Superstar Amitabh Bacchan invests a Million Dollars in Nitin Fire at Rs 42.99 !

Wow ! Superstar Amitabh Bacchan has invested nearly a Million Dollars in a Bulk Deal on NSE on August 14,2015 by purchasing 1.5 Million Shares of Nitin Fire Protection Industries at Rs 42.99 !

Consequently Nitin Fire has fired up today 10 % and was on  on upper circuit at Rs 47.05 on BSE and Rs 47.15 on NSE in the morning before opening again only to get back on circuit

Remember how Amitabh had stampeded by buying Two Lakh Shares into BSE Listed Stampede Capital at Rs 88 & Rs 110 levels in December 2013 and see where Stampede is today within a year and a half with long term gains exempt! => Rs 650 levels after crossing Rs 700 recently …that’s a five bagger !

So whats fired up Amitabh Bacchan ! …or is it payment in lieu of Advertising for Nitin Fire just as he took shares of Just Dial at par before IPO and made a killing !

And who’s sold to him ? as it’s a bulk deal in NSE and not a fresh allotment

Nitin Fire Products Industries is a FV Rs 2 Share with a FY 15 Consolidated Book of Rs 15 (moved up in June Q 1FY 16 to Rs 15.67) and an EPS of  Rs 2.3   …Networth is Rs 458 crs as on June 30,2015 with Equity at Rs 58.45 crs

Relative Valuations at Rs 47  work out to PBV of 3 and PE of 20 with Capital Employed of Rs 980 crs as on June 30,2015 spread Rs 343 crs in India and Rs 637 crs overseas

Finance Charges were Rs 41 crs in FY 15 and Rs 10 crs in Q 1 FY 16 but most of the Rs 400 cr Debt is actually short  term and therefore not reflected in Fixed Assets but in Current Assets

FY 15 Consolidated Topline & Bottomline were Rs 1150 crs & Rs 67 crs respectively.Overseas Sales contribute over half.The Company operates two plants at Navi Mumbai & Andhra Pradesh and has operations in Jebel Ali,Dubai and Singapore

They have an enabling provision to raise US $100 m in Equity and in FY 14 saw  a successful buy back of 13.47 lakh shares at Rs 57 average involving Rs 7.7 crs  too.Share was split in 2010 from Rs 10 to Rs 2 after raising Rs 64 crs in a 2007 IPO at Rs 190.Two Bonus Issues ,one liberal 5:2 in 2011 and one of 1:3 in 2014 have been given  to shareholders

Auditors Haribhakti & Co,LLP have qualified their Report for two non provisions being Rs 5 crs for a Derivative Contract Loss disputed with a Bank and Rs 45.76  crs Investment in Worthington Nitin Cylinders Pvt Ltd where the Company has relied on a Valuation Report to recover their Investment but Auditors are unable to comment on any potential Impairment as a Fair Valuation Report as required by Accounting Standard 13 is not available

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Shree Ganesh Jewellery~Suckered All from Rs 260 to Rs 26!

Shree Ganesh Jewellery~Suckered All from Rs 260 to Rs 26!

Have warned on this Blog of this Deliberate Destroyer in 2010 on Listing at Rs 260  and yet again in 2012 at Rs 91

Have just posted it in detail on  the SCRIP TEASE Module on www.jsalphaa.com after being provoked by an Economic Times article yesterday on  CDR being debated by the Bankers

All Links to my earlier blogs and the ET Article yesterday are in the above post

Financial Technologies @ Rs 144 ~ A Story of Guts and Glory now Guttered !

Financial Technologies (FTIL)  @ Rs 144 (FV Rs 2)~ A Story of Guts and Glory now Guttered ! ?….though Jignesh Shah ,the Founder Chairman and MD of the FTIL Group (MCX,NSEL and others)states this in his message in the FY 13 Annual Report “….these are tough times the Company is facing and Financial Technologies is making all efforts to come out of such situation” 

I don’t own any shares of the FTIL Group but I do have some very good friends and associates who work for it and are extremely wise and forward thinking and manage the FTKMC admirably and who graciously invited me for the MCX Equity Exchange Launch at Hotel Trident where our FM,Mr Chidambaram in his inaugural speech lamented Insider Trading and Speculation but amusingly went on to sound the gong for the Exchange’s first and symbolic Future trade !

Media has justifiably gone to town on the NSEL and FTIL Group Plight ~Realms can be written on this and am sure a Best Seller Book too will finally be published to reveal what went wrong ! and was it a deliberate sinster plan right at the outset ! ~ and what is the extent of Political patronage at the highest level that’s keeping the Group alive and kicking till now !

For Now this is all that I’m going to say…….

From Rs 1224 on November 13,2012 last year the Share price of FTIL sank to Rs 102 on August 30,2013 and had recovered since then to Rs 160 levels

However today the Share Price intraday dropped over 10% to Rs 140 levels as yesterday on the eve of the AGM the Auditors Deloitte Haskins & Sells has announced that their report of May 30,2013 on the standalone and consolidated results of FTIL results as on March 31,2013 should no longer be relied on ! 

Remember the Satyam fiasco and how the Auditors Pricewater House had released a similar note warning that the last 39 quarters of their audited results should not be relied on ! ~ this went all the way back from 2009 to 2001 !

FTIL’s EPS for FY 13 was Rs 70 ~ It’s June Q 1 FY 14 shows Rs 17 ~ but Deloitte now tells us not to rely on their report !

FTIL owns nearly 100% of the troubled National Spot Exchange Ltd (NSEL) which is embroiled in a Rs 5600 crs payment crisis ~ there is more than meets the eye in NSEL ~ FTIL has already lend Rs 173 crs to NSEL to fund payouts to smaller investors ~How in Hell did this hole in NSEL go undetected for so long !? ~ the answer is suspected to lie in that there was hardly any internal control and deliberately so ~ there was no eternal regulation worth mentioning~ the Operators or Borrowers,the Exchange Administration,the Directors and FTIL as the near 100% Owner  were all seemingly colluding parties ~thousands of crores of borrowed monies were created for the benefit of just a chosen few ,and some were director related parties,through scheming financial structured products,supposedly backed by physical comfort of commodities in warehouses ~ these products were aggressively hawked to high networth investors by a network of brokers,including leading names like Motilal Oswal,Anand Rathi and India Infoline, for a few additional interest points and rolling commission or brokerage ! ~ Most of these funds  are suspected to be diverted away from the exchange

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Insiders in Heritage Foods ~ up from Rs 300 to Rs 450 levels in a month ! MNC takeover?

Insiders in Heritage Foods ~ up from Rs 300 to Rs 450 levels in a month ! MNC Takeover?

Bulk Deals in Heritage Food a few days ago…….

01/11/12 KOTAK INDIA FOCUS FUND  -193397  at Rs 390.00

01/11/12 ASHISH RAMESHCHANDRA KACHOLIA  +194000 at Rs390.00

31/10/12 KOTAK INDIA FOCUS FUND – 248525 at Rs 385.00

31/10/12 KOTAK INDIA FOCUS FUND  – 84500 at Rs 380.18

I had blogged on this just a fortnight ago on October 22,2012

Heritage Food is flying high at Rs 360+ surging over 130% in 100 days since Director’s wife picked up 50000 shares at @ Rs 155 !

The Price is running away from what Valuation indicates…..and it could only mean one of three…

  • It’s close to being acquired by a MNC like HUL or Nestle ~Company has been actively wooed in the past
  • Non Linear Growth in Earnings going forward ~ How? ~ Check my recent blog post linked above
  • Market Machinations ~ Definitely evident

Check out the BSE Trading Pattern from October 1,2012 below

Interestingly on the trading days highlighted in Bold Green where the Volumes have been abnormally high ,the Delivery % has been quite low except for the two days when the above bulk deals were done !

The Volume on BSE today also was high at 88000 shares with price surging to a record Rs 450 before closing at Rs 444+

HERITAGE FOODS (INDIA) LTD
Period: 01-Oct-2012 to 06-Nov-2012

Date

Open

Rs

High

Rs

Low

Rs

Close

Rs

WAP

Rs

No. of
Shares

% Deli. Qty to Traded Qty

1/10/12

306.95

309.05

298.50

299.55

302.40

10,745

47.42

3/10/12

304.00

313.00

302.00

304.90

307.46

10,650

30.77

4/10/12

303.10

315.80

303.05

305.70

309.43

13,611

39.37

5/10/12

309.90

309.90

295.00

299.10

299.57

5,930

44.86

8/10/12

302.85

308.00

290.00

293.80

300.63

12,080

36.54

9/10/12

295.00

302.00

290.00

293.60

296.75

14,579

52.11

10/10/12

297.00

299.00

283.10

284.75

290.91

6,142

45.60

11/10/12

287.00

303.95

287.00

301.55

297.80

15,244

37.29

12/10/12

301.05

307.85

296.00

300.35

301.75

7,890

36.78

15/10/12

303.70

314.20

300.00

307.35

309.22

19,687

33.05

16/10/12

308.20

310.00

302.00

302.05

306.05

3,371

72.44

17/10/12

306.85

338.45

303.50

326.25

328.27

84,693

18.32

18/10/12

328.00

364.00

320.75

357.50

345.58

79,462

21.60

19/10/12

353.90

372.00

349.00

359.65

364.02

45,824

25.62

22/10/12

360.00

367.00

355.00

357.05

362.41

11,064

43.38

23/10/12

360.50

364.75

352.30

359.50

359.05

8,301

34.19

25/10/12

364.10

378.65

362.45

369.25

370.79

21,224

31.59

26/10/12

368.00

379.10

366.00

372.80

373.92

17,033

46.86

29/10/12

375.00

376.85

347.30

349.30

361.99

9,115

64.63

30/10/12

352.85

394.80

346.00

376.65

376.77

1,41,084

18.34

31/10/12

385.10

391.45

372.00

384.30

382.86

4,08,352

91.81

1/11/12

381.50

409.90

378.45

386.55

392.68

3,17,898

67.30

2/11/12

391.00

428.45

388.00

420.05

414.71

2,07,371

22.30

5/11/12

420.05

434.90

420.00

427.60

427.59

79,167

23.70

6/11/12

430.00

433.20

422.00

425.50

427.75

25,834

31.59

Eastman Kodak….now quoting @ US $ 3.50…..was US $ 80+ in late 1990s….. Colour Blind Faith Blinds Shareholders for years…It was not a Value Play but a Value Trap !…Bill Miller and his Legg Mason Value Fund lost US $ 551 million in Kodak

Eastman Kodak….now quoting @ US $ 3.50…..was US $ 80+ in late 1990s….. Colour Blind Faith Blinds Shareholders for years…It was not a Value Play but a Value Trap !

Bill Miller’s Legg Mason Value Fund lost US $ 551 million in Kodak,selling out in 2010/11 after marrying it in 2000

Instantly recall the famous song ‘Tragedy’ by the Bee Gees and a famous quote from Monetary Economist the late Milton Friedman ” We learn from History that we don’t learn from History !”            

Kodak has been a legendary company promoted by George Eastman in 1901…..we all have fond memories of it…in fact Kodak Film Rolls and Kodak Photo Prints have been the medium which has preserved all our fond memories…..

The name ‘Kodak’ does not really mean anything….it is neither a family name nor a descriptive word…..George Eastman simply loved the letter ‘K’ and wanted a company name that began with ‘K’ and ended with ‘K’

….and Kodak has simply been sliding the past decade…..As early as 2002,the operating margins began declining…..finally Kodak recognised in 2004 that the Digital Camera will make extinct Film Roll Cameras…so it stopped manufacturing the latter….however it’s major segment of Consumer Digital ,along with the other two segments of Graphic Communications and Film,Photofinishing and Entertainment saw operating margins continue to decline for several years…..from 2008,the company has bled  and cash flows have been negative

From a Blue Chip Share ,Kodak has now been relegated to the ‘Blues’…In the late 1990s the share was quoted in the US $ 70 and 80s….as the Millenium began the quotes dropped to US $ 50 levels…and have been dropping ever since…in fact from 2004 for several years they moved in the US $ 20s and 30s…then in 2008 when the bleeding became horribly evident the slide began to single digit quotes….today it is struggling at US $ 3.50 levels with a market cap that has dropped below a Billion Dollars 

…and yesterday I read,with great interest,and “I told you so” attitude, that a well known shareholder Bill Miller of Legg Mason Value Fund finally let go of Kodak,selling off millions of shares at @ US  $ 3.80 levels in 2010/11 and taking a loss of US $ 551 million…he was so bullish on Kodak and had been acquiring this stock from 2000 and had held 25% of the Equity by 2005….and he had a huge fan following who followed him in buying Kodak….he had the reputation of being the man who for 15 straight years had beat the S & P

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Zandu Realty Zooms from Rs 2000 to Rs 2800+ in just two days to give 40% returns !

In August 2010 when checking out Emami Infrastructure I had blogged that Zandu Realty at Rs 3100 looked interesting

Emami Infrastructure Ltd at Rs 91…..Listed on July 28,2010 with suspicious and crazy gyrations of near Rs 600 on the upside and below Rs 90 on the downside…What’s the Story!?

Sunday, August 1st, 2010 

Since then Zandy Realty dipped to Rs 2000 levels and looked and even lower risk buy…In the past two days there have been simply crazy volumes …On Friday BSE recorded 2.3 lakh shares while NSE scored a volume of 4.4 lakh shares !…that’s an aggregate turnover of over Rs 180 crs in a single day on the bourses !….and the market cap is Rs 225 crs !….so obviously there’s more than meets the eye in the trades of the past two days and there are Corporate Governance Issues of the Emami Group and the Anand Rathi Group that beg for caution…Rathi is a Director on Board of Zandu Realty 

In just Two days,Thursday and Friday Zandu Realty has zoomed on aggressive buying from Rs 2000 to Rs 2800 + giving a 40% return  

Rumours of liberal Bonus and Split are in the air…Book Value at March 31,2010 was over Rs 300 for a FV Rs 100 share…Equity is a shade over Rs 8 crs while Reserves are double this

But what really got my attention in August 2010 was that this Company is simply holding 2.4 acres in Prime Dadar area in Mumbai….the current value is easily Rs 500 crs in an undeveloped state while the Market Cap today is Rs 225  crs…it has no debt….the FMCG Business,Zandu Balm and all was transfered to the new Owners Emami Ltd from this company and it’s name changed from Zandu Pharmaceuticals to Zandu Realty…this was and remains my contrarion Real Estate Sector Call…In a developed state this Dadar Property is worth probably near Rs 1000 crs ! even if it has to factor in 20% saleable area for the less lucrative  middle class housing segment which is now made mandatory in Maharashtra State

….a naughty rhyme……

Pandu bought some Zandu with some Money

And today that G____ has more than one Honey !

….am quite sure many of you are now tempted to become Pandus !  

Cheers !