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Nifty View - Jan 2013 |
pkholla
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Post: #946  Posted: Mon Jan 28, 2013 12:47 pm Post subject: |
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| vinay28 wrote: | | guys, maruti has to make payoffs to suzuki by way parts, profit sharing including dividends and royalty in Yen. So when yen goes down, maruti benefits. Even a schoolboy or illiterate union leader in Noida will tell you this. |
Vinay: "Illiterate union leader in Noida" has an excuse that he didnt/ couldnt read my post. What's yours?  Prakash Holla
Mr Not-Schoolboy- Union Leader Vinayji , Suppose Maruti has to pay 5% of Rs 5000 cr revenue = Rs 250 cr. Whether this becomes 2500 mn or 2600 mn Yen, Maruti ko KYA FARAK PADTHA HAI??? Again I repeat, Maruti has least imported parts % of all Japanese cos. and has large buffer stock so that buffer stock was PRESUMABLY bought at higher Yen, earlier? Any benefit of latest purchase will be in mythical future?
Last edited by pkholla on Mon Jan 28, 2013 12:53 pm; edited 1 time in total |
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SP50
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Joined: 26 Nov 2010
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| Post: #947 Posted: Mon Jan 28, 2013 12:48 pm Post subject: |
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| vinay28 wrote: | guys, maruti has to make payoffs to suzuki by way parts, profit sharing including dividends and royalty in Yen. So when yen goes down, maruti benefits. Even a schoolboy or illiterate union leader in Noida will tell you this.  |
I did not realise the nexus being so apparent, |
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vinay28
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| Post: #948 Posted: Mon Jan 28, 2013 12:53 pm Post subject: |
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 Taxmann - all "bids" for projects abroad suffer like this and that's why you will sometimes see "other" looses in Indian firm's balance sheet for currency variation (mark to market). And that's why IT stocks go up when INR weakens and remains weak. I used to calculate fee for large foreign contracts in INR and then give exchange rate considered for calculation as its basis. That's why I didn't make loss. That's allowed by world bank and other lending agencies.
Prakash, that's why I was surprised when you shorted maruti. Of course you can make money in contra trade also if you are agile. |
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apka
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| Post: #949 Posted: Mon Jan 28, 2013 12:54 pm Post subject: |
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psalm
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Joined: 12 Nov 2011
Posts: 5368
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| Post: #950 Posted: Mon Jan 28, 2013 12:58 pm Post subject: |
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| vinay28 wrote: | | no sam, it's always in yen and such payments are same for all firms as foreigners don't trust INR. That's how FIIs benefit by buying at weak INR and selling at strong INR, stock price being same. |
Vinay.....when the royalty is just a part of profit, what does it make if YEN is going up or down????...if the royalty is a constant amount (that too based on YEN)...then only there will be advantage...otherwise, the amount wont change, right?..cos, Maruti gets its profit in rupees and they're giving part of that as royalty....for example if the royalty calculated as per that is say 100 crore rupee, then it will be converted to YEN as per that calculation....what's so advantage about that if Yen goes down?? |
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psalm
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| Post: #951 Posted: Mon Jan 28, 2013 1:02 pm Post subject: |
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me too Apka......
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pkholla
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| Post: #952 Posted: Mon Jan 28, 2013 1:02 pm Post subject: |
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| vinay28 wrote: | | Prakash, that's why I was surprised when you shorted maruti. |
Vinay:
1 ICharts are giving BRILLIANT levels nowadays for Maruti. See today's chart: 1631.8 I shorted- 1620.8 price hesitated- 1609.8 low just came. Just brilliant!!!! (I wrote thank you email to admin a while back)
2 I am in happy position of CMP > breakeven of my holdings. Positional sale = profit, short = profit. So I am bindaas shorting at IC levels
3 Made nice sum today (tho exited early) and now relaxing reading chamatkaar posts!
Rgds, Prakash Holla |
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vinay28
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| Post: #953 Posted: Mon Jan 28, 2013 1:06 pm Post subject: |
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| sam, whether payment due is fixed (e.g. royalty) or a % of profit (e.g. dividend), outgo of maruti in terms of INR will be less if Yen is weaker at the time of payment as compared to when it was calculated. For variable payments such as dividends, the gain is small but not for royalty and cost of spare parts which are contracted much earlier. |
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apka
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| Post: #954 Posted: Mon Jan 28, 2013 1:09 pm Post subject: |
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UBS has given buy call givng reason of weakening yen... can we not use RTI act and get info why they given such call  |
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psalm
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| Post: #955 Posted: Mon Jan 28, 2013 1:11 pm Post subject: |
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| vinay28 wrote: | | sam, whether payment due is fixed (e.g. royalty) or a % of profit (e.g. dividend), outgo of maruti in terms of INR will be less if Yen is weaker at the time of payment as compared to when it was calculated. For variable payments such as dividends, the gain is small but not for royalty and cost of spare parts which are contracted much earlier. |
Exactly.....but how much does it bring to the table???...suppose at the end of a quarter, if the royalty is calculated and then may be distributed within a weak or two, right??...how much does it make as difference normally?...its like the cost of carry for just a few days.....do you think its enough to upgrade a stock??...I mean big enough to influence its balance sheet? |
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psalm
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| Post: #956 Posted: Mon Jan 28, 2013 1:12 pm Post subject: |
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| apka wrote: | | UBS has given buy call givng reason of weakening yen... can we not use RTI act and get info why they given such call |
....are they accountable for these things???...if so, most of the rating agencies would have been closed by now.... |
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vinay28
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| Post: #957 Posted: Mon Jan 28, 2013 1:15 pm Post subject: |
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| sam, some payments are after 2-3 months after contracting (e.g. suzuki will will quote 1B Yen for raw material and payment is about a month after supply becuase it's an internal payment and all are not on LC. And even 1% gain to maruti is good enough. I am writing based on my memory of discussions with them long ago when I was involved in their two expansions. |
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vinay28
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| Post: #958 Posted: Mon Jan 28, 2013 1:16 pm Post subject: |
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| watch banks in last 60 min |
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psalm
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| Post: #959 Posted: Mon Jan 28, 2013 1:23 pm Post subject: |
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| vinay28 wrote: | | sam, some payments are after 2-3 months after contracting (e.g. suzuki will will quote 1B Yen for raw material and payment is about a month after supply becuase it's an internal payment and all are not on LC. And even 1% gain to maruti is good enough. I am writing based on my memory of discussions with them long ago when I was involved in their two expansions. |
Vinay, if the payment is after a few months, then it could be significant.....especially against a currency like YEN (remember the USD/JPY ) .... .... |
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psalm
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| Post: #960 Posted: Mon Jan 28, 2013 1:24 pm Post subject: |
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| vinay28 wrote: | | watch banks in last 60 min |
Rate sensitives are the ones holding this market at this point of time...Vinay....no doubt abt that... |
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