Equity ~Life Changers or Life Maimers ?

Equity ~Life Changers or Life Maimers ?

This Thought was inspired by a Whatsapp Forward received this morning titled Power of Equity .It listed many Life Changing Wealth Creators that grew many fold from just Rs 10000 invested in each  & carried a concluding Message in Capitals ” INVEST WISELY WITH LOTS OF PATIENCE “

This was the List & I’m assuming the Years & CAGR Maths is correct with Dividends not being considered :

  1. Eicher Motors-1992 => Rs 80 lakhs
  2. Asian Paints-1986 => Rs 90 lakhs
  3. HDFC -1990 => Rs One Crore
  4. Brittania – 1985 => Rs 1.06 crs
  5. MRF – 1985 => Rs 1.10 crs
  6. BOSCH -1985 => Rs 1.20 crs
  7. Amara Raja -1991 => Rs 1.25 crs
  8. Shree Cement -1990 => Rs 2.90 crs
  9. Infosys – 1993 => Rs 3 crs
  10. Dr Reddys -1986 => Rs 10 crs
  11. WIPRO -1981 => Rs 400 crs

Cannot Argue with this Message for I’ve seen three of my Scrips,in even relatively quick time inside five years of investment too becoming over 100 Baggers ~Matrix Labs( early Millenium & now delisted as sold to Mylan),Mercator(early Millenium) & WIPRO ( from 1997 to  early 2001)

It is rare for most investors to live the Conviction & Temperament to hold for long & ride the Huge Life Changing Gains.Imagine if more than Rs 10000 had been invested in each of the above,especially WIPRO!

However my Thought is what about Wrong Convictions on the High Fliers that became Wealth Destroyers &  Life Maimers !

Here are a few of them ,most yet listed & struggling to revive & how much worth would your Rs 10000 invested in each of them be now ….most are Horror Stories of the past decade or a little more…sure you can contribute more…My Horror Stories  have been the Damania Group’s Damania Capital Markets to mention one.Bad Judgement Call that Cost!It was compulsory delisted in July 2004.

~Suzlon -2005=>Rs 842  &  2008=>Rs 348 ! => 92% to 97% wiped out after considering 10:2 Split in January 2008 when it reached an all time high of Rs 2300 before split.Current Price Rs 16.Promoter Tulsi Tanti is yet on board though Dilip Shanghvi of Sun Pharma Group has acquired a major stake in it @ Rs 18 in February 2015.Mandatory Open Offer at Rs 18 to other Shareholders in January 2016 met with no success.The Share Price had raced to Rs 30 from where it has halved & is below the Open Offer & Stake Price of Rs 18.Shareholders hold out Hope of Revival back to Glory Days in the years ahead under Dilip Shanghavi.So far it’s been a muted share price trading range in recent months.

~Unitech-2006 => Rs 505 => 95% wiped out after adjusting for 12:1 Bonus & 10:2 Split in June 2006 & 1:1 Bonus in Aug 2007.Reached a high of Rs 14800 in 2006 before Bonus & split .Current Price under Rs 6

~Kingfisher Airlines-2006/7 => 0 ! => 100% wiped out & scrip suspended for trading from 2012/2013 & restricted trading from June 2015 ~ reached a High of Rs 335 in 2007

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Squirrels are back in May !

What a Lovely Saturday Morning! The Squirrels are back in May !….they had vanished in April and early May….learnt it was their mating season….first the sparrow awaits it’s turn just below the water pot….then the parrot does as squirrels feast and scamper around….only to finally realise that the squirrel does not mind sharing….all are early breakfast eaters before the pigeons and crows raid….it’s fascinating how the whole day they all play tug of wars and musical chairs….often in greater numbers…like twenty sparrows feasting and twittering and chirping !….Heavenly ! Blessed!

Sparrow awaits it's turn under a water pot
Parrot awaits it's turn as the squirrels feast and scamper around
Parrot realises the squirrel does not mind sharing

:-) Annual Reports Season of Half Truths arriving

😀 Annual Reports Season of Half Truths arriving

Half Truths & Bloated Exaggerations

How Glibly Stock Channels recommend past Wealth Destroyers

😳  One should never hold Emotions in Stock Markets !

🙁  Now state this to those whose wealth has been destroyed by Investing in some Listed Companies of  especially Big Business Houses !

👿  Now Relate this in context of  many ‘Experts’ on Stock Channels continuing to recommend ad nauseam such past Wealth Destroyers and Other Companies of the connected Business House

:roll:  Surely you don’t want me to enlighten you with examples of such ‘Experts’ and such ‘Companies’ of such ‘Business Houses’ !?

😐 We all Have Emotions and the More Principled have More !

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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BSE presents BIG cheque to PM for Swachh Bharat Kosh ~ How about a Swachh BSE Initiative!

Of course this is a symbolic BIG Cheque in Amount & Size but unsigned ! ?   🙂

Dr  S  Ramadorai, Chairman, BSE & Mr Ashishkumar Chauhan, MD & CEO, BSE presented a cheque of Rs 1.01 crs for Swachh Bharat Kosh to Prime Minister, Mr Narendra Modi on Wednesday, April 22, 2015

Now Dr Ramadorai & Mr Chauhan do start a ‘Swachh BSE ‘ Campaign….You may not need to or want to know but I can surely tell you with which listed company to start with at least on proper disclosures and quality notifications to the exchanges in the interest of Equity Investors who are Minority Shareholders  !

Willing to also come on Board to help you with this…Whatsay  BSE !?