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Winning is not a sometime thing; it's an all time thing. You don't win

once in a while, you don't do things right once in a while, you do them

right all the time. Winning is habit. Unfortunately, so is losing.

- Vince Lombardi

National Headlines Blood bath in Indian stock market on 22 January as sensex falls by 2300 point leaking

out Rs 3 trillion market loss. Trading was also suspended for an hour.

RIL Q3 profit was Rs 3882 Cr. Jumps 26% from the last quarter. Based on better returns

in refining front.

Banks make merry in the last quarter by higher profits. Andhra bank Q3 profit rose by

17% to Rs 159.02 cr, IOB rose by 25% to Rs 308 Cr, Bank of Baroda rose by 52% to Rs501.05 cr.

BSNL lines up 40,000 Crore big bang IPO.

India has the most number of PE funds among BRIC countries that is 160. China is

second that has 115 than Brazil 89.

The biggest turbulence in automobile industry after fords model T.

Wockhardt revises the IPO price band to Rs 225260 from Rs 280310 on market

woes.

International Headlines

Federal Reserve may push interest rate below the pace of inflation now it will stand at3%.

Average price for a gallon of gasoline in the US fell below $3 due to less demand andslightly lower oil prices an is likely to hold steady.

US economy nearly stalled in last quarter of 2007 which was 0.6 %. Growth rate for theyear was just 2.2 % which is the worst figure in last five years.

French bank Societe Generale on Thursday has uncovered 4.9 billion fraud one of thehistorys biggest by a single trader.

Citi bank writes off $18 billion loss nearly $10 billion on sub-prime assault.

IMF slashes US growth forecast from 4.9% in 2007 to 4.1% this year.

FBI is investigating 14 companies for possible accounting fraud and insider tradingoffense related to subprime mortgage

UBS hit by further $4 billion write down taking the total loss to $18 billion in 2007.

1st FEB 2008

Volume 1, Issue 11

..Tracking the Economy

A brand for a company is like a reputation for a person. You earn reputation by trying to do hardthings well. - Jeff Bezos

Inflation 3.83 % , IIP 5.3%

Issue AttractionsNationalHeadlines

1

InternationalHeadline

1

CorporateInterview

2

Quiz 2

Student Editorial 3

Pearls ofWisdom/Taglines/Buzz Word

4

15 days Movements

CHAANAKYACHAANAKYACHAANAKYACHAANAKYAWealth Incorporation - A CCIM Finance Club Initiative Presents

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Quiz

Sometimes you just got to give yourself what you wish someone else would give you. - Dr Ph1. 2. 3. 4.

Robert G Kahl , CFA, MBA, CPA is the founder of Sabino Investment Management, L.L.C.

What is your investment philosophy?RGK: I look for companies that are projected to generate a large amount of free cash flow relative to tamount of money invested. I prefer to see assets on the balance sheet that support the price of tstock. There are also qualitative issues involved such as earnings predictability, financial strength, amanagement ability.

How did Benjamin Graham change your perspective on the financial markets?RGK: After I received my MBA, I believed in efficient market theory. At UC Berkeley, efficient market theowas the guiding principle in the finance classes. People like Benjamin Graham and Warren Buffett were neven mentioned. If an investment manager outperformed the market, it must have been luck. Based upon mpersonal experience at that time, it made sense to me. After reading Benjamin Grahams books, I could no longer accept efficient market theory. In BenjaGrahams books, he gives examples of companies that represent a buying opportunity and others that weclearly overvalued. Since then I have identified other companies that were undervalued and Ive been abletake advantage of those situations. I now think of the financial markets as a bell curve. On one side of tcurve, you have stocks that are overvalued. At the other extreme, you have stocks that are undervalued. the middle of the bell curve, you have many stocks that are close to a reasonable price. At times, tdistribution curve may be skewed so there are many undervalued or overvalued stocks. I attempt concentrate my clients capital among those stocks that I believe are undervalued.

Do undervalued stocks entail more risk?RGK: To the contrary, I believe that they often involve less risk. Benjamin Graham wrote that the secretsound investment was margin of safety. Value investors attempt to find companies that are selling for lethan their intrinsic value. Intrinsic value is determined by the analyst based upon facts and reasonaassumptions about the future. The difference between the price and the intrinsic value of the stock providthe margin of safety. The potential for appreciation results from the tendency of the stocks price to motowards its intrinsic value over time. We cannot eliminate risk but when a stock is undervalued, the potentnegative factors tend to be fully reflected in the price.

growth may not be reflected in the price.

Value investing has been a popular style in recent years. Is it a style for all seasons or shouinvestors consider growth stocks now?RGK: In my article, Value vs. Growth The Importance of Investment Philosophy I summarized the resuof ten different studies on the subject. The studies involved different time periods and some included forecountries. The results were consistent - if you buy stocks at low ratios of price/earnings or price/book valyou should be able to beat the market by 3-4%. The vast majority of investors and money managers haignored the results of the empirical studies to their detriment. It should be noted that many value stocks haearnings growth but investors may not be excited about the company, so the prospects for earnings growmay not be reflected in the price.

Identify the Personalities (Answers in the same issue)

Interview With Robert G Kahl

(Contd...to next issue)

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Did you Know?

In Germany shoes t

cost 12 Marks in 191

were sold for 32 tril

Mark in 1923. In

Hitlors favorite b

bar, a glass of b

costed a billion Mark.

due to hyper inflat

which occurred due

over pr int ing

currency notes by go

Spice Jet

BSE500285, NSE MODI

CMPRs.71.85, Target price

Larsen & Toubro

BSE500510, NSEL

CMPRs. 3770, Target price

Kalindee Rail Nirman

BSE522269, NSEKALIN

CMPRs. 395, Target price

Exide Industries

BSE500086, NSEEXID

CMPRs. 80.85, Target price

(CMPCurrent Market Pr

Stock Ratnas

Everyone experiences tough times, it is a measure of your determination and dedication howyou deal with them and how you can come through them.Lakshmi Mittal

Answers To Quiz

1. Swaraj Paul

2. Laura Ashley

3. Michael Potter4. Robert Reich

Understanding Capital Account ConvertibilityBy: Fouzia Taranum

Capital account convertibility (CAC), as defined by the Tarapore Committee, is thefreedom to convert local financial assets into foreign financial assets and vice versa atmarket determined rates of exchange. Simply, it allows residents to convert (buy or sell)

currencies to make investments into foreign shares, properties and other assets. It issometimes referred to as Capital Asset Liberation.

CAC has 5 basic statements designed as points of action:

All types of liquid capital assets must be able to be exchanged freely, between any twonations, with standardized exchange rates.

The amounts must be a significant amount (in excess of $500,000).

Capital inflows should be invested in semi-liquid assets, to prevent churning and

excessive outflow.

Institutional investors should not use CAC to manipulate fiscal policy or exchange rates.

Excessive inflows and outflows should be buffered by national banks to provide

collateral.

In layman's terms, it is basically a policy that allows the easy exchange of local currency

(cash) for foreign currency at low rates. This is so local merchants can easily conduct

transnational business without needing foreign currency exchanges to handle small

transactions. CAC is mostly a guideline to changes of ownership in foreign or domestic

financial assets and liabilities. Tangentially, it covers and extends the framework of the

creation and liquidation of claims on, or by the rest of the world, on local asset and

currency markets. In most traditional theories of international trade, the reasoning for

capital account convertibility was so that foreign investors could invest without barriers.

What CAC brings with it?

In the run-up to full capital account convertibility, the Tarapore committee had charted out

a phased liberalization of capital inflows and outflows. Some of the recommendations ofthe committee in this regard were:

Allowing Indian joint ventures/ wholly-owned subsidiaries to invest up to US $50 m

abroad;

Removal of existing requirement of repatriation of the amount of investment by way of

dividend within in five years;

Allowing exporters/exchange earners to keep 100% of their forex earnings in the

exchange earners foreign currency accounts;

Permitting individual residents to invest in financial assets abroad up to US $25,000

and gradually raising the limit to US $50,000 and US $100,000;

Allowing mutual funds to invest in securities abroad within an overall limit of US $500

m in phase I, US $1 bn in phase II and US $2 bn in phase III;

Giving banks greater freedom to borrow and deploy funds outside India in stages;

Allowing foreign institutional investors' portfolio funds to be invested and repatriated

without prior RBI scrutiny;

Allowing FIIs, non-resident Indians and foreign banks full access to forward cover for

their Indian assets;

Permitting banks and financial institutions to participate in gold markets aboard; and

Withdrawing the Reserve Bank from playing the role of the government's merchant

banker.

Did you Know?

As per June 23, 2

report, the inflation

Zimbabwe has risen

11000% and rising

As economy is contin

to worsen, the cen

bank is issuing

highest denominat

bank notes ever w

face value of 10 mil

Zimbabwe dollars

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How to Prepare:

Be thorough with the fundamentals & financ

concepts.(Banking, Accounts and risk Management

In GD be specific, quality is important th

quantity. Be thorough with the contents of your CV a

projectsSuggestions: Learn something about t

company, its achievements and areas

business .Be positive and confident, Should

flexible regarding location and timings (i-flex stan

for Integrity and Flexibility)

Pearls Of WisdomRavi Kumar P N ( Batch-2007)pnravi_ccim@yahoo.co.in

Business Analyst,i-flex solutions limited, Mumbai

Phone # : 09920043294 Blog site : www.ravisblognet.com

Job Profile :

Preparing Functional Specifications based on clients (Banks)

requirements Preparing test plans and data pool which will be used in

automation testing.

Assisting Automation team in developing scripts and

automating the testing process

Please mail your valuable feedbacks, reviews at chaanakya.ccim@gmail.com

Buzz Word

Bulgea slang term used to describe a rapid advance in price

within the commodity market.

First in, Still Here (FISH) - an accounting buzzword that

describe when companies still have inventory on hand that is notbeing sold due to inattention or obsolescence. While not an

official type of accounting treatment, the term is named after

the LIFO and FIFO accounting methods.

Kitingthe act of misrepresenting the value of financial

instrument for the purpose of extending credit obligations or

increasing financial leverage.

Loan shark an arrangement where the borrower is charged a

much more higher interest rate than the market.

Book Quotes: the unreal is more powerful than the re

because nothing is as perfect as you cimagine it. Because it only intangible ideaconcepts, belief, fantasies that last. Stocrumbles, wood rots, people, well they die. Bthings are as fragile a thought, a dream,legend, they can go on and on

Chuk Palahniuk

Courage is the discovery that you may win, and trying when you know you can lose

Tom Krause

Tag Lines:

We know money -AIGAIGAIGAIG

Legendary reliability -APCAPCAPCAPC

Whats In Your Wallet? -Capital OneCapital OneCapital OneCapital One

Live Richly -CitiCitiCitiCiti

Quality In Everything We Do -Ernst &Ernst &Ernst &Ernst &

YoungYoungYoungYoung

Its Everywhere You Want to Be -VisaVisaVisaVisa

A. HSBC B. IIFCL (Indian Infrastructure Finance Co. Ltd)

C. Trillium Mutual Fund Co. D. AUL, One America FinancialPartner

A.

C. D.

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Contributions made by :

(1st Year Students) Article, Taglines & Quiz Fouzia TaranumNews Anup Rajan &

Ashish Poddar

(2nd Year Students)Book Quotes, Buzz Word & Ritesh VermaStock RatnasEditing Sindhu B. Navali

Graph Anshu AwasthiInterview Ravi Sekhar MPearls Of Wisdom Gopal Pai M