Google as tech giant needs no introduction of its own. From various online services like Gmail, Google maps and Google Calendar entries to Free Android OS, Google has made its enormous presence felt across the world. The word Google is now being referred as “searching” in Oxford dictionary, which itself says about the company’s performance […]
“Safe” and “Technology” Stock do not go together. Again “Value” and “Technology” do not go together though this category is showing a growing number of companies. Cisco (CSCO) like Intel (INTC) and Microsoft (MSFT) belongs to the older technology generation compared to new kids on the block like Zynga (ZNGA), Facebook (FB) and LinkedIn (LNKD). […]
There is no disputing the fact of Facebook dominance in social media but its model of making money is far from proved to give it such a huge market value . The underwriters of the company are said to have massive amounts of shares worth billions which they have bought to hold the company’s stock price above the IPO price of $38. The trading was marked by a number of glitches which is now being investigated by SEC. This has become a regular occurence reducing trust in the US capital market systems . A lot of the future earnings power is already built into the stock price of the company at $100 billion. It will take a lot of effort to get to the earnings level to justify the market price . In the fast changing technology landscape that is a huge risk . 3 years ago nobody would have questioned the dominance of Nokia and RIMM in the mobile space . But now these companies are fighting for survival. Stock picking is a game of probabilities and in the case of Facebook the current stock price does not justify the risk in buying it.
China India Trade has been rising at very high growth rates over the last few years driven by the booming GDP growth in the fastest growing economies of the world. However India like other countries faces the mounting problem of a huge trade deficit with China which is growing all the time. Like Brazil ,USA this has become a major problem . Beside the official reported figures , there is a large clandestine trade takes place outside the normal channels. Massive imports from China go unreported to avoid excise duties and custom taxes. Both countries have corrupt officials and businessmen which facilitate trade without paying of taxes and duties. Unofficial Trade Deficit with China may be double the $27 billion reported in 2011.
China has recently been in the news over Internet Espionage on defense and sensitive installations in India and USA. This has led to the high profile exit of Google from China.Recently a Canadian research organization revealed/alleged how Chinese govt backed hackers had broken into Indian embassy and government computers.This has made the Indian government wary […]