Readings: $5B India SWF, Walter Schloss, Momentum stocks
- Economic Times: FM may clear $5 bn fund for India Inc’s M&A play
The government is considering a sovereign investment fund with an initial corpus of $5 billion to acquire companies abroad. The investment fund may also be used to bolster the country’s energy security by acquiring coal mines and oil and gas blocks abroad.
. . . one of the options available to the government is to create a special purpose vehicle (SPV), which will borrow funds from RBI in the form of long-term securities in foreign currency and lend the same to Indian companies at lower rates. Thus, RBI and the government will be able to earn more on forex reserves, which currently fetch average returns of 3.5-4%.
- NYSAA Value Investing Archive: Walter Schloss
“What I usually did was get companies that were having troubles, and the stock market doesn’t like trouble. Then you have to have the courage and convictions and buy enough of the stock that would make a difference to you”.
He relies extensively on Value Line, and avoids meeting with management unless they are nearby.
. . . prefers to buy assets rather than earnings. “Assets seem to change less than earnings.” The volatility of assets is much lower than that of earnings providing Mr. Schloss with stability in valuation.
- Business Standard: Momentum stocks get punter push
After a short but turbulent phase, some of the top punters on Dalal Street are back, restarting their operations in the so-called ‘momentum stocks’ that are now available at almost 70% discounts to their recent peaks.
The high operator action, say market analysts, could be gauged from the fact that the likes of Essar Oil, IFCI, Adlabs, Reliance Natural Resources, Igarashi Motors and IDBI moved up in the range of 15 to 45% last week.
“It is a general practice among punters to place these stocks as margins while purchasing future contracts. After the decline in stock prices, the margins too got eroded. However, once they ensure that the prices of these stocks go up, they will be in a better position to take higher leverage in the F&O segment.”
Related Posts:
