Latest Entries »

Good Bad & Ugly about EBITDA

EBITDA is one of those terms that has received increased usage but usually for the wrong reason. This article will define it blogand discuss how it can be useful but also misleading. EBITDA is fancy tax lingo for earnings before interest, taxes, depreciation, and amortization. It is calculated by taking operating income and adding back to it interest, depreciation and amortization expenses. EBITDA is used to analyze a company’s operating profitability before non-operating expenses (such as interest and “other” non-core expenses) and non-cash charges (depreciation and amortization).

The Good EBITDA can be used to analyze the profitability between companies and industries.Because it eliminates the effects of financing and accounting decisions, EBITDA can provide a relatively good “apples-to-apples” comparison. For example, EBITDA as a percent of sales (the higher the ratio, the higher the profitability) can be used to find companies that are the most efficient operators in an industry. The ratio can also be used to evaluate different industry trends over time. Because it removes the impact of financing large capital investments and depreciation from the analysis, View full article »

Identifying the Bubble

The Indian markets benchmarks Sensex @29000 and Nifty moving towards 9000 mark, has the music begun, has blogthe party started? Many of the Market Bear analysts have already cautioned the move.  Too much information these days in market is extremely dangerous.

Has the bubble formation started how long it will last, to be honest I don’t know. Bottom line the long-term story remains bullish and if you are in quality stocks you will get returns.

So how do we identify the bubble problem, the problem with bubbles is that if you sell stocks before the bubble bursts, you look foolish, but you also look foolish if you sell stocks after the bubble bursts.

Stock market bubbles don’t grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.” — George Soros  View full article »

Markets are Volatile

A reporter asked to analyst how he sees the market now. The pet answer was it looks volatile. Well the reality is blogmarkets are always volatile than only you generate returns and losses.

The markets are volatile so does the life.  It’s important to curb the volatility and see the things from the long-term horizon.  The high tides do not last forever so does the calm sea-shore.

The nastiest thing I’ve ever told anyone (a finance fellow angry with me): “When you have absolute intellectual and more disrespect for someone, the only real compliment you can possible get from his in making him angry” View full article »

India definitely a country for future, when the world is slowing down India will outperform the global markets. Theseblog are some of the financial headlines that push people to be in markets.

So if somebody asks me – Is this the best time for the investment? My generic answer is I don’t know. To be honest whenever you have money that’s always the best time to invest. If you try to time the market – you are gone unless you a lucky fool. Because the unlucky genius have always failed in timing the market .

Typically I do very less articles on personal finance and I would like to argue today when is the best time to invest in the stock markets? It is said that “Good returns are seldom made on investments made in good times. View full article »

Buying and selling in the market are the most important decisions the investors make. Maximum time the decisionsblog are wrong and you end up paying the market fee for equity investment learning.  In the past 36 years Indian market gave positive returns for 24 years and negative returns for 12 years.

Occasionally I do repeat my posts as some ideas from Mr Lynch’s book that I try to follow most of the time, they are old but they have major significance today too :- View full article »

Follow

Get every new post delivered to your Inbox.

Join 1,554 other followers

%d bloggers like this: