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Stocks

Don't believe the headlines

Look at the following two headlines:

These are headings from the same web site, and it conveys the Q3 2007 results of two companies, Infosys and Sintex.

If you go by this heading you will think that Infosys has had a lacklustre performance but Sintex has done excellently.

But the problem is – each company has been reported differently! Infosys has been reported on a Quarter on Quarter (QoQ) comparison, that is, Q3 2007 results compared to Q2 2007.

Sintex, on the other hand, has been reported on it’s Year-on-Year (YoY) performance, i.e. Q3 2007 compared with Q3 2006.

This is not clear when you look at the headings – ALWAYS look inside results to see the true performance.

Comparing apples to apples now, here is the performance of Sintex and Infosys:

QoQ
Infosys: +6%
Sintex: -17.8% (Negative, earlier quarter had higher profits)

YoY
Infosys: +51%
Sintex: 27%

You see how different it is when you have the real picture? Don’t trust the headlines; do your own research.

  • Sudhi says:

    >Hi, Deepak, You do have a very good Market research ability. why dont your start a online Share-tips business. I instead of paying MF companies and getting less money can very well pay you for good tips on shares purchase. Cheers..

  • pravin marathe says:

    >i am new to reading blogs and do not now how to ask properly, you can correct me
    my querry is not excatly related to this article
    i am trying to evaluate
    out of 1)pru icici emerging star
    and 2)sundaram select mid cap
    which is better option for long term =ppm

  • Deepak Shenoy says:

    >Pravin: What you can do is, visit this page and compare the two funds in terms of past performance. Click “Performance” in the top right hand corner drop down.

    Emerging star is a fund that’s less than three years old. It’s ranked 54 out of 146 in the category, whereas Sundaram select midcap is ranked 2. I suggest you choose sundaram select midcap instead.

  • pravin marathe says:

    >thanks for the reply
    also i want to know if i want to ask you something , do i wait for the ==add comment==at the end or is there other way available=ppm