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

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October 31, 2014

WoW ! Sensex kissing 28000 ! ~ Get into Equity !

Got to convey this to you this evening and to reiterate that one is yet not missing the Equity Boat even though Sensex has surged 40% from 20000 to 28000 levels in the year

A Healthy Correction has been widely called but has eluded thus far

At these High Levels I reiterate 

  1. Get into Equity & Keep at least a Three Year Perspective till 2017 for recording acceptable Equity Gains 
  2. Exercise caution when investing in Scrips that are quoted towards their 52 week Highs and have already run up 100% to 600% this year…they may be orchestrated seduction traps
  3. Seek Sound Professional Equity Fundamental Counseling that advices you also on maintaining the discipline of Asset Allocation & Investing within your Risk Profile     

On the Macro Index Level look at the phenomenal 40 % Sensex run up from 20000 levels to kissing distance of 28000 today…it surged over 500 Points today !

Sensex One Year till Oct 31,2014

 The Heat Map shows all 30 constituents ,but for Bharti Airtel, registering gains


Sensex Heatmap October 31,2014

Should you need to discuss getting into Equity or the specifics of your Equity Portfolio and whether the stock selections and positioning and weightage is appropriate and  who are not already our Personal Clients are welcome to connect with us to explore if we can create wealth for you through Equity

Our Performance is up on our website   

Those who advice others on Equity can connect with us too for a customised Win Win arrangement for their Clients and them too

HOV Services buoyant @ Rs 163 ~ Economic Times quotes me

HOV Services buoyant @ Rs 163 ~ Economic Times quotes me in today’s edition on the clearly apparent undervaluation of the stake sale in Source HOV at just US $ 95 m to promoter entity…should be worth at least US $ 250 m

Hope better sense of fair play will prevail and the stake sale is passed at  a much higher consideration

Even at US $ 95 m, the gross consideration is Rs 580 crs while Market Cap of HOV is just @ Rs 200 crs…The Equity is Rs 12.50 crs (FV Rs 10) =>Rs 464/share deal value proposed…hopefully should be reconsidered to much higher….Company say the Board will decide what to do with the Monies but clearly they should be considering returning a large part to shareholders as special dividend…1000% Dividend  that’s Rs 100/share maybe ?

The Buoyancy in HOV should sustain and in fact the share price can gallop up even more smartly if better sense prevails all around and minority shareholders are protected with a better deal value than the US $ 95 m proposed to the promoters entity itself

Had blogged in detail on this recently and that’s how Economic Times probably saw merit in this line of thinking and covered it with my quote

HOV Services @ Rs 153~Up 62% In 4 Days And Worth More Despite Undervaluation Of Investment Sale To Promoters

…similar point well made by Economic Times too except it’s Bank Tec that is merging into Source HOV and not the other way round…though ratios are correctly stated where the smaller Bank Tec is valued marginally higher than the much bigger SourceHOV…not looking fair too though the latter carries deb

…Morgan Stanley is mentioned too but their important role has not been shared by the Company in full disclosure especially if they were involved in the Valuation &  deal negotiations and  how did they arrive to give a financial committment for a new line of Credit of US $ 1.1 Billion to SourceHOV

…also is Citigroup,the largest and majority shareholder  of 68%+ in SourceHOV selling too as the article mentions !? if so have they accepted this valuation of PKF Sridhar & Santhanam,the Chartered Accountants of BankTec or on which valuation are they going !?

…because the Indian Listed Company’s notifications to the BSE & NSE on September 30,2014 only states that the deal will be contracted and consummated at the same valuation provided to the majority shareholder !…that’s Citigroup

…the notification also states that SourceHOV will use the new US $ 1.1 Billion refinancing facility…. committed by Morgan Stanley….. for three purposes as below read more

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