Wealth Destroyers as Potential Multibaggers~ Mumbai Equity Workshop Sat June 17 2017

Wealth Destroyers as Potential Multibaggers~ Announcing a Full Day Mumbai Fundamental Equity Workshop on Saturday, June 17 2017 

🙂 This time in this Stock Selection ~Value Vs Price Workshop have kept an exciting Theme :

WEALTH DESTROYERS : POTENTIAL MULTIGAGGERS

As Limited Seats would advice to Book Your Seat right away here => http://www.jsalphaa.com/register.php

Plan to cover over 25 Wealth Destroyers to assess any Turnaround Value vs Price & thus a chance to redeem themselves and become Wealth Creators from here… or should just one move on in many of such Wealth Destroyers that are now beyond redemption

Here’s what some participants said of the December 2016 Mumbai Fundamental Workshop on Stock Selection : Value Vs Price…and this was before IB Ventures zoomed 7 x in months from Rs 20 to Rs 140 & HOV doubled in the same time to cross Rs 300… we had covered both these & more in Earnings & Asset Basis Valuation exercises

“Amazing… Awesome Session about Fundamental Stock Selection & Wealth Creation ”

“Full of Inspiration, filled with wisdom…. am really proud to be a part of this wonderful session”

 & from a repeat participant “recreated the same old magic of Bangalore in Mumbai… great Saturday”  

Would love to interact with you ~ So do invest one Saturday ,June 17, 2017 with me in my Mumbai Fort Office near BSE and above Starbucks & Croma

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

Here’s the Detailed Template of this Workshop if you want more details on coverage

gap-master-class-mumbai-17june2017

🙂 See you Saturday, June 17, 2017 at my Mumbai Fort Office Conference Room… we’ll figure out if Suzlon will continue to be ZZZZZlon!  & dissect many such Wealth Destroyers!

Cheers !

Anil D Ambani Reliance Group~Market Cap & Debt ~ Defence to its Defence

Have a Look at the Market Cap (today closing March 28,2016)& Consolidated Debt (September 30,2015) of these Five Listed Companies of Anil D Ambani

Name Of The Company

Market Cap (Rs.Crs)

Total Debt (Rs.Crs)

Reliance Power

13015

31428

Reliance Infrastructure

13747

24645

Reliance Capital

9117

22730

Reliance Communication

12457

35254

Reliance Defence

5098

6884

Total

53434

120941

Rs 120941 crs was the Aggregate Consolidated Long & Short Term Debt of Anil Ambani’s Reliance Five Listed Group Companies as on September 30,2015 while today’s Market Cap is Rs 53434 crs.Aggregate it and you’ll get Enterprise Value without adjusting for any Cash    

Reliance Defence (erstwhile Pipavav) has come into his fold now and a turnaround is expected after CDR was approved ~ RCom is planning to reduce Debt substantially by selling Assets like it’s Tower Business.It also is being supported by Big Brother Mukesh Ambani’s tie ups for Jio Roll outs etc ~ RPower has just declared and paid it’s maiden interim dividend of 10% in December 2015 but continues to struggle to commission Samalkot Power Plant on non availability of Gas ~ Rinfra & RCap are the relatively stabler companies

As long as his companies keeps servicing debt the Banks who have lend will not have to classify the Loans as NPAs….In fact with Anil Ambani planning huge Defence Sector Investments and Growth in his other Companies the aggregate Debt may increase even after Asset Sell offs

Problem is that Anil Ambani has not been enjoying good Investor Credibility after wealth destruction in RCom & RPower & suspected involvement of top management in the 2G Telecom Scam.Investigation continues

The Group’s Market Cap is Rs 53434 crs ~ Compare this with Big Brother Mukesh Ambani’s Reliance Industries that closed today with a Market Cap of Rs 330654 crs

Now his big Focus is on Defence with India having embarked on a Huge Defence  ‘Make in India’ Endeavour opening out FDI  Cap to 49% in the Sector

None of Anil Ambani’s Companies have approached it’s shareholders or the Public for funds after the Reliance Power IPO at Rs 450  in January 2008

None have as None could !

The Reliance Power IPO was a huge obscene premium assault on the Public from which the Public has yet to recover (Quotes at Rs 47 today after a Bonus Issue in 2008 itself  from the Premium collected that adjusted the Price to @ Rs 270!) .The Issue was hyped by the Investment Banker Wolves to create a huge oversubscription.

Of course in January 2011 Anil Ambani had entered into a Consent Plea with SEBI without admission of guilt & was investigated for misuse of Overseas Borrowed Funds and was personally fined and banned access to Capital Markets for a year and Reliance Infra for two years   

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Schadenfreude ~ Pleasure derived from the misfortune of another !

Came across Schadenfreude ~ Pleasure derived from the misfortune of another

….came across the use of this word while reading the Huge Mess of Hydel Power Projects in Arunachal Pradesh & the likes of business houses like Jindal Power,IL & FS & Lanco approaching National Hydel Power Corporation (NHPC) to take over their projects….NHPC is not too keen….Says M Rajshekhar,the author of this report “The reason for its reluctance goes beyond understandable schadenfreude. Its solitary project in Arunachal – Lower Subansiri – is stuck in a quagmire as well 

Rather Ironic now that many such Hydel Power Projects were actually taken away from NHPC between 2005 & 2009 and given to the likes of Reliance Energy,Jaiprakash Associates,DS Constructions,Jindal Power & KSK Energy….Most of them,if not all have turned into white elephants….and the privatisation actually led to many misdeeds like signing MOUs merely to raise monies and sell the MOUs itself !

Real woes experienced were the ” absence of roads and power lines. Not to mention local protests and extortion rackets, especially by local student unions. The state government too was a factor. While it wanted 26% equity in each project, it did not have the cash needed to pay for those shares.” says M Rajshekhar

And Now Presidents Rule is being imposed in Arunachal Pradesh !  

Of Course Political Patronage & Crony Capitalism have combined in this Privatisation endeavour that’s created this mess

Remember Reliance Power’s IPO in January 2008 at Rs 450 and the Prospectus announcing the roadmap to create nearly 30000 MW by 2016 & which included Hydel Projects in Arunachal Pradesh !

Indiabulls Housing Finance & Reliance Communications sinking on Bourses !

Post Bihar Elections Results observe the rapid decline in share prices of Indiabulls Housing Finance & Reliance Communications!

Both are sinking on the Bourses  by 15% + & 10% respectively today ….far more than Sensex drop of 1% to 25600 levels !…and both are traded in F & O Segments too !

Indiabulls Housing Finance down 15% + this morning !

Indiabulls Housing Finance had recorded a high of Rs 820 on BSE on August 10,2015 and was available at even Rs 750 levels end October 2015,just a fortnight ago!.Last few days it has rapidly sunk and today the intensity was a worrying over 15% to sub  Rs 600 levels this morning

This is just a day after it announced it was acquiring 39.76 % stake for US $ 100 m in the UK Bank OakNorth as was announced also by the PM in his address to Businessmen in UK yesterday while on a three day UK Trip.Interestingly this acquisition was guided by the outspoken and blunt Dr K C Chakrabarty who is on the Board of Indiabulls Housing Finance and who retired in 2014 as Dy RBI Governor…I had blogged on him then  when he was blasting the banking rot !…See the link below :

Why Now? ~RBI Dy Governor K C Chakrabarty speaks his Mind on the Banking Rot and seeks to retire a few months early !

Saturday, March 22nd, 2014

 

Recently in September 2015  the Company had also raised Rs 3997 crs in a QIP at Rs 702 that took it’s networth past Rs 10000+ crs.It has just announced a third interim dividend for FY 16 on it’s FV Rs 2 Share

BSE shows an average Two Week  Daily Volume of just 49000 shares .But today there’s mean abnormal selling at just past noon the Volume is 8.6 lakh shares already !

What’s happening ! ? Anybody knows !?

Incidentally the Chairman Sameer Gehlaut too is picking up a 10% stake in the UK Bank in his personal capacity

 

RCom ringing alarm bells on the bourses

Reliance Communication  recorded a day’s low of Rs 63.75 down over 10% this morning and is trying to recover from there.Just last week it was Rs 82 !….having surged from Rs 50 levels end August 2015….down by 20% from Rs 80+ levels inside days !

Average Two Week Daily Volume is 16 lakhs but it’s approaching 30 lakhs already on BSE as we approach 12.30 pm!

Anybody can explain !?

 

Whatever be the reason ! and there has to be !,such Volatility in such F & O Segment Scrips is unnerving for  Speculators,Traders & Investors et all with the exception of Insiders !

And Both were positioned well,despite Corporate Governance Issues,to move further ahead on favourable fundamental developments and on current valuations  !…and I did discuss them at my recent NSE Workshop on October 31,2015 highlighting the Corporate Governance Risks though !

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Shyam Telecom Upper Circuit at Rs 51+ as RCom buys into SSTL ~ Not Justified

Shyam Telecom was on Upper Circuit at Rs 51+ this morning  as RCom buys into SSTL ~ Not Justified  

Anil Ambani’s listed Reliance Communication just announced a few days ago it’s picking up the wireless business of  Russian Parent’s Indian unlisted Sistema Shyam Teleservices Ltd that operates in India as a Telecom Service Provider under the MTS Brand

SSTL would get 10% of RCom in an all stock deal that was expected to conclude mid 2016.This is current worth just over @ 2000 crs assuming RCom Share Prce of @ Rs 80

I had blogged extensively on Shyam Telecom just two years ago in October 2013 when it had rocketed from Rs 16 to Rs 46 then…link is below

Shyam Telecom continues to Fly into a different Orbit ! From Rs 16 in August to Rs 46 upper circuit now !

Saturday, October 12th, 2013

Today Shyam Telecom hit an upper circuit of Rs 51.55 in the morning on NSE and also Rs 50.65 on BSE and has now opened out

The rise today is not really justified

Shyam Telecom owns just 380307 Equity Shares of FV Rs 10 of SSTL….That’s a paltry 0.01% of SSTL…If it thus opts to exchange these shares for RCom shares post deal it would get barely just over 25000 shares that’s worth just over Rs 20 lakhs

Market probably is under impression Shyam Telecom owns 24% of  SSTL while  it’s actually the Shyam Telecom Promoter Group of Rajiv Mehrotra that does own 22.65% of the SSTL Equity

SSTL has an Equity of Rs 3193.82 crs of which Russian Parent Sistema holds 56.68%,Russian Government owns 17.14% aggregating  a Russian Interest of 73.82% .The Shyam Telecom Group of Rajiv Mehrotra owns 22.65% with 3.53 % owned by over 18000 non promoter group shareholders

The Shyam Telecom Group that owns 22.65% comprises of Mehrotra owned entities of Intell Invofin,AT Invofin,Cellphone Credit & Securities and others

Each of these three Mehrotra Entities of the Shyam Telecom Group are common Investors in Shyam Telecom & SSTL and own 15.065%,7.186% & 6.745% in listed Shyam Telecom  and 10.95%,5.48% & 5.48% respectively in unlisted SSTL…..so it is these three Mehrotra Companies that will get under 6 cr shares of RCom valued under  Rs 500 crs currently should they opt for them in exchange of their SSTL holding

Shyam Telecom should continue to languish unless Rajiv Mehrotra decides to turn it around with fresh infusion of funds and new Business….now that’s a possibility and any share price rice will have to be assuming this and not the immediate Value benefit of RCom shares that the Company would be entitled too !

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Just a Reliance Power Thought for Anil Ambani as he forgoes Personal LPG Subsidy

The leadership Team of Anil Ambani’s Reliance Group has opted to forego LPG Subsidy on the PM’s request for well to do people to do so to reduce the subsidy burden

This triggered  a thought without offence or malice for Anil Ambani to consider and addressed to him in first person :

Your Reliance Power Market Cap is Rs 16410 crs at Rs 58.50 with 75% held by you as Promoter and most at par.The Public hold just over 14% while the big guys FIIs and DIIs hold 11%

The Shares were allotted in a heavily record oversubscribed IPO to Retail Investors in January/February 2008  at Rs 427.50,after a 5% discount on IPO Price of  Rs 450 and within months of the IPO Listing company issued a 3:5 Bonus in May 2008 under pressure to reduce holding cost of  retail allottees to Rs 267.19 per share

I don’t know how many of the original allottees yet continue to retain faith and hope and  hold the share but your records can identify such

The Thought for what it’s worth :

Why don’t you,Mr Anil Ambani  emulate Richard Branson who bought back Virgin shares at cost from shareholders and went private again when the share price had tumbled  after listing ?

Branson committed 182.5 Million Pounds in 1988 for this and wrote about it in his inspiring book ” Screw it,Let’s Do It”

You,Mr Ambani ,have just committed thousands of crores by acquiring Pipavav Defence recently.

Can you commit some more for this =>Reliance Power Equity is @ Rs 2800 crs and Public(excluding FIIs & DIIs) hold only Rs 390 crs of it of which only a portion would be original allottees in your IPO  seven year ago in January 2008.Even assuming all are original allottees or you also wish to compensate those who sold out you would need Rs 10500 crs to to so at their cost of  Rs 267.19

Or you wish to quote your good friend Amitabh Bacchan’s father’s great quote  ” Joh Beeth Gayi woh Baat Gayi”   

No Offence and No Malice,Mr Ambani but in one stroke you would have redeemed for the Reliance Power fisaco

May not be a practical exercise but even voicing Intention can be a great step

Forbes put your latest 2015 real time networth at US  $ 3.7 B down considerably from the US $ 42 b in 2008 when Reliance Power IPO ‘hit’ the market

I’ve got a great feeling that committing US $ 1.5 B to play out this above thought in Reliance Power will catapult your worth in more ways than one in quick time….Reliance Power was willing to pay US $ 2 B for Power Plants of Jaiprakash Group in July 2014 in a deal that came apart….believe me that you will create a much higher value intangible asset immediately that will lead to higher tangible worth going forward if my thought is played out

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