2007-01-08 23:11:29 · 3 answers · asked by san_buddy4u 1 in Business & Finance ➔ Investing
BRILLIANT IDEA IF YOU ARE A LONG TERM INVESTOR
2007-01-11 22:43:10 · answer #1 · answered by Anonymous · 4⤊ 0⤋
My view is very simple.....If Reliance and Bharati are going to take the goods that ITC and HLL sell to many areas of India, then this is a good sector to invest/hold.
I am holding these stocks (painfully so) for a while, and am not about to give up. Every sector rotates, and finally it will be turn for FCMG to be in vogue. The margins should improve with it as these large companies are the only ones that will be able to offer Just In Time delivery of products, demand the premium shelf space and sell the goods at the large retail shops that are currently commanded by the Mom and Pop companies.
ITC on the other hand is in the hotel industry also, which is going to have increased margins due to the globalization effects that we are seeing. $99 hotel rates are nothing in India now, esp. the big cities. Once ITC gets into the mid range hotels (which it has already partnered) it should help.
In summary, if you are going to hold the stock for a while, then get into it since it is value play. Value play is not trading. It is a buy and hold until the sector improves, so it will test your patience.
Good luck.
KKP_Investor
2007-01-09 16:41:22 · answer #2 · answered by KKP_Investor 3 · 0⤊ 0⤋
NO, r in down trend
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2007-01-10 00:12:48 · answer #3 · answered by dinu_pawar 5 · 0⤊ 0⤋