Ya'll Nibbiars many wish to stay abroad. Create a non-INR portfolio too , so much of tax saving And this is a very genuine question, know a few persons having actually done this, and a few mulling it. THE many Wish had scope to make similar income abroad, would nice to Singapore/HK.
Why this sort of pair trade? It does not seem to fit the reversion to mean expectation.Me Knew its.
Ya'll Nibbiars So someone asked me to evalute a pair trade in two companies in the same industry and working largely in the same region. The sector is commoditised in my view. I presented a concept paper on why they should go LONG company A, and short Company B.
My concept paper highlighted why structurally Co A will do relatively better vs Co B...structural cost advantages, its aggressive growth strategy vs consolidation at Co B etc, that sort of tbing. But there was an hiccup. Since March 2020 Co Bs share price has fallen 60%, and Co As has fallen but recovered so is down only 20%. And im saying go long the co that has recovered and go short the company that is already quite down.
Consequent to the fall Co Bs valuation multiples are at 20% discount to Co As. An important rule i follow is never short on valuations. But i had to do more work on this. So I wondered how do I demonstrate that despite the correction Co B is still a good short play. here is what I did: Value of any company is made up of two components: A. Value of its existing business B. Present Value of Future Opp PVGO I assumed that neither company will see future growth. So assumed PVGO = 0.
I then input the data in the following formula: Mkt cap Co A = expected steady state PAT / Required return + PVGO (0) Here i know mkt cap, and have made a complex earnings model for steady state PAT..pvgo is a assumed to be zero. I solved the equation for the required return. For company A i got the required return as 8.5%, and Co B i got it as 10.5%. So its clear that the market had already priced in higher risk for Co. B. But how much higher?! Just 200 bps! Then I asked myself is 200 bps enough of higher risk priced in between a company that will be expanding capacity by 80%, vs a company that's reducing capacity by 20%? It is my opinion that it's not. Either absolutely or relatively. As such i stuck to my view of the long short trade. Just an interesting analysis that i thought students of investing might be interested in.
Bhagwan Ucha.
That's the part of the play Nigga.
There's a mismatch here on data consideration over time period of bet.Me Knew its.
Ya'll Nibbiars So someone asked me to evalute a pair trade in two companies in the same industry and working largely in the same region. The sector is commoditised in my view. I presented a concept paper on why they should go LONG company A, and short Company B.
My concept paper highlighted why structurally Co A will do relatively better vs Co B...structural cost advantages, its aggressive growth strategy vs consolidation at Co B etc, that sort of tbing. But there was an hiccup. Since March 2020 Co Bs share price has fallen 60%, and Co As has fallen but recovered so is down only 20%. And im saying go long the co that has recovered and go short the company that is already quite down.
Consequent to the fall Co Bs valuation multiples are at 20% discount to Co As. An important rule i follow is never short on valuations. But i had to do more work on this. So I wondered how do I demonstrate that despite the correction Co B is still a good short play. here is what I did: Value of any company is made up of two components: A. Value of its existing business B. Present Value of Future Opp PVGO I assumed that neither company will see future growth. So assumed PVGO = 0.
I then input the data in the following formula: Mkt cap Co A = expected steady state PAT / Required return + PVGO (0) Here i know mkt cap, and have made a complex earnings model for steady state PAT..pvgo is a assumed to be zero. I solved the equation for the required return. For company A i got the required return as 8.5%, and Co B i got it as 10.5%. So its clear that the market had already priced in higher risk for Co. B. But how much higher?! Just 200 bps! Then I asked myself is 200 bps enough of higher risk priced in between a company that will be expanding capacity by 80%, vs a company that's reducing capacity by 20%? It is my opinion that it's not. Either absolutely or relatively. As such i stuck to my view of the long short trade. Just an interesting analysis that i thought students of investing might be interested in.
Bhagwan Ucha.
Even before coronavirus struck the Indian economy it was growing at a measly 3 percent in Jan to March quarter. Even if we assume that in second half of March coronavirus must have started affecting economy still this is not good at all. What I mean is that economic downturn is not temporary due to coronavirus only. It's been building and coronavirus has only accentuated it .Why is India’s FOREX reserves expanding like never before yesterday it Crossed 541 billion dollars we are tallking about temporary decline in GDP growth because of lockdown but why are these so called experts silent on FOREX RESERVES
India's forex reserves jump $3.883 billion to record $541.431 billion
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.www.moneycontrol.com
But why is no one tallking about this historic rise in FOREX RESERVESEven before coronavirus struck the Indian economy it was growing at a measly 3 percent in Jan to March quarter. Even if we assume that in second half of March coronavirus must have started affecting economy still this is not good at all.
India's GDP Growth For January-March Quarter Slows To 3.1%, FY20 At 4.2%
Agriculture, government spending drove economic growth in the March quarter; manufacturing and construction shrink, consumption growth falls to 2.7%
What I mean is that economic downturn is not temporary due to coronavirus only. It's been building and coronavirus has only accentuated it .
Maybe because of some structural reforms and automobile sector was slowing down because of governments push to replace the gasoline vehicles from Electric Vehicles
The Investment never really stopped. During the time of crisis companies tend to reorganize their Investment.Why is India’s FOREX reserves expanding like never before yesterday it Crossed 541 billion dollars we are tallking about temporary decline in GDP growth because of lockdown but why are these so called experts silent on FOREX RESERVES
India's forex reserves jump $3.883 billion to record $541.431 billion
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
You are right,
Doctor Saab, we need to have a chat.GDP CONTROVERSY: At -75% 'annualised' GDP, India still the worst performer
Indian economy, which saw one of the most stringent lockdowns, has shrunk the most amongst major economies on not just quarterly basis but also annualised basism-businesstoday-in.cdn.ampproject.org
Indian economy becomes worst performer in coronavirus. Modi has proved to be a disaster for the Indian economy.
I have written about modi's handling of coronavirus here
which one you want to take up first, economy or covid response?I have written about modi's handling of coronavirus here
Wuhan Coronavirus Thread
Seems like some Liberal Hippie Vegan Druggist shit from the US but may be from Europe as well. :dude: These 1st world white skinners belongs to the 5th world. https://www.dailymail.co.uk/news/article-8698479/Shocking-moment-tourist-tells-officer-doesnt-f-asked-face-mask.html These...defenceforumindia.com
