Cross $1The AI race has begun. Google has BARD and ANTHROPIC, while Microsoft has ChatGPT. Further AI Tops Blockchain as a preferred investment sector. Technical analysis, of RSI, and MACD shows SingularityNET, an AI marketplace will cross $1 by FEBRUARY.
Search in ideas for "MICROSOFT"
Buy signal for Microsoft2 Bullish Candles in Daily Chart
Bullish Harami in Weekly Chart
Hammer formation in Monthly Chart
Stock price at the lower Bollinger bands(monthly chart)
Stock price at the lower Bollinger bands(weekly chart)
Stock price nearing middle Bollinger bands(daily chart)
Sharp rise in RSI on daily chart
Double bottom formation in RSI on weekly chart
RSI balancing on monthly chart
Golden Crossover forming in MACD on daily chart
MACD balancing on weekly chart
Pivots less bullish in daily chart, very bullish in weekly chart and very bullish in monthly chart NASDAQ:MSFT
MACD balancing on monthly chart
CAMS Trendline BrokenCAMS - Recent positive news flow of CAMS subsidiary collaborating with Microsoft
Trend line broken
Rising volumes observved
2 NASDAQ earning reports to watch in OctoberIt’s that time of year again; earning session for US stocks. With so many other variables contributing to volatility in the US markets (e.g., inflation , Fed rate hikes, recession, oil prices, quantitative easing), anything out of the ordinary can result in huge moves in stock prices. This has already been witnessed in an early report from Nike (NYSE: NKE ) last week, where it missed on some metrics and was punished with a -12.8% fall in its stock price.
So, with this in mind, here are two earning reports to watch this October.
Advanced Micro Devices (NASDAQ: AMD )
AMD updates the market with its earnings on Tuesday October 25, alongside some of the other major companies on the NASDAQ, including Microsoft (NASDAQ: MSFT ) and Alphabet (NASDAQ: GOOG ).
AMD shares fell +23% in September, partly impacted by the weak report from sector compatriot Micron Technology (NASDAQ: MU). It is the weak demand outlook that Micron painted for personal-computer products that makes AMD’s upcoming announcement one to watch.
Similarly, Taiwan Semiconductor (NYSE: TSM ) is reporting on October 13, which could serve as another barometer for the industry before AMD delivers its report.
Netflix (NASDAQ: NFLX )
It may be a make or break earnings report for Netflix on Tuesday 18 October.
Netflix shares climbed +8.4% over September, and over +30% since its last market update in June, where it reported a loss of almost 1 million subscribers. In fact, Netflix was one of the top S&P 500 performers last month, where the broader market index fell by -8.0%.
In the upcoming announcement, investors will be looking out for more details concerning the company’s plan to diversify its revenue base with ad-tier subscription and its heretofore mild penetration into the gaming space.
Some surveys point to almost half of Netflix’s subscribers considering a switch to the company’s ad-tier plans, which would mean that Netflix would have to fill that subscriber revenue gap by selling $5.4 billion worth of ad space.
Redington ready for breakout1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or daily RSI closing below 40
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
After a long consolidation since July 2021, NSE:REDINGTON is ready for a breakout. Volumes are also looking very good. If it grosses ₹180 with large volumes, buy with a stop at ₹160.
Other fundamentals:
1. TTM revenue growth of 12% and TTM sales growth of 111%.
2. QoQ revenue growth at 13%, QoQ EBITDA growth at 19% and QoQ PAT growth at 26%.
3. Borrowing came down from 2775Cr to 622Cr in 2021.
4. Debt to equity at 0.13 (less than 1 is good), Interest Coverage at 14.8 (greater than 3 is good), Current ratio at 1.61 (greater than 1.5 is good), FCF to CFO at 92.4%.
5. The company has been maintaining a healthy dividend payout of 36.85%.
6. FII holdings increased from 39.01 in September 2021 to 40.05 in December 2021.
7. The regions that we operate in, the regions of India, South Asia, Middle East, Africa, Turkey all of these countries happen to be in a very positive zone from a GDP perspective. The prognosis is going forward for each of these countries is very strong positive GDP growth and also an associated strong ICT (information and communication technology) growth as well. The reason why ICT and GDP are going hand in hand over there is, there is a very strong infrastructure push by government in these regions, in these countries to make sure that there is investment led growth that is taking place and obviously that is consumption led but largely most of these regions were driven by consumption but now they happen to be driven by investment as well and that is something which is far more sustainable from a long-term perspective. (excerpt from Concall February 22)
8. The other thing that we are seeing apart from tech consumption is a manner in which tech is getting consumed. The buying behavior is shifting. What we will buy and how they buy is shifting. So, people used to buy in a very capital intensive manner but all of that is shifting to “as-a-service” model, product to service is shift from owned to subscription base model and then people are also shifting from a business model of a brick and mortar which is very strong of the retail into the shop-showroom kind of a buying and they are shifting to a lot more online omnichannel and everything in between. There is an omnichannel world we are seeing to play out as we speak and I feel good about the fact that we are in a very strong position to maximize and capitalize on all the trends that are taking place right in the market because our play is purely technology. (excerpt from Concall February 22)
9. Being the second largest distributor of IT products in India, it is a premier distributor of products for 200 + global technology vendors. It also leverages its presence in the field of Repairs and maintenance of technology products & Infrastructure.
10. Apple, Nokia, amazon web services, SYSTIMAX SOLUTIONS, HITACHI, Red Hat, SanDisk, McAfee SECURE, Western Digital, Microsoft, HUAWEI, FORTINET, ASUS, AVAYA, AUTODESK, Acer, Canon are few of its reputed Brand partners.
11. EBITDA margin is going in right direction and that is absolutely a reality and the reason that this is taking place is because you would find that we are in the market situation where there is a demand and there is a demand which is chasing supply right now, so it is not the other way around. As demand is outstripping supply at the moment, that allows you to have a higher gross margin business and we are just close to higher EBITDA margin as well. That is one part of the business. Secondly, while Apple has been lower in business but the margin is happening. Also, a lot of these margins are driven by a growth in the enterprise business, enterprise business which is server, storage, network, software, cloud, and services around that, those are ones which is a great driver of margin and profitability. Our enterprise business in this quarter has grown 28%, so I think that is a very strong growth and it is obviously different for Middle East and different for India but overall, at a consolidated level, the business has grown that much. It is a very strong growth and that is really leading to a higher EBITDA margin. It is the business mix that is shifting a lot more towards enterprise which is giving us lot more margins. (excerpt from Concall February 22)
12. Our Cloud business for the quarter, Q3 is Rs. 411 crs and that is a very strong 35% YoY growth. Services as a proportion of Cloud business is just about 3%. It is not that great but it still trending in the right direction and as you go forward, I think that is the area like I said earlier the consumption for model across the world is changing into much more as a service model and Cloud plays straight into that, from an enterprise perspective. So we expect a very strong growth in Cloud. The margins of enterprise business are better off generally. The cloud hardware and cloud product business, runs at a similar margin as the enterprise level which will be around in the range of ~6% but the cloud services business runs at a much higher margin which is in the range of ~25% to 30%. (excerpt from Concall February 22)
13. It is difficult to hazard a guess on from the perspective of what exact growth number would you want to look for but I can tell you the prognosis for ICT industry in India is 8.8% growth over the course of next one year, the prognosis for ICT industry in the Middle East and Africa over the course of next couple of quarters which is the full year is about 2.7% to 2.8%. The thing that I can show you is that we will always be trying to grow ahead of the market beating a market by a factor, I think that is all I think it is only products to say but our growth does not come literally only from that growth, our growth has got many other dimensions. These are their dimensions of what brands we can acquire, what geographies is that we can open up for ourselves, what new markets we can really capture and how we can do share gains, all of that from playing last year the industry whatever it did and we are doing much faster than the industry and we should continue to grow faster than industry over the course of next couple of quarters. (excerpt from Concall February 22)
14. We have a double-digit growth target. I cannot give the exact number. That would be very forward-looking statement, but I can let you know that we will take target double digit growth. (excerpt from Concall February 22)
15. I think 5G opportunity you are trying to crystal gaze in three years to five years’ timeframe, 5G like I said is going to be a game changer for a lot of our industries whether it is healthcare or it is retail, it is manufacturing of the industry, food or it has any film editing, video, etc. For all those industries, 5G is going to be a game changer. It is a game changer because the way the direction in which the world is moving, it is moving towards a lot more voice enabled and a lot more video enabled, all of that is fueled by 5G. (excerpt from Concall February 22)
ROUTE: A Twofold (Report of 120% Markup)IID-03
ROUTE MOBILE LTD
REGIME 🔍
Overview
Quantitative analysis
Qualitative analysis
Final words
Overview 📜
{
Route Mobile Limited provides cloud-communication platform services (CXPaas) to enterprises, over-the-top players, and mobile network operators in Africa, Asia Pacific, Europe, the Middle East, and North America.
RML is based on an Omni-channel Digital Communication Platform which offers messaging, voice, email, short messaging service (SMS) filtering, analytics, monetization, firewall, and instant virtual number solutions. It provides its cloud-communication services to clients in the social media, banking, and financial services, aviation, retail, e-commerce, logistics, healthcare, hospitality, media and entertainment, pharmaceuticals, and telecom sectors.
Founded
In 2004 by Rajdip Kumar Gupta
RML in nutshell 🟢
RML is the Industry Leading Global CXPaaS Platform. They're serving 9 of the 20 most valuable Global tech brands with a presence across 16+ locations globally.
Let's come to characterization.
1. Revenue Split Across Industries: 🟢
Digital Native (34%)
FinServ (11%)
Tier 1 CPaaS (9%)
Telecom and allied services (7%)
Retail (4%)
Ecommerce (2%)
Travel (1%)
2. Revenue Split Across Countries: 🟢
India (33%)
Asia excl. India (24%)
Africa (16%)
Middle East (9%)
Europe (5%)
Americas (4%)
3. Service Area: 🟢
- Messaging:
They have reached global audiences instantly through their customizable messaging platform.
- Voice:
- Conversational AI
- Customer Data Platform & Marketing Automation
- SMS Firewall
- ECM (Campaign Manager)
- Messaging Hub
They provide Tools (7 packages), Identity Solutions (11 packages) with high customer engagement
4. Explicit Data: 2022 🟢
Route Mobile has made 5 acquisitions and 1 investment. The company has spent over $51M on the acquisitions. Route Mobile has invested in multiple sectors such as Customer Success Management, Customer Service Software, Chatbots, and more.
Recent acquisitions
[
1. Masivian:
Masivian is one of the leading cloud communication platform service providers to enterprises, over-the-top (OTT) platforms, and mobile network operators in the region. RML has closed a deal at $47.5m on 11 Nov 2021
2. Phonon:
Route Mobile will acquire AI platform provider Phonon Communications Pvt Ltd in an all-cash deal for Rs 29 crore, to offer automation and contact center solutions at scale to enterprises globally. The deal has closed on April 2021
3. Call2Connect :
Acquired in May 2017. Route Mobile global CEO Rajdip Gupta said his company is in a position to double Call2Connect’s revenue because of its existing client base.
4. 365Squared:
a premier European headquartered SMS Monetisation Value Added Services brand. 365squared are industry experts of the Managed SMS firewall concept. The deal has closed in April 2017
]
5. Takeovers 2022 🟢
New products (Q1 FY2022
In Sep 2021, one of their biggest operator (BSNL) has selected cloud communications platform service provider Route Mobile to deploy the company's SMS Firewall Platform across the Southern and Western Zones in India.
Key takeaways 🟢
What they have planned for the next 3 years?
1. SendClean :
Their Independent E-mail Marketing Business Unit has planned a model to make USD 30MN as Email Business Expected Gross margins 80%
2. CPaaS :
Double-digit Market growth by 2025 as:
Email: $7.5Bn (2020) to $17Bn (2025)
CpaaS: $7Bn (2020) to 25$Bn (2025)
}
Quantitative analysis 💰
{
Fundamentals 🟢
1. PE: 65 as compared to its peers Tanla Platforms and Coforge 46.70 and 49.68 respectively.
2. M.Cap: 10,000Cr (MidCap)
3. D/E Ratio: 0.02 (insignificant)
4. Book-Value: 14.2 (greater than 1) and Significantly higher than Industry 10
5. Sales: Increased by 46% QoQ (Q4)
6. OPM%: 35% QoQ
7. PAT: Surged by 23% QoQ
8. ROCE & ROE: 33% vs 28.9% Expected YOY
9. Reserves: Increased by 12.3%
10. Promoter Dilution: 9% YoY
Key takeaways 🟢
1. MarketCap is 10,000Cr, Revenue is 1,506Cr, Earnings are 152Cr (⭐)
2. Dividend Yield: 0.12 vs peers above 0.55% (⭕)
3. P/E company vs market: 62.9xx vs 22.3x (⭕)
4. P/B company vs market: 13x vs 1.8x (⭕)
5. Future growth: 45.7% YoY (FY 2021-2022) expected (⭐)
ROI Diversification 🟢
- Email : 59%
- Google display ads : 21%
- Social Media : 15%
- Video Ads : 5%
Stimulants 🟢
1. New Product Sales :
Q1 FY2021 (49) vs Q1 FY2022 (113): +130% YoY
Next-generation messaging channels, viz. enterprise voice solutions, IP based messaging, email
and unified communication solutions continue to witness increasing adoption by enterprises
2. Recurring Revenue Growth
FY2021 (91%) vs FY2022 (90%): -1.09% YoY
Consistency due to deep customer engagement driving high recurring revenues
3. Expansion of their wholly-owned subsidiaries
-Call2Connect:
Inaugurated a 1,000 seater BPO center at Virar, Mumbai, on Oct 15, 2021, to support the growth of Call2Connect business operations
Technicals 🟢
Behavior
1. Trend Identification: Uptrend
2. Consistent volume: (Yes) below 1m Weekly
3. Individual Resistance/Support: @920 (77m Heaviest)
4. Individual Support/Demand: No
5. Current Resistance/Supply: @2150.
6. Current Support/Demand: @1700, Closed below: @1450
6. Market Cycle: Primary Trend with Markdown (1W)
7. MA Support: Below 50MA broke and retracing back(Strong)
8. Fib retracement: 0.07 Negative.
Momentum
1. Multi-frame: Monthly- Retest, Weekly-Downtrend
2. Wave analysis: In Markdown (Downtrend),
3. Higher Highs: No
4. Lower-Lows: Yes, Retracing back
Pattern
1. Structure: Mulit-Head & Shoulder
2. Trendline: 14-month uptrend & 5 wicks support
3. Wick Identification: Bullish.
4. Beta: 1.01 (+ve) and Volatile
Entry
Weekly Closed (1700-1800): Buy ratings above (@1700)
Weekly Closed (Below 1600): Buy ratings @1450
FCFM 🟢
What is FCFM?
FCFM is a Fractal Core of Financial Markets developed by CENTURY. It's based on the empirical values taken through compounding markups or markdowns of particular Security.
FCFM helps to evaluate the future valuation of security with the companionship of market participants and circumstances of consecutive +ve corporate earnings.
Current Zones
FCFM Demand/Support: @1610
FCFM Resistance/Supply: @2150
Future Zones
FCFM Demand/Support: @2150
FCFM Resistance/Supply: @3050
FCFM has relevant levels considering the corporate earnings of RML has increased QoQ and YoY by 23% and 45.7% respectively.
}
Qualitative Analysis 💎
{
Management 🟢
Route Mobile Ltd. leadership is very tech-driven and the co-founders have 2 decades of experience. The board members are independent of the company profile except for co-founders and Tonio Ellul CEO & Director of 365squared Ltd.
- Mr. Sandipkumar Chandrakant Gupta is a Co-Founder of Route Mobile Limited and serves as its Non-Executive Director since May 15, 2004. Mr. Gupta serves as Non-Executive Non-Independent at Route Mobile Limited since November 19, 2020. He has worked for many organizations which include PriceWaterhouseCoopers - India, and Covansys (India) Pvt.
Mr. Rajdip Kumar Chandrakant Gupta is a Co-Founder of Route Mobile Limited and serves as its Managing Director and its Director since May 15, 2004. He serves as Group Chief Executive Officer at Route Mobile Limited since May 2004. Mr. Gupta serves as Group Chief Executive Officer of Call 2 Connect India Private Limited. Mr. Gupta has industrial experience in the Software and Telecommunications domain.
The Company announced the appointment of Mr. Bhaskar Pramanik as an Additional and Independent Director on the Board of the Company on Aug 10, 2021.
Mr. Pramanik is a seasoned entrepreneur and a tech disruptor with a career spanning over 45 years. He has held key National and Global Leadership positions in leading Multinational Technology Companies, across India, Singapore, and the US. Mr. Pramanik was also on the Executive Committee of NASSCO M, the National Committee of CII and AMCHAM, and has been a former Board member of the State Bank of India, former Chairman of Microsoft India , and Managing Director at Oracle Corporation and Sun Microsystems in India
Vision of RML
Route Mobile’s founder and Group chief executive (CEO) Rajdip Kumar Gupta said Latin America will be its second-biggest market after Asia.
The company has raised 867.49 crores in November 2021. The 60% of this capital will be used to acquire the business and grow organically.
Key point : Company Capex would lead to acquiring innovative technologies result in high growth in ROI and their diversified portfolio of revenue will further attract wealthy investors
Ownership 🟢
Promoters: 59.98
FIIs: 19.80
DIIs: 6.65
Government: 0%
Public: 13.56%
Top Shareholders 🟢
1. Sandipkumar Gupta (Co-founder) (30.02%)
2. Rajdip Kumar Gupta (Co-founder) (22.07%)
3. Goldman Sachs Asset Management, L.P. (5.23%)
4. Chandrakant Gupta (4.23%)
5. PineBridge Investments LLC (3.68%)
6. Nippon Life India Asset Management Limited (2.09%)
7. Abakkus Asset Management, LLP (2.83%)
8. ICICI Prudential Asset Management Company Limited (0.81%)
SWOT Analysis 🟢
1. Strenght
- Recognized as “Established Leader” by Industry Analysts
- Leading CPaaS provider.
- Product line expansion – Acquired business email technologies re-branded as SendClean Geographical expansion - Signed SPA to acquire Masivian (LatAm) and InterTeleco (Kuwait)
- Subsidiaries across the nation (5 Subsidiaries)
- The debt to equity ratio is about 0.02%
- Impressive ROI
2. Weakness
- Tier 1 CPaaS partners from revenue generated only 9%
- Revenue to Cost of Revenue is likely above 90% can decimate Revenue growth if there'll be economic drawdowns or recession
3. Opportunity
- Capex growth for new overtakes and plants
- Acquisitions across the nation
- Expansion of Geographical Footprint (Masiv’s differentiated cloud communication platform and Inter Teleco Platform)
- Able to achieve the Product Portfolio Expansion.
4. Threat
- NA.
}
Final Words 💊
{
Route Mobile Ltd. has massive size wings compared to its size. From company management to their diversified business model put it to the top striving companies in future. The progression is likely to be twofold in the upcoming 3years. If we talk about the risks including Legislative, Inflationary, Model, and Obsolescence. The company's overall current position and performance are capable to overtake.
They've already engaged themselves in the development of Next-Gen services like RBM and OTT messaging. Messaging and Voice handling are their main key products.
The given targets for RML are relevant as FCFM validates and certifies the required parameters.
FCFM
ABP (Average buy price) / BV (Book Value): 1450rs
FV (Future Value): 3050 Year 2023
}
Report By:
Rajveer Singh Scolia.
NSE:ROUTE
Nasdaq 100 InvestmentAn overview of the Nasdaq-100 index (NDX)
The Nasdaq-100 is one of the world’s preeminent large-cap growth indexes. It includes 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization. It is home to the four companies who have touched the trillion-dollar mark in the US: Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOG, GOOGL).
The prominence of these companies along with other technology leaders such as Cisco (CSCO), Qualcomm (QCOM), Intel (INTC), NVIDIA (NVDA), Micron (MU), Adobe (ADBE), Advanced Micro Devices (AMD), and Baidu (BIDU) often create an impression of it as a technology index.
While technology is a dominant segment in the index, it is well-balanced by sectors such as consumer services, healthcare, consumer goods, and industrials which constitute the other 50%. Consumer services companies account for almost a quarter of the cap weight, up from 17% a decade ago.
Within healthcare, Nasdaq-100 is home to some of the most prominent biotechnology companies such as Gilead (GILD), Regeneron (REGN), Vertex (VRTX), and Amgen (AMGN). These companies are working on cutting edge research. Recently, Regeneron Pharmaceuticals announced important advances in novel COVID-19 antibody program while Gilead has initiated two Phase 3 clinical studies to evaluate the safety and efficacy of remdesivir (investigational nucleotide analog) in adults diagnosed with COVID-19. China’s health authorities have initiated two clinical trials in patients to determine remdesivir’s potential for treatment for the coronavirus.
If we look at current market trends, companies such as Zoom (ZM) are surging on the work-from-home model while others, such as American Airlines (AAL), and Expedia (EXPE), are struggling due to travel halt.
The index holds consumption-led companies such as Netflix (NFLX), Pepsi (PEP), Costco (COST), and Starbucks (SBUX), some of which are suffering due to supply chain bottlenecks and lockdowns while others are partial beneficiaries of the current chaos.
As we look at the larger picture, the NDX is a diversified mix of sound companies and is better positioned compared to the S&P 500 due to the negligible or complete absence of sectors such as energy and financials. One thing which is unique to this index is its focus on companies which are symbolic of innovation and future growth. Since 2008, the Nasdaq-100 has generated higher growth rates than competing indexes, such as S&P 500 Index and the Russell 1000 Growth Index.
Four benefits of investing in US markets; check how Indian invesIndian economy is expected to record a sharp V-shaped recovery as the business environment normalizes. Despite this, Indians should overcome the home country bias and ideally consider diversification of portfolio through investment opportunities in international markets. This will diversify the extant geopolitical risk associated with emerging economies, especially during periods of global/ regional financial crisis (i.e., East Asian crisis (96-97), 9/11 terror attacks and global financial crisis of 2008-09). So should form part of investor’s portfolio as part of as a prudent asset allocation and risk mitigation strategy
Indian economy has witnessed above average growth rate amongst the G-20 large economies, next only to China, over the last 20 years. This trend is expected to continue for the foreseeable future. According to the IMF, Indian economy contributes about 3.3% to the global Gross Domestic Product (GDP). Countries such as the USA and China contribute 23.6% and 15.5% to the global GDP, respectively.
It brings to fore a pertinent question in the minds of most investors, “Should we really be considering investments in overseas markets?” Clearly, India presents decent broad-based opportunities for growth, as corporate profitability generally tracks the GDP growth and the stock prices follow suit.
While the question remains a pertinent one, Indian investors still have a lot to benefit by investing in overseas markets. Here is my take on a few important points which corroborate the need for investing in overseas markets.
An extensive array of investment opportunities
Whenever you think about the top brands in the world or brands of products and services you use on a daily basis, more often than not, you will think about Apple, Google, Facebook, Microsoft, Samsung, Amazon, Netflix and the likes of these. And you will notice that brands that feature mostly prominently in your list, are not listed on the Indian Stock Exchanges.
So, despite India being amongst the fastest growing economies, it does not house some of the best brands a.k.a. companies in the world. Thus most of the opportunities for wealth creation arising out of the growth of such companies isn’t available for domestic investors. The leading companies of truly global nature, especially cutting edge technology and consumer internet/electronics space, which enjoy a deep moat are listed predominantly on the US stock exchanges. Also, exposure to next-gen innovation-led sectors like electric/autonomous vehicles (EV/AV), AI & ML (Artificial Intelligence & Machine Learning), robotics and bio-medical/ pharma can be taken through these markets. Also the United States, for instance, houses many of the largest consumer, banking and services companies, which are world leaders in their sectors.
So as an investor, allocating a part of the overall equity allocation to international equities can prove to be advantageous for boosting the overall returns of the portfolio.
Benefits of Geographical Diversification
Most investors are aware of the power of diversification and prudently manage diversification across asset classes, like equity, debt, gold, etc. Within equities too, investors with guidance from their advisors or wealth managers manage efficiently allocation between large cap or mid & small cap.
Similarly, investing a portion of your asset in overseas markets will add the benefit of diversification in your portfolio by not completely depending on the Indian stock markets or Indian economy, but by placing bets on the global GDP growth and consumer/technology spend and the companies/sectors which will ride on the wave for business and profitability.
This will help an investor mitigate the factors which impact the domestic stock markets and the overall economy in general. These factors could be both local or global, e.g. foreign investors pull money out from the emerging economies due to some global exigency and shifting assets to a safer haven investments like US treasuries or Gold, or changes in domestic regulations or policies which could have a knee jerk reaction in the stock market.
Thus adding an overseas flavor to an investors’ portfolio would give a geographical diversification based cushion to the investors overall portfolio.
Profit Rupee depreciation
There is a proven long term trend of depreciation of rupee versus currencies of developed economies which adds to investors’ returns year on year. It is well known that US dollar is the safe haven currency for global investors especially in times of a global crisis. This was evident as when the recent Covid-19 pandemic hit the world with a shock, Indian rupee depreciated almost 8.5% from the high on January 13, 2020 to the low on April 22, 2020.
Indian economy, historically has always been in a state of current account deficit and coupled with high structural inflation rate thereby leading to a higher interest rate regime compared to the developed economies, the Rupee always remains under depreciating pressure.
The long term rupee depreciation is in the range of 3-4% p.a. and this straight away bumps up the returns an investor makes on global/dollar investments.
Building a global currency pool
There has been a steady change in social and demographic profile of Indian investors. Now most of us are aligned to the global economy in terms of our consumption, thus making large substantial direct or indirect expenses in foreign currency. These include either kids’ education or medical expenses or business / travel requirements. So one could protect themselves from currency risk while planning for such future expenses by investing in foreign currency assets.
What are the various ways for Indian investors to invest globally?
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Nasdaq - CautionH&S chart on the daily charts..If it breaks in the next day or 2 it could hurt our markets too. This was the index which was leading American markets over the last couple years with the FAANG stocks + Microsoft + Tesla.
Watch this space closely to dictate the direction of global markets. So far the Dow Jones is holding its own and out performing the Nasdaq but we need to keep a close eye on this space.
APXT- AvePoint is merging with Apex Technology Acquisition Corporation 2 Billion dollar deal SPAC
“We have a relationship with Microsoft for the last 19 years,” The CEO of AVE Point says
Financials: AvePoint is estimating that revenue will grow 26% year-over-year to $148 million in fiscal 2020.
The company is forecasting revenue to hit $193 million and $257 million in fiscal 2021 and fiscal 2022, respectively.
AvePoint is increasing its recurring revenue, Jiang said.
This is the second year of the company's annual recurring revenue growing at more than 30% year-over-year, the CEO said.
SAKSOFT - stock to go for itStocks for short-medium term:
Recommended on 27th Nov
Saksoft: CMP 315
company is into global IT services and consultancy company. Their major services is into Artificial intelligence- fintech solutions, transportation & logistics ( IoT - Internet of things), Health care, Retail e-commerce, telecom(5g) and public sector.
Reasons to consider for buying👇👇
👉 Consistent growth in sales for past 3-4 yrs.
👉 Consistent growth in profit YOY
👉High ROE & ROCE
👉 Consistent increase in promoter shareholding & FII shareholding
👉 Company with zero promoter pledge & low debt
👉 Consistent cash from operations and high interest coverage ratio which is very good sign for small cap company.
👉 Company's major clients are MICROSOFT , Oracle , SAP, IBM , etc.
Note: Company is small cap and highly risk. Also, from the technical front stock is downtrend however reversal is possible & expected.
Conclusion: Though it's small cap, still it's good bet considering the moat that company is into - AI, 5G and Internet of things. One can expect good returns in the coming months. One can buy and accumulate on dips for very good returns (400+). May be the year 2021 for saksoft
Wave analysis ( Validation & Invalidation ) Hi Friends i have some efforts in Giving the Explanation o wave theory and how to forecast it
I was using Microsoft pro and before posting when i checked i noticed the error in forecasting arrow for final termination
Ignore it as the screen is small i got confused
My view is still same i am looking for final termination near 60 to 50 in-between , for now you can look for trading form 155 to 250 range
Good luck
Bsoft Technial + fundamental strong scriptcompany posting good results QOQ ,YOY basis , having good business module , recently signed deal with Microsoft . Currently price is in consolidation . one can go long above 187.50 on daily closing basis for target of 193 , 199 ,205+ with stop loss of 182 on closing basis
