Opinion on the stock of ITC Limited through tweets
Uncertainty stares at your face in all walks of life,more so when you're dealing with your investments. It's better you deal with it head on
— RamaKrishnaVadlamudi (@vrk100) June 23, 2014
The CMP of ITC stock is Rs 314, after falling by 6.5% yesterday, on speculation that Union govt might impose heavy taxes on cigarettes.
— RamaKrishnaVadlamudi (@vrk100) June 23, 2014
The talk of higher taxes is a familiar theme surrounding the cigarette stocks ahead of the India's Union Budget every year.
— RamaKrishnaVadlamudi (@vrk100) June 23, 2014
At Rs 314, ITC may offer good entry point for serious and long term investors who are able to deal with the uncertainty of higher taxes.
— RamaKrishnaVadlamudi (@vrk100) June 23, 2014
No doubt, ITC depends on cigarette division for a large chunk of its profits. Imposition of higher taxes might lead to price fall in future.
— RamaKrishnaVadlamudi (@vrk100) June 24, 2014
ITC is the largest player among cigarette makers. Cigarette business in India has strong entry barriers--that is, competition is limited.
— RamaKrishnaVadlamudi (@vrk100) June 24, 2014
ITC's other divisions, especially paper and hotel business aren't doing very well after the global financial crisis & weak Indian economy.
— RamaKrishnaVadlamudi (@vrk100) June 24, 2014
ITC is a defensive stock & it works as a cushion in one's portfolio against global shocks (esp from crude oil) and domestic uncertainties.
— RamaKrishnaVadlamudi (@vrk100) June 24, 2014
As we've seen in the latest Iraq crisis, financial markets are highly vulnerable to global events. So better to have some safe stocks always
— RamaKrishnaVadlamudi (@vrk100) June 24, 2014
Don't be too much worried about uncertainty--learn to live with it. More often, our own behavior is more important than market behavior.
— RamaKrishnaVadlamudi (@vrk100) June 24, 2014
Uncertainty is a fact of life. If you're looking for PERFECT CERTAINTY while making decisions, you're living in a fool's paradise.
— RamaKrishnaVadlamudi (@vrk100) June 24, 2014
There is a chance that market's knowledge is better than that of an individual investor. But we shouldn't be afraid of making decisions.
— RamaKrishnaVadlamudi (@vrk100) June 24, 2014
Till the other day, stocks of public sector banks, metal sector, capital goods.., were untouchables. In just a few months, sentiment turned.
— RamaKrishnaVadlamudi (@vrk100) June 24, 2014
Three important things in equity investments are:
Fundamentals,
Liquidity, and
Sentiment. Not necessarily in that order.
— RamaKrishnaVadlamudi (@vrk100) June 24, 2014
In Indian stock market, liquidity & investor sentiment are strong currently. There's is higher probability strong fundamentals will follow.
— RamaKrishnaVadlamudi (@vrk100) June 24, 2014
It's safe to assume that I've a vested interest in the stocks I discuss here. I'm just sharing some thoughts--don't construe them as advice.
— RamaKrishnaVadlamudi (@vrk100) June 24, 2014
- - -
Disclosure: The author is a long term investor in ITC stock.
Disclaimer: The author is an investment analyst with a vested interest in the Indian stock markets. This is for information purposes only. This should not be construed as investment advice. Investors should consult their own financial advisers before taking any investment decisions. The author blogs at:
