Investing in the Financial Sector

Paper Summary:

The paper reveals that the best sector for 2007 is the financial sector and many investors are looking outside of the US for growth opportunities. The paper examines India's ICICI bank's intention to serve a sector of the Indian market that has been essentially ignored by others in the industry. The paper looks at ICICI Bank's most recent financial statements and presents a SWOT analysis. The paper discusses how ICICI has many of the hallmarks of an excellent growth company and concludes that ICICI Bank is a recommended growth stock of the future.

Outline:
ICICI Bank and the Future
ICICI Bank Financials
Stock Valuation
SWOT Analysis
Recommendations

From the Paper:

"There are many unknown factors in the US economy that will determine the success of any stock. The year 2007 is over 1/4 of the way complete and it is too early to see forecasts for 2008. We cannot determine the growth rate of the US economy. Trends up to this point are no indication of future trends. We do not know the direction of US interest rates. There are hints that the Fed's will cut interest rates from 5.25% to 5% sometime in May of 2007 (Jubak, 2006). Inflation levels are another unknown that will affect stock decision. Thus far, oil prices have continued to climb and it is likely that oil prices will continue to climb as the year progresses (Jubak, 2007). These internal factors will have a significant impact on stock decisions and growth for the remainder of 2007."

Sample of Sources Used:

• Das, K. (2006). India's ICICI Bank Targets 25 Million New Rural Customers. Innovations in Emerging Markets. Retrieved May 3, 2007 from http://ifcblog.ifc.org/emergingmarketsifc/2006/11/indias_icici_ba.html.
• Domash, H. (2007). The Basics: 10 growth stocks that can't be stopped. Moneycentral. Retrieved May 3, 2007 from http://moneycentral.msn.com/content/Investing/Simplestrategies/P109819.asp
• Jubak, J. (2006). 10 top stock picks for 2007. Jubak's Journal. Retrieved May 3, 2007 from http://articles.moneycentral.msn.com/Investing/JubaksJournal/10TopStockPicksFor2007. aspx.
• Nasdaq.com (2007). ICIC Bank. Infoquotes. Retrieved May 3, 2007 from http://www.nasdaq.com/reference/glossary.stm#EPS
• Sorenson, B. (2007). Best Ideas for 2007 and Beyond: Get Savvy on Sectors. Retrieved May 3, 2007 from http://www.schwab.com/public/schwab/research_strategies/market_insight/investing_stra tegies/stocks/get_savvy_on_sectors.html?cmsid=P- 1660060&lvl1=research_strategies&lvl2=market_insight&refid=P-1048563&refpid=P- 1005231.

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