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February 2015

Reliance or NBCC ? ~ Both @ Rs 850 levels

😀 Oh ! How I love Equities !

Reliance Industries or NBCC !?

No Brainer!?

Both  FV Rs 10 and @ Rs 850 levels

Reliance with a Market Cap of @ Rs 275000 crs and  embedded in controversies and has actually lost monies for shareholders in the last six years of holding

NBCC with a Market Cap of  @ Rs 10200 crs and on the ascend yet despite a stellar over 500% rise in just over a year !

Had Recommended Exit from Reliance over a year ago on Corporate Governance issues and had strongly recommended NBCC as a SS 2 Select on October 18,2013 as a super Diwali Pick at Rs 110

If you Guys consider a Switch from Reliance to NBCC and make some Money on this,let me know by email and I’ll tell you where to send my Fees ! 🙂

If you don’t make Monies then my email was wrong! 🙂

Oh! and if you’re considering switching from NBCC to Reliance in expectations of  ‘Jio’ Rollout benefit,then all the best and “Jugh Jugh Jio! ” 🙂

 

They dont make Upright & Content & Humble like you anymore Dad !

Dad,Aroon, would have been 85 today ~ An Epitome of Always being Upright & Content & Humble ~  and ‘A’ in  both Name & Spirit

Proud of my Middle Name ‘A’ ~ always flaunt it on my Visiting Card and  Email & Other Communications

Dad’s Life was IndianOil who he served loyally for @ 30 years having helped set it up ~ Earlier in the 1950’s he was with Standard Vaccuum that was renamed Esso and which we finally know as HPCL today ~ A Decade into Post Independence,India set up IndianOil and Dad sacrificed his multi perked MNC Job to patriotically join the fledgling IndianOil  and was initially responsible for setting up West Zone,travelling three weeks in the month….he rose through the ranks donning various roles in Marketing,Supply ,Distribution & Commercial

He was incorruptible in a Sector where Corruption was easily induced and even became a norm where Hundreds of Millions of Dollars of Oil & Gas Trade &  Supply & Distribution Contracts &  Petrol Station Licensing was involved !

He was the Icon of  Integrity in IndianOil and all looked up and revered him ~ one clerk recalled how Dad had reached his humble ‘basti’ abode in the early 1970’s unannounced one evening to congratulate him on his upcoming wedding which he would not have been able to attend as he would be travelling on office work…there was no chair to sit and dad simply sat down on a metal trunk and  had some ‘chai’ offered and considerably eased the air

There were several instances,some really high profile,which I can easily recall, where he has shunned millions offered to show bias and favouritism despite great pressure ~ I used to joke with him “Dad if you had ,we’d be staying in Switzerland!” 🙂 …and he would just smile contently

I mention this in context and light of the unprecedented corruption in the Oil & Gas Sector that our Country has been plagued with especially after Privatisation in this Segment

….However all the pressures indeed had taken a toll on his health…after three strokes at Age 38,48 and 58 he passed away on the fourth at Age 68 in 1998,ten years after retiring from IndianOil in 1988 and refusing to take lucrative Consultancy and representative Offers from Foreign and Indian Private Oil & Gas Majors like many of his colleagues did

….he was the happiest when IndianOil gifted him a HMT Watch for 25 years of service and he could never understand how post modern reforms in early 1990s young finance professionals were getting salaries of lakhs in months and years when he received just two lakhs or so as pension on retirement…though he never grudged this read more

Wow ! Item Girl Suzlon up 20% @ Rs 23 as Sun Pharma Promoters buys in !

Wow ! Item Girl Suzlon up 20% @ Rs 23 as Sun Pharma Promoters buys in !

An Open Offer too has been announced

Market Guys had sized up Suzlon as the Item Girl of the Market given it’s many controversies and tantalising swings and have been playing it’s volatility and should I daresay being entertained by it in great volumes for long 🙂

The Item Girl’s coming Good now !

Clearly Suzlon Energy is now Energised by the entry of Turnaround Artist Dilip Shanghvi of Sun Pharma

It is unlikely the Open Offer for 26% of the Shares will be successful at the Offer Price of Rs 18

A Host of Shareholders from the Shanghvi Family will be allotted 100 crore Equity Shares at Rs 18 and thus bringing in Rs 1800 crs  into Suzlon

Last Month in January 2015 Suzlon entered into an all cash deal to sell it’s German Subsidiary,Senvion for Rs 7200 crs

These Fund Infusions  and  the Entry of Dilip Shanghvi of Sun Pharma are both hugely positive for Suzlon

Suzlon will now be able to tap on huge scale the potential  in the Wind Energy Sector

Watch out for announcement of concrete Scale up Plans

Watch out for the Share Price too !

The Market Cap has crossed Rs 7800 crs today ….but if you include at today’s closing Price of @ Rs 23 the fresh 100 cr Equity Shares of Rs 2 to be issued ,the Market Cap is Rs 10000 crs !

Remember  late 2005 & the IPO frenzy and the frenzied Rs 50000 crs Market Cap at the time and shortly thereafter !

I had even angrily blogged on this then and again in 2013

Suzlon Energy @ Rs 14 ~ Gone with the Wind ! Now back with CDR !?

Thursday, April 25th, 2013 Now can it regain a Market Cap of Rs 50000 crs ! ? Well,Dilip Shanghvi has a fast growing reputation as a great and pugnacious and persistent turnaround and acquisition specialist  Suzlon’s Tanti has found a Saviour  in Shanghvi !

 

Generosity of Spirit that combines Intent & Impact shapes your Leadership Footprint

Interesting Blogpost on ‘What Kind of Leader do you want to be?’ from Business Psychologist and Leadership Advisor ,Rebecca Newton 

She identifies the two central components to successful leadership as being leadership intent (the kind of leader you want to be) and impact(the legacy you want to leave)…she calls these two the ‘leadership footprint’

She quotes Gail Kelly,CEO of  Westpac Banking Group of Australia to illustrate such a footprint….Kelly has spoken openly and honestly about her personal leadership legacy goals. She’s described these goals as “generosity of spirit.” There are two key elements to generosity of spirit, according to Kelly. The first is believing in the power of people to make a difference (leadership intent). The second is creating an environment that empowers them to flourish to be the best they can be and thereby make that difference (leadership impact).

Are you a Good Leader ?

Are Great Leaders Born or can they be Groomed to become such ?

Do all have Leadership Potential ?

Are the Best Leaders only those who lead by Example?

Do Leaders also have to Compromise in this Day and Age ?

What are your Leads on Leadership? 🙂

Adani Group Demerging and the Australian Mine Controversy continues

An interesting and absorbing and explosive article on the Adani Group by Lisa Cox has appeared  on February 7,2015 in  The Sydney Morning Herald    

Tax Havens,Criminal Investigation,Secret Ownership,Murky Money Trails…..the article does state that the Indian Media has reported that Company Officials counter these allegations as being “politically motivated” and a bid to resurrect old cases

Wonder if any Indian Media will have the courage to follow up on this SMH post and whether the BSE & NSE will, at least for the record because they simply accept any clarification and post it on their websites and file it and think their job is done for investor awareness and protection!, seek clarification from the Adani Group for all of this …..the article covers quotes from Australian relevant experts of  deliberate Non Disclosures and Dubious Accounting in Annual Reports of AEL and the role and pedigree and emergence of Gautam Adani’s brother,Vinod Shantilal Adani as the pivotal shareholder and sole director in newly created Singapore & Cayman Island Companies that control the Australian Coal Developments  of the Adani Group

The AEL Auditor,Ahmedabad based Dharmesh Parikh & Co has given a clean Limited Review Report of the latest standalone AEL Results 

Just over a week ago  on January 30,2015 the flagship Adani Enterprises Ltd (AEL) announced that the Board has approved the demerger of diversified businesses of the Company  and the merger of one unlisted mining company into AEL 

AEL has been recording 52 Week Highs and closed the week at Rs 627 (FV Rs 1)

Adani Ports & Special Economic Zone Ltd (APSEZL) closed at Rs 300(FV Rs 2)

Adani Power Ltd(APL) closed at Rs 47 (FV Rs 10)

You can observe that the Face Value of  the Equity Share of each listed Adani Company is different which sure comes in handy to obscure valuations efforts by many !

Scheme of Arrangement  to be effective April 1,2015 and process completed by December 31,2015 and approved by all the relevant Adani Group Companies Boards is as below :

  1. Demergers ~ There will be three of them 
  • AEL transferring Belekeri Port Operations and it’s Investment in APSEZL to APSEZL and the latter issuing 14123 Shares to AEL Shareholders for every 10000 shares owned by them and the shares allotted to AEL for it’s 74.99% holding in APSEZL be subsequently cancelled
  • AEL transferring 40MW Solar Power Project at Bitta Village in the Kutch District of Gujarat and it’s Investment in APL to APL and the latter issuing 18596 shares to AEL  Shareholders for every 10000 shares owned by them and the shares allotted to AEL for it’s 68.99% holding in APL be subsequently cancelled
  • AEL transferring Mundra-Zedra transmission line and the investment of AEL in  wholly owned subsidiary Adani Transmissions Ltd(ATL) to ATL with the latter issuing 1 share to Equity Shareholders of AEL for every 1 shares held by them in AEL.The Equity shares held by AEL in ATL will be cancelled.ATL will be listed on BSE & NSE 
        2. Merger ~ AEL’s Wholly Owned  Subsidiary Adani Mining Private Ltd (AMPL) will be merged into it

As far as Coal Mine Operations the viability of  developing the Carmichael Coal Mine in the Galilee Basin in Queensland is being questioned as Coal prices have dropped and there are Environmental & Real Employment Issues being raised.State Bank of India has controversially announced that it would lend support of US $ One Billion to the Adani Group to develop the Australian Mine

Also with India now reallocating Coal Mines in a transparent manner  after the Scandal on the allocation under the UPA Government had set back Coal Mine Development in India for several years there would not be a scenario of India having to import Coal in the years ahead read more

5 Lessons to learn from the 39 year old Yahoo CEO Marissa Mayer

Marissa Mayer ~ Yahoo CEO

Really Sitting Pretty !

Here’s Nicholas Carson’s   Five interesting Lessons to learn from the US $ 500 million worth Marissa Mayer ~the 39 year old CEO of a US $ 40 billion Yahoo

  1. Choose the opportunity that’s scariest ~ While graduating from Stanford she picked to work at fledgling start up Google becoming one of it’s first 25 employees rather than become a  highly paid consultant or teach at Carnegie  Mellon
  2. Recognize your relative weaknesses~ She was picked as a Coder and struggled for months to build a system which later a new Star Coder joined and crested within weeks.She loved Google and decided that she would not be successful as a coder there and thus looked to find other working roles
  3.  Identify your company’s problems and solve them ~ She threw herself in many roles and finally zeroed in on three areas where she could add material value to Google
  4.  Don’t worry too much about stepping on toes ~ She even tried to solve problems in Google that others were already trying to .She made a lot of enemies but she did not care and neither did Top management at Google as long as problem was solved.In the process she made US $ 300 m in Google and became a Business Celebrity
  5.  Know when to say goodbye ~ Her Enemies in Google became powerful enough to sideline her.Yet she hung on keeping a low profile.When the opportunity came in 2011 to become the CEO of Yahoo she did not take it as she felt the Board of Directors were unrealiable to work with.A Year later nearly the whole Board was gone and she signed a US $ 200 m deal to become the CEO of Yahoo
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