A Lion’s eye on the Bulls and Bears

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

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Reflections

Mukesh Ambani coterie accused by Samajwadi Party for Insider Trading in RPL and Jai Corp

After supporting the Congress in winning the Trust Vote on the Indo Nuclear Deal I was wondering when would Amar Singh of the Samajwadi Party launch his attack on a man he hates,Mukesh Ambani…he bluntly disclosed this in a TV Interview a few months ago

Well,he’s started doing so….he  and his party have moved SEBI to probe the Insider trading in Reliance Petroleum and Jai Corp

A letter by Amar Singh addressed to the Chairman of SEBI,C B Bhave,has demanded a probe into the RPL matter under Sec 11C of the SEBI Act and the SEBI (Prohibition of Insider Trading) Regulations

Amar Singh has provided details of how promoters,insiders and other associates of the Reliance Group became “unjustly” richer by over Rs 1000 crs.He has provided details of how they illegally sold RPL Futures between November 1-6,2007 armed with inside information of the impending part sale of the RPL holding by RIL….they made huge insider profits when RPL price fell sharply

Amar Singh has also demanded an inquiry into ‘‘large scale price manipulation in the shares of Jai Corp Ltd’’ in the last two years.

Singh’s letter dated July 28 also alleged that the manipulation had taken place under the nose of the market regulator SEBI and also the stock exchanges, which exhibited total lack of action by regulatory authorities and complete failure of its surveillance machinery.

Jai Corp is owned by Anand Jain (very close to Mukesh Ambani….regarded by many as Dhirubhai’s third son) and his family.

If you recall last year in a Bulk Deal on October 15,2007 after the Record date of October 12,2007 for Bonus Issue of 1:1 and Split of Shares from Rs 10 to Rs 1 FV,The Jain Family sold 2.19 crore Shares (12.69% of Equity) at Rs 1035 xb/xs and Rs 1036 xb/xs to a host of FIIs and Domestic Funds like Morgan,Merrill Lynch,Goldman Sachs,Citigroup,Barclays and Birla Mutual Fund…It was one of the largest deals of it’s kind of over Rs 2250 crores…Check it out on 

http://www.bseindia.com/qresann/newsh.asp?newsid={55096F22-66E2-4252-AF0D-B661E38EC108}¶m1=1   

Jai Corp is engaged in SEZ Developments in Vashi and Panvel Regions.The Share price currently has dropped to Rs 435 with Promoters now holding 72.54 % of the equity through eighteen shareholders….Ten are of the Jain Family and Eight are Companies

RPL had surged  in 2007  and was made to zoom to near Rs 300 to facilitate the offload of 5% stake held by RIL and then drifted back lower to below Rs 150 after the stake sale…..Jai Corp too was controlled over 85% by the Jain Family before the stake dilution and it’s share price had a meteric rise to over Rs 15000 (FV Rs 10 and cb/cs) in October last year….making crores for those who had inside knowledge of things to come in this Company and who had acquired the shares at a price in the Hundreds. read more

Hugging Lion becomes Net Rage

What a lovely Inspiring start to the week in the Month of the Lions…..It’s my Month too you know…..Lions never forget those who they love….Check this out on Youtube

http://in.youtube.com/watch?v=h7VkiL_PW6U&feature=related

also on

http://today.msnbc.msn.com/id/25929574/

You’ll feel warm and nice……In 1969,John Rendall and Anthony Bourke bought a Lion Cub from Harrods….It weighed 35lbs and they named it Christian…..Quickly It grew too big for their London flat and even for the grounds of a local church that allowed access to Christian…it weighed 185 lbs

John and Anthony released Christain into the wilds of Kenya in Africa with the help of the legendary George Adamson,husband of the legendary Joy Adamson of “Born Free” fame….a year later when they wanted to vist they were told that Christian had become the Head of a Pride and had not been seen for over Nine Months….However they yet went to Africa to check it out……As if he had known all along of their Vist,Christian received them at the Kora Campsite of Adamson…..you got to see this Reunion !….Touching,Uplifting and Inspiring….unbelievable footage captured 35 years ago!

You can read about it all too on http://www.snopes.com/photos/animals/christian.asp

We Lions tend to Roar…are proud….. lazy too……but we never forget those who we love !     

Last week Hit by a Virus from an Anti Virus Software Seller !

Just learnt a big lesson…..always ensure your laptop is protected from a Virus attack by having a strong branded Anti Virus and Internet security Software installed and ensure timely renewals

This week I had the damn misfortune of suddenly seeing my laptop taken over by a criminal selling gimmick and ploy of an Anti Virus Software Seller In India….It disabled my task manager…took over by screen and kept up popping with crash screen and windows security screens look alikes and warnings that there was spyware,malware and trojan virus on my laptop….it automatically scanned my machine and stated that there were over 3000 virus on it!…..Even if i closed such messages it actually directed me to  a site where this software was available at Rs 999…no name just Anti Virus 2008…no address,no contact numbers…you pay by credit card and if you took the trouble(most dont) to click on Terms you’ll find yourself agreeing to a monthly charge of Rs 199 and a one time charge of Rs 600+….another site it took me was related and was called antispyder software……total bullshit…got a good mind to report these sobs……I had to go online to a reputed Anti Virus Brand and they did a courtesy check for me…showing that my C Drive was infected with 27 virus….many of them low risk Adware but some more serious like a hack kit…..scared me as just recently in the Bombings at Ahmedabad the computer of an American staying at New Vashi,Mumbai was shown as being used to send an email just five minutes before the blasts claiming the blasts….I may just have to reformat my drive even though the wallpaper warning has gone..the laptop goes into a blue shutdown mode warning of an error…this actually is a false screen as I just press escape to go back to my work screens……even the Branded Anti Virus Software is having trouble being installed……though the process has scared away these Sobs….just be careful and install a good reputed Brand  of Anti Virus that has online help and support and a strong technology and software domain expertise…these guys will save you a  lot of sweat…worth the Rs 3000 to Rs 4500 you pay annually for this protection

I’ve just been painfully reminded that ‘Prevention is better then Cure’         

Cricket : Introducing Third Umpire Referrals introduces Controversies

We all know How Poor and Bad Umpiring Decisions ,sometimes deliberate and biased,can spoil a Match and often change the Course…..we all saw how Steve Bucknor of West Indies did us in when we were on a winning course against Australia in a Sydney Test match last year and how the tour was nearly called off and the Prime Minister of Australia had to caution the Australian Team to play the game in the Spirit of the Game

All this brought about welcome changes….One of them was introduced for the first time in the ongoing India and Sri Lanka Test Series in Sri Lanka…..It allows three Referrals to the Third Umpire by each team in each innings of any Umpiring Decision

The Problems that have cropped up are several….Referrals show

  • Third Umpire Bias….Dravid was given not out by Umpire Billy Doctrove for a lbw appeal by Bowler Murli and his team mates…Captain Jaywardene took his time to see the angle,walk up to the Umpire inquiring why he had made such a decision…this in itself should  not be allowed….and then asking for a referral to the third umpire….here the third umpire is Dsilva,a Sri Lankan…and as he has shown earlier too in this test match,he ruled Dravid Out when the ball had pitched outside the off stump and was spinning in and Dravid was well forward 2 meters when he attempted to sweep the ball…Doctrove had to change his decision and give Dravid Out
  • Technology is not the Final Answer…..Another Leg before Decision was given Not Out and Gambhir survived….Captain Jaywardene took his time,asked the Umpire why the decision was Not Out and asked for a referral to the Third Umpire….It was given Not Out even by the Third Umpire…but the point here is that Technology was simply not able to decide the turn… Replay showed that the ball pitched on middle and was spinning away way past leg stump…probably would have missed a fourth stump too…However Hawk Eye showed the ball would have hit Leg Stump…this was simply not possible…Fortunately Hawk Eye visuals are not allowed to be seen by the Third Umpire on a referral…..Camera angles cannot be used to gauge the spin and turn
  • Referrals should be instantaneous and not after more than a few seconds
  • read more

    August begins well

    My Birthday Month always begins well ! It weekend time and I love it as I get to simply relax and unwind

    It began with a two and a half hour lengthy and interesting conversation I had with my eighteen year old son.It began at 10.45 pm on the night of July 31 and went on till 1.15 am on August 1,2008….He was sharing with me all that has transpired in the few months since he has commenced  his CA articleship at a top firm….he had a tiring day filing Client’s Tax Returns at the Income Tax Offices at Lalbaug and Tardeo in Mumbai as July 31,2008 was the last day to do so for Financial Year 2007/8

    He tells me that when they sit late at work,the Partner jokingly inquires whether their parents have thrown them out of the house!…he proudly tells me how he saved some tax for the client when preparing his return…he also proudly tells me that the local sandwichwallah has named one sandwich after him as  most of his office orders the same after having tasted it just once…It’s his recipe 

    My daughter too got home four ‘Five Star’ Chocolates from School for me…she knows I love these and there were two birthdays in her class and two of her friends gave their chocolates to her too…so I got four of them!….probably a Big Thank You from her for sitting late nights with her for her first term exams that just concluded yesterday…she says she’s done well and it was worth the late nights    

    India gets a green signal on August 1,2008 on adequate Safeguards in place for Nuclear Installations  from the IAEA on Consensus and without a need to go for a Vote

    The UPA Government has put the Reform Process on the fast tract and announced opening out the 3G Spectrum in the Telecom Sector and also go in for further PSU Disinvestments 

    India fires back at Sri Lanka in the ongoing Three Test Match Cricket Series in Sri Lanka….It had lost dismally the first Test Match in Colombo by an Innings and over 200 runs succumbing to the magic of Murli and Mendis….In the ongoing Second Test Match at Galle it scored 339 electing to bat first and got the Sri Lankans out this morning for 292 and then are 121  at tea  for the loss of Sehwag’s wicket…He remained not out at 201 in the First Innings and just threw his wicket in the second after scoring 50

    Sensex has climbed a third day in a row and closed the week at 14657 and a Scrip I recommended strongly a week to ten days ago as  an SS 1 Scriptech Stock select has already moved up 15% last week and promises a good upward ride coming week too before it goes ex bonus and ex split read more

    The Indo-US Nuke Treaty : Ask Just Two Questions

    Why is India pushing for the Nuclear Agreement with USA ?

    &

    Why is USA pushing for the Nuclear Agreement with India ?

    despite there being sizeable opposition in both countries to this Deal

    Let’s address the first question.

    India,clearly needs significant additional Power Generation to sustain it’s GDP growth for the next few decades.In fact from the current US $ I Trillion economy ,if India grows at 7% to 8% CAGR it will cross US $ 4 Trillion in the next 20 years.Any higher rate of growth will see it becoming a US $ 6 Trillion economy in this period !

    ‘Powering India—the road to 2017’, a report by global consultancy firm McKinsey states that India will need $600 billion to meet electricity demand that may triple to 3,35,000 mw by 2017 and it will face a huge shortage of power if it does not act now. 

    India’s Hydel and Thermal Power Generation Capacities and those generated by Altrenative Sources like Wind and Solar would just not be enough to cope with an expected Power Demand

    So what’s the opposition about ? ! Well for One it’s the way the UPA Government has gone about this whole process.Full Transperancy and Communication from Day One would have been a better idea.

    A more compelling argument is that many believe that India will surrender some part of it’s sovereignty in that it will not be able to conduct further nuclear tests or it will risk facing stoppage of the supply of uranium which is the feed to the reactors.Australia,who holds 25% of the world’s uranium reserves, has already taken a  U turn as the Labour Party has come into power and stated that it will not supply any uranium to India as India had not signed the 1970 Nuclear Non Proliferation Treaty.The risk is that if supplies do stop there is very little “corrective measures” (Draft IAEA Agreement) that India can take to keep the reactors in operation….The Reactors would at best serve as gigantic storage Bins…like the silos that store Wheat!…and they would have cost India over US $ 40 billion to build

    The arguments on higher creation costs (Nuclear :Rs 6 crores/MW against Thermal :Rs 4 crores/MW) and safety issues (Chernobyl Disaster in 1986 in Ukraine was more due to lack of safegaurds prescribed by IAEA and the Three Mile Island Leakage was controlled by conventional means) are less compelling.

    Now let’s tackle the second question as to why USA is pushing for this deal.

    Clearly USA benefits two fold with this deal. read more

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