of high sounding all knowing experts. Every body has got stake in this artificial boom. How you consultants earn bonus if no boom? How you private equity players get millions to invest if no boom? How you will repay debt to avoid bankruptcy if prices do not recover ? How all these banks and mutual funds avoid NPA if no boom? How you newspaperwallahas earn for page full of ads if no boom? And what will happen to job of those special realty correspondents these business papers hired in boom time?

DEAR Friends - WELCOME TO GREAT INDIAN ROPE SHOW.

QuiZ to end-

Harshad Mehta

CR Bhainsali

Ketan Parikh

...........................??

Good time to buy stocks

With news of recession all around, I again feel like buying something. One of stocks I feel particularly good value is CRISIL. It being a rating company, there is no reason for it having any less work. In fact its work should only increase due to implementation of Basel 2 norms under which banks will get its loan rated. Further credit lending by banks declined sharply, now corporates will be forced to come out with some public issues of debt. All this means increased income for rating agencies and Crisil being largest stand to garner maximum benefit. In fact it is already being reflected in its rising profits and thus resulting in lower P/E ratio. P/E has come down from range of 20-25 to less than 10 in last 12 months and with still good growth in profit, it looks a great buy in times of recession.

Days of Value Investing are back

When i started this blog I promised to put out list of my favorite value stock in Indian market but I could not get enough time to keep my promise.
Lot has changed since than and nowadays there is mostly negative news about market and now people just do not want to hear the dirty word sensex and from the time when people kept refreshing their browsers to get latest value of their portfolios. Yes unmistakable signs that now you will able to find value stock without too much effort.
Here is my list
Aban Offshore(Rs.872)- though many would hesitate at thought of purchasing this highly leveraged company at these times but its business of renting oil rigs is not going to be shut just because oil prices have fallen. It has locked in high rentals but market fears that these will reneged and that is why it is falling in recent months. I feel that even if its contracts are renegotiated at lower prices it continues to earn fixed cash flows and demand for these oil rigs will continue to remain on short supply and oil prices have cooled only for short time as world economy has cooled as soon as recovery starts again demand will outrun supply so buy and forget
Cairn India(Rs.141)- Price is down due to same reasons as above as it oil drilling company. Logic is that at current price it is below its book value means it has successfully bid for oilfield and found oil and having spent years drilling to be finally ready to get oil for sale. Meanwhile it available of less price than money it has spent and with certainty of cash flow. not logical.

Just 2 for the day. I will now keep posting it regularly.

Value stocks in India

Well I am starting this blog to discuss what I think are best investment options in stocks using value investing methods of Graham and Warran Buffet. I have been fascinated by success of these gurus in creating wealth using these simple but hard to follow disciplined approach.

I will write about potential buys available in Indian stock markets searched using value investing ways and construct a portfolio using this techniques.

I welcome all suggestions, advice and discussions of my recommendations with all interested in furthering cause of value investing.