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 !

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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Conspiracy of Silence : The Officially sanctioned loot of Rs 60000 crs in the Telecom Sector !

It is chiefly for Virendra Kapoor’s ‘Inside Story’ column that I read Mumbai’s revived afternoon paper ” Afternoon Despatch & Courier” 

His Column in yesterday’s edition (sorry no weblink is available) is titled ‘A conspiracy of silence’

This is a shocking gist of what he highlights of the recent Telecom Policy to sell additional spectrum, by DMK’s A Raja,the Communications Minister in the UPA Government

  • It is atleast a Rs 60000 crs scam,making even the Bofor’s scam a child’s play
  • It is an officially sanctioned loot
  • A Raja has devised a policy in such a manner that it allowed arbitrary allotment of spectrum to hand picked parties,who in turn have already begun to sell it at windfall profits
  • The way A Raja handed over licenses on a so called ‘first come,first served’ basis created grave doubts about the fairness of the whole exercise
  • A Raja even defied the PM when the latter advised him to go for open auctions
  • The PM has virtually closed his ears and eyes to this broad daylight loot as A Raja belongs to the DMK
  • A Raja runs the Ministry independent of the PM and the Cabinet and is answerable only to DMK Boss Karunanidhi
  • Any fair arrangement like an open auction would have netted the Government thousands of crores more than it actually did
  • Successful hand picked winners of the fresh licenses can sell them almost immediately as is happening
  • Unitech,India’s second largest Real Estate Company and with no prior experience in Telecom,offloaded 60% in Unitech Wireless to Telenor of Norway for Rs 6120 crs for all it’s 22 circles,valuing the business at Rs over Rs 10000 crs.It had paid just a few thousand crores for the license
  • Swan Telecom of Mumbai got an even better deal….it paid Rs 1537 crs for the license to operate telecom services in 13 circles…within weeks it sold 45% stake to Dubai based Emirates Telecommunications Corporation valuing the business at Rs 9000 crs !
  • Neither Unitech,nor Swan have begun operations and thus do not have even one subscriber !…they have gone on to make obscene profits at the cost of the Indian exchequer and have been the beneficiaries of A Raja’s largesse

Here are some of my reflections on this

  • The Indo-US Nuclear Policy signed will be an even bigger opportunity than this Telecom Policy
  • It is simply shocking that our PM has allowed this
  • There are many precedents to this sort of shorting the Indian Exchequer….A few Years ago,the Centaur Hotel near the SantaCruz Domestic Airport in Mumbai was sold for just over Rs 40 crs to an entity ,Bajaj Hospitality,who within months sold it for over Rs 120 crs to the Sahara Group…why could the Government not have sold it at a higher and more fairer price so that the Exchequer would benefit ? 
  • These are Crimes being committed against the 1.1 billion people in India,of which 236 million live below the poverty line…that’s nearly 21% of our population…one in every five ! 
  • To be fair,one has to hear A Raja’s defense too…but the way it looks,the odds are stacked against him….it clearly appears to be a premeditated gameplan
  • The Licenses should have a Five Year Lock in…..The allottees should not be allowed to sell these or any stake in ventures that are created to exploit these….if they do so before Five Years,they must remit to the Government a significant portion of the gains on a predecided  fair formula based on reasonable returns and time period elapsed before the sale
  • To borrow a line from Pat William’s prologue in his book ‘Mr Littlejohn’s Secrets To A Lifetime Of Success’….” We live in an age which has lost it’s moral underpinnings” 

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