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BIZ’ SCOPE – Empowering You!

(A weekly newsletter for IPE’ans)

Hyderabad | Vol 1 | Issue 3 ipe.bizscope@gmail.com Thursday 22 July 2010 | IPE Hyd | Price: ` 8.00

Financial Results: Maruti Suzuki Q1 2010-11 Financial Results Stock basics 2: Fundamental and Technical Analysis

The Board of Directors of Fundamental analysis looks at a share’s market price in light of the
Maruti Suzuki India Limited company’s underlying business proposition and financial situation. It
approved the financial results for involves making both quantitative and qualitative judgments about a
the first quarter of 2010-11 company. Fundamental analysis can be contrasted with 'technical analysis’,
(April-June 2010) here today. which seeks to make judgments about the performance of a share based
The Company registered Net solely on its historic price behavior and without reference to the underlying
Sales of Rs 80,507 million during the first quarter of 2010-11, a growth of business, the sector it's in, or the economy as a whole. This is done by
27 per cent compared to the same period of the previous year. Net Profit tracking and charting the companies’ stock price, volume of shares traded
during the quarter was Rs 4,654 million, against Rs 5,835 million during the day to day, both on the company itself and also on its competitors.
same period of the last fiscal year. The drop in Net Profit is due to higher Technical Analysis is a method of evaluating future security prices
commodity prices, increase in royalty and lower 'other income'. In addition, and market directions based on
income from exports to Europe fell due to weakening of the Euro. statistical analysis of variables
During the quarter, the Company posted total sales of 283,324 units, such as trading volume, price
representing 25 per cent growth. This included export of 40,437 units, a 38 changes, etc. to identify patterns.
per cent growth over the same period of the last fiscal. The Company's Their success rate is no better
domestic sales volume grew by 23 per cent to 242,887 units The Company than chance. Research and
launched a new WagonR (a full model change) during the quarter. examination of the market and
Maruti Suzuki's volume in the domestic A2 segment grew by 16.2 per cent securities as it relates to their
during the quarter, while in the C segment, sales volume grew by 50.8 per supply and demand in the
cent, aided by the success of Eeco. The Company's sales volume in the A3 marketplace. The technician uses
segment grew by 45.2 per cent, compared to sales in April-June 2009. charts and computer programs to
During the quarter the Company further strengthened its network. The sales identify and project price trends. The analysis includes studying price
network grew to 828 outlets covering 577 cities (end Mar'10: 802 outlets, movements and trading volumes to determine patterns such as Head and
555 cities). The service network increased to 2,771 service outlets covering Shoulder Formations and W Formations. Other indicators include support
1,342 cities. (end Mar'10: 2,740 outlets, 1,335 cities). and resistance levels, and moving averages.
- KK In contrast to fundamental analysis, technical analysis does not consider a
corporation's financial data.
Dipak C Jain: The Boss of Philip Kotler Technical analysts study trading histories to identify price trends in
particular stocks, mutual funds, commodities, or options in specific market
Many Indians have made it to the top jobs in the US, wading through sectors or in the overall financial markets. They use their findings to predict
a maze of biases. Dipak C Jain took a small cookie and, using his hands, probable, often short-term, trading patterns in the investments that they
cut it into small bits while study.
remembering his mother. Technical Analysis is a tool to detect if a trend will persist or break. It gives
"At times, she used to cut a laddu or some results but can be deceptive as it relies mostly on graphic signals.
something she really liked into the Technical analysis has become increasingly popular over the past several
smallest pieces and offer them to years, as more and more people believe that the historical performance of a
guests," he laughed. "It used to be like stock is a strong indication of future performance.
this: There are guests and she has There are many instances of investors successfully trading a security using
given them something to eat. But she only their knowledge of the security's chart, without even understanding
finds there is just one small thing in what the company does. However, although technical analysis is a terrific
the house which is delicious. She tool, most agree it is much more effective when used in combination with
wants to share it with the guests. And fundamental analysis.
the only way she can do it is cut it so - Kaushik Reddy
small that everyone gets a bite."
"We used to feel quite embarrassed by
our mother's action. We used to tell her, 'Ma, the guests may feel insulted AD SPACE
that you are giving them such small bits' -- but she used to smile and tell us,
'They know it is coming from my heart'."
Dr Dipak Jain, 52, has stepped down as Dean of the prestigious Kellogg
School of Management. Jain, who is also a director of major corporations
like Deere, was Sandy and Morton Goldman Professor of Entrepreneurial
Studies and Professor of Marketing at Kellogg, Northwestern University, As a Business plan we are planning to organizing Tambola, on
and has been with Kellogg since 1986. Having stepped down as dean, he has 3rd to 7th August, 2010 at PGDM –B (I year) class.
gone back to teaching full time at the school.
At Kellogg, Jain's energy is an urban legend. Ever on the move, he
doesn't need more than five hours of sleep. "My wife thinks something is MANY PRIZES TO BE WON
wrong if I sleep more than that," he says.
Sojourn in the USA: September 2, 2008 About a month after Jain had
become the Dean, Philip Kotler, the marketing guru who is a member of
Kellogg’s faculty, persuaded Jain to fill in for him at a seminar. Now, Kotler Contact:
is a celebrity all over the US and Jain was not exactly known to the Sruthi K (sruthi.kalidindi@gmail.com)
organizers. In fact, in Jain’s words, the organizers were clearly disappointed Tejaswi .R (tejaswi.rayapu@gmail.com)
to see “this man of color” as Kotler’s replacement. However, Jain does not Tej Prakash (tej555@gmail.com)
harp on this color bit. The highlight of his anecdote is how the seminar’s
chairman introduced Jain to the audience. “All of you know Philip Kotler,”
he said, “I give you Kotler’s boss.”
- KK

Business means empowering you! Page 1


GadgeTrivia: Slate Showdown: iPad vs. HP Slate vs. JooJoo vs. Silicon Valley deemed a "crazy idea" -- a free e-mail service. They raised
Android Tablets & More about $300,000 for their venture -- Hotmail.
Within a year, Hotmail had one million
subscribers. So revolutionary was it that Microsoft
bought it for $400 million after 18 months.
Did you know?
• He was rejected by 20 venture capitalists
before Draper Fisher Juvetson bought his
idea.
• The original spelling was Hot Mail.
Award
TR100 by MIT, given to 100 young innovators
who are expected to have the greatest impact on technology.
- KranthiKumar V

Everybody's talking about tablets, especially those single-pane capacitive


touch screen ones more specifically known as "slates." The iPad is the biggest Mutual Funds
newsmaker, but there are lots headed our way (most with built-in webcams).
Here's how they measure up, spec-wise: “A mutual fund is a collection of stocks, bonds or other securities
purchased by a pool of investors and managed by a professional investing
company”.
In essence, when you make an investment in a mutual fund your money is
pooled along with the other investor’s money. The aggregate sum is then
used by the fund to build or expand the investment portfolio which
comprises that particular fund.
When you invest in a mutual fund, you buy ‘shares’ at a price which
represents the total value of the securities in the fund portfolio divided by
the total value of all the securities in fund’s portfolio divided by the total
number of shares outstanding. This is known as the “Net Asset Value”
(NAV) of a single share of the fund.
E.g.: Suppose xyz Mutual fund has in its portfolio shares of 50 different
stocks and on a given day the value of all its securities total Rs.5,00,000.
Assuming there are 50,000 shares outstanding, the NAV of a single share of
the fund on that day would be Rs. 10. (500000/50000). If you own 50 shares
of xyz fund, then your total investment would be Rs. 500 on that particular
day. The NAV may vary from day to day as the value of the securities held
by the fund changes.
A Mutual fund investor is an owner, not a lender (as in the holder of
a bank certificate of deposit). Therefore, as an owner, the Mutual fund
investor shares in the profit and losses as week as the income and expense
of the fund.
- Kaushik Reddy
Interesting Zone:

Movies to watch:
• The Informant!
• Into the wild
• Guru
As you can see, they have different strengths and weaknesses, some • August Rush
of which will become clearer in the coming months as we learn more about • Forrest gump
each tablet. (That Dell Mini 5 is especially inscrutable right now.) • The Bucket List
The iPad has the most storage, cheap 3G, the time-tested iPhone OS • The Curious Case of Benjamin Button
and its mountain of apps, and a serious amount of Apple marketing juice • The Guns of Navarone
behind it. But it's also famously lacking features common to the other • The Shawshank Redemption
tablets, such as webcam and multitasking (only first party apps like music Books:
and email can multitask). The Notion Ink Adam is perhaps the most • Rich Dad, Poor Dad
interesting of the bunch, with its dual-function transreflective screen • The Buffet Way
from Pixel Qi: It can be either a normal LCD or, with the flick of a switch, - Karun
an easy-on-the-eyes reflective LCD that resembles e-ink. Its hardware is -
also surprisingly impressive—but it remains to be seen if Android is really AD SPACE
the right OS for a 10-inch tablet.
A quick word about "slates" vs. "tablets": These are tablets, and it's a word
we prefer. The sad fact is, it's overused. There's no way to say "tablet"
Lamination of Library Cards
without including every god-awful stylus-based convertible laptop built
since 2002. (Thank you, Bill Gates!) And even the new touch screen tablets Hello Friends, as a part of Business plan, here we are for
come in single-pane and keyboard-equipped laptop styles. So "slate," good lamination of library cards for just Rs.10. So, get your
or bad, is the more apt term. library card laminated for a best price.
- KK

CEO Corner: Sabeer Bhatia If you are interested, please contact:


Sabeer Bhatia has done the unconventional ever since he decided to Vinay – 9848119500
study abroad at the age of 19; two years into undergraduate education at the Venkat - 9010524400
Birla Institute of Technology and Science, he qualified for a transfer
scholarship at Caltech, considered to be the world's most competitive
scholarship. After graduating from Caltech in 1989, he pursued an MS in
Electrical Engineering at Stanford University.
At the age of 27, Bhatia was no longer interested in working for
others, and together with Jack Smith, began chasing what many people in

Business means empowering you! Page 2

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