Cautious Optimism - Is that what you're hearing? (#043)
Back after a three-week hiatus in case you're among the readers who do not open this e-mail. I have the open rates with me, do not feel guilty.
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This week, I read three interesting anecdotes. Going to publish them as it is for you to have a look.
The NSE made a spectacular announcement by paving the way for inclusion of REITs and INVITs into benchmark indices. This was seen with so much of positivity that Embassy REIT went up almost 8% in 5 days!
Why is this such a big deal?
Well, for starters a REIT is a quasi-equty, quasi-bond product. It has a fixed return in the form of rent distribution and carries an equity upside in the form of sale of assets or appreciation in underlying NAV.
Presently, there’s a ‘stay’ on the inclusion which was not met with a lot of happiness for the investors.
MapMyIndia wants to go public.
Well, isn’t Google Maps already there?
Well, a small regulatory change alongside big B2B aspirations can pave well for this company. Hear it directly from the CEO’s mouth -
“The Geospatial policy, a liberalised drone policy - this is the 1991 moment for the Indian tech industry”
Shareholder activism is again tacking a front seat.
Yes Bank wants to revamp the entire board of DishTv.
Zee’s biggest shareholder Invesco wants to get a new and revamped board by conducting an EGM despite the merger news kicking in.
Why is this so prevalent now?
Institutional shareholding in BSE 500 is now almost equivalent to promoter holding. Investors have now realised this is one way they can create massive value out for shareholders.
Webinar Updates
The October Webinar schedule is out. Find out more about it here.
[Premium Read] Who is winning the music streaming war in India?
War?
The competitive intensity of this space is just starting to heat up!
While on one end you have home grown JioSaavn and Gaana, Spotify seems to be upping the ante by burning money in their first full year of operations.
Find out more about this in a detailed post here.
Alpha Swing
In this week’s 3 swing trades, we have an interesting guessing game.
If you can guess the stock right, you get a complimentary 3 month premium access to Alpha Swing.
Hint - Since December 2020, this company has been growing their quarterly topline in double digits.
Annualizing the recent quarterly EPS with a 15% growth, the stock is available at a Forward P/E of ~22 times earnings.
This company’s 82% sales come from sale of formulations half of which is sold in India and half of which is exported. In 2020, there was a change in promoter group.
Check out our FREE US Stocks newsletter below.
StockRoom Sunday
Podcast of the Week
Song of the Week
As UMG got listed this week, let’s hear something that has been trending all over Instagram. Oh, can you guess the big Tik Tok sensation who features in the video?
Book of the Week
Harneet and I have been running a weekly swing trade newsletter for almost 42 weeks now! It gives me immense pleasure and joy to learn the fact that his book is finally published and now also available on Amazon.
You can find out more about this book here.
If you liked reading this, why not make someone else smarter too?
Will see you again next week.
Ciao.