FFH/Prem looking for growth/diversification in India

[Alekbaylee]

http://business-standard.com/india/news/canadas-fairfax-may-float-nbfc/495184/

[BargainValueHunter]

Anyone know if Prem and co. are taking advantage of the collapse in valuations of Indian financials?

 

Now may be an excellent time to start mining for bargains.

 

http://online.wsj.com/article/SB10001424127887323407104579037991813071888.html

 

The Indian rupee fell to a fresh record low against the U.S. dollar Tuesday, causing a selloff in local stocks.

 

The Indian currency breached the key level of 66.00 to the dollar, partly on fears over a U.S.-led military strike in Syria, which could push oil prices higher globally. Investors were also anxious about how India will bear the cost of a bill passed late Monday that aims to provide subsidized food to millions of Indians.

 

The rupee quoted at a new all-time low of 66.24 in late Asian trade Tuesday, compared with 64.30 Monday.

 

The Bombay Stock Exchange's S&P BSE Sensex index fell 3.2% to 17968.08. On the National Stock Exchange, the Nifty index lost 3.5% to end at 5287.45.

 

http://themoneyconverter.com/exchange-rate-chart/INR/INR-CAD.gif

[savant]

Anyone know if Prem and co.are taking advantage of the collapse in valuations of Indian financials?

 

Now may be an excellent time to start mining for bargains.

 

http://online.wsj.com/article/SB10001424127887323407104579037991813071888.html

 

The Indian rupee fell to a fresh record low against the U.S. dollar Tuesday, causing a selloff in local stocks.

 

The Indian currency breached the key level of 66.00 to the dollar, partly on fears over a U.S.-led military strike in Syria, which could push oil prices higher globally. Investors were also anxious about how India will bear the cost of a bill passed late Monday that aims to provide subsidized food to millions of Indians.

 

The rupee quoted at a new all-time low of 66.24 in late Asian trade Tuesday, compared with 64.30 Monday.

 

The Bombay Stock Exchange's S&P BSE Sensex index fell 3.2% to 17968.08. On the National Stock Exchange, the Nifty index lost 3.5% to end at 5287.45.

 

http://themoneyconverter.com/exchange-rate-chart/INR/INR-CAD.gif

 

They already own the largest stake in the NBFC India Infoline which trades at a discount to book.

 

I usually stay away from financials because I'm not smart enough to discern lending practices. I believe it was Jim Slater who wrote in Return to Go that newly formed fast-growing financial companies have a high probability of going bust at the end of a boom cycle in the economy because they normally get to lend only to the worst credit.

[rohitc99]

Anyone know if Prem and co.are taking advantage of the collapse in valuations of Indian financials?

 

Now may be an excellent time to start mining for bargains.

 

http://online.wsj.com/article/SB10001424127887323407104579037991813071888.html

 

In india, the asset quality of most banks and financials is suspect. In addition, disclosures are poor (case in point - the annual reports of most banks have way less disclosure than the 10Q of a bank like BAC).

On top of the above problems, there is a tendency to extend and pretend (with support from Reserve bank of india). So we may end up with a japanese type situation, where banks will not write down bad loans and wait for these loans to get cleared off slowly.