Palantir

I currently own RSKIA, but I don't recommend you buy at this price, maybe below 7.50, and I also own REED, which I recommend you not buy above 5.80. I'm studying another microcap, but I'll only discuss it over PM. :)

How do you know it is "priced in"? :) Certainly the market is lower now, but that doesn't mean the market will have predicted the full extent of the problems. My opinion is that there will be further macroeconomic deterioration, and I don't believe market will stabilize until there is some change in fundamentals. Given that it is becoming election season, for the near future, I think any economic catalyst seems unlikely.

Yes, the people who have been crying about QE causing future hyperinflation seem to have disappeared. I guess Ben Bernanke isn't so evil after all. But more seriously, I think this falling Rupee is going to hurt India badly, mostly because of its fuel imports. There are two ways to solve it - fiscal answer and monetary answer. The monetary answer is to raise interest rates to shore up inflation, however the main risk is sinking GDP growth, as a result it is very unpopular. The fiscal answer is to steadily remove regulations, reduce the size of government, and instigate pro growth policies, but that is politically difficult. Both positions are painful, and given that India is heading into an election year, rising commodity prices is really going to attack the ruling UPA govt, given their "pro-poor" airs. If the government does nothing, Rupee will continue to be low, which will eat away at GDP growth, if central bank acts, it will raise interest rates, which will again hurt GDP growth. The answer has to be fiscal policy which resides with the government. I don't believe the government has the ability or willingness to act. I think all roads point to the economy struggling. Feel free to point out holes in my logic. I think it would be a mistake to dive in looking for "value".

You only want to beat the risk free rate? ::) I try using discount rates between 10-12%, as that's what I want to make or exceed. Higher the better, obviously.

Time for a bump. There is state sponsored genocide in the ME, western retaliation, India's currency is sinking. May there be many buying opportunities ahead. My watchlist: If REED drops a lot, I will buy more. Studying a position in PHI. Looks cheap Ditto for ORCL Adding more to AAPL if it drops below 450 Adding more to RHT if it drops below 46

Meh, this thread is just regurgitating stereotypes of "smart but lacks social skills" when in real life it is a false choice. Perhaps some are insecure.

Sorry about that guys, I put in a large sell order, must have tripped the exchanges. 8)

Am I right in saying that there is no difference between FCFE and "Owner Earnings" apart from the addition of "Net borrowing" to FCFE? I don't see any, and I just want to confirm.

I wrote him a letter suggesting he buy Parker Hannifin. I wonder if he will listen to me. It could well be NOV. More of a whale than an elephant though.

And you are also from AnalystForum ;) Yes...are you on AF too?

I'm also from St. Louis, MO. Born in India though.

Thank you sir!

PASSED L3!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! FINALLLY. I only have 2 yrs experience, need 2 more for dem letterz.

So just because Buffett said "risk is chance of losing purchasing power" that means it's automatically right? :) Btw....how would you define purchasing power? Purchasing power is a function of market price....but isn't price supposed to be different from value? Risk of losing purchasing power is real, but that is not the only risk that is important to investors. You as a long term investor may be risk-neutral vis a vis price risk or volatility, but it is relevant in other contexts... Personally, I think of Risk as the firm's operating results not meeting expectations. AKA, FCF doesn't grow as expected, margins contract, competitive position declines...however, if you're doing TAA, obv you would not look at that.

Rajan is supposed to be a superstar. I once saw him walking down my university street looking very sweaty after playing squash.

But that's the point. the corporation as an entity is totally separate from the shareholder body. The shareholder base only has the right to elect the directors and possibly management of the firm, but should have zero direct say on how the management utilizes those assets. Best example is when firms sit on cash or use it to run projects that shareholders don't like. I think they have that right. The corporation is hardly legal fiction.

No, I don't believe so. If the firm is distinct from you as a person, the firm is selling the assets, not you. On the other hand, if it is not (not all businesses are) you can do as you suggest.

A marriage is a relationship, not a legal person. A corporation is a legal person.

While this is over the top and sensationalist, I agree with their basic premise. Markets are only looking for very short term returns, and don't grasp the fact that the company's assets do not belong to shareholders, but to the firm itself. Especially when it comes to firms that are sitting on a lot of cash. The Origin Of 'The World's Dumbest Idea': Milton Friedman http://www.forbes.com/sites/stevedenning/2013/06/26/the-origin-of-the-worlds-dumbest-idea-milton-friedman/

I think we are at the beginning of a multiyear epic bull market that will make everybody lots of money. What evidence do I have? None, just a hunch, much like those who say the market is due for a decline. ;)

Thank you!

Who cares....how are you monetizing mobile?

The Grandmother With Faith in Indian Stocks http://blogs.wsj.com/indiarealtime/2013/08/01/the-grandmother-with-faith-in-indian-stocks/?mod=WSJ_hp_EditorsPicks My grandfather in India is just like her. He started investing in stocks after retiring (when most people move to bonds!), and did really well, focuses on dividends, and seems to do many of the same things she does. He plowed into equities after MNC's were forced to sell shares on the Indian market and in 20 years of investing has multiplied his initial base, while on a pension.

Ha, I'm looking at this for an interview. No...I don't understand the diff between the two discount rates either..

Why would it be different for a compounder? Even with a compounder, you still back out Net Cash from the EV right? So...why can you not do that with the Pension Plan, as it is a debt of sorts...