Good investing reading – 19 February 2013

In Good investing reading today -  Motherson Sumi’s growth story, water management business and VA Tech Wabag, sell-side market forecasts, and HSBC involvement with drug money laundering.

 

A good read about Motherson Sumi and how they have grown by leaps and bounds. Motherson’s turnover has grown from Rs 10 crore in 1993 to about Rs 14,702 crore in 2011-12.

How Motherson Sumi Became a Giant Auto Parts Manufacturer – Forbes

 

Businesses linked to water are expected to do well in the years ahead as per popular opinion given that we face water shortages across the world.

Desalination Seen Booming at 15% a Year as World Water Dries Up – Bloomberg

In India we have a listed company called VA Tech Wabag that operates in the water projects space. It is an EPC player which takes turnkey projects in the areas of water treatment, desalination etc. for industries and municipalities across the world.

Click here to go the VA Tech Wabag Investor Relations page to download their latest presentations.

I was not too happy to see low return on equity ratios in the range of 9-11%

Moneycontrol consolidated data on VA Tech Wabag

 

Sell-side means broking houses. In the Indian context it could be anyone from Geojit to Karvy to Credit Suisse. You could add your broker’s name here. Many brokers give forecasts for the index for the year. So you end up seeing everyone trying to predict whether the Sensex will be at 25,000 or 13.000 at the start of the year.

The results of a poll that was conducted by the CFA Institute was pretty interesting. People were frank in their opinions of sell-side market forecasts.

Do Wall Street’s Sell-Side Market Forecasts Have Value? – Enterprising Investor

Market forecasts are best taken with a pinch of salt!

 

Last, I have added an article from the irrepressible Matt Tabibi of Rolling Stone. He is scathing in this piece on HSBC’s involvement in money laundering of drug trade money and the U.S. Justice Department’s shocking inaction.

This is bullshit, and exactly the opposite of the truth, but it’s what our current government believes. From JonBenet to O.J. to Robert Blake, Americans have long understood that the rich get good lawyers and get off, while the poor suck eggs and do time. But this is something different. This is the government admitting to being afraid to prosecute the very powerful – something it never did even in the heydays of Al Capone or Pablo Escobar, something it didn’t do even with Richard Nixon

- Matt Tabibit, Rolling Stone

Gangster Bankers: Too Big to Jail – Rolling Stone

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