Boom!as FM Busts Corporate Tax!~Wow!How!Now!?

Released today under my authorship in the SCRIP STANDPOINT Module of Jeena Scriptech Alpha Advisors Pvt Ltd  

“How’s the Josh !?”

Boom!as FM Busts Corporate Tax!~Wow!How!Now!?

The effect of Fun & Excitement peaks when the cause is least expected

Market Sentiment has reversed dramatically & instantaneously !  

BSE & NSE  has seen the Sensex & Nifty created historic surges moving respectively 5.32% & 1921 points up to 38015 & 569 points to 11274 on Friday,September 20,2019 & even more by 2.83% to 39090 & 11600 on Monday ,September 23,2019 to aggregate a surge of 8.3% in just two trading days with Total Market Capitalisation zooming up in just these two trading days by Rs 10,45,700 crs or nearly US $ 150 Billion  to  Rs 148,87,830 crs or near US $ 2.1 Trillion ,thus regaining US $ 2 Trillion Capitalisation quickly ! 

Date Sensex Close Up/(Down)  Points, % Approx Total Market Cap

(Rs Crs)

Total Market Cap Up (Down )

Rs Crs, %

Friday ,September 13,2019

A Week Before

37385 1,42,42,950
Thursday,September 19,2019

Day before Tax Rate  Game Changing Significant Slash Announcement

 

36093 (1292), – 3.46 1,38,42,130 (4,00,820),  -2.8
Friday,September 20,2019

Morning of  FM’s Tax Rate  Game Changing Significant Slash Announcement

38015 1922, 5.32 % 1,45,34,237 6,92,107,   5
Monday,September 23,2019

On Second Trading Day after  FM’s Tax Rate  Game Changing Significant Slash Announcement

39090 1075, 2.83 %

&

2997 in two days, 8.3%

1,48,87,830 3,53,593,   2.43

&

10,45,700,   7.56 

Wow ! How !  Now ! ?

It took a Government Sacrifice of  Rs 1,45,000 crs or US $ 20 Billion in Corporate Tax Revenues to create a 7x sacrifice surge in Market Cap of US $ 150 Billion in just two trading days !

It’s like the Government conceding to the Corporate Sector ” Hey Guys ! we’re transferring our Revenues to you as you’ll can put it to more productive use by funding an Investment Capex Cycle to stimulate more growth for better returns than we can through increased Government Spending “

What is clearly a Market Valuation Re-Rating Move,on the morning of Friday,September 19,2019 our FM Mrs Nirmala Sitharaman announced,what should be seen as a forced measure, a Tax Bonanza for Corporates busting the Tax Rate from an effective high of 34.94% for most to an effective 25.168% with no requirement for those who opt for this rate,  to pay the Minimum Alternate Tax which too was slashed to an effective 17% from  the current 18.5%.Another major tax incentive will be a Tax rate of just 15% for manufacturing companies incorporated after October 1,2019  & who commence manufacturing by March end 2023

Such Tax Rate Cuts & Incentives  announcements should have been part of the budget in early July.If one recalls since the NDA came to power in 2014,it’s always been their stated intent to reduce the Corporate Tax Rates gradually to 25%.Economic slowdown is a catalyst to this ‘one shot’ reduction now & that’s why it can be viewed as a forced measure

It’s a ‘No Brainer’ that Markets would instantly turn euphoric as back of envelopes calculations see the Nifty 50 Companies,whose aggregate FY 19 PAT was Rs 370000 crs , benefit by a clean Rs 27000 crs or US $ 3.8 billion in FY 20 on this Tax Rate reduction.Factor in Earnings Growth before Tax & the benefit is even higher  read more

Sat 24 Aug 2019 Mumbai Equity Workshop on Stripping Annual Reports ~ Bullshit or Badass

 🙂 Are you yet Alive in these Markets !?  😯 Wish to remain so ?

Then after June 22,2019 , here’s another great  Rs 9000 opportunity to attend my Mumbai Fundamental Equity Workshop  ~ 😆 Please don’t ask for any discount because I can’t say No !

Interpretation of Financial Statements
Indian Equity ~ (St)Ripping Annual Reports ~ Bullshit or Badass
Full Saturday, August 24, 2019

Limited Seats so do book yours right away here => www.jsalphaa.com/register.php

No prior Financial or fundamental knowledge is required. Just come with an Open Mind dressed with Common sense to realise how uncommon it really is ! At the time of Registration or even later you can even request for a Specific Company you wish who’s Annual Report be (st)ripped at the Workshop 

Here’s a warm testimonial from a participant who flew in from Accra,Ghana for the June 22,2019 workshop on Sensex at 40000 ~ Treasure & Traps where we covered Risk Profiling & Returns ,Scenarios & Scrips,Macros & Mistakes,Treasures & Traps ~ assessing many on Value Vs Price ~ 😀 Yes, the workshop did go on till much later than scheduled close,as is usual….there was so much fun interaction,again as is usual

” It was a privilege to attend your workshop.I gained a lot of wisdom & knowledge.Many thanks & God Bless ” 

& another from a repeat participant ” Many many thanks Gaurav.It was really wonderful.Really appreciate all the efforts and the sharing of your knowledge.It was outstanding ” 

There’s a comprehensive Workshop Template on the Registration link that details out why you should attend & what benefits you can expect to derive

Here are a few extracts from this  Workshop Template that should convince you to be there on Saturday,August 24,2019

It’s been a market meltdown of frightening proportion across the Board, except in a few ,visibly an (un)lucky 13 that constitute high weightage in the Sensex & Nifty that has kept these Indices alive at 38000 & 11000 yet

The ‘Fun’ in  ‘Fun’damental Stock Stories too has vanished with Equity Portfolios showing strong depression in almost all stock selections across sectors & Market Cap segments  

Company Annual Report ~ Can we yet revere it as the Bible or Bhagvad Gita or Quran for Company Performance !?

Never judge a Book by it’s Cover.We’ve seen the Annual Report sabotaged, painted & tainted by sub standard supervision , monitoring & assessment ,intentional or otherwise, by Banks & other Lending Institutions, Statutory & Internal Auditors , Regulators & Credit Rating Agencies. read more

Mumbai Equity Workshop Sat June 22 2019 ~ Sensex at 40000 ~ Treasures & Traps

The last Seven Workshops have seen a Full House  & great interaction 

Here’s another lovely Opportunity 

Register for the Workshop here 

Saturday, June 22, 2019

Fundamental Equity Workshop in Mumbai
Stock Selection ~ Value Vs Price
Indian Equity ~ Sensex at 40,000 ~ Treasures & Traps

Limited Seats – Single Registration at Rs 12,000 ~ Group Registration of 3 or more at Rs 10,200 each

Save this Date & register for  another great opportunity to interact for a full Saturday ~ You can even request coverage of any particular company or companies when you register

Trapped in Scrips that have destroyed wealth  ? ~ Want to develop foresight in avoiding such Value Traps by identifying Red Flags before hand from Corporate Governance Issues & Financial Statements & other coverage in Annual Reports ?

How to position the Equity portfolio with Sensex at record 40000 ~ Do Valuations look stretched in the short term ?

How to protect Wealth while creating it in Direct Equity? ~ Need  Conviction to Invest in Direct Equity ?

We shall be addressing these & many more concerns  at this Mumbai Workshop  

Look forward to seeing you at the Workshop

Any Queries or need guidance call me on +91-9820162597 or on + 91-22-42304140 or email me at gaurav@jsalphaa.com

Cheers,

Gaurav

 

Gaurav A Parikh

Workshop Conceptualised & Conducted by

GAURAV A PARIKH

Treasures & Traps ~ Rewards & Risks ~ Clearly this is the moot mindset focus currently with Sensex & Nifty recording all time highs of 40000 & 12000 respectively driven by a handful of high index weightage core stocks on the second TsuNaMo election wave in five years.

Gaurav A ParikhCapital Protection  is a ‘must have’  Mindset  at all times for serious Wealth Creation through Equity.While Growing your Wealth it’s equally imperative to Protect it.

One way to do so is to develop fundamental conviction & foresight to consciously avoid ‘Value Traps’ like Suzlon & Subex & PC Jewellers & Manpasand Beverages & Vakrangee & not be seduced or influenced by those who peddle such on social & print media & stock channels.

In such record bullish momentum on the Sensitive Indices it is FOMO or the Fear of Missing Out that is the biggest seducer as many influencing voices call  these  or near these record levels as the new bottom on the Sensitive Indices.

This Workshop will equip you to deal with these questions :

  • How to assess the capacity & the willingness to assume Equity Risk?
  • How to Fundamentally Value & Select & Weight the Companies in a Portfolio ?
  • How do Company Valuations rack up against their Share Price now? ~ If there is Value, where can we find it as we negotiate these bullish markets which heightens the risk of more & more ‘Value Traps’ emerging
  • How should one read & interpret News & Views in the Print & Social Media & on Stock Portals & Channels ?
  • What are the red flags one should look for in an Annual Report ?
  • How much of such Interpretation & Valuation is already reflected in the Share Price ?
  • Where can we pin down Certainty in the Uncertainty in Equity Markets ?
  • How to strengthen resolve & conviction to hold on to Selections even when facing unrealized losses?
  • When & How to decide a Switch in Equity Holdings?
  • How not to let Emotion & Ego dictate holding on to Losers & Wealth Destroyers & just letting them go or avoiding them in the first place?

Invest a Saturday with Gaurav to discuss & debate all the above & more & to appreciate that Wealth of Mind & Monies must Move in Tandem & fundamentally assess Macros & Micros. read more

Valuation!Valuation!Valuation!~Lovely Interactive Equity Workshop

Fabulous Participants & Fabulous Interaction at the Equity Workshop
Fabulous Participants & Fabulous Interaction at the Equity Workshop

It was quite an interactive Saturday at the Full House Fundamental Equity Value Vs Price Mumbai MasterClass on Compounding & Capital Protection

We began in earnest at 9.30 am right through to 8 pm~ so much debated from current unnerving market meltdowns & what should be mindsets & strategies in such times that suddenly overcast us in September ~ of Courage & Conviction & Cash ~ what if one is fully Invested ? should one average? should one exit ? why in panic one tends to always sell off the winners to realise whatever profit in hand & let’ losers drag? ….lot’s of questions that were addressed with a confidence culled from such experiences in the past thirty years

They came from all around ~ rookies to veterans ~ small to High Net Worth ~ from Broking Houses,J P Morgan,Accenture,Abu Dhabi Commercial Bank,Cap Gemini,Reliance,Moneycontrol etc

We covered Time Value,Volatility,Valuation & Asset Allocation with Illustrations of over 25 companies with few of them in detailed Valuation over Earnings & Assets & Challenges faced…went through a few Annual Reports & Interim Results & Exchange Notifications & Developments through News in the Media…checked price trends in the short term & even over last ten years to assess Risk & Reward  & Mispricing Opportunities

How the discipline of Valuation & Asset Allocation is your Weapon for Survival & Wealth Protection while growing it & to stay away from Noise & Insider trading & from those who know nothing or even more dangerous from those who don’t know they know nothing !

Valuation ! Valuation ! Valuation ! …how this leg of the equity table actually must be the most solid to hold the table together when the other leg of Liquidity  props up the remaining two legs of Sentiment & Momentum ~ Impact & Quantum of  FPI & DII Flows especially when they slow down or reverse

Put up Friday,September 28,2018 closing prices touchlines of over 200 scrips & even those separately in the Finance,Pharma & Realty Space showing the wealth destruction in them from their 52 week Highs….alarming yes,but is there value re-emerging in many? ~ Showcased a Core Scrips Valuation Grid too

In this continuing market meltdown across the board that has knocked off 50% & more in many that actually hold wealth creation potential & in many that simply were wealth destroyers in the making & should never have been married to ,who can one trust for relevant,reliable & timely information & unbiased & wise interpretation ? ~ Government,Exchanges & Regulatory authorities,Bankers, Auditors,Media,Brokers,Experts,Promoters & Fund Managers of PMS & MFs,Company Promoters & Management ? Who ? read more

Fundamental Equity Mumbai MasterClass ~ Sat Sept 29 2018

Hey! here’s a Fundamental Equity Mumbai MasterClass you should attend on Saturday,September 29,2018

Register here => http://www.jsalphaa.com/register.php

It’s a back to back month Workshop as many could not be accommodated in the August 2018 Workshop.This is a MasterClass that focuses on Compounding & Capital Protection & involves diving deeper into data & interpretation & deliberations  

Fundamental Equity MasterClass in Mumbai
Stock Selection ~ Value Vs Price

Indian Equity ~ Compounding & Capital Protection ~ The Magic & Miracle in this Market Matrix

Saturday, September 29, 2018

There’s a lot that we shall cover on the day foremost of which is :

We’ll take a Listed Company ,which you can suggest too when you register, & :

~ We’ll check out the Promoter & Management Pedigree & their skin in the company & assess any Corporate Governance Issues

~ We’ll discuss & debate the Business Model ~ Dynamics of Demand & Supply,Scale of Opportunity,Resources,Pricing Power & Competition among others to gauge if  intention is backed by ability to execute & perform

~ We’ll rip through the Annual Report & latest Financial Performance understanding how to read & interpret these…what they state …or do not state ! .We’ll work our way through Exchange Notifications & News & Views in the Print & Social Media & on Stock Portals & TV Channels

~ We’ll work out the Valuation of the Company on several relative & absolute,traditional & contemporary basis

~ We’ll then make an assessment of Value Vs Share Price to gauge how much of it is already factored into the Price…the less it has ,the more the opportunity beckons  

With confidence & conviction you will not only be able to read & interpret Auditors Report,Profit & Loss Statement,Balance Sheet,Cash Flow Statement & Notes to Accounts  but will be equipped to assess their impact & bearing,along with other objective & subjective factors, on Valuation & further on the Share Price

This is a MasterClass…so we shall be going real deep in debate & discussion & deliberations after some deep reading & interpretation & deep valuation computations to decide with deep conviction if there indeed exists a deep compounding opportunity & what could be the downside risk in context of Capital Protection

The Investing process dialogue will cover Themes,Approaches,Strategies,Concepts,Gurus,Mistakes

You shall be able to read any Research Report with a detached mind thus not blindly accepting all that is stated or concluded in it.In fact you shall be able to create a decisive Research Report yourself read more

Just 3 Seats left! Sat Aug 4 2018 Mumbai Fundamental Equity Workshop

Just 3 Seats left for the Saturday, August 4, 2018 Mumbai Fundamental Equity Workshop

Sign up now   

There’s a good mix of participants from seasoned market veterans to even novices & from independent investors to those from institutions

All coming to assess Value Vs Price & differentiate a Goldmine from an Explosive Mine in this jungle of Indian Equity & employ Compounding convincingly to create Wealth through Equity 

In the February 17,2018 Workshop just five months ago one of the Exercises was on Time Value of Money & the case study on HEG was put up to explain the practical aspect & the magic & miracle of Compounding .It had already become a huge multi-bagger in a year rising from Rs 150 levels in January 2017.Objective was to assess if HEG at even Rs 2695 on February 16,2018 could be considered if one sought 20% CAGR for three years in an Equity Investment…It involved Valuation of HEG on many traditional & contemporary basis…Today HEG closed the week at Rs 4122  already up 53% in just five months when the Nifty & Sensex have managed to hold their Highs but the Small & Mid Caps have corrected 20% to 50% & even more in many…a 20% CAGR over three years would have computed to a price of Rs 4657 by  February 2021 ! We shall of course re-assess HEG

This Workshop will continue,among other relevant valuation & wealth creation in equity concepts & market dynamics at play,to reiterate the Miracle & Magic of Compounding for serious Wealth Creation in Direct Equity & why Warren Buffett has become ‘the’ Warren Buffett because of this & his ‘Concentration’ of Stocks concept.

Will just gazing & being guided by the Nifty & Sensex add or subtract to your wealth?…how to not get seduced by explosive mines like Kwality,PC Jewellers & Vakrangee & even Subex or Suzlon !…how not to be drowned by the caco-phony in the media & market networks…phony alright especially in bull markets  

Like the Equity Coin has two sides of  a Buyer & a Seller,so are there two sides of Wealth Creation & Wealth Destruction…what’s the probability that you toss the Wealth Creation side always ?…for that you need to understand both Valuation & Market Dynamics & Forces at play   

Be there at the Workshop !

You shall enjoy not just the lunch !

Cheers !