muffins

They had been married for sixty years. They were far from rich, but in very good health, due largely to her insistence that they both eat healthy foods and exercise every day. But their good health didn’t help them when their plane crashed. At the Pearly Gates, St. Peter led them to a beautiful mansion, furnished in gold and fine silks, with a fully stocked kitchen, and a waterfall in the master bath. They gasped in astonishment. “Welcome to Heaven. This will be your home for eternity.”
The man asked, “How much will this cost?”
“Why, nothing,” St. Peter replied. “This is your heavenly reward. And see that championship golf course out your back window? It’s included, too; you can play as much as you want, for free.”
He also showed them the clubhouse, the pool, the lavish meals of every cuisine imaginable. “This is Heaven. Everything is free for you to enjoy.”
The old man glanced nervously at his wife and then asked, “But where are the low fat, low cholesterol foods, the decaffeinated tea, the…”
St. Peter interrupted. “That’s the best part,” he said. “You can eat and drink as much as you like, of anything you like, and you’ll never get fat or sick. This is Heaven!”
“No gym to work out at?”
“Only if you want to.”
“No testing my sugar or blood pressure or…”
“Never again. Here you just enjoy yourself.” The old man glared at his wife and said, “You and your damned bran muffins! We could have been here twenty years ago!”

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Kinna sona thenu…

Kinna sona thenu rab ne banaya,

Dil kare wekda rawan….

Kinna sona thenu rab ne banaya
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India’s WPI

If you did not knew, India is possibly the only significant country in the world which uses WPI (wholesale price index) instead of CPI (consumer price index) to calculate inflation. And this is the reason why inflation figures do not have much relevance for a common man.

Let me first explain what are the individual constituents of WPI.
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Debentures

One of the main objectives of a prudent investor is not only to get good returns on his/her investment, but also an ability to manage risks and exposure. That is why if you look at the portfolio of a seasoned investor, you will often find it to contain:

1) FD: one third to half of the portfolio… fixed returns, almost zero risk.
1) Blue chip shares (long term investment… medium risk, decent returns.. should constitute bulk of the equities you hold)
3) Mutual funds (unless it is an exotic, esoteric sector fund, it can be treated as a blue chip)
4) proceeds from IPOs: low returns (primarily due to high level of over-subscription and low allotments), low risks (unless you apply in all tom dicks and harry)
5) Short term investment: Any investment based on the short term market conditions.. usually made with a day/week time frame horizon… high risk but fabulous returns (it usually constitutes bulk of the portfolio for a trader)

Debentures is another exotic financial instrument which people can invest in. Unfortunately Indian debenture market is underdeveloped and hence very few people know about this low risk, moderate returns long term investment instruments. Hence I am writing this post. These are basically low interest rate unsecured bonds issued by companies which upon maturity could be optionally converted to fully paid shares.
More information about this instrument can be obtained at wiki

What does an investor gains:
1) Low risk: all said an done these can be treated as a fixed interest rate instruments. So even if the company stock price is not doing well (but the company is not bankrupt), you won’t lose your invested amount.
2) Stock linked gains: On the maturity date, you will have an option to convert them into equity (at a fixed price determined on the date of issue) In a hypothetical case, suppose the issuing company stock appreciates by 25% p.a. So potentially the stock would rise 3 folds over 5 years. So the investors can pocket the difference 🙂 for an additional gain at the time of maturity.
3) Liquidity: Although they are not very actively traded, but unlike FDs you can sell them in the stock exchange whenever you need to money without attracting any foreclosure penalty.

Risks:
1) Unlike an RBI controlled bank, you are entrusting your money with an unregulated company. So if the company goes under, you risk to lose your entire investment.
2) Low interest rate: Since most companies are bullish about their stocks, almost all of these debentures have a very low coupon rate. So if the stock is not doing very well, even though you do not lose your investment, the inflation would potentially eat into its purchasing power.
3) Long gestation period: For all practical purposes, these are like bonds.. hence are not advised for individuals looking for a quick buck.

Why companies issue them:
1) Low interest rate: Because of this, debentures usually translates as the cheapest source of capital.
2) Because of the convertibility, the company is able to move these funds from debt to equity portion of the balance sheet and hence improve the leverage (debt to equity ratio).
3) Reward the investors: In most of the cases, the debentures are issued to the existing stock holders and promoters and not through an open offer. However, outsiders are permitted to buy them from the secondary market.

Here are some warrants/debentures I could find:
Bajaj Auto Finance Ltd.
Dalmia Cement (Bharat) Ltd.
Deepak Nitrite Ltd.
Kirloskar Ferrous Industries Ltd.
Orbit Corporation Ltd.
Sardar Sarovar Narmada Nigam Ltd.
Titan Industries Ltd.
Trent Ltd.

Since I do not have any exposure to debentures, If you looking to invest in them… contact your financial adviser. I know Indian Hotels intended to issue them a month ago, but I am not sure about its status.

Autumn

P1080854 Follow the Road to Autumn

Do Patte Patjhad Ke, Pedon Se Utre The
Pedon Ki Shakhon Se Utre The
Phir Utne Mausam Guzre Woh Patte Do Bechaare
Woh Patte Dil Dil Dil The Woh Dil The Dil Dil The..

Toilet Robbery

My bladder always wants to torture me in new innovative ways. Till yesterday, it always got an urge for a micturition whenever there are no public toilets in sight, but today it crossed its limit. Like those sadistic girls who like to tease guys, my bladder had this urge just in front of a public toilet.. the catch was, the facility owners had locked the urinal. (it was 11am which is hardly an odd hour)

So here I was, trying to tame my bladder and thinking of 1 logical reason why anybody would like to keep a stinky toilet under lock and key? Like any other guy in that situation, the only sane explanation I could come up with was that there exists a band of armed bandits which specializes in stealing the stench from public toilets. Hence the authorities had to beef up security at such places.

What do you think could be the reason?

BTW: you might also like my PHD grade thesis on Urinals.

and some jokes about urinals:
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