EMC rocking up 10% today

On June 27th I had posted my views on EMC. I had predicted buying EMC is a good idea. Valuations are good and future looks bright.

In a followup post I had cautioned that VMware could be problematic and with the founder CEO exiting without much explanation there could be cause of worry.

However overall EMC looks strong and their quarterly results prove that.

Market responded with same enthusiasm and gave it a 2 thumbs up. The stock is up 10%

Ps: I own EMC stocks.

Buy APPLE now

I know its a bad market and Apple stock has suffered lately on economy slowdown cues and news of Steve Jobs not well and no successor finalized.

However the product iPhone to too superior to be affected by this. Moreover $199 iPhone is going to bring in buyers which were not there before, its getting released this Friday already there is buzz around this. Also there are talks of iPhone without contract in other countries thats going to help. What happened to ipod is going to happen to iPhone is my take.

Moreover with iPhone who is going to need all the other features.

From Apple.com "Introducing iPhone 3G. With fast 3G wireless technology, GPS mapping, support for enterprise features like Microsoft Exchange, and the new App Store, iPhone 3G puts even more features at your fingertips. And like the original iPhone, it combines three products in one — a revolutionary phone, a widescreen iPod, and a breakthrough Internet device with rich HTML email and a desktop-class web browser. iPhone 3G. It redefines what a mobile phone can do — again."

BUY APPL.

ps: I own APPL

BAD news about EMC

Just heard and saw a 10% decline in EMC stock today because VMware stock fell drastically almost 30% today. Reason: CEO exit.

While some are saying its a good thing that the CEO exit other are worried VMWare would not be a spin off hence putting the weight on EMC further as EMC owns 86% of VMWare. When it was time to buy VMware I did not i went for the safer option of buying EMC, thankfully so.

I look at EMC stock, fundamentals and valuations again and I like what I see. although challenges like slowing economy and competition will still be there. Is it a good time to buy then?. Probably not but its definitely wait and watch. See what the new management does. The new CEO is Paul Maritz who rolled out exciting stuff like windows 95, NT etc. Is experienced at delivering excellent results at such operational levels.

Ps: I own EMC

India is rocking (NOT) ....and here's proof

In my last post "India is Rocking and here's proof" I had listed few instances to prove India is rocking and I immediately felt guilty.

Here's why ?



The above highlighted video is just a brief glimpse of the other side of India Rocking. No doubt India has grown by leaps and bounds but I think its back to a place where moving ahead is going to be challenging.

For foreign investors this is a Yellow flag. Yellow because I am still bullish about India (most of the challenges India is facing rite now is Infrastructure based or are historical reasons which have tried to make India's pace go slower and slower). India's rate of growth was touted at 10%, sure thing but inflation has started biting into this. Oil situation is not helping. And a substantial portion of India's GDP is going to be spent on subsidies (Fuel, farming etc.).

Agriculture has been the livelihood of majority of Indians. Guess what rapid growth and lure of fast money has made people (farmers, govt's) convert agricultural land into real estate for building more malls, businesses and what not. Where will that lead to rising commodity prices. Moreover the bottom of the pyramid (India) is made of the majority of poor people who struggle to make a livelihood. They need a mechanism to lift them from there, they need resources and someone needs to think about them before declaring India on a whole is winning. Rich are getting richer and poor are finding it hard to come out poverty. Its much better than it was 5 or 10 or 20 years back but India is not there yet. Much to do ..much more to do..

Infrastructure is still years behind. Who's going to push it. With this govt, I doubt. China has made legendary strides in Infrastructure but India is lacking there. Without Infrastructural support it would be difficult to maintain this growth rate.

Government has been pretty much dysfunctional in reforms area. There have been little or no reforms in India for past 4 years. Its a coalition and all the energy (after looking into personal interests and corruption) goes into maintaining a governing body. No work though.

Communists would be a challenge. Nuclear energy is curcial for progress, no progress made because no consensus reached.

And then there is that milestone. Elections. When all hell breaks lose. Agreed this is a victory dance for Democracy but India's is more of a chaotic democracy. With 100 languages , 30 official, several casts (and politicians ready to do every thing to please the castes), such diverse landscape who has time to think of progress.

Stocks: India's market have been a darling of emerging markets but how much of it was driven by valuations ? How much was bubble ? Need to be cautious there.

Overall still a Yellow Flag.

Ps: I own IFN to invest in India. IFN's top 5 holdings are:
1: Reliance Industries
2: Infosys Technologies
3: Bharti Airtel Ltd
4: Housing Development Finance
5: Reliance Communications Ltd.

India is rocking .......for sure this time there's proof

I have seen and heard that India is rocking several times and everytime there is some data to the opposite effect. However without looking at any controversary I was amazed when couple of things happened at the same time.

2 of my friends almost at the same time with different backgrounds (one an MBA) and another having a bachelors. Almost 7-8 years of industry experience. And both these guys today have a title of AVP.

While this is more an exception than rule but having 2 of my near friends getting this change at the same time was amazing.

Another of my friends was already a VP 4 years back in a leading financial institute. He did have his MBA and he did have the right experince.

Good to see that so much is happening in India still. Most of the action is attributed to the fact that many companies are starting in India.

Makes me wonder does the same situation apply to US ?

Some samples of India Rocking (or India Shining)