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A Lion’s eye on the Bulls and Bears

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

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July 31, 2011

Taking my time to declare the gauravblog hamper winner for TAP GAP 7/11 as to which company will be a Wealth Destroyer in the next five years…..will announce soon

Taking my time to declare the gauravblog hamper winner for TAP GAP 7/11 as to which company will be a Wealth Destroyer in the next five years…..as some have suggested even Core Companies…so examining them too…..will announce the winner soon

Cheers !

Cadburys Delisted in Jan 2003 offering a pittance of Rs 500 to minority shareholders…Nine years later it yet stubbornly fights in court those 8149 shareholders who did not sell back…Last Offer price was Rs 1900…Court Appointed Valuer arrives at Rs 2014…Shareholders want Rs 2500….now check out 3M India as a delisting candidate

Cadburys Delisted in Jan 2003 offering a pittance of Rs 500 to minority shareholders…Nine years later it yet stubbornly fights in court those 8149 shareholders who did not sell back…These minority shareholders hold 2.4% of the equity…..On September 30,2009,Cadburys had offered Rs 1340 when E & Y had valued the share at Rs 1740…….The Last Offer price by Cadbury was Rs 1900…Court Appointed Valuer E & Y has now  arrived at a DCF Valuation of Rs 2014 as directed to do so by the Mumbai High Court earlier this month …Shareholders want Rs 2500 

http://www.dnaindia.com/money/report_cadbury-dashes-minority-hopes-again_1570878

Clearly after India liberalised Foreign Direct Investments in most sectors,allowing even 100% Foreign Parent Holding,most listed MNCs have already ,like Cadburys,delisted or considering to delist…Clearly they want our Market not our Shareholders !…..but it is important that they pay a fair or sweet price to buy back shares held by minority shareholders…but Cadburys is stubbornly,and I sense with some degree of condescending arrogance too,serving up some bitter chocolate through the years

Cadburys offered just Rs 500 in 2003…..they were forced to raised it to Rs 1340 and then even Rs 1900 !….just think….Rs 500 in early 2003 at a CAGR of 10% (assumed risk free rate) would have become just @ Rs 1100 in eight and a half years……at E & Y new DCF Valuation of Rs 2014,the CAGR works out higher at 18%…so clearly holding out for such a long time has favoured the shareholders who yet hold the shares

Methinks we are near some compromise on Offer Price now and matter should be settled soon at anywhere between Rs 2014 and Rs 2500…To twist the company ad line….Jaldi kuch Meetha hoh jayega

Blog Readers may recall that Cadburys have faced other problems too in India…they were fighting Corruption charges…and when worm infested Chocolates of their Brand were found,they had to retain for their Advertising initiative ,the credible and famous actor Amitabh Bachhan, to reach out and assure the Indian Public that Cadbury choclates were subjected to stringent quality testing and were of top quality

While top world companies are delisting in India and thus depriving Indians of the opportunity to hold some top quality MNC companies in their portfolio,it is heartening to note that Shareholder Activism in India is strengthening…MNCs cannot get away with low Offer Prices….earlier this year BOC delisting initiative suffered as Price demanded,and rightly so, by shareholders was way higher than what the company had indicated as the price read more

My Son simply swears by ‘Ayubs’ for the kebabs and ‘Bachelors’ for the Juices and Icecream in South Mumbai

My Car has both the Menus in the Glove Compartment as my Son simply swears by ‘Ayubs’ for the succulent kebabs in Kala Ghoda,between Fountain and Colaba and ‘Bachelors’ for the Fresh Fruit Juices and  Natural Icecream without any Artificial Flavours near Chowpatty Beach in South Mumbai

……and this weekend Kunal Vijaykar,the host of ‘The Foodie’ on the ‘Times Now’ Channel is covering both…the guy’s got a great job,if you can call it that !…he lives his passion and gets paid for it too !…he’s on my Club’s Catering Committee alongwith the famous Tarla Dalal

Ayub,himself set up ‘Ayubs’ in 1985 and was actually making Sandwiches from a 3 Foot by 1.5 foot table at Cuffe Parade in South Mumbai…one day a customer got some Rotis from home and asked him to stuff them with Chicken…other customers started asking for the same…and thus was born the famous Ayubs ‘Wrap’…it’s a thin roomali type roti and today ‘Ayubs’ offers 25 stuffing combinations from the initial five….Chicken in Tikka,Reshmi or Shahi Form…Mutton….Vegetarian Options revolve around Mushroom and Potato Combinations…two chutnies,red and green, are spread across a hot roti and the stuffing is straight swiped off into the thin roomali roti from the skewer lifted from the charcoal fuelled flames… rings of raw onion are spread across…the roti is then wraped manually inside a  second or two within a butter paper hold and served to customers who come in their cars and eat off it on the road….service is on till way past midnight and Ayub reveals that he now sells 500 wraps in a night….it is spicy in flavour but not price…so please do instruct if you want your wrap non spicy or less spicy……Do remember to call for a Bottle of Mineral Water or an aerated drink…your ‘Wrap’ will roll down your throat well with this 

And Bachelors…..it was set up in the mid 1930s by the late Mr Agarwal and is run by his family now……try the Chilli and Ginger flavour Icecream…. and in season, relish the fresh Strawberries or ripe Alphonso Mangoes with Fresh Cream…if you’re into Milkshakes check out  their ‘Liquid Marble’,that’s literally a vertical half and half Milkshake…Chocolate and Vanilla…you are served in your Car…and at weekends it’s difficult to find parking space at ‘Bachelors’….one has to park a little distance away as Marine Drive begins from the Beach side….Bachelors has placed it’s guys all along the road to take your orders and serve you…It offers some fast food choices too  read more

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