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Santa Claus
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My expertise are in Information Technology ,Banking & Financial Services and Media & Entertainment & Newspaper????
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24 Oct 2008 14:47
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24 Oct 2008 14:34
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24 Oct 2008 14:26
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24 Oct 2008 10:57
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22 Oct 2008 15:25
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PV Subramanyam / Wealth Special
PV Subramanyam, a Chartered Accountant by qualification, is a trainer in the financial services sector. After a 20-year career in the financial services industry, from equity broking, mutual fund advising, corporate finance advising and personal financial planning, Subramanyam turned to training. He writes regularly for financial websites and magazines.
`Forget stocks. Invest your money in buying a bigger bed. You can tuck away all your cash here`, read an sms that I got the other day.
Funny I thought, but it really gives away what the world is thinking today. Everyone and his uncle are scared to invest their money!
"Should I keep all my money in cash? Is it the best asset class at this time?", is the question most of you are asking. Here is my analysis.
Cash has risk too!
Cash is surely one alternative but don`t forget that there is a huge amount of risk. What risk? You might have a thief as a visitor and he can make a clean sweep (And the bed idea might not be a great one here!).
Besides, fire is another threat if you have cash lying at home. And we cannot rule out the possibility of natural disasters destroying your cash either.
And if all this isn`t enough, then remember that inflation erodes the value of your money. So, idle money is inflation`s delight!
Now that cash has been ruled out, here are some other investment options. But at this stage, are they worth it?
Bank deposits:
This is an attractive avenue for many people because they want to `preserve their capital`. Banks pay anything between 3 to 11 per cent per annum as interest on the fixed deposits (FD). However, post tax and post inflation returns on FDs are either negligible or even negative. Hence, this is not a great option either.
Income funds:
If you think interest rates have peaked and will only fall now, you can keep your money in income funds. This is because when rates keep rising, the market value of securities that the income fund invests in, falls. This impacts the returns of these funds negatively. Similarly, when interest rates fall, the market value of securities increases, thus generating more returns for the fund.
But do you understand the rate scenario? Are you sure that interest rates have peaked? If you are not, then don`t lay your bets here. It would only be a gamble.
Income funds are debt funds which invest in bonds, government securities, commercial paper, debentures etc. These funds value their portfolio based on the market value of securities they hold. Depending on the market value, the fund makes losses or gains, which impacts returns on these funds.
Real estate:
A popular news channel announced that property prices will fall by 30 per cent in the coming months, so it would be foolhardy to invest in property now.
If you think that real estate will give you a return in excess of the interest rates at which you are borrowing (for the next 20 years), then you can invest in this avenue. For instance, if you buy property with a home loan at 12 per cent interest and if you feel that your property will give you returns of around 15-20 per cent, you can think of putting your money here.
Again, for a lay person to understand how property markets move is like hitting darts with your eyes closed. And it`s best to stay away from guesswork.
Equity (read mutual fund SIPs) rule the roost!
Experts on all the business channels seem to think that the markets are a bad place NOW to keep your money. Of course I find solace in the fact that the experts are only looking at a teleprompter and not at a crystal ball.
I must admit that I do not understand equity markets as well as the experts on television. However, I have kept my SIPs running and they have been on for seven to nine years. I do not intend stopping them. If you have a long term view, think Systematic Investment Plans. It cannot get better than that!
Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content.
...
PV Subramanyam, a Chartered Accountant by qualification, is a trainer in the financial services sector. After a 20-year career in the financial services industry, from equity broking, mutual fund advising, corporate finance advising and personal financial planning, Subramanyam turned to training. He writes regularly for financial websites and magazines.
`Forget stocks. Invest your money in buying a bigger bed. You can tuck away all your cash here`, read an sms that I got the other day.
Funny I thought, but it really gives away what the world is thinking today. Everyone and his uncle are scared to invest their money!
"Should I keep all my money in cash? Is it the best asset class at this time?", is the question most of you are asking. Here is my analysis.
Cash has risk too!
Cash is surely one alternative but don`t forget that there is a huge amount of risk. What risk? You might have a thief as a visitor and he can make a clean sweep (And the bed idea might not be a great one here!).
Besides, fire is another threat if you have cash lying at home. And we cannot rule out the possibility of natural disasters destroying your cash either.
And if all this isn`t enough, then remember that inflation erodes the value of your money. So, idle money is inflation`s delight!
Now that cash has been ruled out, here are some other investment options. But at this stage, are they worth it?
Bank deposits:
This is an attractive avenue for many people because they want to `preserve their capital`. Banks pay anything between 3 to 11 per cent per annum as interest on the fixed deposits (FD). However, post tax and post inflation returns on FDs are either negligible or even negative. Hence, this is not a great option either.
Income funds:
If you think interest rates have peaked and will only fall now, you can keep your money in income funds. This is because when rates keep rising, the market value of securities that the income fund invests in, falls. This impacts the returns of these funds negatively. Similarly, when interest rates fall, the market value of securities increases, thus generating more returns for the fund.
But do you understand the rate scenario? Are you sure that interest rates have peaked? If you are not, then don`t lay your bets here. It would only be a gamble.
Income funds are debt funds which invest in bonds, government securities, commercial paper, debentures etc. These funds value their portfolio based on the market value of securities they hold. Depending on the market value, the fund makes losses or gains, which impacts returns on these funds.
Real estate:
A popular news channel announced that property prices will fall by 30 per cent in the coming months, so it would be foolhardy to invest in property now.
If you think that real estate will give you a return in excess of the interest rates at which you are borrowing (for the next 20 years), then you can invest in this avenue. For instance, if you buy property with a home loan at 12 per cent interest and if you feel that your property will give you returns of around 15-20 per cent, you can think of putting your money here.
Again, for a lay person to understand how property markets move is like hitting darts with your eyes closed. And it`s best to stay away from guesswork.
Equity (read mutual fund SIPs) rule the roost!
Experts on all the business channels seem to think that the markets are a bad place NOW to keep your money. Of course I find solace in the fact that the experts are only looking at a teleprompter and not at a crystal ball.
I must admit that I do not understand equity markets as well as the experts on television. However, I have kept my SIPs running and they have been on for seven to nine years. I do not intend stopping them. If you have a long term view, think Systematic Investment Plans. It cannot get better than that!
Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content.
...
22 Oct 2008 15:23
No job cuts in India`s IT industry: Infosys head
Information Technology - Sector
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Santa Claus View full thread (2 messages)
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Tokyo: There will be no pink slips in the Indian information technology industry as it has countered the impact of the current global financial tsunami well, according to Nandan Nilekani, co-chairman of Infosys Technologies.
"The fundamentals in the information technology sector are strong. I do not see any job cuts," Nilekani, who is a member of a business delegation accompanying Prime Minister Manmohan Singh said in Tokyo, on the margins of a meeting.
"At Infosys, we have lowered our growth and graduated from 13-15 per cent. There are also other factors like cross-currency," said the co-founder of India`s second-largest software exporter.
Industry experts have said that losses on account of a depreciation of one currency had been made up by appreciation in another due to market diversification, where Indian IT industry`s heavy reliance on the US market was slowly coming down.
Nilekani said the global financial crisis was complicated and maintained that the Indian government had done a great job in handling the situation, even as Manmohan Singh said India had the resilience to sustain a high growth momentum despite the crisis.
The 20-member Indian business delegation led by Reliance Industries chairman Mukesh Ambani also met with corporate chiefs of the Japan Chamber of Commerce and Industry during the business luncheon.
Others in the business delegation included KV Kamath, chief executive of ICICI Bank and president of the Confederation of Indian Industry (CII), and Malvinder Mohan Singh who a day earlier sold his family`s entire stake in Ranbaxy Laboratoiries, Indias`s largest drugs maker to Daiichi Sankyo of Japan.
Even Kamath pointed out that the fundamentals of the fast-growing Indian economy have been and continue to be strong and that there was enough liquidity in the system, accompanied by high corporate confidence.
"The situation in India is different," said Kamath whose heads India`s largest commercial bank in the private sector. The challenges before our banks are not like the ones being faced by the West," he said.
"Indian banks are lending to corporates and are not cutting back on commerce."
During his presentation before corporate captains from India and Japan, Manmohan Singh said the Indian banking system was well capitalized and that additional liquidity had been quickly pumped in after industry complained about a credit crunch.
"The short-term outlook is somewhat cloudy but I am confident that the Indian economy has the resilience to sustain its growth momentum in the medium run."
...
"The fundamentals in the information technology sector are strong. I do not see any job cuts," Nilekani, who is a member of a business delegation accompanying Prime Minister Manmohan Singh said in Tokyo, on the margins of a meeting.
"At Infosys, we have lowered our growth and graduated from 13-15 per cent. There are also other factors like cross-currency," said the co-founder of India`s second-largest software exporter.
Industry experts have said that losses on account of a depreciation of one currency had been made up by appreciation in another due to market diversification, where Indian IT industry`s heavy reliance on the US market was slowly coming down.
Nilekani said the global financial crisis was complicated and maintained that the Indian government had done a great job in handling the situation, even as Manmohan Singh said India had the resilience to sustain a high growth momentum despite the crisis.
The 20-member Indian business delegation led by Reliance Industries chairman Mukesh Ambani also met with corporate chiefs of the Japan Chamber of Commerce and Industry during the business luncheon.
Others in the business delegation included KV Kamath, chief executive of ICICI Bank and president of the Confederation of Indian Industry (CII), and Malvinder Mohan Singh who a day earlier sold his family`s entire stake in Ranbaxy Laboratoiries, Indias`s largest drugs maker to Daiichi Sankyo of Japan.
Even Kamath pointed out that the fundamentals of the fast-growing Indian economy have been and continue to be strong and that there was enough liquidity in the system, accompanied by high corporate confidence.
"The situation in India is different," said Kamath whose heads India`s largest commercial bank in the private sector. The challenges before our banks are not like the ones being faced by the West," he said.
"Indian banks are lending to corporates and are not cutting back on commerce."
During his presentation before corporate captains from India and Japan, Manmohan Singh said the Indian banking system was well capitalized and that additional liquidity had been quickly pumped in after industry complained about a credit crunch.
"The short-term outlook is somewhat cloudy but I am confident that the Indian economy has the resilience to sustain its growth momentum in the medium run."
...
22 Oct 2008 15:21
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CNNMoney.com
New York: Yahoo! announced on Tuesday that it plans to cut at least 10 per cent of its workforce, or more than 1,500 employees, in the fourth quarter in an effort to reduce costs.
The struggling Internet company also announced sales for the third quarter that were roughly in line with Wall Street`s forecasts and earnings that matched expectations.
Yahoo! had 15,200 employees at the end of the third quarter. The much-anticipated round of layoffs comes on the heels of another 1,000 job cuts in late January.
"We have been disciplined about balancing investments with cost management all year, and have now set in motion initiatives to reduce costs and enhance productivity," said Yahoo! co-founder and CEO Jerry Yang in a written statement.
"The steps we are taking this quarter should deliver both near-term benefits to operating cash flow, and substantially enhance the nimbleness and flexibility with which we compete over the long term," he added.
In a conference call after the results were announced, Yang said the company was working to reduce costs in other ways than just slashing jobs, including relocating offices and consolidating real estate. "We are identifying ways we can operate more efficiently," he said.
Yahoo! reported revenue of $1.79 billion in the quarter ended September 30, an increase of 1 per cent from $1.77 billion in the same quarter one year ago.
Excluding commissions paid to advertising partners, Yahoo! posted sales of $1.33 billion, slightly lower than the $1.37 billion in sales that analysts polled by Thomson Reuters expected on this basis.
Yahoo! reported net income of $54 million, or 4 cents per share, a decline of 51 per cent from a year ago. Excluding certain one-time charges, Yahoo! recorded profits of $123 million, or 9 cents per share, which was in line with what analysts had forecast on this basis.
Yahoo`s stock ended the regular trading day down 79 cents at $12.07 but rose 7 per cent in after hours trading.
The report provided "no more negative surprise beyond what we had already expected," said senior Internet analyst at Collins Stewart Sandeep Aggarwal.
And given the weak economy, Yahoo`s report "could have been a lot worse," noted Jeffrey Lindsay, senior analyst with Sanford C Bernstein & Co.
Lindsay said that Yahoo`s decision to reduce costs, mostly through massive job cuts, has the potential to buoy the company through the hard times. "If they really do take the staff numbers down for real, that will have a very beneficial effect," said Lindsay.
Yahoo`s stock has been battered in recent months due to concerns that companies would cut their online advertising spending as a result of the economic slowdown. Executives admitted that Yahoo`s performance has been taking a hit from the sluggish economy.
"An increasingly challenging economic climate and softening advertising demand contributed to revenues this quarter coming in at the low end of our outlook range," said Yahoo! Finance Chief Blake Jorgensen in a statement.
"While we are disappointed with our results, we`re pleased that we continue to benefit from the aggressive cost management efforts we have pursued during the year," he added.
Looking forward
In light of the distressed global economic climate, Yahoo! lowered its sales guidance for the remainder of the year. At the end of the second quarter, the company was expecting sales to be in the range of $7.35 billion and $7.85 billion. However, the company has now trimmed that revenue guidance to between $7.18 billion and $7.38 billion.
Even though Yahoo! cut its sales forecasts, the company didn`t decrease operating cash flow guidance. According to Aggarwal, that means that Yahoo`s profit margins will be higher than originally thought.
Investors are worried that large companies will spend less on so-called Internet display ads, such as banners and video. Automakers and banks, two of the nation`s hardest hit sectors, have typically been big purchasers of display ads.
Yahoo! turned down several takeover offers from Microsoft this year, a decision that has frustrated many Yahoo! shareholders. Since then, Yahoo! has pursued an ad-sharing deal with top rival Google.
The partnership has been put on hold, however, as the Justice Department investigates whether the deal would create an online advertising monopoly and violate antitrust laws.
In the conference call, Yang shot down speculation that Google might pull out of the partnership and said that the company was still working with the Department of Justice to negotiate the deal with Google.
"We look forward to bringing the benefits to the marketplace as soon as possible," said Yang.
Also on the conference call, Yahoo president Susan Decker talked about Yahoo`s efforts to move away from a "one size fits all" portal to a more customized experience....
New York: Yahoo! announced on Tuesday that it plans to cut at least 10 per cent of its workforce, or more than 1,500 employees, in the fourth quarter in an effort to reduce costs.
The struggling Internet company also announced sales for the third quarter that were roughly in line with Wall Street`s forecasts and earnings that matched expectations.
Yahoo! had 15,200 employees at the end of the third quarter. The much-anticipated round of layoffs comes on the heels of another 1,000 job cuts in late January.
"We have been disciplined about balancing investments with cost management all year, and have now set in motion initiatives to reduce costs and enhance productivity," said Yahoo! co-founder and CEO Jerry Yang in a written statement.
"The steps we are taking this quarter should deliver both near-term benefits to operating cash flow, and substantially enhance the nimbleness and flexibility with which we compete over the long term," he added.
In a conference call after the results were announced, Yang said the company was working to reduce costs in other ways than just slashing jobs, including relocating offices and consolidating real estate. "We are identifying ways we can operate more efficiently," he said.
Yahoo! reported revenue of $1.79 billion in the quarter ended September 30, an increase of 1 per cent from $1.77 billion in the same quarter one year ago.
Excluding commissions paid to advertising partners, Yahoo! posted sales of $1.33 billion, slightly lower than the $1.37 billion in sales that analysts polled by Thomson Reuters expected on this basis.
Yahoo! reported net income of $54 million, or 4 cents per share, a decline of 51 per cent from a year ago. Excluding certain one-time charges, Yahoo! recorded profits of $123 million, or 9 cents per share, which was in line with what analysts had forecast on this basis.
Yahoo`s stock ended the regular trading day down 79 cents at $12.07 but rose 7 per cent in after hours trading.
The report provided "no more negative surprise beyond what we had already expected," said senior Internet analyst at Collins Stewart Sandeep Aggarwal.
And given the weak economy, Yahoo`s report "could have been a lot worse," noted Jeffrey Lindsay, senior analyst with Sanford C Bernstein & Co.
Lindsay said that Yahoo`s decision to reduce costs, mostly through massive job cuts, has the potential to buoy the company through the hard times. "If they really do take the staff numbers down for real, that will have a very beneficial effect," said Lindsay.
Yahoo`s stock has been battered in recent months due to concerns that companies would cut their online advertising spending as a result of the economic slowdown. Executives admitted that Yahoo`s performance has been taking a hit from the sluggish economy.
"An increasingly challenging economic climate and softening advertising demand contributed to revenues this quarter coming in at the low end of our outlook range," said Yahoo! Finance Chief Blake Jorgensen in a statement.
"While we are disappointed with our results, we`re pleased that we continue to benefit from the aggressive cost management efforts we have pursued during the year," he added.
Looking forward
In light of the distressed global economic climate, Yahoo! lowered its sales guidance for the remainder of the year. At the end of the second quarter, the company was expecting sales to be in the range of $7.35 billion and $7.85 billion. However, the company has now trimmed that revenue guidance to between $7.18 billion and $7.38 billion.
Even though Yahoo! cut its sales forecasts, the company didn`t decrease operating cash flow guidance. According to Aggarwal, that means that Yahoo`s profit margins will be higher than originally thought.
Investors are worried that large companies will spend less on so-called Internet display ads, such as banners and video. Automakers and banks, two of the nation`s hardest hit sectors, have typically been big purchasers of display ads.
Yahoo! turned down several takeover offers from Microsoft this year, a decision that has frustrated many Yahoo! shareholders. Since then, Yahoo! has pursued an ad-sharing deal with top rival Google.
The partnership has been put on hold, however, as the Justice Department investigates whether the deal would create an online advertising monopoly and violate antitrust laws.
In the conference call, Yang shot down speculation that Google might pull out of the partnership and said that the company was still working with the Department of Justice to negotiate the deal with Google.
"We look forward to bringing the benefits to the marketplace as soon as possible," said Yang.
Also on the conference call, Yahoo president Susan Decker talked about Yahoo`s efforts to move away from a "one size fits all" portal to a more customized experience....
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