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“In India, companies may fall sick, but promoters rarely do!”

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March 2015

Three As could end the World says Stephen Hawking…but I yet went to work !

This weekend my mind was engaged by the three ‘A’s that  world renowned Physicist,Stephen Hawking is worried could end this World ~ Artificial Intelligence,Apocalypse & Aliens !   …..I’ve always thought that ‘Derivatives’ would ! ,echoing Warren Buffett’s warning that  they were ‘Weapons of Mass Destruction’ ! 🙂

……yet I got up early today,Monday and no hangover and fully alive and  went to work  to begin another week ! :-)…even to see the Sensex drop further 66 points to close at 28438….does it matter in the scheme of things !?

My Point : Don’t wait for the World to End ! ~ Keep Doing & Keep Moving !

Have a great Week

Cheers !

Reliance Industries remains @ Rs 885 ! ~ Gone Nowhere last Six Years !

In October 2012,I had blogged on Reliance Industries @ Rs 850 then wondering aloud if at all it could double in 3 years by 2015 to give a 30% CAGR Gain given all the Controversies plaguing it.The link’s below

Alright! ~ Will it double from Rs 850 in three years time !?

Wednesday, October 3rd, 2012

We are well into 2015,infact in the 30th month since the above blogpost and Reliance Industries  has gone nowhere & continues to struggle at Rs 885 ! while Sensex has gone up 58% from 18675 to 29445 ….The Controversies continue,daresay even more pronounced

While it was in some Clients Equity Portfolios as a Core Selection ,I advised to exit in 2013 itself and stopped covering it on serious Corporate Governance & Controversial Issues that remained unresolved…yet do  

The Market Cap currently is Rs 286149 crs=> @ US $ 46 billion….It was around the same three and six years ago but then was at No 1 Ranking….Now it’s at No 2 Ranking way below TCS’s US $ 85 billion and it’s got ITC, ONGC and HDFC Bank all at it’s heels  at @ US $ 44 billion each

Of Course Mukesh Ambani,with his controlled 45.25% Equity Stake in Reliance Industries, continues to be the richest Indian with a networth of US $ 20 b +,only just eclipsed by Dilip Shanghvi of Sun Pharma ~ but he’s not made his Shareholders rich now for the last six years….The Price was the same even in 2010

From April 2013 he gets Z Category Security which media reports that he pays for at Rs 15 lakhs a month 

Can he redeem this ‘No Gains’ situation in the coming years ?

2.8 million Reliance Shareholders obviously have faith that he will but they have been exposed with this hope and faith for many years now without the comfort of any A to Z type of Security or protection ! 

Are you one of  these 2.8 million Shareholders ?

 

Pipavav on Lower Circuit Rs 68.85 despite or because Anil Ambani taking over !?

Pipavav on Lower Circuit Rs 68.85 despite or because Anil Ambani taking over !?

Pipavav under CDR with Heavy Debt,Huge Capacities but Few Orders to serve the Debt was up for sale and Mahindras & Munjals were interested if there was Debt Restructuring

However listed Reliance Infra &  it’s unlisted Reliance Defence of Anil Ambani has bought out most of Pipavav Promoter’s Stake at Rs 63  and will make an open offer to Other Shareholders for another 26% at Rs 66

This announcement was made post market hours yesterday

Pipavav which was hovering in the mid 70’s for a week  opened this morning down 10% on the lower circuit at Rs 68.85  on both NSE & BSE

Is this because the Buyout  & Offer Price  was lower  that yesterday’s closing of Rs 76.45 !?

This could be one reason…..but think about this ….after the Reliance Power IPO and post IPO mess up where Shareholder Wealth has been destroyed in the past five years  Anil Ambani had eroded a lot of his market credibility ~ Reliance Power is currently down at just Rs 60 from an IPO Price of Rs 450 which adjusts to @ Rs 270 after a Bonus from Premium collected to appease IPO Allotees !

He & his companies  were even banned from accessing the Capital Markets after a consent fine of Rs 50 crs for misuse of ECB Funds overseas

This begs the question…can Anil Ambani redeem himself with Pipavav Defence  even as his Power Company is Powerless yet in a sense ! ~ Market is ruthless and has given a huge thumbs down today !

Contrast this with the entry of Sun Pharma’s Dilip Shanghavi in Suzlon at Rs 18 last month with an Open Offer to coming at this price ~ Suzlon raced away over Rs 25 on this announcement !

Incidentally after Sun Pharma Price shot up yesterday,Dilip Shanghvi (US $ 21+ billion) overtook Mukesh Ambani (US $ 20+ billion as the Richest Indian

Don’t you wish even Dilip got into Defence ! 🙂

So which Anil Ambani Company now do you prefer at Rs 60 to Rs 70 ! ~ Reliance Power or Pipavav ! ?

 

Ratan Tata ~ An Amusing Tuesday Tale ~ Who is he ? asked one who should know !

It was a Warm beginning yesterday ,Tuesday March 3,2015 with a smiling & pensive Ratan Tata as @ ten of us awaited the Lift ~ all respectfully made way for him ~ I took the next one and thus witnessed an amusing conversation between a guy from RTI who cater to Tata Offices and Tata’s Driver ~ “Who’s he? asked the RTI guy who later said he had completed 10 years in RTI and the Driver taunted and all smiled ! ” You’ve worked 10 years in RTI and don’t know this man!.Even in America every child born by the time he or she turns 5 knows who Ratan Tata is !” ~ Wow ! ~ speaks volumes for Ratan Tata ~ he commands respect even without having to take centre stage or tom tom his presence like so many not even half his stature do !

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