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 !

Thinksoft Global crashes to Rs 221 (more fall indicated) from Rs 544 in just 10 trading days…..SEBI and BSE must probe this Company to maintain sanctity of our Markets

I had warned Investors of Thinksoft Global IPO in September 2009

Don’t ThinkHard about ThinkSoft Global Services’s IPO at Rs 120-130…Ignore it

However on Listing it kept defying gravity and on February 11,2010 it zoomed to a record high of Rs 544 with record Volumes

But since then in just Ten Trading days and Eight continous lower circuits,beginning with two 20% drops,then as lower filters were applied,a 10% drop,followed by now Five 5% lower circuit filters,Thinksoft Global has crashed today to a lower circuit of Rs 221.30

The Share Price and the Volumes were set up past one month…Have a look ….Something Stinks really Big Time Foul here

…methinks SEBI and BSE must quickly and conclusively bring the perpetrators to task,if they have to maintain the sanctity of our  Stock Exchanges and protect the sucker of the small Investor….

Classic case of Greed and Fear….we’ve seen such situations play up before too…like in the Austral Coke Company…dropped from near Rs 200 levels to under Rs 10 now

….The authorities must investigate any Promoter/Major Shareholder/Broker/Operator nexus in such cases…Such movements rarely occur without a criminal nexus…..Poor Retail and some HNWI suckers get trapped by this manipulation  

 Investor Education and Protection is one of the key purposes why I began this blog…to express my  concerns on several companies…In the recent past,Cranes Software and Karuturi Global…even Austral Coke ! and Thinksoft Global

However distasteful,unpleasant,bad,loss making Equity experiences should not permanently deter you from the Beauty of Equity…..A basket of Apples will have a few Bad ones !….Some are easy to Spot,some look great on the outside ,but are infested with Worms on the Inside……Learn to spot these worms and avoid such seemingly great Apples ! 

Be warned….There are many out there…. always on the Prowl to seduce you to lose Monies…because they make Monies,only when you lose !…and they have perfected the art of Seduction !….and think about this !…what chance do you stand against the 6000+ seductions listed on BSE !…and you will be double careful !

I reiterate my Quote “India and Insider Trading are Inseperable !”…which I discuss and debate in my sessions at various forums

Cheers !

Karuturi Global at Rs 22/23….one broker has termed it a multibagger on the Stock Channels…don’t get blinded,easily seduced or overwhelmed by such advice or even the media blitz by the Company

Karuturi Global (KG) is at a 52 Week High of Rs 23…..It’s Face Value is Rs 1…Volumes are heavy and the Market Cap is over Rs 1100 crs

There is growing euphoria about this Bengaluru Company which claims it’s the largest Rose Buds Stems Producing Company in the World and is now embarking on an ambitious Ethiopia centric agricultural foray that has the potential to supply 5% of mankind’s Food needs in the future !

Wow ! 

But this Blog serves to warn you to be careful about Investing in KG….be well informed of the Risks before you take them

KG is promoted by the Karuturis…MD is Sai Ramakrishna Karuturi and the Chairman is Surya Rao Karuturi

KG Needs a Lot of Monies before it can make these huge Monies it claims will be the outcome of the Ethiopian Venture….US $ 100 million annual profits by 2013 !…that’s Rs 460 crs !…that’s several times it makes currently

The excitement is centered around the Ethiopian Venture that invoves growing crops on government leased 3 lakh hectares ( 741000 acres) ….the land is 50 kms from the border of war torn Sudan  and a four day drive to the nearest port…however the 90 years sweet deal with the Ethiopian Government is that for the first six years KG will not pay any rent for this land…after that the rent is a meagre 15 birr or US $ 1.18 per hectare for the next 84 years….Similar Land would cost US $ 350 annualy per hectare in Malaysia or Indonesia……Labour Costs are under US $ 50 per month and under World Bank’s Poverty threshold of US $ 1.25 per day…Children too are employed…..though the daily pay complies with the minimum wage of 8 birr  (60 US cents)prescribed in Ethiopia….Profits are expected to be generated from exports of Food crops,including rice,corn and palm oil…Tax Treaties with China and India too are beneficial  

However Several  serious Corporate Governance Issues exist.The auditors,RGN Price and Co (Signing Partner,H S Venkatesh) have highlighted many of them in their Report that forms part of the FY 09 Annual Report….I’ve listed them below

  • Granting of unsecured Interest free loans of Rs 101.45 crs to11 interested parties…this is prejudicial to company’s interests…there is no prescribed repayment schedule and therefore the receipt of the principle cannot be verified as regular
  • Need to strengthen the Internal Control System with respect to procurement and sale of flowers
  • Company has taken four interest free unsecured loans of Rs 32.72 crs from associate entities and Directors.There is no repayment schedule
  • There is scope for improvement of the Internal Audit System in terms of coverage,reporting pattern and frequency
  • Company defaulted by by 58 days to pay Rs 66 lakhs to Banco Bilbao Vizcaya,Spain
  • Income Tax Authorities have raised a claim of Rs 7.19 crs for AY 2006/7   

Now let’s examine some crucial Financials……The Current Equity is Rs 48.93 crs after Deutsche Bank AG London converted US $ 2 Million FCCBs to 7375000 shares…at Rs 23,they have more than doubled their monies…there is a ESOS too and under this there was a recent exercise to grant 2533750 shares…all included in the above Equity

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