Hewlett-Packard Co , the world’s top PC maker, is launching a new line of inexpensive business laptops with fresh features targeting users at small and medium-size companies.
The HP ProBook s-series, which starts shipping globally on Tuesday, is the company’s new mainstream business notebook, following the release of its higher-end, lightweight EliteBook line last year.
The ProBook replaces the HP Compaq line, although the Compaq name will continue to be used as a master brand name in other PCs.
The ProBook offers users a number of new features, including an optional Linux-based operating system pre-installed -- Novell Inc’s SuSE Linux Enterprise Desktop 11 -- for those seeking an alternative to the dominant Microsoft Corp Windows platform.
It is HP’s first-ever Linux pre-install on a standard business laptop, the company said. The PC maker does offer some netbooks with .
“It’s pretty much a natural evolution,” said Carol Hess- Nickels, HP’s director of marketing for worldwide business notebooks.
“We want to provide a different option ... it’s probably a little time yet before we’ll know exactly what the demand is, but we did think it was something worth trying.”
The ProBooks come with 14-inch, 15.6-inch and 17.3-inch screen sizes, with prices starting at $529. In another first for an HP business notebook, buyers will be able to add a color finish -- “merlot” -- if they choose.
Some models will also feature Qualcomm Inc’s Gobi technology, allowing them to use a single module to access different mobile broadband network technologies and mobile operators.
HP will also bring higher-end durability features, like its 3D DriveGuard -- which protects the hard drive if a laptop is dropped -- and a spill-resistant keyboard to the ProBook.
HP is the world’s No. 1 PC vendor, with a first-quarter global market share of more than 20 percent, according to research house IDC, well ahead of second-place Dell Inc. HP also took over the top spot in the US market from Dell in the first quarter.
The shares of Palo Alto, California-based HP closed the regular session down 35 cents at $35.45 on the New York Stock Exchange on Monday.
Wednesday, April 29, 2009
The Negative Voting Option: Elections
In the forthcoming general election, as has become the practice in India, the choice you will probably get to exercise will be between voting for either Tweedledum or Tweedledee. It’s bad enough that it’s barely a choice. Worse still, though, both Tweedledum and Tweedledee may turn out to be murderers or rapists, as has been the reality in some constituencies of late. Vote we must, but the question is for whom, if the choice happens to be between the devil and the deep sea.
Why do we have to choose between two evils? Behind the noisy and colourful facade of elections, political parties decide on which candidates they will field regardless of the background, criminal or otherwise, of the candidate. The most recent example of this phenomenon is from the Tamar constituency in Jharkhand which earned laurels for defeating Shibu Soren in January. What is perhaps not widely known is that Gopal Krishna Patar, who defeated Soren, is an accused out on bail; Patar faces a criminal case under various sections of the Indian Penal Code, including attempt to murder.
What could the voters in the Tamar constituency do if they did not want to vote for either Soren, found guilty of murder in 2006, or Patar? There is no option currently; but there could easily be one. This option is popularly called “None of the above”, or Nota.
Though the idea of Nota captured the popular imagination after the citizen protests in the wake of 26/11, it is not new. The Law Commission of India first recommended it in May 1999, in its 170th report on electoral reforms.
In its report, the Law Commission submitted its recommendation for Nota in combination with the electoral requirement that a candidate gain at least 50%+1 of the votes cast to be declared the winner. These provisions, according to the commission, would go “a long way in ensuring purity of elections, keeping out criminals and other undesirable elements and also serve to minimize the role and importance of caste and religion”.
The report noted that such provisions would achieve two objectives. The first would be “to cut down or, at any rate, to curtail the significance and role played by caste factor in the electoral process… This means that a candidate has to carry with him several castes and communities, to succeed.” This would certainly work to reduce the caste-based fragmentation of the polity and help develop holistic and pluralistic perspectives.
The second objective would be “to put moral pressure on political parties not to put forward candidates with undesirable record i.e., criminals, corrupt elements and persons with unsavoury background… It also acts as a powerful disincentive against voter intimidation.” Given that the last election put 125 candidates with pending criminal cases into the Lok Sabha, discouraging candidates with dubious backgrounds is essential.
There are, no doubt, practical difficulties in implementing these provisions, which the Law Commission observed. “If electronic voting machines (EVM) are introduced throughout the country, it will become a little more easier to implement this,” the report said.
The Election Commission of India supported these suggestions in its recommendations to the government on 10 December 2001, and reiterated then again in a letter from the then chief election commissioner to the Prime Minister on 4 July 2004.
Despite such clear and specific recommendations, and having had electronic voting machines in use for quite a few years, the government has not considered it fit to implement this provision. The Law Commission seems to have foreseen this when it said in 1999 that, “problems arise because of...lack of requisite standards of behaviour and also of cooperation and understanding among the political parties to ensure a peaceful poll. As a matter of fact, the election offences are not decreasing but are increasing, with every passing election.” Technology and a maturing democracy are supposed to make things easier; but it’s the reverse in India.
Voters having to vote without having a real choice is not really democratic.
It is under the above circumstances that an option of “None of the above” or “I do not vote for any of the above candidates” has the potential of giving voters some real choice, thus taking us closer to real democracy. It can nudge political parties to select better candidates. In case the Nota option gets the highest number of votes cast, the law would require repolling, that too with the earlier candidates not being allowed to recontest. There will be some costs to repolls, though much less now with EVMs. But democracy needs and deserves such investments. If the return is an improvement in the quality of candidates, the investment would be well worth it.
Even without a repoll, some moral pressure may be applied on political parties. When the Nota option is repeatedly exercised across India, parties are sure to learn the lesson. The purpose of the exercise is not to ask voters to “not vote”, but rather to nudge political parties to select better candidates.
Why do we have to choose between two evils? Behind the noisy and colourful facade of elections, political parties decide on which candidates they will field regardless of the background, criminal or otherwise, of the candidate. The most recent example of this phenomenon is from the Tamar constituency in Jharkhand which earned laurels for defeating Shibu Soren in January. What is perhaps not widely known is that Gopal Krishna Patar, who defeated Soren, is an accused out on bail; Patar faces a criminal case under various sections of the Indian Penal Code, including attempt to murder.
What could the voters in the Tamar constituency do if they did not want to vote for either Soren, found guilty of murder in 2006, or Patar? There is no option currently; but there could easily be one. This option is popularly called “None of the above”, or Nota.
Though the idea of Nota captured the popular imagination after the citizen protests in the wake of 26/11, it is not new. The Law Commission of India first recommended it in May 1999, in its 170th report on electoral reforms.
In its report, the Law Commission submitted its recommendation for Nota in combination with the electoral requirement that a candidate gain at least 50%+1 of the votes cast to be declared the winner. These provisions, according to the commission, would go “a long way in ensuring purity of elections, keeping out criminals and other undesirable elements and also serve to minimize the role and importance of caste and religion”.
The report noted that such provisions would achieve two objectives. The first would be “to cut down or, at any rate, to curtail the significance and role played by caste factor in the electoral process… This means that a candidate has to carry with him several castes and communities, to succeed.” This would certainly work to reduce the caste-based fragmentation of the polity and help develop holistic and pluralistic perspectives.
The second objective would be “to put moral pressure on political parties not to put forward candidates with undesirable record i.e., criminals, corrupt elements and persons with unsavoury background… It also acts as a powerful disincentive against voter intimidation.” Given that the last election put 125 candidates with pending criminal cases into the Lok Sabha, discouraging candidates with dubious backgrounds is essential.
There are, no doubt, practical difficulties in implementing these provisions, which the Law Commission observed. “If electronic voting machines (EVM) are introduced throughout the country, it will become a little more easier to implement this,” the report said.
The Election Commission of India supported these suggestions in its recommendations to the government on 10 December 2001, and reiterated then again in a letter from the then chief election commissioner to the Prime Minister on 4 July 2004.
Despite such clear and specific recommendations, and having had electronic voting machines in use for quite a few years, the government has not considered it fit to implement this provision. The Law Commission seems to have foreseen this when it said in 1999 that, “problems arise because of...lack of requisite standards of behaviour and also of cooperation and understanding among the political parties to ensure a peaceful poll. As a matter of fact, the election offences are not decreasing but are increasing, with every passing election.” Technology and a maturing democracy are supposed to make things easier; but it’s the reverse in India.
Voters having to vote without having a real choice is not really democratic.
It is under the above circumstances that an option of “None of the above” or “I do not vote for any of the above candidates” has the potential of giving voters some real choice, thus taking us closer to real democracy. It can nudge political parties to select better candidates. In case the Nota option gets the highest number of votes cast, the law would require repolling, that too with the earlier candidates not being allowed to recontest. There will be some costs to repolls, though much less now with EVMs. But democracy needs and deserves such investments. If the return is an improvement in the quality of candidates, the investment would be well worth it.
Even without a repoll, some moral pressure may be applied on political parties. When the Nota option is repeatedly exercised across India, parties are sure to learn the lesson. The purpose of the exercise is not to ask voters to “not vote”, but rather to nudge political parties to select better candidates.
Monday, April 27, 2009
Gigabyte Launches 3 WinMob Handsets in India
In Feb of this year, GIGABYTE Communications Inc. had announced its foray into the rapidly growing mobile phone market with the launch of its award winning new generation GSmart phones that included the MS820 touchscreen handset with GPS. They have now introduced two new models of touch screen Windows Mobile PDA phones for the Indian market along with the MS820 and - the MW702 and MW700.
The GSmart mobile phones being launched in India run on a Windows Mobile 6.1 Professional OS and come equipped with features that also include built-in GPS, Autofocus cameras some of which include Face Detection, Wi-Fi and Bluetooth as well as external memory support via microSD cards.
The GSmart MS820, according to the company is capable of working virtually with all audio, video and image formats and features -
The MS820, MW702 and MW700 are also available in the country for purchase and are priced at Rs. 36, 999, Rs. 29, 999 and Rs. 16, 999 respectively.
The GSmart mobile phones being launched in India run on a Windows Mobile 6.1 Professional OS and come equipped with features that also include built-in GPS, Autofocus cameras some of which include Face Detection, Wi-Fi and Bluetooth as well as external memory support via microSD cards.
The GSmart MS820, according to the company is capable of working virtually with all audio, video and image formats and features -
- 3.5G: HSDPA 7.2Mbps, WCDMA 2100, EDGE, GPRS, GSM Tri-band
- Modem: QUALCOMM MSM 6280
- CPU: Marvell PXA270, 520MHz
- 2.8-inch VGA TFT LCD touch panel
- 5M camera with Face Detection
- Smart sensor accelerometer
- Built-in GPS: SiRF Star III
- 2.75G: EDGE, GPRS, GSM 900, 1800, 1900
- CPU: Marvell PXA270, 520MHz
- Modem: Qualcomm 6235
- 2.8-inch full touch panel with high resolution screen
- “Smart Touch” Personal finger-touch UI
- 3.0 Mega pixels with Auto Focus Camera
- Built-in GPS: SiRF III Built-in
- EDGE, GPRS, GSM tri-band
- Built-in GPS: SiRF Star III
- 14.95mm thin
- Video Telephony
- Modem: QUALCOMM MSM6235
- CPU: Marvell PXA270, 520MHz
- 2.8-inch TFT LCD touch panel
- 2M camera with auto focus
The MS820, MW702 and MW700 are also available in the country for purchase and are priced at Rs. 36, 999, Rs. 29, 999 and Rs. 16, 999 respectively.
Yahoo Pulls the Plug on GeoCities
Yahoo Inc is shutting down GeoCities, a free service that hosts personal home pages for consumers, which it acquired for more than $4 billion 10 years ago during the heyday of the dotcom boom. A posting on a Yahoo Help page for GeoCities on Thursday said the service was no longer accepting new customers and that it will be closing later this year, with more details about how individuals can save their data coming this summer. The move comes a few days after Yahoo said it would lay off nearly 700 workers, or 5 percent of its workforce.
Since Chief Executive Carol Bartz took the reins in January, Yahoo has pruned various products and properties to cut costs and focus on fundamentals, as it seeks to revive growth in a tough economy and fierce competition from Google Inc. Last week, Yahoo said it was shutting down Jumpcut, an online service for editing videos. Yahoo acquired GeoCities in 1999 in a stock deal valued at roughly $4.6 billion, Reuters reported at the time.
GeoCities was among the first companies to build online communities, with more than 3.5 million websites hosted on its service in the late 1990s. But GeoCities fell out of favor in recent years, as a generation of social network sites such as Facebook and News Corp's Myspace have become popular among Web users.
"We have decided to discontinue the process of allowing new customers to sign up for GeoCities accounts as we focus on helping our customers explore and build new relationships online in other ways," Yahoo said in a statement. "As part of Yahoo's ongoing effort to build products and services that deliver the best possible experiences for consumers and results for advertisers, we are increasing investment in some areas while scaling back in others." Shares of Yahoo were up a penny to $14.49 in afternoon trading on the Nasdaq.
Since Chief Executive Carol Bartz took the reins in January, Yahoo has pruned various products and properties to cut costs and focus on fundamentals, as it seeks to revive growth in a tough economy and fierce competition from Google Inc. Last week, Yahoo said it was shutting down Jumpcut, an online service for editing videos. Yahoo acquired GeoCities in 1999 in a stock deal valued at roughly $4.6 billion, Reuters reported at the time.
GeoCities was among the first companies to build online communities, with more than 3.5 million websites hosted on its service in the late 1990s. But GeoCities fell out of favor in recent years, as a generation of social network sites such as Facebook and News Corp's Myspace have become popular among Web users.
"We have decided to discontinue the process of allowing new customers to sign up for GeoCities accounts as we focus on helping our customers explore and build new relationships online in other ways," Yahoo said in a statement. "As part of Yahoo's ongoing effort to build products and services that deliver the best possible experiences for consumers and results for advertisers, we are increasing investment in some areas while scaling back in others." Shares of Yahoo were up a penny to $14.49 in afternoon trading on the Nasdaq.
Actor Feroz Khan passes away
Bollywood actor Feroz Khan on Monday lost his battle with cancer and passed away at his farmhouse in Bangalore.
The 69-year-old actor-filmmaker died at 1:30 am at his farmhouse, family sources said. Khan is survived by actor-son Fardeen Khan and daughter Laila Khan.
He was diagnosed with cancer and was being treated at a Mumbai hospital for a long time. His funeral will take place later in the day in Bangalore, sources said.
The actor was born and brought up in Bangalore. The Bollywood actor of yesteryear was known for his hit films of the 70s and 80s which include 'Dharmatama', 'Qurbani' and 'Jaanbaz'.
The latest film he featured in was the blockbuster hit Welcome in 2007.
The 69-year-old actor-filmmaker died at 1:30 am at his farmhouse, family sources said. Khan is survived by actor-son Fardeen Khan and daughter Laila Khan.
He was diagnosed with cancer and was being treated at a Mumbai hospital for a long time. His funeral will take place later in the day in Bangalore, sources said.
The actor was born and brought up in Bangalore. The Bollywood actor of yesteryear was known for his hit films of the 70s and 80s which include 'Dharmatama', 'Qurbani' and 'Jaanbaz'.
The latest film he featured in was the blockbuster hit Welcome in 2007.
Sunday, April 26, 2009
SP rules out alliance with Third front or Left
Ruling out any post-poll tie-up with the Third Front or the Left parties as long as the Bahujan Samaj Party is with them, the Samajwadi Party on Sunday said it was, however, not averse to an alliance with the Congress.
"As long as our arch rival BSP chief Mayawati is with the Left parties or the Third Front, we are not going for any post-poll alliance them," SP general secretary Amar Singh told media-persons in Kolkata on Sunday. However, the party is not averse to an alliance with the Congress, he said.
"The Congress-led United Progressive Alliance ran the government for the last one year with our help after the Left parties withdrew support on the signing of the civil nuclear deal but they turned down our offer of 17 seats in Uttar Pradesh. We had never been so ungrateful...however, we are not averse to a tie-up with the Congress in post-poll scenario if the situation demand," Singh said.
Launching a scathing attack against the Communist Party of India-Marxist leadership, Singh said, "We had good relation with the CPM during the time of Harkishen Singh Surjeet, but Prakash Karat is altogether a different person." On the question of prime ministership, he said, "The emerging situation will decide who will be the prime minister. Let the Congress first win the confidence of magic number."
"As long as our arch rival BSP chief Mayawati is with the Left parties or the Third Front, we are not going for any post-poll alliance them," SP general secretary Amar Singh told media-persons in Kolkata on Sunday. However, the party is not averse to an alliance with the Congress, he said.
"The Congress-led United Progressive Alliance ran the government for the last one year with our help after the Left parties withdrew support on the signing of the civil nuclear deal but they turned down our offer of 17 seats in Uttar Pradesh. We had never been so ungrateful...however, we are not averse to a tie-up with the Congress in post-poll scenario if the situation demand," Singh said.
Launching a scathing attack against the Communist Party of India-Marxist leadership, Singh said, "We had good relation with the CPM during the time of Harkishen Singh Surjeet, but Prakash Karat is altogether a different person." On the question of prime ministership, he said, "The emerging situation will decide who will be the prime minister. Let the Congress first win the confidence of magic number."
10 don'ts for smart stock market investing
This is a great check list of 10 habits, impulses and tendencies you steer clear of in order to keep your investments healthy.
1. Don't be arrogant
The market teaches humility and that is how you must approach it. As soon as you believe you know why the market acts the way it does, you will be proven wrong. Arrogance can kill a portfolio. You must be able to admit defeat and preserve enough capital to fight again.
Following point and figure charts, which depict the battle between supply and demand, helps keep you out of the 'I know why' attitude of investing.
2. Don't wait until you feel comfortable to buy when a sector reverses up
Falling into the waiting trap is a great way to ensure that you buy the stock at a higher price. When sectors reverse up from oversold levels, it is often when the news is the most dire.
Conventional wisdom would suggest this is the last place in the world you would want to invest. Buying at this time is gut wrenching, but to be successful you must act with complete confidence.
As the sector moves higher, the comfort level increases. If you use comfort level as your guidance, however, you will for sure leave a lot of money on the table, or worse, buy as the sector peaks.
3. Don't be afraid to buy strong stocks
Don't avoid stocks just because they have gone up. Doing so will keep you out of the long-term winners. In the United States, for example, this mentality would have kept you out of General Electric, which was up 188 per cent between January 1995 and December 1997 only to see it rally another 96 per cent by the end of 2000. It also would have kept you out of Cisco, which was up 376 per cent between January 1995 and December 1997, and then it moved up another 312 per cent by the end of 2000. These are only two examples, but there are many others.
More important than how much the stock is up is its supply and demand relationship. By evaluating the point and figure chart, you can gain insight into this relationship and whether or not the stock is likely to move higher. Stocks that double can easily double again. Don't miss out on these great opportunities.
4. Don't sell a stock simply because it has gone up
Doing this cuts profits short. Buying a stock right is only half the battle. You have to be able to sell it right to win the war. Just because a stock has rallied 30 per cent or 50 per cent, don't be tempted to take your trade off for that reason alone.
Consider trimming the position and leave part on the table to continue in the uptrend. Let profits run.
5. Don't buy stocks in extended sectors because 'it's different this time'
On the surface, the stock market appears different all the time. The leadership changes: in come new stocks into the Nifty 50, and then out they go. Small-cap stocks outperform for a while, then it's back to the large caps.
However, the underlying forces that drive the stock market are always the same. They are true and time-tested and do not change. They are supply and demand. That's why buying sectors that are extended (overbought) will not be different this time.
6. Don't try to bottom fish a stock in a downtrend
'The trend is your friend' is a true statement. So don't go against it without some inkling that the trend has changed.
Bottom fishing a stock in a downtrend is the opposite of being afraid to buy strong stocks. Do not buy a stock just because it fell sharply. You want to buy a stock that is likely to move higher, not one that is not likely to fall further.
At a minimum, wait for the stock to show a sign that demand is back in control and suggesting higher prices. That may be a simple buy signal on the chart or a reversal back to the upside after holding an area of support. Also remember why you initiated the position. Be careful not to let a trade turn into something else.
7. Don't buy a stock simply because it is a 'good value'
These days, value is in the eyes of the holder, and therefore it is a subjective term at best. If a stock has become a good value, ask why. This is important, because a stock can stay a good value by not moving for the next decade, or worse, become a better value by dropping another 20 per cent.
The true value of a stock is determined by its capital appreciation potential, not numbers on a balance sheet. The basis for capital appreciation lies in the supply and demand relationship of the stock. Appreciation can occur only if demand grows stronger for the stock and buyers are willing to pay a higher price. Watch the point and figure charts to determine if a stock is likely to move higher in price and become a good value.
8. Don't hold on to losing stocks and hope they come back
Hope is eternal, but your portfolio is not. Holding on to a losing stock is the best way to let your losses run. Combine this mistake with selling a stock that has gone up and you can create a portfolio of dogs.
When buying stocks, there will always be some losers: Count on it. However, how you manage that loss often determines the success or failure of the overall portfolio. Keep losses small so that you have the capital to play again. Hanging on to losing positions, hoping that they will come back, can be deadly.
A $50 stock that is stopped out at $40 is a 20 per cent loss. It's a bad trade, but it is manageable. In order to recoup that loss you would have to make 25 per cent on a $40 stock. What if you held on to that $50 stock, hoping that strong earnings would come in and turn it around, but instead it continued lower to $25?
Finally, you decide to exit, but now it takes a 100 per cent return from a $25 stock just to get back to even. Those results are hard to find, and if you are able to find one, you don't want to waste it on getting back to even
Learn to recognize your losing positions for what they are. If a stock cannot trade above its support line or is not outperforming the averages, find one that is and swap it.
9. Don't pursue perfection
There are two types of mistakes to discuss here. The first is the constant belief that there is a better system out there, and you need to find it.
Using a new system to invest each week will not get you to your goal. You will become good at nothing and moderate to bad at everything. To be good requires that you stay focused, disciplined, and skilled at whatever methodology you choose.
You need to have the strength of conviction in your chosen discipline to learn from mistakes rather than to run away from them and find another methodology. There is no Holy Grail in investing.
The second mistake is to wait for the perfect trade. There is no such thing. If you only buy stocks that have all positive attributes you will maintain a portfolio of cash. Rarely, if ever, do you find a stock that has all the pluses on its side.
Look for the big ones like relative strength, trend, and signal. Also remember that 80 per cent of the cause of price movement in a stock is based on the market and sector. You are better off being approximately right than precisely wrong.
10. Don't do anything based on a magazine cover
Following the hot news that appears on magazine covers is a shortcut to the poor-house. Why should you follow the advice of someone who has just moved from the society pages to the business section?
1. Don't be arrogant
The market teaches humility and that is how you must approach it. As soon as you believe you know why the market acts the way it does, you will be proven wrong. Arrogance can kill a portfolio. You must be able to admit defeat and preserve enough capital to fight again.
Following point and figure charts, which depict the battle between supply and demand, helps keep you out of the 'I know why' attitude of investing.
2. Don't wait until you feel comfortable to buy when a sector reverses up
Falling into the waiting trap is a great way to ensure that you buy the stock at a higher price. When sectors reverse up from oversold levels, it is often when the news is the most dire.
Conventional wisdom would suggest this is the last place in the world you would want to invest. Buying at this time is gut wrenching, but to be successful you must act with complete confidence.
As the sector moves higher, the comfort level increases. If you use comfort level as your guidance, however, you will for sure leave a lot of money on the table, or worse, buy as the sector peaks.
3. Don't be afraid to buy strong stocks
Don't avoid stocks just because they have gone up. Doing so will keep you out of the long-term winners. In the United States, for example, this mentality would have kept you out of General Electric, which was up 188 per cent between January 1995 and December 1997 only to see it rally another 96 per cent by the end of 2000. It also would have kept you out of Cisco, which was up 376 per cent between January 1995 and December 1997, and then it moved up another 312 per cent by the end of 2000. These are only two examples, but there are many others.
More important than how much the stock is up is its supply and demand relationship. By evaluating the point and figure chart, you can gain insight into this relationship and whether or not the stock is likely to move higher. Stocks that double can easily double again. Don't miss out on these great opportunities.
4. Don't sell a stock simply because it has gone up
Doing this cuts profits short. Buying a stock right is only half the battle. You have to be able to sell it right to win the war. Just because a stock has rallied 30 per cent or 50 per cent, don't be tempted to take your trade off for that reason alone.
Consider trimming the position and leave part on the table to continue in the uptrend. Let profits run.
5. Don't buy stocks in extended sectors because 'it's different this time'
On the surface, the stock market appears different all the time. The leadership changes: in come new stocks into the Nifty 50, and then out they go. Small-cap stocks outperform for a while, then it's back to the large caps.
However, the underlying forces that drive the stock market are always the same. They are true and time-tested and do not change. They are supply and demand. That's why buying sectors that are extended (overbought) will not be different this time.
6. Don't try to bottom fish a stock in a downtrend
'The trend is your friend' is a true statement. So don't go against it without some inkling that the trend has changed.
Bottom fishing a stock in a downtrend is the opposite of being afraid to buy strong stocks. Do not buy a stock just because it fell sharply. You want to buy a stock that is likely to move higher, not one that is not likely to fall further.
At a minimum, wait for the stock to show a sign that demand is back in control and suggesting higher prices. That may be a simple buy signal on the chart or a reversal back to the upside after holding an area of support. Also remember why you initiated the position. Be careful not to let a trade turn into something else.
7. Don't buy a stock simply because it is a 'good value'
These days, value is in the eyes of the holder, and therefore it is a subjective term at best. If a stock has become a good value, ask why. This is important, because a stock can stay a good value by not moving for the next decade, or worse, become a better value by dropping another 20 per cent.
The true value of a stock is determined by its capital appreciation potential, not numbers on a balance sheet. The basis for capital appreciation lies in the supply and demand relationship of the stock. Appreciation can occur only if demand grows stronger for the stock and buyers are willing to pay a higher price. Watch the point and figure charts to determine if a stock is likely to move higher in price and become a good value.
8. Don't hold on to losing stocks and hope they come back
Hope is eternal, but your portfolio is not. Holding on to a losing stock is the best way to let your losses run. Combine this mistake with selling a stock that has gone up and you can create a portfolio of dogs.
When buying stocks, there will always be some losers: Count on it. However, how you manage that loss often determines the success or failure of the overall portfolio. Keep losses small so that you have the capital to play again. Hanging on to losing positions, hoping that they will come back, can be deadly.
A $50 stock that is stopped out at $40 is a 20 per cent loss. It's a bad trade, but it is manageable. In order to recoup that loss you would have to make 25 per cent on a $40 stock. What if you held on to that $50 stock, hoping that strong earnings would come in and turn it around, but instead it continued lower to $25?
Finally, you decide to exit, but now it takes a 100 per cent return from a $25 stock just to get back to even. Those results are hard to find, and if you are able to find one, you don't want to waste it on getting back to even
Learn to recognize your losing positions for what they are. If a stock cannot trade above its support line or is not outperforming the averages, find one that is and swap it.
9. Don't pursue perfection
There are two types of mistakes to discuss here. The first is the constant belief that there is a better system out there, and you need to find it.
Using a new system to invest each week will not get you to your goal. You will become good at nothing and moderate to bad at everything. To be good requires that you stay focused, disciplined, and skilled at whatever methodology you choose.
You need to have the strength of conviction in your chosen discipline to learn from mistakes rather than to run away from them and find another methodology. There is no Holy Grail in investing.
The second mistake is to wait for the perfect trade. There is no such thing. If you only buy stocks that have all positive attributes you will maintain a portfolio of cash. Rarely, if ever, do you find a stock that has all the pluses on its side.
Look for the big ones like relative strength, trend, and signal. Also remember that 80 per cent of the cause of price movement in a stock is based on the market and sector. You are better off being approximately right than precisely wrong.
10. Don't do anything based on a magazine cover
Following the hot news that appears on magazine covers is a shortcut to the poor-house. Why should you follow the advice of someone who has just moved from the society pages to the business section?
Monday, April 20, 2009
Feudalism responsible for Satyam fiasco: N R Narayana Murthy
Technology services titan and founder chairman of Infosys Technologies N R Narayana Murthy has had a deep impact on the
$60 billion IT industry which grew on the back of global sourcing of services. Over the years Mr Murthy has delivered over a 100 lectures on various fora spanning the world. Some of those select lectures on topics ranging from globalization, corporate governance, leadership and entrepreneurship are now part of the just published book: A Better India A Better World. In a 72-minute interview with ET at the company's guest house in South Delhi, Mr Murthy talks about the book, the political scene, the Satyam episode and its impact on India Inc and what the country now needs and more. Excerpts from the interview:
What all have you touched upon in this book and how are the lectures relevant now?
While the country has made considerable progress in the last 18 years after the first wave of economic reforms we are still lagging. We have one of the highest GDP growths in the world, our exports are much larger than what they were 10 years ago, our software industry has brought tremendous laurels to India, we have done well in technology industry, production and even in sports.
Yet we have been unable to redeem the pledge that our founding fathers took when India got independence. That is to provide decent access to education, nutrition, healthcare and welfare to the poorest of the poor. India has the largest mass of illiterates in the world, largest mass of poor people in the world, 250 million people don't have access to safe drinking water, 650 million people do not have access to decent sanitation. So this whole paradigm of 8-9% GDP growth becomes somewhat irrelevant when you look at these aspects.
So the real challenge we have is to bring inclusive growth. In order to bring inclusive growth in a country like India we need to solve three pieces of development -- first is creating a public opinion that values good work ethic, honesty, discipline, secularism. Second, we need to develop a cadre of leadership who espouse these values and serve as role models and demonstrate leadership by example. Third, we need the determination of the elite and the powerful in the society to eschew creation of asymmetry of benefits in their favour vis-à-vis the common man. Only when these three conditions are fulfilled will we be able to create a fair, just, equitable and inclusive growth in our society. In essence this is the fundamental thesis on which the book is based.
I have all along said that people practicing values, leaders leading by example and the elite and the powerful relating to the realities are absolutely essential for a country and a company to make progress. In some sense, on a very small, simple canvas I have painted a very simple drawing at Infosys and that painting has been reasonably successful.
Based on that experience I have been talking to people, students, in India and abroad, to enlightened citizens on various issues within this framework of values and leadership and those pieces form the basic gist of this book.
$60 billion IT industry which grew on the back of global sourcing of services. Over the years Mr Murthy has delivered over a 100 lectures on various fora spanning the world. Some of those select lectures on topics ranging from globalization, corporate governance, leadership and entrepreneurship are now part of the just published book: A Better India A Better World. In a 72-minute interview with ET at the company's guest house in South Delhi, Mr Murthy talks about the book, the political scene, the Satyam episode and its impact on India Inc and what the country now needs and more. Excerpts from the interview:
What all have you touched upon in this book and how are the lectures relevant now?
While the country has made considerable progress in the last 18 years after the first wave of economic reforms we are still lagging. We have one of the highest GDP growths in the world, our exports are much larger than what they were 10 years ago, our software industry has brought tremendous laurels to India, we have done well in technology industry, production and even in sports.
Yet we have been unable to redeem the pledge that our founding fathers took when India got independence. That is to provide decent access to education, nutrition, healthcare and welfare to the poorest of the poor. India has the largest mass of illiterates in the world, largest mass of poor people in the world, 250 million people don't have access to safe drinking water, 650 million people do not have access to decent sanitation. So this whole paradigm of 8-9% GDP growth becomes somewhat irrelevant when you look at these aspects.
So the real challenge we have is to bring inclusive growth. In order to bring inclusive growth in a country like India we need to solve three pieces of development -- first is creating a public opinion that values good work ethic, honesty, discipline, secularism. Second, we need to develop a cadre of leadership who espouse these values and serve as role models and demonstrate leadership by example. Third, we need the determination of the elite and the powerful in the society to eschew creation of asymmetry of benefits in their favour vis-à-vis the common man. Only when these three conditions are fulfilled will we be able to create a fair, just, equitable and inclusive growth in our society. In essence this is the fundamental thesis on which the book is based.
I have all along said that people practicing values, leaders leading by example and the elite and the powerful relating to the realities are absolutely essential for a country and a company to make progress. In some sense, on a very small, simple canvas I have painted a very simple drawing at Infosys and that painting has been reasonably successful.
Based on that experience I have been talking to people, students, in India and abroad, to enlightened citizens on various issues within this framework of values and leadership and those pieces form the basic gist of this book.
India launches spy satellite RISAT
Aiming to enhance India's defence surveillance capabilities, ISRO on Monday morning launched its first Radar Imaging Satellite (RISAT)
from Sriharikota.
As per specifications, RISAT is different from previous remote sensing satellites as it uses Synthetic Aperture Radar (SAR), equipped with many antennas to receive signals that are processed into high-resolution pictures.
The SAR, developed by Israel Aerospace Industries, gives RISAT defence capabilities.
from Sriharikota.
As per specifications, RISAT is different from previous remote sensing satellites as it uses Synthetic Aperture Radar (SAR), equipped with many antennas to receive signals that are processed into high-resolution pictures.
The SAR, developed by Israel Aerospace Industries, gives RISAT defence capabilities.
Cyber-squatting: The new gateway to identity theft
NEW DELHI: That old scrounge, cyber-squatting, is back with a vengeance especially for a host of global brands in India. With domain name prices
falling and more top-level domains (such as .biz, .cn, .mob and lately .in) getting accredited, cyber squatters are back in business full time.
Global brands across categories –– Monster Jobs, PepsiCo, SonyEricsson, Siemens, McAfee or search giant Google — have of late been at the receiving end of squatters. Take for instance, world’s largest job site Monster.com which was squatted in the name of one Usha Rani, a Hyderbad-based squatter which registered Monster.in and Monsterjobs.in.
The global jobsite filed a case with the .in registry saying that “the respondent had registered the domain in bad faith which impugned its brand.” After a resolution process, the domains were taken away and allotted to Monster India. “We have a fast track dispute resolution process where by decisions are transferred within 30 days of filing a complaint,” says a National Internet Exchange of India (NIXI) official, which handles the .in registry.
With little disincentive for squatting under Indian cyber laws, even Pepsico.in, Siemens.in and Sonyeriscsson.in were squatted recently. “There is no provision in the current or proposed IT act in India to punish cyber-squatters. At best, the domain name can be take back,” says cyber lawyer Pavan Duggal, who has dealt with several squatting cases.
With domain name prices falling to as low as Rs 200, squatters seem to be on a domain binging spree. Apart from global brands, celebrities domains are also targeted by squatters. For instance, AmitabhBachchan.in is currently undergoing an auction on the internet, with a minimum price bid of $1,000. Similarly, Soniagandhi.com is registered by Indianmagazine.com a news and views website. Indian film actor Gul Panag is also facing tough time to get her domain back. “I’m not going to pay the squatters $20,000 which they are demanding for GulPanag.com,” she was quoted as saying recently.
Other global brands have also been targeted. Netgear.co.in, Ushaworld.in, Baccarat.in were all squatted and won back recently by respective companies. Indian internet companies whose identities were squatted are Agencyfaqs.com and Rediff.in While Google suffered the squatting of Gmail.in. Mcafee.co.in was also squatted.
One of the world’s largest Flash memory maker Kingston also suffered with its Kingston.in and Kingston.co.in being squatted in India. Though there is no legal compensation under IT Act, .in registry has taken proactive steps to grant compensation to victim companies to deter squatters from further stealing domains. Most squatters however operate under guise of obscure names.
falling and more top-level domains (such as .biz, .cn, .mob and lately .in) getting accredited, cyber squatters are back in business full time.
Global brands across categories –– Monster Jobs, PepsiCo, SonyEricsson, Siemens, McAfee or search giant Google — have of late been at the receiving end of squatters. Take for instance, world’s largest job site Monster.com which was squatted in the name of one Usha Rani, a Hyderbad-based squatter which registered Monster.in and Monsterjobs.in.
The global jobsite filed a case with the .in registry saying that “the respondent had registered the domain in bad faith which impugned its brand.” After a resolution process, the domains were taken away and allotted to Monster India. “We have a fast track dispute resolution process where by decisions are transferred within 30 days of filing a complaint,” says a National Internet Exchange of India (NIXI) official, which handles the .in registry.
With little disincentive for squatting under Indian cyber laws, even Pepsico.in, Siemens.in and Sonyeriscsson.in were squatted recently. “There is no provision in the current or proposed IT act in India to punish cyber-squatters. At best, the domain name can be take back,” says cyber lawyer Pavan Duggal, who has dealt with several squatting cases.
With domain name prices falling to as low as Rs 200, squatters seem to be on a domain binging spree. Apart from global brands, celebrities domains are also targeted by squatters. For instance, AmitabhBachchan.in is currently undergoing an auction on the internet, with a minimum price bid of $1,000. Similarly, Soniagandhi.com is registered by Indianmagazine.com a news and views website. Indian film actor Gul Panag is also facing tough time to get her domain back. “I’m not going to pay the squatters $20,000 which they are demanding for GulPanag.com,” she was quoted as saying recently.
Other global brands have also been targeted. Netgear.co.in, Ushaworld.in, Baccarat.in were all squatted and won back recently by respective companies. Indian internet companies whose identities were squatted are Agencyfaqs.com and Rediff.in While Google suffered the squatting of Gmail.in. Mcafee.co.in was also squatted.
One of the world’s largest Flash memory maker Kingston also suffered with its Kingston.in and Kingston.co.in being squatted in India. Though there is no legal compensation under IT Act, .in registry has taken proactive steps to grant compensation to victim companies to deter squatters from further stealing domains. Most squatters however operate under guise of obscure names.
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