Solid Growth

AIA is expensively valued and justifiably so

AIA Engineering Ltd, an Ahmedabad-based company, is a niche player in the value-added high chrome metallurgy segment catering to cement, mining and thermal power industries. All these sectors are doing extremely well and AIA has been riding that boom. This is reflected in the recent price strength captured by our stock screen of three-month price...

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  • 9 Stocks Flying Under The Radar

    These companies have been doing very well for the last five years but are not on the market's radar yet. Are they worth buying?Analysis by ML Research Desk

    Most investors, including fund managers, react to market conditions like lemmings, stampeding into stocks when the market is rising and running away from them when it is falling. This investor behaviour is common not only as regards...

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  • FUN Index

    Gary Smith, a professor at Pomona College in California does very interesting studies on stock markets. One of his creations is a FUN Index of catchy stock symbols, tagged to American stocks. He asked his finance students to pick their favourite stock symbols among the 33,000 ticker symbols that have been used by companies over the years. The students chose 74 with symbols like MOO, HOG, and JAIL. Smith took that selection and tested their performance over a 20-year period. Surprisingly, the FUN Index beat the Nasdaq/NYSE index portfolio by a huge margin. Could clever symbols be used as tools to predict the future performance of stocks?
    The main problem with the study is what statisticians call survivorship bias. The FUN Index was selective, based on what the students thought was funny. Several memorable symbols were left out, such as FAX and GROW. Also, some 65% of the stocks in the FUN Index no longer trade (for example, GEEK, BEER, and LUCK), or have merged with another company. This was another way in which the survivorship bias crept in. Besides, for every winner like YUM, GOLD, KEY and LU, you have losers like DRUG, WIN, MAD and ASAP. Surely, you cannot escape the fundamentals of a company. But once you have done your basic research, a unique symbol may offer an edge. Maybe a smart company tends to choose a smart symbol.

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