10 reasons why people love regular Bollywood movies ..

Its hard to imagine people loving bollywood movies.. a big statement right .. I am talking about the regular bollywood movie where you can predict the movie right from the beginning, there are cheezy and crapy songs after every 15 minutes, characters which might look 50 year old but can still be shown as teenagers, larger than life lead characters and same old  f***** story. Wow, this is the real bollywood movie .. Hard to imagine why people just fall for it over and over again.. 

I still remember that once upon a time I went to watch this movie " KISNA" and had taken a vow that will think twice before getting into a theater. Yes some of the movies are real awesome but  Goodness me watching KISNA was a real pain sitting in that theater, you can't even sleep, it was so irritating !

So I was trying to think why people might like bollywod movies ..and at times watch the same movie over and over again ..  The reasons can be plenty but the one I can think of are: -

1.  Hero Worship : hmm , rather a costly way .. cant resist the mass appeal hmm ..

2. Songs : Wanna hear to good songs  , Get yourself a I-Pod ..

3. Heroines : Hmm actresses ,  cant find a solution , go buddy watch it again as if she is gonna jump out of the screen..

4. Time Pass : Have you tried the new PS 3 with motion sensors..

5. Accompanying your GF/BF/WIFE/Relatives : Hmm , I can very well understand what you are going through ..

6. Insomniac :  If typical bollywood movie is better than a sleeping pill , wow .. its a new market for theaters.

7. Language Troubles : Can't understand the accent, try the subtitles. You gonna love it !

8. Place for Romance: There are very few corner seats , try the box seats, they are kinds cool !

9. Bird Watching : Never knew you can watch birds in dark !

10. Bollywood movies are real awesome : No comments .

Investing in Mid Caps .

Small and mid caps companies looks very attractive at times on stock indices. You might find them rightly priced, far cheaper than the regular blue chips but investing in them is a tough question.

The biggest problem in these companies is lack of transparency. Inspite of strict discloser norms enforced by SEBI, there are companies which frequently cook up their numbers.


The corporate governance issues are creating lot of volatility in the mid caps stocks off late.The mid caps actually corrected by nearly 25% in last one month as some of the companies were found to be either involved in unethical business practices or their owners were involved in some types of scams which puts a question mark on the whole company.  

Mid caps also have problem of cash and seldom a recession can eat of all their cash reserves and a company might never be able to become profitable even after the return of good times . In case of blue chips the resilience to survive a few quarter of negative growth is much more.

I believe the best way to pick a good mid cap stock is :

1.      
      How to pick the real Infosys of the future amongst hundreds of scripts? The real multi-baggers will be found in mid or small caps only . 

            1. Analyze the leverage of the company: A highly leverage medium sized company is more likely to fall in bad times.

2.      
      2.Disclosures and Transparency

3.      3.Quality of management

4.      4.Business Model

5.      5.Barriers to Entry in the business

6.      6.Profit margins 

             

        All said and done , its a tricky exercise . If one is not very sure of investing in equities than investing in mid caps is definitely not a option .