Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 14th October 2009, 20:52   #1
BHPian
 
hrishig's Avatar
 
Join Date: Apr 2007
Location: Pune
Posts: 372
Thanked: 11 Times
Default How to use Auto domain knowledge for Share markets

( Mods pl merge this thread if required),

Hi all,

We all( Any Tbhp member ) eat drink think all the time in car world and have much more knowledge of auto domain than most of the guys around.

My question is how can we use / relate this while purchasing selling stocks of auto other companies? Has anybody tried that?

I am not talking about full scale trading , but basically how to convert various tips guessing we have to actual ( may be occasional ) trading with auto stocks.

Any idea?
hrishig is offline   Reply With Quote
Old 14th October 2009, 22:13   #2
Senior - BHPian
 
Join Date: Jun 2007
Location: Kochi
Posts: 2,147
Thanked: 142 Times
Default

- Sell Skoda /VW (do I need to explain?) (nah, these shares are not traded here in India)

- Sell Apollo. They make lousy tyres.

- Buy Mahindra & Mahindra (Xylo, scorpio, Govt and DGS&D sales .....)

- Meet an astrologer on future of Tata. (nano, JLR)

- Buy Mico. (They make good fuel pumps).

- Buy SKF (good market share in OE and replacement market).

- Sell Ashok Leyland. (ancient product lineup; lousy marketing, non-existent R&D)

- Sell Exide. (poor OE batteries, leading to bad publicity in replacement market).
BaCkSeAtDrIVeR is offline   Reply With Quote
Old 15th October 2009, 12:45   #3
BHPian
 
Su-47's Avatar
 
Join Date: Aug 2006
Location: Bangalore
Posts: 610
Thanked: 81 Times
Default

I disagree with many of your observations: Apollo accelere for example is one of the better tyres made by any Indian company. And, even if a company like SKF has a good market share, that factor may already be 'priced in' in its current price.

In other words, it is surely not as straightforward.
Su-47 is offline   Reply With Quote
Old 15th October 2009, 14:24   #4
Senior - BHPian
 
kuttapan's Avatar
 
Join Date: May 2007
Location: Melbourne
Posts: 1,155
Thanked: 11 Times
Default

Quote:
Originally Posted by BaCkSeAtDrIVeR View Post
- Sell Skoda /VW (do I need to explain?) (nah, these shares are not traded here in India)

- Sell Apollo. They make lousy tyres.

- Buy Mahindra & Mahindra (Xylo, scorpio, Govt and DGS&D sales .....)

- Meet an astrologer on future of Tata. (nano, JLR)

- Buy Mico. (They make good fuel pumps).

- Buy SKF (good market share in OE and replacement market).

- Sell Ashok Leyland. (ancient product lineup; lousy marketing, non-existent R&D)

- Sell Exide. (poor OE batteries, leading to bad publicity in replacement market).
While you maybe right on most or even all counts, the share market unfortunately does not operate based on these. Or that has been my experience. If you had bought Tata motors a few months back(below 150), you would have a four bagger now. I didn't have a lakh and so I am 3 lakhs poorer.

I picked up Ashok Leyland(only a few shares, just coz it is a company I like and I wanted to own some shares - emotional rather than financial decision) at around 14 odd and it is at 44 now. That is 210% returns over a few months!! For a company that currently has been losing market share like a snake losing it's skin !!

I don't know what to make out of our market. I wonder if it cares for fundamentals at all !! Having said that, over long term, your reasons should indicate the way the company evolves. One of my investment manager friends told me to stay away from auto stocks.
kuttapan is offline   Reply With Quote
Old 15th October 2009, 14:41   #5
Senior - BHPian
 
alpha1's Avatar
 
Join Date: Apr 2007
Location: P00NA
Posts: 1,614
Thanked: 949 Times
Default

Markets are based on expectations not history.
And the expexctation may not have a sound reasoning behind it.
alpha1 is offline   Reply With Quote
Old 15th October 2009, 19:28   #6
BHPian
 
hrishig's Avatar
 
Join Date: Apr 2007
Location: Pune
Posts: 372
Thanked: 11 Times
Default

Quote:
Originally Posted by kuttapan View Post
While you maybe right on most or even all counts, the share market unfortunately does not operate based on these. Or that has been my experience. If you had bought Tata motors a few months back(below 150), you would have a four bagger now. I didn't have a lakh and so I am 3 lakhs poorer.
Yup I took tata motors at 152 and Now I am N'joying, but certainly my decision was not on the domain knowledge.

As far I remember the only link between the product launch and share upward movement was launch of Swift and sx4. On that launch day maruti went up.

The reason why I am putting this is , if we can earn much more on all other domains which are not that much familiar with , why can't we make profit out of which we know a lot about.

Maruti was at 12XX levels and now is around 1500 the only major change is k series engine + Ritz launch . But I fail to understand the link between these two.


If sombody can , pl share :-)
hrishig is offline   Reply With Quote
Old 15th October 2009, 19:31   #7
Senior - BHPian
 
vivekiny2k's Avatar
 
Join Date: Feb 2005
Location: cincinnati, jabalpur,chennai
Posts: 1,241
Thanked: 163 Times
Default

Quote:
Originally Posted by Su-47 View Post
I disagree with many of your observations: Apollo accelere for example is one of the better tyres made by any Indian company. And, even if a company like SKF has a good market share, that factor may already be 'priced in' in its current price.

In other words, it is surely not as straightforward.
but that's what you get when you ask for a share market advice on a public forum
vivekiny2k is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Rumour: VW to use new MQB A0 platform for emerging markets volkman10 The Indian Car Scene 10 11th July 2016 15:10
Turbocharge your knowledge (Learn how Turbochargers work) Gordon Technical Stuff 60 20th November 2015 18:23
Value for domain name sudev Gadgets, Computers & Software 14 18th May 2010 14:32
How do you value a domain name ? bigman Gadgets, Computers & Software 6 15th June 2009 16:42
Joining a domain: XP home Vista Home Premium johy Shifting gears 0 22nd November 2007 17:14


All times are GMT +5.5. The time now is 04:57.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks