Goldbees Vs Titan Industries
I have uploaded Goldbees and Titan Industries charts here.
Have a look at the prices from Jan 2010. While Goldbees has moved up from Rs 1650 to Rs 1950 max, Titan Industries which uses gold as raw material has moved from Rs 1400 to Rs 3000. I suppose the reason is that Titan stock price is determined by growth in business where as Gold prices are a pure demand supply function.
Food for thought ?
Your comments are welcome.
rgds
Vibhas
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5 comments:
does this mean if v collect titan in a an SIP manner v can benefit from it in d long run?plz reply to my query.
thnx rashmi
Sure. That is what I meant. Because business grows due to vast opportunity, customer need and value addition. SIP is certainly a great option. It averages prices over a time period. Specially beneficial when a stock is in a bull market.
rgds
thnx a lot vibhas,
regds rashmi
Gold Bees is a pure raw material or commodity play, and as rightly pointed out, its price is a function of demand/supply.
Titan, on the other hand, is in the manufacturing business which involves a large number of value addition stages and also dependent on the demand/supply factor. Any increase in demand or value addition as well as perceived value at customer end (an intangible factor, to say the least). has a tremendous impact on the price. It could swing either way. Titan is a diversified play (besides gold jewellery) and can smooth out the ups and downs in its various arms.Also it is purported to have a very good management with vision. Big Bull Rakesh Jhunjunwala is a strong believer in Titan's fundamentals, management and growth story. No wonder Titan has delivered such handsome returns to its investors and likely to continue to reward them.
So Big Bull as an investor is one of the key factors for the rise!
Rs 2200 on 24 Jun 2010 was a good technical entry point for this stock.
Now either wait for it to correct to 2800 or buy it when it rises above 3100. Till then it is going to bounce up and down.
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