Reliance Industries at Rs 1055….”The Best Years Lie Ahead” says Mukesh Ambani…how does it stack up against Global Giants?

Switched on my mobile this morning after a few days of tackling a tough Viral…thank you guys for all your “get well” wishes…they worked

Listened to the live broadcast on stock channels of Mukesh Ambani at the 36th AGM of RIL this morning in Mumbai rolled out the roadmap ahead for his Group…this are a few interesting bytes that really caught my ear

  • Now with the rescinding of the Non Compete Agreement with brother,Anil Ambani’s (ADA) Group, Mukesh Ambani’s RIL Group will enter the Power Industry in a very big way…a blueprint is being prepared….what is amusing however is that despite discovering and drilling Gas from the KG Basin,RIL will not execute any gas based project till 2022…so it’s going to be coal based,hydel,nuclear and alternative energies projects….ironically it is supplying this Gas to Other Fertiliser and Power Plants as directed by the Government…even to ADA Group Power Plants when they are ready to accept and if the Government directs then
  • Organised Retail has earned Revenues of Rs 4500 crs in 2009/10….in just Five Years it will jump ten fold to Rs 45000 crs !…..keeping in mind that RIL is the first Indian Company to cross Rs 200000 crs turnover this year,this would be a great contributor 

Anything BIG to earn and HIGH growth rates forecast,then rely on RIL to enter that sector….Petrochemicals,Petroleum,Retail,Infrastructure….nowTelecom,Pharma,Healthcare,Power,Education.

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Borrowing against Brands !…Interesting,but Risky area opening out !

For Years ,Brand Valuation has been part of my sessions on Valuation of Equity at BSE and Other Forums….so it was with great Interest that I read the Economic Times Front Page atricle today on ‘Cos flash brands to raise cash’

Strapped for cash,Kingfisher Airlines has managed to Borrow from State Bank of India against it’s Brand of ‘Kingfisher Airlines’ which has been valued at Rs 1900 crs,that’s US $ 391 Million at an Exchange Rate of US $ =Rs 48.50 

Interestingly,Kingfisher Airlines has actually included this Brand Value as an Asset in it’s Balance Sheet…If it had not,then the Debt/Equity ratio would have computed higher….However,It’s probably because the Brand  is shown in the Balance Sheet,that PSU Bank,State Bank of India has been convinced to lend against this Asset

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Bill Gates of Microsoft sells off a liitle over 1% stake for US $ 227 Million

Bill Gates,Founder of Microsoft,sold Ten Million Shares ,a little over 1% of his holdings, for US $ 227 Million in a week spanning October 31,2008 to November 6,2008

Microsoft is quoted now at just over US $ 21.Bill Gates still hold nearly 9% of the Equity and over 780 million shares which would be valued at over US $ 16.50 billion.

INSIDER & RULE 144 TRANSACTIONS REPORTED

 

Date

Insider

Shares

Transaction

Value

6-Nov-08

GATES WILLIAM H III
Director

2,000,000

Sale at $21.40 – $22.03 per share.

$43,430,000

5-Nov-08

GATES WILLIAM H III
Director

1,000,000

Sale at $22.79 – $23.28 per share.

$23,035,000

4-Nov-08

GATES WILLIAM H III
Director

3,000,000

Sale at $23.31 per share.

$69,930,000

3-Nov-08

GATES WILLIAM H III
Director

2,000,000

Sale at $22.64 per share.

$45,280,000

31-Oct-08

GATES WILLIAM H III
Director

2,000,000

Sale at $22.68 per share.

$45,360,000

 

Sold 10 Million Shares

Aggregating US  $ 227 Million

This is part of Bill Gates direct stake which he has sold…selling a slice in these uncertain and volatile times to secure a slice of his Future perhaps !…..Even the Richest Man on this Planet needs to encash to feel personally financially secure !…or does he plan some more charity ?

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