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“In India, companies may fall sick, but promoters rarely do!”

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November 1, 2009

Tags and Categories are not showing up on my blog…so use search feature to locate blogs

These Sunday gremlins are having a party on my blog!…’Categories’ have simply vanished from view on the home and inside page…Tags on home page when clicked on show ‘Not Found’…All blogs posted don’t show any tags or categories

So if you wish to locate a specific blog  use the Search Feature…for example if you want to know if I’ve blogged on ‘Gold’ or on ‘Warren Buffett’ or on Sesa Goa or Sesa Industries,simply type these in the Search Box and click on Search

I’ve asked my technical guys to sort it out…but today’s a Sunday and tomorrow’s a Guru Nanak Jayanti Bank Holiday…yet hope it get’s sorted out soon

Cheers ! 

Unlisted Sesa Industries has buyers off market at Rs 600…but should you sell ? NO!…It’s worth much more

This posting on Sesa Industries should serve both prime purposes of Investor Education and Protection

I intermittently receive newsletters by post from intermediaries in our Capital Market

A recent newsletter related to a prominently headlined offer to buy shares of unlisted SESA INDUSTRIES at Rs 750…on inquiry the rate offered was Rs 600 !…a year ago the offer was for just Rs 30 !

So is you are one of those lucky shareholders of Sesa Industries,a subsidiary of Sesa Goa ,who was alloted these shares in a preferential issue to shareholders of Sesa Goa at Rs 22.50 in a 1:2 ratio in 1992,when the company was formed to manufacture pig iron,should you sell out to these buyers at Rs 600 ?

No !

Check this out

 http://www.bseindia.com/xml-data/corpfiling/announcement/Sesa_Goa_Ltd_280508.pdf

In May 2008,Sesa Goa issued a Notice to it’s shareholders and send a copy to the BSE.Above link is the copy.It states that at a meeting on April 28,2008,the Board of Sesa Goa decided to subdivide the Face Value of the shares of Sesa Goa from Rs 10 to Rs 1 and also issue a 1:1 bonus.This exercise has been completed.

However of interest in the notice is that because of this sub-division and bonus exercise and the pending Scheme of Amalgamation of Sesa Industries with Sesa Goa………………………

SHAREHOLDERS OF SESA INDUSTRIES WILL RECEIVE 20 SHARES OF SESA GOA OF FACE VALUE RS 1 FOR EVERY 5 SHARES HELD IN SESA INDUSTRIES

Thus if you’re holding 100 Shares of Sesa Industries of Face Value Rs 10, you will receive on amalgamation,400 shares of Sesa Goa of Face Value Rs 1.Sesa Goa is currently quoting at Rs 300…thus 400 shares would have a value of Rs 120000,twice that you would receive if you sold out 100 shares of Sesa Industries at Rs 600 right now !

So it would not make sense to sell Sesa Industries off the market at Rs 600,unless you need the money or are very skeptical of the Amalgamation taking place at all or are convinced that the Share Price of Sesa Goa will tank towards Rs 150 soon

A Scheme of Amalgamation of Sesa Industries with Sesa Goa was initiated in 2005 but has been challenged legally by a shareholder of Sesa Industries .The Bombay High Court,Panaji Bench,overruled in February 2009,a single bench judgement of the Court ruled in favour of the Company in December 2008….The company has filed a Special Leave Petition  in the apex, Supreme Court.The validity of the Scheme was extended to October 31,2009 which ended yesterday..but I suppose will be extended yet further read more

How a Lead Analyst from some Equity Advisory website simply ‘Copy & Pasted ‘ from my blog…come on guys give the source or credits too!

This Sunday morning,I was ‘googling’ to see if the validity of the Scheme of Amalgamation of Sesa Industries with Sesa Goa was extended beyond October 31,2009…a host of sites came up on the search

I happened to click on one of them… www.multibaggerpennystocks.com …. imagine my surprise when I saw that their lead analyst in Noida had posted a blog on Sesa Goa on October 29,2009,two days after I had a similar blog to exit Sesa Goa and had ‘copy pasted’ from my blog !…This site runs several paid advisory plans on the net 

I’m flattered,but please do have the courtesy to give credit or mention the source,if you’re going to ‘Copy and Paste’ material which effectively means no change in the wording..remember, like you can access information on the net inside a second of searching,so can you be trapped !

Several times in the past I have been the victim of plagarism and have even received apologies from leading press and even top securities firms…The Internet is a great source of information at a click…but I hope this Lead Analyst will realise the folly of lifting ideas and material from others without crediting them…you have not even bothered to change the wording !…I hope your CEO too acknowledges this

I am assuming that this Lead Analyst will see this blog posting too as he have been viewing my blog…how else could he have lifted material from my Sesa Goa blog of October 27,2009!?…so I’m not emailing the CEO and him seperately 

If it’s any consolation to this Lead Analyst,you are on the right track when analysing and advising on Companies…because you are treading the Fundamental Path…However I’m not passing any judgement on your interpretation of data and your views,conclusion and advice formed from it…leave that to your clients and viewers to decide.

Be Cool…but remember it’s not ‘Cool’ to ‘Copy and Paste’ unless you are quoting verbatim and attribute the source !…I assume as Lead Analyst,you’re getting paid for ‘Leading’ and not ‘Following’ ! 

 

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