Toad680

2 Comments

    • ON: Sat Oct 4th 05:46 AM
      Commented on:
      Citi Examines Its Carrots and Sticks
      One interesting aspect to this is that regulators brokered the Citi deal and Wells walked away at the last minute. Only later after the bailout was likely, mark to market eased and takeover taxation benefits emerged did Wells step back in.

      If they think more banks are going to see this kind of trouble and want to maintain credibility in the bidding process, don't regulators have to enforce their first two bidder auction? You ask banks to step up and take on a great deal of risk, but don't actually deliver the reward? The next time this happens, how many won't bid? Or of those that do, will they come with their best bid?

      One could also argue that Wachovia might have gone bust had it not been for the interim liquidity provided by Citi. In a normal bidding war, this might be fair play by Wells. But somehow it seems unethical to me for Wells to now take WB after the collapse has been averted and the rules have changed.

      I would be surprised if Citi took this under the original terms. But I think regulators damage their credibility if they let Wells walk away with Wachovia now that the risks are a lot lower.
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    • ON: Fri Dec 7th 02:17 AM
      Commented on:
      India Funds Offer Investors Potential for Sustained, High Level Growth
      I am a direct investor in the Indian market and am in the country probably once every 4-6 weeks on average. You are probably underestimating the water situation in the country.

      However, you will not be able to isolate great themes via funds. In fact, when I looked at the Sensex a few months ago (I am sure these statistics are dated), 40% of the members were actually down on the year and six of the thirty were down by 35% or more. The Sensex's performance this year has been driven by massive performance by a few select names like Reliance and HDFC. There is a lot of alpha to be earned in India, if you have good ideas.

      The only benefit I see to funds is that many in the US are trading at a discount to their NAVs. Other than that, you guarantee average returns. But maybe your water idea is better than average?

      IVRCL, hyderabad based, is the company you want to buy if you have conviction. It's the best water play in India (desalinization, purification, irrigation), but also leveraged to infrastructure such as construction and roads--no shortage of work there, either.

      UBS can set you up with an account to trade in countries like India for a min USD 1 million in assets. You don't need that much if you are willing to pay a fee (maybe USD 400 per year) for the account--but that's doesn't seem like that much if you want access to this market.

      There have been changes in the availability of P-notes in the country, so it may be incrementally more difficult. But I think they can still set you up.
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