Category: Competitive advantage
Cement Industry – Stock analysis
July 20th, 2008, 4 Comments
I received a list of companies to analyse based on my earlier post. In order to do a better analysis, I am trying to club all the stocks from the same industry. As there are several cement companies in the list, I decided to take a stab at the cement stocks first. My earlier analysis [...]
Business models of Pharma industry
May 17th, 2007, No Comments
I have written (see here) earlier on the pharma industry in 2005. A few high profile patent challenge losses in 2005 and 2006, brought down the valuations for several companies. My basic thoughts about the industry have not changed I have been analysing the industry further recently and can see two different business models. The [...]
Classification of companies based on nature of competition
December 13th, 2006, 1 Comment
I was reading a book on economics and found the following basic types of competition – Perfect monopoly- Oligopoly or duopoly- Monopolisitic competition- Perfect competition I find the above types instructive and a good way to analyse the long term economics of an industry. Let me define the specifics of each type and add a [...]
Further thoughts on pricing strength of a business
November 13th, 2006, 3 Comments
The following question was posed to me by Prem sagar on my previous post. The question made me think and I am posting my thoughts on what I think is a fairly important issue in investing (earlier post on pricing ) But what would u say for an industry like say auto ancillaries or retail-proxies [...]
Difference between a brand and a franchise
October 19th, 2005, 4 Comments
I have always thought that a strong brand equates to a strong franchise (profitable businesses). However over the course of time, I think I have started to understand that both are necessarily not the sameFor ex: Brands like Starbucks, Tiffany, coke etc are strong brands and good franchise (earning huge profits for the companies). But [...]
Relationship between PE, ROE and Competitive advantage period (CAP)
September 24th, 2005, 5 Comments
I have been working on various permutations of ROE and CAP (period for which the company can earn over cost of capital) using the DCF model to see the PE ratios which are thrown up by the model. Its fairly intuitive that a company with a high CAP and high ROE should have a high [...]
