Cranes Software & Compact Disc…the Two ‘Cs’ continue creating Chaos

One of the major objectives of my Blog is to warn Investors to stay away from or reconsider the risks assumed in their Investment in certain Companies….the two ‘Cs’,Cranes Software and Compact Disc were covered earlier in my blog to serve this objective 

Thanks Saif for reminding me about Cranes Software…It has sunk to below Rs 7…I had warned about it on December 31,2009…..In reply to your response I think you can write this Investment off as a bad experience and a part of a learning curve  

Cranes Software at 52 week low of Rs 28…was Rs 100 just over a year ago…Waste or Worth ?

Thursday, December 31st, 2009

Thanks Ashish Pathak for your response on Compact Disc….It remains at Rs 65 even today…and you’ve been married to it for four long years !…I had reviewed it in detail on March 25,2010 and was not impressed with Corporate Governance and Liquidity Position of the Company….my position remains unchanged even today…but you seem to have more conviction here than I do…Live it if you’re sure and comfortable with the risks that you have assumed…otherwise look to switch

Compact Disc at Rs 87.20…Fantastic Surge past few days…is it sustainable?

Thursday, March 25th, 2010

Cheers !

Cranes Software at 52 week low of Rs 28…was Rs 100 just over a year ago…Waste or Worth ?

End October 2008,when the Sensex had crashed below 8000 from a high of 21000 in January 2008,Cranes Software (FV Rs 2) was at Rs 90 and yet rated a ‘Buy’ by a leading Broking House with a target of Rs 106….Had you invested,you’d have gone ‘Broke’ and probably be with the ‘Angels’…get the whiff!? 

Cranes is now at Rs 28/29…a 52 Week Low…there is a lot of interested buying that has led me to have a brief look at this scrip

While the Whole market surged in 2009,Cranes reversed from Rs 80 to Rs 28

This appeared strange at first,given the fact that for FY 2009,the Networth shot up from Rs 481 crs at March 31,2008 to Rs 632 crs at March 31,2009,helped by a bottomline of Rs 115 crs….Book Value moved up sharply from Rs 41.95 to Rs 53.70 and is likely to cross Rs 60 this year….P/BV is very low at @ 0.50….. Equity is Rs 23.55 crs giving an EPS of Rs 9.8…..Q1 FY 10 indicates this EPS will be maintained this year…Thus the PE is under 3

So does Cranes Look great at Rs 28/29 ?….Look again

EBITDA in FY 2009 was Rs 227 crs,up from Rs 191 crs and PAT was Rs 115 crs,up from Rs 95 crs….Yet the company crashed Dividend to just 10% from 60%….Rs 2.36 crs was the absolute amount…that’s barely 2% of the PAT !

Look again…The Company is obviously in deep cash trouble…Borrowings have increased from Rs 573 crs in 2008 to Rs 743 crs in 2009…These incremental funds of Rs 170 crs along with Cash Profits of Rs 187 crs (after Depreciation adjustment) give additional funds of Rs 357 crs….Where have they been applied ?…Look at the Assets…Gross Fixed Assets have increased by Rs 103 crs and Debtors by a whopping Rs 272 crs from Rs119 crs to Rs 391 crs…that’s 74 % of consolidated (+15 subsidiaries) revenues of Rs 529 crs……that’s way too much….raises question marks on credibility of the Sales and Profitability figures and therefore Liquidity situation at the Company

Shareholding Structure reveals near 37% is held by Promoters and nearly as much by FIIs…Normally this should spell ‘confidence’…but seems more like just ‘con’

This Bengaluru proprietary software products based company will celebrate 25 years next year after it was co founded by Mukarram Jan and Asif Khader….Hope it does not go the way of Aftek Infosys (Rs 17) and Silverline (Rs 6)

There is heightened activity at the counter with traded volumes running into several lakhs of shares, both, at BSE and NSE read more

SEBI is right in regulating those offering stock recos on Social Media

SEBI is right in regulating those offering stock recos on Social Media & Emails & SMSs.

SEBI’s latest salvo to brokers is a 29 Page New Compliance Directive issued in September 2016 while to Investment Advisers (IA) is a 30 page Consultation Paper of October 7,2016 for  amendments to IA Regulations 2013 & inviting comments by November 4,2016

This  Consultation Paper plans to ,among several amendments & clarifications,disallow Investment Advisers offering stock recos  on Social Media unless authorised by SEBI.This has been instantly bashed on Social Media itself for this with hash tags like #SEBIkidadagiri & #SEBIGoback

Looks like SEBI is in a Catch 22 ~ Damned if it Did & Damned if it Don’t !

In my Considered View it’s better it Did

The major grouse by those against such strong regulation is impinging on Freedom of Speech & Expression in a Democracy & why is it ok to give advice on TV and not on Social Media & SEBI just wants to get the Fees….but believe me there is a lot of Nonsense going around & make no Nonsense of it !.SEBI is simply endeavouring to stamp it out as much as it can and Fees are incidental to this objective though this is an ammunition for the critics who say that  SEBI operates in creating a Fear Psychosis environment among Capital Market Intermediaries…..let me tell you this….for decades many such Intermediaries had a free untamed and often arrogant run ….often like wolves in pack that run together in nexus that has revealed one scam after another at the cost of retail investor suckers.In the early 1990s SEBI got it’s infancy teeth and as the years rolled by  it’s wisdom teeth….also sadly in the early 1990s lobbying got the Controller of Capital Issues (CCI) body to be abolished allowing Companies to flood the Primary Markets with IPOs at obscene Premiums  in Bullish Times when it was easy to sucker a greedy Investor base.Without Strong Investor Education & Protection base in Place the Investors were left to swim & drown in the Capital Markets Sea full of Sharks

Just penning a few thoughts on the Consultation Paper & may add more as I think them….

  • Wish SEBI had invited me to be on their Committee or even as an Advisor when Planning the Regulations….sure would have added serious & fair value without bias
  • Where there is Money there will be Stink!…and with Sensex nearing 30000 again with Market Cap at Rs 11230121 crs or US $ 1.7 Trillion and expected to climb into 2017 you can imagine the Stink!…call it ‘Nexus’ if you want !….The Stakes are getting Higher in the Game !
  • It has removed some exceptions & rightly got MF Distributors who offer advice too ,IFAs & those where advisory was incidental to business & those utilising automated tools for advisory (robot advisory) within the purview
  • It’s Luck more than Skills that often determines Success & Luck gets Luckier in Bullish Times .Like worms out of  woodwork,advisors proliferate giving specific trading and investment and even speculative equity and derivative calls without much fundamental depth or basis & its easy for small investors to get swayed and seduced and influenced in the lure to make some quick monies in stocks.They often entice with free trials(this is planned to go) & play the 50/50 probability game where those who lose drop out and those who win continue till they lose while referring more suckers
  • SEBI may ban equity advice on Social Media but how would they pursue those who flout this as its difficult to trace those who use Bulk SMS & hide behind Servers & IP walls
  • Thankfully SEBI has not included Training in Capital Markets Services requires Registration.However for incisive Training I have to fundamentally analyse & value listed companies & opine on the Value Vs Share Price.I have been doing this for over 30 years .Can this Opinion for Educating & not Commercial or Investment or Disinvestment Recommendation Purposes in my Training Sessions &  on my blog linked to Social Media too,construe as Advice and which requires SEBI Registration ?…this is the reason many good analysts have stopped Blogging all together.In my view this a great disservice to small retail investors.Where would they get reliable & good reasoning advice from ? from Brokers &  Experts on Bubble TV Stock Channels?.They have their own axe to grind & I daresay are not part of the Human Race in this context!…so far for years I have turned down sponsored & paid blogger invite meets & offers of  guest & paid blogs and advertisements from many finance institutions and individuals,many of them well known to avoid any blog bias and conflict of interest.
  • Does Registration with SEBI guarantee the quality of the Advice of registered advisors and research analysts?~any individual with just a lakh of networth and who can attain at least 60% in the NISM Certification examination can register to be one stating some unverifiable experience in this field
  • Let SEBI Be a Watchdog not a Bloodhound….we are taught this the first thing when studying to be a Chartered Accountant….it cannot be a mindset for “Guilty till proven Innocent”
  • Would this be protecting the vagabond listed companies rather than Investors as no one can air an opinion or view on the company’s doings unless they are registered with SEBI!?….read many of my blogposts on such errant companies & you shall know what I mean…In the past I have fundamentally warned with reasoning ,without charging any fee, on Satyam,Geodesic,Arshiya International,Cranes Software,Karuturi etc that went on do become duds  ….now to do so I may have to seek  SEBI Registration !
  • There is a growing argument that SEBI is just frying the small…Not True….it’s got Sahara too
  • Doctors,Lawyers ,Chartered Accountants all need to be qualified and registered to practice…so should Equity Advisors….self regulation does not work as they will protect their own….we saw this with ICAI in the Satyam Matter & even AMFI in many MF matters.Having said this,just like CA’s are licking their lips on incremental work on GST roll out,Lawyers specialising in SEBI Matters too will increase & flourish as additional litigation work should flow to them
  • SEBI Registration requires a minimum Academic or Professional Qualification~Why should Politicians who stand for Elections not be qualified too !?….ah perhaps that’s what leading to faking degrees!…to register to be an Investment Adviser,one has to pass the Investor Advisers Certification Exams by NISM.To be a designated as a Research Analyst one has to have passed the NISM Research Analyst examination.This is also a requisite for registering with SEBI as a Research Analyst.After 30 years I gave an exam again!~ In July 2016 scored over 90% ,attempting 98 of the 100 questions and getting 92 right! in the online NISM Research Analyst Certification Test…This allows me legally now to be designated as a Research Analyst but I have to seek SEBI Registration to practice as one for Consideration!
  • SEBI should regulate but not over regulate or else there is danger in killing the goose that lays the egg.It must remember that Investment in Equities are inherently risky in that there is no guarantee of any return.While it protects Investors through stringent advisory regulations ,it cannot lay the ground for litigation option for these investors against the advisors and research analysts every time when their specific advice leads to a loss.Stocks are traded in real time and can go up and down.That’s the essence of Equity markets in that there is a Buyer & Seller of a specific stock at a given time and price & Prices are a factor of Liquidity,Sentiment,Momentum,Valuation & Demand & Supply & Vested Interests.Advisors can be pitted against Advisors on specific selections & thus one has to come out on the other side of the road
  • Only 515 registered Investment Advisers registered with SEBI as on September 28, 2016 ? come on !
  • Is it best left to Institutionalise the Markets and force retail investors to route through MFs?
  • SEBI clarifies the distinction between Investment Advisor & Research Analyst and that many register as latter to avoid higher compliance in the former.It now will direct even Research Analysts to make no distinction between Class of Clients in timing and comprehensivness of the Research Report being communicated.They will also have to comply with Chapter III of the Investment Advisers Regulations 2013 in that such advice has to be suitable for the client’s financial position and investment objectives.This would mean engaging in KYC and not  merely offering subscriber research reports
  • Many perceive SEBI  stands for ‘Systematic Elimination of Brokers & Investors’ ! ~ such measures reinforce this perception
  • One of SEBI’s planned measures is to ban all schemes,games,leagues & competition relating to Securities.It does not specify whether any consideration is received or not for such.I understand this was specifically aimed at all those Trading Competitions & Leagues initiated by zero discount broking houses.This was a great legally allowed Scam in itself in my view as the Broking House made lots of Crores while seducing Traders to enroll with Performance Prizes in just a few Crores.One even has legendary Cricketer Kapil Dev as it’s Brand Ambassador ! He better watch out as there are now strict accountability for Celebrities endorsing Products & Services.The trap was they had to trade a minimum number of transactions in a week that too in only the Specified Group of Scrips or else they would not qualify for the Prizes on offer.In my fundamental concept view this went against the very tenets of  making Equity Investments for Wealth Creation over the Long Term as it encouraged Quickies in Trading leading to overtrading just so they achieve the minimum transactions per week.The Mathematics were great for the Broking House !.Imagine this with just 10000 (& there are more)registered traders for such schemes ~ Five Transactions a Week a Must & Rs 20 brokerage/transaction for 52 Weeks is a cool Rs 5.2 crs!~ that’s Rs 10 lakhs Brokerage a week at just Rs 100 per trader !~ Now imagine the Maths at 1 lakh participants!…a whopping Rs 52 crs at Rs One Cr a week….Now Imagine even more than One Lakh Traders participating !…It’s literally & figuratively a Steal for the Broking House
  • For a few years on this Blog I have been successfully offering a TAP GAP Poser to all blog readers without charging any fees and instead awarding the gauravblog hampers to answers I decide are winning ones.One such Poser is an annual one at the end of the year for any participant from the public who reads my blog to suggest up to three specific equity picks that in their view will perform the best in the coming year.I may have to stop this even though there is no consideration involved.Will take SEBI’s guidance on this as their Consultation paper has even defined what construes as ‘Consideration’

As far as SEBI’s September salvo to Brokers for more compliance,it’s been a mixed reaction from brokers….some feel compliance costs will rise on account of more manpower required and new software with high annual maintenance charges & in fact it will be difficult to comply and this would lead to selling out or consolidating with other brokers….dwindling broking fees and rising costs will sound the death knell to small brokers.Who then will serve Retail Investors,if at all they are not scared away again from markets?…while some Brokers feel it will cleanse the system of manipulative & dishonest brokers & even those who cannot cope with servicing clients under stricter compliance.“kachro saaf thayi jashey” is their assertion read more

Subex @ Rs 11 ~ Five Questions that come to Mind

Subex @ Rs 11  & thus available around par of FV Rs 10~ Five Questions that come to mind?

First a bit of background of Subex that got grounded bad from a high of Rs 887 in 2005 to a low of Rs 4 in 2013 before sputtering to show some life crossing Rs 18 in 2015 & again correcting sharply to below Rs 10….It’s showing some life again with Market Cap moving up to @ Rs 550 crs & huge Volumes .It’s in the Telecom Software Products space providing Business and Operations Support Systems (B/OSS) to Communication Service Providers (CSPs) across the Globe.

If you’re training with me you’d know how to look at it now….just listing in brief the five points I’m looking at :

  1. Management ~ Its now 48 year old Surjeet Singh ,ex CFO of Patni Computers managing Subex.He’s the CEO & MD & has a Cost to Subex Group Package of over Rs 5 crs.Till September 2012 it was the 1992 Founder Subhash Menon who ran the Show and even remained Director till 2015.Menon’s Rise & Fall Story has been covered in some interesting detail by Forbes in November 2012 .Do even read the Readers Feedback to the Forbes Article. The Board also has Sanjeev Aga,ex MD of Aditya Nuvo & Birla ATT (Idea) & Anil Singhvi of Ican & earlier known for his long tenure with Ambuja Cement.He also was an advisor for two years with the Reliance ADA Group & advised on the Enam Axis Bank Merger .The Promoter Category shows a few investors with a very low stake.In fact many  others especially FPIs have much larger stakes & a few were allegedly instrumental in Founder Menon’s ouster because of the Syndesis Acquisition debacle that crippled Subex.The suspicion was that there was more than meets the eye in this US $ 165 m acquisition & it’s funding by US $ 180 m FCCB 1(See below) ~ Question : What’s Surjeet Singh’s strategy going forward to address the challenges that yet remain & scale the Topline & Bottomline significantly ?       
  2. Networth Jump with FCCB Conversion~ Networth has jumped from Rs 209 crs at March 31,2015 to Rs 727 crs at March 31,2016 as Company revised FCCB III Conversion price downward yet again from Rs 22.79  to Rs 13 on May 14 2015.This attracted near full conversion of the FCCBs taking the Equity from Rs 182.92 crs to Rs 502.81 crs in FY 16….These FCCBs were the huge Debt overhang in the Balance Sheet.The Book Value thus became Rs 14.46 on March 31,2016 with the Balance Sheet showing very little Debt with just US $ 6.95 m o/s on all FCCBs I ,II & III .The FCCB Story commenced 10 years ago in 2006/7 when 2%  FCCB I for US $ 180 m was issued with Exchange rate fixed at Rs 44.08 & Conversion at Rs 656.20.In 2009/10 a restructuring proposal of FCCB 1 was offered at a 30% discount to Face Value.Those who held US $ 141 m face value FCCB I accepted & were issued 5% interest per annum, payable half yearly US $ 98.7 m FCCB II with exchange rate fixed at Rs 48.17  & Conversion at Rs 80.31.Redemption date was the same at March 9,2012 which RBI extended to July 9,2012.However another restructuring offer was made in June 2012 to FCCB I & II Holders & most (US $ 38m of the 39 m FCCB I o/s & US $ 53.4 m of the 54m FCCB II o/s) accepted it in July 2012 & were issued 5.7% interest per annum payable half yearly FCCB III for US $ 127.72 m with exchange rate fixed at Rs 56.0545 & Conversion Price at Rs 22.79 with maturity date of July  7,2017.On May 14,2015 the Conversion price was reset on these FCCB III to Rs 13  ~ Question : Though the FCCB Mess has been resolved where lies this High Networth & how is it going to be serviced?
  3. Goodwill on Consolidation ~ The Networth lies in the Carrying Values as on March 31,2016 of the Investments of Rs 647.39 crs made in Subex(UK) which contributes nearly all of topline & of Rs 124.96 crs(lower by Rs 54.90 crs) in Subex Americas Inc.Consolidated Accounts throws up these Investments in the Goodwill on Consolidation.Company has,and new auditors,S R Batliboi & Associates(Previous was Deloitte Haskins & Sells) have accepted the continuing Goodwill Value of Rs 670.36 crs for UK & the fresh assessed Rs 97.26 crs for Americas(down by Rs 88.70 crs from the Rs 186.06 crs carried till FY 15).Company views this as fair based on their assessment of operations  & cash flows going forward & even external valuations.~ Question : These are Intangible & carry risk of Impairment going forward & thus are they yet being overstated even now ?
  4. Topline ~ Sales continue to hover in the Rs 320 crs to Rs 360 crs range last four years despite regular annual report noises on the potential of  mobile telephony going forward.Bottomline remains relatively insignificant even as FY 16 generates Rs 50+ crs and an EPS of Rs 1…maybe enough to service stakeholders like Employees & Working Capital Lenders but what about Shareholders~ Question :Even assuming lower Interest Burden with the FCCB Conversions & less risk of Exchange Fluctuations how would such a flat growth topline generate enough bottomline to service the Equity of over Rs 500 crs now?
  5. Subsidiaries Outstandings set off sought from RBI ~ Standalone Financials as on March 31,2016 reveal Trade Receivables,net of Doubtful Debt) from Subsidiaries  at Rs 412.73 crs &  Payables at Rs 441.28 crs.Company plans to apply to RBI to allow them to set these off. No Accounting adjustment has been made for these & neither have Auditors qualified their Report on the Standalone Accounts though they have drawn attention to it as an Emphasis of Matter ~ Question : That these have grown so huge on either side over the years without being settled does it signal at least a part being accommodation entries?

Remember how I had analysed & exposed Geodesic in 2012/13 at @ Rs 10 & with huge FCCBs too when many were floating it as multi-bagger potential to cross Rs 100.It dropped to under Rs 2 & has since been suspended from trading         

Over 600 Employees yet believe that Subex will Turnaround under Surjeet Singh…Question is do you as a Potential Investor ….or is the risk a bit too adventurous for your profile….Subex has little long term debt & is showing a positive bottomline now ….well the FCCB Mess certainly has been cleared up but at the cost of FY 16 creating an additional 32 cr shares which already created a selling momentum after the conversion…some yet may have to be sold off.

This is anybody’s & everybody’s share now with insignificant Promoter Holding….There are many who jumped in excitedly at Rs 18 last year & saw their Investment halve in quick time on selling pressure created by additional 32 crs created from August 2015, earliest effective conversion date was in this month ,on the FCCB III.Remember these FCCB Holders had already faced 30% Face Value Loss on FCCB II issue  + Exchange Loss from original Rs 44 & then Rs 48 & then Rs 56 when current rate is @ Rs 67 ….and shares converted at Rs 13 would surely have been crying to sell at Rs 18 to recover some loss for the holders!…. Now there are many yet aggressively buying in at Rs 9.50 to Rs 11…Volumes & Price Trends are telling some story…Selling Pressure seems to be ebbing

🙂 Anybody interested in acquiring  majority stake in Subex ? will cost you under just US $ 45 m or under  Rs 300 crs (@ Rs 67 ex rate)  for a 51% stake & you’ll get a Rs 350 crs topline company with little debt & in profits & servicing  most of the leading Telecom Operators & Communication Service Providers worldwide…and the Book is near Rs 15 with very little equity dilution remaining on account of remaining FCCB conversion….you of course need to believe the carrying worth of Investments in Subex (UK) & Goodwill on Consolidation shown because of it…you would also need to believe in Surjeet Singh’s exclamation in his statement in the FY 15 Annual Report that it’s Inflection Point & all at Subex are very excited about the road ahead read more

IndiaBulls Group is BILKING INDIA say Veritas ! ~ There’s more than Meets the Eyes on both sides !

IndiaBulls Group is BILKING INDIA say Veritas ! ~ There’s more than Meets the Eyes on both sides ! 

Was prompted by an editor of a leading Media Financial Publication for my views on the controversial research reports generated by Veritas,Canada on Listed Indian Companies

Veritas is a Bear on IndiaBulls 

Veritas,Canada released a Damning Research Report dated August 1,2012 on the IndiaBulls Group controversially titled BILKING INDIA !  ~ specifically covering three Companies IndiaBulls Real Estate at Rs 55.85,IndiaBulls Power at Rs 12.80 and IndiaBulls Financial Services at Rs 227.30

BILKING is a strong word ~ Obtain or withold Money by deceit or without justification,cheat or defraud ~ obtain money fradulently

This is My Immediate Take on The Veritas Research Report Controversy on the Indiabulls Group

On Veritas Motives

  1. Why do they come up with only Sell Reports ? ~ and that too just a hand full of companies have been covered in the past year ! ~ Are these Reports generated to create Big Bonanza through F & O Short Selling Quickies ~Yes,Veritas and Mr Neeraj Monga ! Why are there no Buy Reports !? ~ Nothing Worth Buying in India !? or you want Clients to make Monies only by Selling Off or Short Selling or Saving them from making the Investment! ?
  2. In my view this is unfair and unethical especially to other Clients already on the rolls ~ by agreeing to delay the IndiaBulls Report by one day just to tempt Altima,London to sign on for US $ 50000 a year for Research Reports generated by you so that they can act on the Report before it is issued for wider viewership ~ a question that follows is this ~ if these reports are a paid service then what does Mr Monga mean that he will delay the issue of the Report by one day !? what is he implying ? will he be issuing or leaking the report free ! to a wide audience who are not paying clients? ~ wonder if this borders on insider Trading !

On IndiaBulls Strong Reaction

  1.  In initiating Criminal action,IndiaBulls is sending out a Strong Threatening & Menacing Message ~ “Don’t Mess with Us!”  ~ perhaps only IndiaBulls can do the Messing around !

Neeraj Monga and Nitin Mangal,the Veritas analysts who have damned the IndiaBulls Group are seen as fearless crusaders by many as also foolish by some and with vested interests by quite a few~ their Motives are under the microscope in writing such a Damning Report ~ Veritas charges Signing up Clients an Annual Fee of US $ 50000 to receive such Reports ~ So Far these guys have damned the Reliance Group especially Reliance Industries and Reliance Communications,DLF and KingFisher ~ Their latest target has been the IndiaBulls Group

If you follow my blog you will not have to pay a single Dollar ! ~I’ve exposed quite a few Companies,including KingFisher Airlines ~ use the Search Engine to locate such posts

Check the tagline of my blog  ” In India,Companies may fall sick but promoters rarely do!”

When I wrote for leading Stock Publications in the past,for the benefit of Lakhs of Investors I have often exposed traunt listed companies and their unethical and fradulent  and manipulative operating and accounting practices~ Of course I’ve been threatened to be sued often until evidence is shown to the Companies and they back off ! ~ Scales and Stakes were in lakhs or a few Crores then unlike now where we are seeing hundreds and thousands of crores of rupees being raised in dubious ways and spend dubiously too ~ This Role of playing Watchdog  is the Responsibility of the Regulators and the Exchanges  ~ Let’s just say that only of late have they been bit by Conscience ! ~ otherwise only the small fry was fried ! ~ also the blatant and shameless rape of Investors by unscrupulous promoters and their network often has strong political patronage ~ and is supported by some in the mainstream  media,broking  and banking world Let me make it Clear though ! ~ I am not a Share Activist ! neither am I associated with any such Activism ! ~ the reason being the prime objective of any analysis I do of Companies in our Capital markets is to see if they merit Investment ~ my job is to make Monies for my Clients by investing in Winners and staying away from Losers or Controversial and Manipulated Companies ~ It’s nothing personal ~ I do not defame Companies ~ don’t really have to as many Promoters effect this Role well themselves ! But What I do do ! is caution readers of my blog on certain companies that I feel may strangle them ! ~ Karuturi Global @ 25 (now 4 ! and was touted by many as a multibagger on big stock channels as Company gave ads on these channels ) or Cranes Software @ 25  (god knows what it’s now)

What these Veritas Analysts are doing is nothing new ~They are Analysing and Interpreting Financial Statements and Disclosures questioning Controversial & Vulnerable Big Companies Motives and Gameplan in their Operations,especially in Corporate Restructuring Exercises that involve Valuations and Raising of Finance and the myraid structure of related entities involved that benefits from Inflated valuations that are even certified by renowned auditing firms ! ~ remember the infamous Maytas and Satyam Real Estate Valuation Report of Rs 6000+ crs by a Big Four Auditing Firm that was prepared in just one day to facilitate the merger of Maytas into Satyam to fill the hole of an equivalent amount !!! Check my many blogs on this in the category of ‘Satyam ~ The sordid Asatyam Saga’

Veritas Analysts are Tearing Up the way certain Revenues,Expenses,Assets and Liabilities are presented in the Financial Statements or simply not disclosed properly to reach conclusions that the Company is weaker or not as strong as the Statements Portrays read more

TAP GAP Equity Poser 7/11……Which Listed Company will be a huge Wealth Destroyer for Shareholders in the next Five Years ?

TAP GAP….. Equity Poser 7/11……Respond by July 15,2011

Winning Response wins the gauravblog hamper that includes a gauravblog Collared T Shirt above….Ten Hampers have already been won in earlier Equity Posers.You can check out the Winners Scroll and their comments after they were delivered the hamper…Winners of TAP GAP 6/11 will begin receiving their hampers next week

Thanks Raoji for suggesting this one

Equity Poser

Which  Listed Company will be a huge Wealth Destroyer for Shareholders in the next Five Years ,in that it should not be in any Equity Portfolio and if available in the Derivatives Segment,Aggressive Players should short it and keep rolling over their positions ?

 

A Guiding Note from me……

We’ve seen decimation in India and Overseas of many companies in the past …even Blue Chips like Kodak are now in the Blues having declined from US $ 80+ levels in the late 1990s to just US $ 3.50 today as ‘ New Tech wrecked Old Tech’ 

In India we’ve seen Corporate Governance Issues damage shareholder wealth permanently….Silverline…Cranes….Austral Coke….list of lemons goes on

We’ve seen Vulgar Vertical Valuations laid flat horizontally….real estate sector scrips are good illustrations….IPOs at Obscene Premiums in the Primary Market have faced a ‘waterloo’ in the Secondary Market….Big Example is Biyani’s Future Capital Holdings…issued in January 2008 at Rs 765,three and a half years later it’s struggling at Rs 130 levels today…Suzlon is another glaring example….enjoying an inflated bubble Market Cap of over Rs 50000 crs at one time post listing and with Promoters Tanti’s being the toast of India,the Market Cap dropped towards Rs 5000 crs and is now at Rs 8600 crs   

So do give your caution and critical reason for it of any company or companies that you would simply stay away from…or if aggressive even short aggressively to mint monies…..

Greenlight Capital began shorting Lehman Brothers in July 2007…Lehman went bankrupt in September 2008 ….This Hedge Fund, walked away with a record US $ 3.1 Billion in gains because it’s Creator and Founder,David Einhorn kept on shorting Lehman from US $ 60 …..he repeatedly challenged Lehman CEO Richard Fuld to disclose the real exposure to mortgage related bonds….In June 2008 Einhorn sarcastically commented on CNBC that Fuld had raised US $ 6 billion…money he had earlier stated Lehman did not need…..to fund Losses that he had stated he did not have ! read more