Friday, September 21, 2007

Reliance Group making its investors wealthy

Today when all global markets were flat and so were the Indian markets, Reliance group companies were going northbound without any consideration for the markets. You can read the details here.

This gave me a mixed feeling of pleasure and pain. Pleasure because I have invested in two of their companies which rose 11% and 4.5% in a single day and Pain because I lost money in short sell when Reliance Natural Resources rose from already mind boggling high of 20% to 35%.
But anyway right now Reliance is ruling the stock market :)

3 comments:

Subhajit Kundu 10/22/07, 4:07 PM  

Freind, these are all short time peaks. Mostly they are not sustainable. You see in 1998 when stock markets were not doing great, Infosys touched 10,000. Where are they now? 2000-3000. So sometimes there is a herd behaviour for one particular stock but maintaining the stock's popularity in long run is demanding job. Anyways just my opinion!

Vikash 10/22/07, 4:20 PM  

Infosys is not even 2000 its in 1800-1900 for last 4-5 months because it is underperforming because of the appreciating Re. However Infosys still remains to be a great stock looking at the fact that it really sustained its levels and didn't decline on the back of margin pressure and US slowdown.

I am not aware of the historical highs of Infosys but I am well aware that in all those years Infy as well as Reliance has continued be one of the best paying stocks for its investors. Both have given many bonus and splits from that time period.. growing the investor's wealth in manyfold. Which also explains the current price levels.

Additionally Infy and Reliance are also the best divident paying companies.. so your incomes don't stop coming from them no matter what. Thats what makes them the best picks of all time :)

For example in last quarter Infy announced a divident of 250% .. more than any other company.

Pappul 8/29/08, 5:01 PM  

I agree that Infosys was 10000 at some time ... but since that time it has undergone 1 split (from FV 10 to FV 5) and 2 bonuses (one was 1:1 and I am not sure about the other). So the current price does not reflect the negativity about the company. It is a bell weather IT stock and I can vouch for it in the long run. If you take into account the split and 2 bonuses, the price should have been 1200 right now (halved 3 times) ... but its 1700 ... so it is still giving you a return of around 50% along with increase in the number of shares and whopping dividends like the last one ... it was Rs. 27.25 per share ... Cheers ... !!

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