Kingfisher Airlines @ Rs 11.75 gasping for Breath !

Kingfisher Airlines @ Rs 11.75 gasping for Breath !

Have blogged several times on KFA right from 2008 cautioning Investors on the risks ~ Search Engine will throw up all these posts

Kingfisher Airlines (KFA) bleeds some more~wonder how it’s yet holding above par at Rs 11.75 ! thus being Valued by the Market at just under Rs 1000 crs ! though Debt and Accumulated Loss is at Rs 10000 crs !

Yet the Financial Statements have been prepared as a GOING CONCERN 

 Need a Miracle for KFA to fly again ! ~ Who would like to take over KFA ! ? ~ it has now just a few planes to fly ~ but no permit to fly~ Debt and Loss of Rs 10000 crs !~ Even with FDI being allowed in Aviation ,it would be simpler and easier for a new Entrant to simply start a New Airline than to try to revive KFA

 Am intrigued that yet 230000 + Shareholders have the conviction to hold KFA Shares ~ there is yet an opportunity to exit at Rs 11.75 ~ unless of course they insist to hold an aggressive appetite and love Kingfisher ~ the Man ~ His Beer ~ and his Airline ! ~ as long as they are aware of the Risks involved in holding this Conviction ! ~ Remember Global Trust Bank (GTB) Fiasco ~ allowed to trade on BSE and NSE despite it being a lost cause ~ then one fine day trading was stopped and one’s holding was simply obliterated overnight from one’s demat account as the bank ceased to exist ! with RBI intervening and allowing Oriental Bank of Commerce to take over only it’s assets

KFA Shareholders be warned that KFA may just go the GTB way !  

Kingfisher Mallya the King of Good Times and his CA~LENDERS this year !

Kingfisher Mallya the King of Good Times and his CA~LENDERS this year !

This is the Reality from the Prediction a few years ago ! ~ a forced change in focus ~ from swelte and sexy bikini clad models hand picked from hundreds, that Loyal Photographer Atul Kasbekar clicked for the Annual Kingfisher CALENDAR to a survival business model being thrashed out with CAs and LENDERS for Kingfisher Airlines whose license has just been suspended !

In the past few years Blogged a few times on Kingfisher Airlines and it’s financials,right from the time I highlighted the risk of the Brand being valued for leveraging debt on this Intangible ! ~ use search on the blog to locate these

Mallya is a true role model for my blog’s tagline “In India,Companies may fall sick but Promoters rarely do!”

In a Sense I do sympathise with him ~ and in the same Sense I don’t ! ~ a few good reasons for this ! ~ his UB group and him hold 28.98cr shares FV Rs 10 or 35.83% of KFA’s Equity ~ all pledged

In a Sense I do sympathise even with the Lenders ~ and in the same Sense I don’t ! ~ a few good reasons too for this !~ SBI,IDBI Bank,ICICI Bank and Bank of India have converted some part of loan to shares at I think @ Rs 60 ! ~ they collectively own 7.1 cr shares of FV Rs 10 or 8.78% of KFA’s Equity as at September 30,2012

In a Sense I do sympathise with the 214000+ Shareholders of KFA ~ and in the same Sense I don’t ~you guys took a flying risk despite clear indications of  heavy turbulence during Flight !

Where I do really sympathise is with the Employees ! ~ try living without salaries for even a month ! ~ and when Mallya last met them I was stunned by his attitude ~ literally chiding them for holding flyers to ransom by resorting to go slow,strikes and no shows ~ did they have any other Choice except to resign and leave and probably say goodbye to their dues too ! ~ Mallya has not kept his word to them in the recent past and even this oral offer of paying  three months salaries for the seven months due before Diwali is not in writing ~ and when he had crucial meetings with lenders he was seen in the Control Room of the Formula I Singapore Grand Prix monitoring his Force India  Cars !

Meanwhile KFA valiantly struggles to remain above par at Rs 10 on ground BSE and NSE despite none of it’s Planes in the Air currently ! ~ In fact The Planes have been bolted in the Hangars by AAI till dues are cleared and those who own them and had leased them or sold them on instalments to KFA have been unable to recover possession of the planes read more

IndiaBulls Group is BILKING INDIA say Veritas ! ~ There’s more than Meets the Eyes on both sides !

IndiaBulls Group is BILKING INDIA say Veritas ! ~ There’s more than Meets the Eyes on both sides ! 

Was prompted by an editor of a leading Media Financial Publication for my views on the controversial research reports generated by Veritas,Canada on Listed Indian Companies

Veritas is a Bear on IndiaBulls 

Veritas,Canada released a Damning Research Report dated August 1,2012 on the IndiaBulls Group controversially titled BILKING INDIA !  ~ specifically covering three Companies IndiaBulls Real Estate at Rs 55.85,IndiaBulls Power at Rs 12.80 and IndiaBulls Financial Services at Rs 227.30

BILKING is a strong word ~ Obtain or withold Money by deceit or without justification,cheat or defraud ~ obtain money fradulently

This is My Immediate Take on The Veritas Research Report Controversy on the Indiabulls Group

On Veritas Motives

  1. Why do they come up with only Sell Reports ? ~ and that too just a hand full of companies have been covered in the past year ! ~ Are these Reports generated to create Big Bonanza through F & O Short Selling Quickies ~Yes,Veritas and Mr Neeraj Monga ! Why are there no Buy Reports !? ~ Nothing Worth Buying in India !? or you want Clients to make Monies only by Selling Off or Short Selling or Saving them from making the Investment! ?
  2. In my view this is unfair and unethical especially to other Clients already on the rolls ~ by agreeing to delay the IndiaBulls Report by one day just to tempt Altima,London to sign on for US $ 50000 a year for Research Reports generated by you so that they can act on the Report before it is issued for wider viewership ~ a question that follows is this ~ if these reports are a paid service then what does Mr Monga mean that he will delay the issue of the Report by one day !? what is he implying ? will he be issuing or leaking the report free ! to a wide audience who are not paying clients? ~ wonder if this borders on insider Trading !

On IndiaBulls Strong Reaction

  1.  In initiating Criminal action,IndiaBulls is sending out a Strong Threatening & Menacing Message ~ “Don’t Mess with Us!”  ~ perhaps only IndiaBulls can do the Messing around !

Neeraj Monga and Nitin Mangal,the Veritas analysts who have damned the IndiaBulls Group are seen as fearless crusaders by many as also foolish by some and with vested interests by quite a few~ their Motives are under the microscope in writing such a Damning Report ~ Veritas charges Signing up Clients an Annual Fee of US $ 50000 to receive such Reports ~ So Far these guys have damned the Reliance Group especially Reliance Industries and Reliance Communications,DLF and KingFisher ~ Their latest target has been the IndiaBulls Group

If you follow my blog you will not have to pay a single Dollar ! ~I’ve exposed quite a few Companies,including KingFisher Airlines ~ use the Search Engine to locate such posts

Check the tagline of my blog  ” In India,Companies may fall sick but promoters rarely do!”

When I wrote for leading Stock Publications in the past,for the benefit of Lakhs of Investors I have often exposed traunt listed companies and their unethical and fradulent  and manipulative operating and accounting practices~ Of course I’ve been threatened to be sued often until evidence is shown to the Companies and they back off ! ~ Scales and Stakes were in lakhs or a few Crores then unlike now where we are seeing hundreds and thousands of crores of rupees being raised in dubious ways and spend dubiously too ~ This Role of playing Watchdog  is the Responsibility of the Regulators and the Exchanges  ~ Let’s just say that only of late have they been bit by Conscience ! ~ otherwise only the small fry was fried ! ~ also the blatant and shameless rape of Investors by unscrupulous promoters and their network often has strong political patronage ~ and is supported by some in the mainstream  media,broking  and banking world Let me make it Clear though ! ~ I am not a Share Activist ! neither am I associated with any such Activism ! ~ the reason being the prime objective of any analysis I do of Companies in our Capital markets is to see if they merit Investment ~ my job is to make Monies for my Clients by investing in Winners and staying away from Losers or Controversial and Manipulated Companies ~ It’s nothing personal ~ I do not defame Companies ~ don’t really have to as many Promoters effect this Role well themselves ! But What I do do ! is caution readers of my blog on certain companies that I feel may strangle them ! ~ Karuturi Global @ 25 (now 4 ! and was touted by many as a multibagger on big stock channels as Company gave ads on these channels ) or Cranes Software @ 25  (god knows what it’s now)

What these Veritas Analysts are doing is nothing new ~They are Analysing and Interpreting Financial Statements and Disclosures questioning Controversial & Vulnerable Big Companies Motives and Gameplan in their Operations,especially in Corporate Restructuring Exercises that involve Valuations and Raising of Finance and the myraid structure of related entities involved that benefits from Inflated valuations that are even certified by renowned auditing firms ! ~ remember the infamous Maytas and Satyam Real Estate Valuation Report of Rs 6000+ crs by a Big Four Auditing Firm that was prepared in just one day to facilitate the merger of Maytas into Satyam to fill the hole of an equivalent amount !!! Check my many blogs on this in the category of ‘Satyam ~ The sordid Asatyam Saga’

Veritas Analysts are Tearing Up the way certain Revenues,Expenses,Assets and Liabilities are presented in the Financial Statements or simply not disclosed properly to reach conclusions that the Company is weaker or not as strong as the Statements Portrays read more

Kingfisher Airlines digging it’s own grave…. Mr Mallya, when you are in a Hole stop digging!

Mallya deserves the nasty tweets that are doing the rounds

  • Naresh Goyal of Jet and Mallya of Kingfisher Airlines should merge… their new Airline would be called GOL-MALL AIRLINES !….. GOyaL combines with MALLya
  • What’s the Difference between Vijay Mallya and Richard Branson ?… Branson’s Airline is Virgin while Mallya’s is F____d !
  • Mallya was to fly to New Delhi to explain to the Prime Minister about KFA woes but his flight got cancelled !

Kingfisher Airlines Bank Accounts have been frozen and All across India KFA Flights have been cancelled leaving passengers furiously stranded

Have been watching the heated arguments on this on  Arnab Goswami’s Times Now Debate on Why should the Government bail out Kingfisher…. and was getting increasingly furious at ad man and man around town, Suhel Seth and head of a leading Travel Agency, Ashwini Kacker aggressive monologues defending Mallya… these filibustering ‘I know it all’ egotists, who think only their View is the Only View, kept arguing, actually yelling aggressively…. Kacker used the term ‘bloody’ more than once when he argued that Mallya had pledged his ‘bloody’assets and even his ‘bloody’ life !…. I seriously doubt he has pledged all he has… Remember my tagline for this Blog… Companies may go sick but Promoters rarely do !… and if I recall correctly, a Fixed Deposit Ad by his United Group Company showed him as  Director with a USA Address… Suhel Seth said that the Bank will have to be patient as thousands of crs are involved and if the Airline closes down, they stand to lose all they have lend… it is different if they have lent just Rs 100… they will chase the borrower for life for this !… he sounded and makes it out as if it was the banks fault that they lend in the first place  to KFA !… you cannot blame Mallya for this ! says Seth

Arnab, get me on Times Now against condescending Suhel Seth on this issue…when he is championing conscience and morality causes I’m on his wavelength but when he defends the indefensible like this,he is just being turgid !

… And Kacker…Even if Mallya has pledged all, So what !… KFA is a private business and like any business that does not make money, he would be wise to exit, even at a loss rather than bleed all stakeholders to death… simply because I hold the view that he does not have the ability to turn around KFA… I have blogged several times on KFA woes and the dangerous precedent of State Bank of India lending heavily on the Brand Name… I have no personal axe to grind … am a King Club Member too…. and would love for KFA to revive… but for this miracle to happen,Mallya needs to stop digging first and even have the humilty to apologise for the state of affairs… instead his stooges, like Suhel Seth and Ashwini Kacker, simply pass the buck to the Aviation Industry Woes that have engulfed most Airlines…. Wanna bet ! even if he gets funding,Mallya will yet run his Airline to Ground yet again !… he needs to leave his ego aside and exit the sector read more

Om Namah Shiva !…Happy Maha ShivRatri to All…’M’ certainly is the flavour of the Month !…Mahashivratri,Mamta Banerjee,MCX IPO,Mercator Lines and the Much Maligned Mallya of Kingfisher Airlines….

Om Namah Shiva !…. Happy Maha Shivratri to all of you… Bam Bam Bhole !… Jai Bholenath !

My Wife’s ‘Tandav’ … evidence above (her Arrangetram in 1981), and recent too… seriously!… has kept us Happily Married … and this is not an oxymoron !… we shall celebrate our silver next year in 2013

“Jai Jai Shiv Shankar, Kaata na lage Tunker !…..” Check out Rajesh Khanna & Mumtaz making this Song Immortal in ‘Aap Ki Kasam’ http://www.youtube.com/watch?v=xApijNIJBt8 while consuming the intoxicating ‘Bhaang’ as is traditionally done on this auspicious day Celebrating the marriage  of Lord Shiva and Goddess Parvati

Oh ! do you know what they call ‘Bhaang’ in English !… Shiva’s Regal !

And ‘M’ is certainly the flavour of the Month…

  • Mahashivratri today…. this blog has already wished all of you above
  • Mamta Banerjee… The West Bengal CM’s Mentality and Mindset is being seriously questioned when she thrashed the character of last week’s Kolkata Rape Victim saying the lady who frequented nightclubs, had concocted the story and today after arrests made of some of the perpetrators, says the Police had mislead her !… Ofcourse Mamta is Insensitive.. but was she trying a cover up because she was approached for it !?
  • MCX IPO in the Primary market opens on Wednesday,February 22,2012… It’s a Full Offer for Sale Issue by existing Shareholders in a Price Band of Rs 860 to Rs 1032 of a FV Rs 10 Equity Share… Valuation is not really Cheap… nearly 5x Book and 18x Earnings… Consolidated Networth is just over Rs 1000 crs and a succesfull IPO will give it a Billion Dollar Market Cap… pays Dividend, but has a negative Cash Flow and has serious loss in every major Exchange it has opened overseas… Dubai, Singapore, Bahrain, Africa… the last two have yet to begin operations… will be listed only on BSE…. I am going through the 534 pages RH Prospectus and will blog seperately on MCX IPO in a day or two after also gaining some insights from the inside
  • Mercator at Rs 31 in the Secondary Market for a FV Rs 1 Share… some serious buying observed… High Net Worth Investors have been calling in to confirm this… 52 Week High of Rs 46 and Low of Rs 16…. It was my huge multibagger when I initiated heavy buying in the early 2000s at Rs 45 when it was a FV Rs 10 share… Clients rode it all the way past Rs 2000 ! inside three years !… then Congress regained Power at the Centre and the BJP linked Mercator lost Power ! …. what’s all this heavy buying about now !…. the company has made net losses in the last four quarters…… checking it out… should blog on it shortly
  • Much Maligned Mallya of Kingfisher Airlines…. he’s literally been grounded… Airline is bleeding and therefore so are all stakeholders… bank accounts are frozen… flights are being cancelled all over India… and he’s at the rough end of some real nasty tweets… quite deserving,I daresay !
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    Kingfisher Airlines virtually Grounded by Debt and Share Price sinks below Rs 20…Fears come alive of Borrowing on the Brand

    Kingfisher Airlines…Fears come alive of Borrowing on the Brand….The struggling Airline is virtually grounded with Heavy Debt … some taken even against the Brand…..Pilots are leaving enmasse and flights are being cancelled daily…Share Price has sunk below Rs 20

    http://www.hindustantimes.com/News-Feed/SectorsAviation/Kingfisher-seeks-Govt-bailout-40-more-flights-cancelled/Article1-767695.aspx

    Management and Mallya are putting up a Brave face…will have to quickly come up with atleast Rs 500 crs and in the next few months raise over Rs 1000 crs to stay in the Air…With the Intangibles Channel of the Brand now being exhausted to raise funds,the only way for Mallya is to either sell out the Airline or sell or pledge Group Assets to raise funds

    The King of Good Times is now begging the Government to bail his Airlines out in Pauper Times !…Ironic !…hope the Government does not fall for this again !….Of course there is a larger Picture involved to support our Aviation Industry but First the King needs to infuse some more himself by leveraging or selling his Group Assets…IPL…Formula One…Kingfisher and United Group Real Esate Assets…their kingfisher dhun “Oooh la la la la aey oh!” has whittled down to just “Aey Oh!”….and I’ll let you on to something here…the last time the Banks lend to the Airlines,the Agreed Arrangement Fees to an Intermediary related to one of the Lender Banks was not paid in full…in fact was reduced from Rs 20 crs to just Rs 1.5 crs….Now ! Now !…more than meets the eye here too !

    Had warned in July 2009 that while Borrowing on the Brand was interesting,it did throw up some huge risks

    No Airline…No Brand !….How then would a lender against the Brand, State Bank of India recover it’s dues of @ Rs 2000 crs !…What good is the Brand in such a situation !…you can’t sell it to a rival airline ! can you ! ?

    Check out earlier Blogs on this

    Auditors warn of ‘Kingfisher Airlines’ being a ‘going concern’ problem in the making!

    Thursday, September 15th, 2011

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

    Thursday, July 23rd, 2009

    Some Wednesday Wanderings !…May’s Heat Wave causing a Lot of Bouncing !…Kingfisher Airlines Cheques…Adnan Sami…Tata’s JLR Debt woes forcing sale of TCS Shares…and our Sensex !

    Wednesday, May 6th, 2009