Unless Indian targets rebut Neeraj Monga’s analysis and conclusions with facts and reason, his views stand (The Cable Guy, Apr 9). Not drinking of the local “kool aid”, Monga has the additional advantage of the clearer perspective that distance lends.
Nitin Kibe, Washington
A bull in a china shop. We needed one.
Arun Maheshwari, Bangalore
Just what the doctor ordered. The next time I invest, my opinions will be swayed more by in-depth analysis than just brouhaha and herd thinking.
Somshankar Bose, Madison
Many practices of the Indian corporate world are suspect enough to lend credence to these stories.
Anybody familiar with the Indian corporate aector and the Indian capital markets present and past would find nothing surprising here. Windowdressing of financials is a part and parcel of Indian corporate culture. Insider buying and selling of stocks and institutionalized operations to move stock prices also have always been there. Equity research based on misleading financial statements leads to conclusion not always in line with the reality. Even there the ulterior motives of unscrupulous traders masquarading as analysts to cheerlead or malign a stovck's performancee cannot be always ruled out. It is true that with the entry of foreign investors in the last two decades in the Indian capital markets the disclosure standards of Indian corporations have improved, while stock market regulation is also improving. With the Indian economy growing faster, many Indian corporations also have grown in size and resources. However, along with their growth came the media hype about Indian corporate sector. Overnight people started believing as if the rapid growth of several Indian corporations, entry of more professionals in the financial sectors and setting up of Indian offices of more international firms would mean that the old way of doing things no longer exists.
However, doctored financials do not necessarily prove that the Indian companies are all performing badly.Stock prices rise in India like anywhere else as long as the investors collectively perceive Indian equities attractive enough for parking their surplus funds. You can make or lose money in stocks due to perceived attractiveness or unattractiveness of stocks to the investor masses irrespective of what research analysts write.
Many practices of Indian corporate world are suspect enough to believe these stories!!!
A bull in a china shop. We did need one. Thank God for the Canadians :-)
Stock research in the country has proliferated. Many are doctored jobs to overcome sticky investments - no different from insider trading or incentivised by extra-market considerations. There are researchers who would blithely recommend SBI or INFY , their own operations confined to not so liquid penny-stocks which are easier to manupulate.
Avoid stock calls by people who also provide brokerage services. It is always better to do your own research & invest, provided you have firm reins over your gambling proclavities & greed. Chances are if you take two hits & the third will bring home some money. If your are familiar with the ways of the market , your own intuition is as good as that of Rakesh Jhunjhunwala.
There are squeaky clean independent services who provide market analysis & calls but no brokerage . If you must, you may buy their services but they are unaffordably costly for lay investors & the same maxim applies which is his BUY or SELL call is as good as that of your own, if you know the ropes.
Just what the docto had ordered. Thanks Veritas and Mr Monga for doing this... I know the next time I invest ,my opinions will be swayed more by in-depth analysis that just brouhaha and herd thinking of brokers in India.
Unless Indian targets rebut Monga's analysis and conclusions by facts and reason, Monga's views stand. Forensic accountants, short sellers and buy-side analysts provide a "reality check" to markets and a corrective to self-interested seller and management hype. Being offshore and so not drinking the local "koolaid", Monga has the additional advantage of the clearer perspective which distance lends.
Veritas should be large hearted enough to send complimentary copies of its research reports to SEBI.
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