SEBI

2020 & 20-20 ~ Mumbai Equity Workshop Sat Aug 5 2017

Leave a Comment / Controversies, Corporate Governance, Derivatives Strategies, Disclaimer, Economy, Foreign Institutional Investors, Global Economic Crisis, Global Geo Political Crisis, Gold and Silver, Insider Trading, Investing Approaches, Investing Themes, Investor Gurus, INVESTOR MISTAKES, IPOs, My Speaking Engagements, Nifty, Open Offers & Buy Backs, Politics~India, Reflections, Restructuring Companies, SEBI, Sectors, Seminars & Workshops, Sensex, Startups, STOCKS, VALUATION / By Gaurav Parikh

Historic Saturday,July 1,2017~Indian Govt launches the much awaited huge Indirect Tax Reform ~ GST ~ Goods & Services Tax ~ 🙂 Here’s my GST Launch & Announcement too ~ Gaurav’s Saturday Training

2020 & 20-20 ~ The Long & Short of it ~Announcing a Full Day Mumbai Fundamental Equity Workshop on Saturday, August 5, 2017 ~ Register here => http://www.jsalphaa.com/register.php

On the back of a fantastic Mumbai Workshop on Saturday,June 17,2017 here’s another opportunity to invest the first Saturday in August 2017 with me ! ~ especially for those who could not make it or could not be accommodated as Registrations had closed within a week of opening ~ expecting a few repeat participants too ~ what better endorsement could there be ! ~🙂 While you can call it an Encore ,this time in this Stock Selection ~Value Vs Price Workshop have kept another exciting Theme to spot & assess both Long & Short Term Opportunities in Equity :

2020 & 20-20 ~ The Long & Short of it

As Limited Seats would advice to Book Your Seat right away here => http://www.jsalphaa.com/register.php

Plan to cover over 25 Fundamental Opportunities in Specific Sectors & Companies to assess Value vs Price both in the Short Term & the Longer Term ~ thus ideal for both Traders & Investors

Here’s some fresh feedback from participants of the very recent June 17,2017 Mumbai Fundamental Workshop on Stock Selection : Value Vs Price~ Wealth Destroyers : Potential Multibaggers where we conducted Macro & Micro Earnings & Asset Basis Valuation exercises & more & even played an animated Corporate Tambola ! ~ Some participants came in from Dubai,Malaysia,Delhi,Cochin & Ichikaranji too ~ & what a lovely & lively Mix from retail investors to HNWI market veterans & professionals from FPIs,Fund & Broking Houses & Institutions ~ spread in age from early 20’s to the 60’s

“Again Sir you Rocked & it was my fortune to attend your wonderful workshop that too three times in a row ~ it is your simplicity, down to earth nature & great FUNDA knowledge ( how to value a stock so precisely ) made me motivated to attend your w’shop again and again & i hope in future also, I will be able to attend your w’shop ~ Every w’shop is so unique”

“indeed a great learning & educational experience….totally luv your analysis of stocks….looking forward to the next one”

“Always fortunate to attend…get motivated by your knowledge & the attitude you carry with…thanks for sharing your knowledge & helping people like me to grow better” read more

Saturday Fundamental Equity Workshop ~ Tambola & Time just Flew!

8 Comments / Corporate Governance, Foreign Institutional Investors, Global Economic Crisis, Global Geo Political Crisis, Insider Trading, Inspiring and Motivating, Interesting People I Meet, Investing Approaches, Investing Themes, INVESTOR MISTAKES, IPOs, Kingfisher Airlines ~ Machiavellian Mallyas, My Speaking Engagements, Nifty, Politics~India, Reflections, Restructuring Companies, SEBI, Sectors, Seminars & Workshops, Sensex, STOCKS, VALUATION / By Gaurav Parikh

It was a wonderful Saturday for all of us ~ a Full House ~Time just Flew!

The Mumbai Equity Workshop on Wealth Destroyers having the Potential to bounce back kicked off at 9.30 am stretched into 7 pm…began with a Tambola or Housie where they had to guess the Wealth Destroying company on the questions posed & strike off the name if it’s there on their Ticket…In fact each pulled out a question & posed it for all…Prizes for Jaldi 3 & Two Full Houses & a question Bank on 25 companies…like “Chor ! Chor!” & they got it ! ~ Kingfisher Airlines ! or Ethopian Counsel yet destroyed his Company & promptly the answer shot back “Karuturi”! Chocolates were given for each correct answer too while I spoke a minute or two on each company & how it was destroyed & whether it can revive

Covered Valuation,Sentiment,Momentum & Liquidity…the power of Compounding for Wealth Creation…FPI Flows Impact…Impact of Global & Domestic Economic & Geo-Political Head & Tail winds…the impact of three leading rates~inflation,interest & exchange….how to protect capital while growing it through the discipline of asset allocation & when to adopt tactical strategies & staying true to ones’ risk profile

…& if convinced on Equity & India…showed them why they should be…then should you go for passive index investing through Mutual Funds Schemes & be content with CAGRs of 10% to 15% over the years or should you go directly into Equity for specific selections for potential of higher gains…& why the latter should be your strategy…& why Fundamental rather than Technical Approach…& not to mistake luck for skills in such bullish markets

Tea & Coffee & a variety of Cold Beverages & Biscuits & Wafers were served through the day & we had to switch from a Copper Chimney Lunch Buffet arranged to a Soup,Salads,Sandwich & Desserts Buffet at Pizza By the Bay as the former’s kitchen had grappled with a fire the previous day & was closed on Saturday

Must Thank the Full House with Participants coming in specially from Dubai,Malaysia,Delhi,Cochin & Ichikaranji too…there were a few repeats from earlier workshops in Bangalore & Mumbai ~ take that as a thumbs up!…gratifying that within three to four days days of announcing this workshop end May 2017,it got full…surely Sensex at 31000+ and climbing has something to do with this ! 🙂 read more

Wealth Destroyers as Potential Multibaggers~ Mumbai Equity Workshop Sat June 17 2017

7 Comments / ADAG Companies, Aviation, Banking, Controversies, Corporate Governance, Economy, Fertilisers, Financial & Stock Exchanges, Financing, Foreign Institutional Investors, Global Geo Political Crisis, Healthcare, Holding Companies, Hospitality, Hydrocarbons, Information Technology, Infrastructure, Insider Trading, Inspiring and Motivating, Investing Approaches, Investing Themes, INVESTOR MISTAKES, IPOs, Kingfisher Airlines ~ Machiavellian Mallyas, Media, Mineral Resources, My Speaking Engagements, Nifty, Nuclear Power, Oil & Gas Exploration, Open Offers & Buy Backs, Pharmaceuticals, Politics~India, Power, Power Ancilliary, Real Estate, Refining & Petrochemicals, Reflections, Renewable Energy, Restructuring Companies, Retail, SEBI, Sectors, Seminars & Workshops, Sensex, Shipping, Steel, STOCKS, Sugar, Technology, Telecom, Textiles, VALUATION, When the Heart Explodes through the helpless Mind / By Gaurav Parikh

Wealth Destroyers as Potential Multibaggers~ Announcing a Full Day Mumbai Fundamental Equity Workshop on Saturday, June 17 2017

🙂 This time in this Stock Selection ~Value Vs Price Workshop have kept an exciting Theme :

WEALTH DESTROYERS : POTENTIAL MULTIGAGGERS

As Limited Seats would advice to Book Your Seat right away here => http://www.jsalphaa.com/register.php

Plan to cover over 25 Wealth Destroyers to assess any Turnaround Value vs Price & thus a chance to redeem themselves and become Wealth Creators from here… or should just one move on in many of such Wealth Destroyers that are now beyond redemption

Here’s what some participants said of the December 2016 Mumbai Fundamental Workshop on Stock Selection : Value Vs Price…and this was before IB Ventures zoomed 7 x in months from Rs 20 to Rs 140 & HOV doubled in the same time to cross Rs 300… we had covered both these & more in Earnings & Asset Basis Valuation exercises

“Amazing… Awesome Session about Fundamental Stock Selection & Wealth Creation ”

“Full of Inspiration, filled with wisdom…. am really proud to be a part of this wonderful session”

& from a repeat participant “recreated the same old magic of Bangalore in Mumbai… great Saturday”

Would love to interact with you ~ So do invest one Saturday ,June 17, 2017 with me in my Mumbai Fort Office near BSE and above Starbucks & Croma

Here’s the Detailed Template of this Workshop if you want more details on coverage

🙂 See you Saturday, June 17, 2017 at my Mumbai Fort Office Conference Room… we’ll figure out if Suzlon will continue to be ZZZZZlon! & dissect many such Wealth Destroyers!

Cheers !

Sterlite Tech Shareholders short circuited in the Demerger ! ?

6 Comments / Blogs, Controversies, Corporate Governance, Foreign Institutional Investors, Holding Companies, Insider Trading, Investing Approaches, Investing Themes, INVESTOR MISTAKES, IPOs, Open Offers & Buy Backs, Power, Power Ancilliary, Reflections, Restructuring Companies, SEBI, Sectors, Seminars & Workshops, STOCKS, Telecom, VALUATION, When the Heart Explodes through the helpless Mind / By Gaurav Parikh

Sterlite Technologies (STL) Shareholders short circuited in the Demerger ! ?

I was approached to buy some unlisted shares of Sterlite Power Transmission Ltd (SPTL) & then was astounded when told an offer had already come in for Rs 270 already !

So what’s the Big Issue ? ~ How Can the Value of unlisted SPTL change dramatically upward by over 300% from Rs 112.30( as on March 31,2015 cut off date) that the company offered for in the demerger of STL and paid in August 2016 & just eight months later value the same atR s 464.46 ! on March 2,2017 when they announced an EGM for March 29,2017 to issue new shares !(Details Below)

It’s thus to do with the low Valuation of unlisted SPTL as on cut off date March 31,2015 that was the subsidiary of listed STL that got the Power Division of STL in the Demerger & then ceased to be a subsidiary post demerger.

Haribhakti & Co LLC did the valuation on a NAV (for Holding Co) & Income DCF Approach (for Operations) at a maximum of Rs 111.50 /share.Price Waterhouse & Co LLC also used similar Valuation approach and got mariginally higher Maximum Valuation of Rs 112.30.Both had valued SPTL below Rs 900 crs only ! despite Income Approach having to consider Potential of Scale Operations in coming years.Both Valuation Reports are dated May 18,2015 in sync with STL Board Meeting Date as below.STL has gone with PWC

These are the relevant Dates & all relevant documents for Shareholder/Court/Exchanges Permissions & Approvals can be found here :

May 18,2015 ~ Board of STL in a corporate restructuring decision approves the Scheme of Arrangement between the Demerged Company STL & Resulting Company SPTL (then subsidiary of STL)effective date April 1,2015.Decides to keep SPTL unlisted unlike the Adani Group that listed Adani Transmission after their restructuring exercise

December 15,2015~ Court Convened Meeting of STL Shareholders passes the Scheme

April 22,2016 ~ Mumbai High Court issues an Order approving the Scheme

May 23,2016 ~ Order becomes effective on date of filing with Registrar of Companies

June 15 & 16,2016 ~ STL begins ex demerger quote on June 15,2016 as Company has set June 16,2016 as record date for STL shareholders entitled to receive Demerger benefits of SPTL.SPTL ceased to be a subsidiary of STL on this Demerger & it was decided to keep it unlisted unlike the Adani Group which demerged & listed Adani Transmission.

June 27, 2016 to August 8,2016 ~ Election Date Range for @ 122000 shareholders in STL up from under 120000 shareholders at June 30,2015 when the Demerger plans were announced in May 2015 and I wrote a detailed blogpost in July 2015 (see later below) .There were two options for Resident Shareholders ~ receive Equity Shares of SPTL at Rs 112.30 (FV Rs 2) in a 1: 5 ratio for shares held in STL or go for the 8% Preference reedeemable shares of Rs 112.30 in the same 1: 5 ratio that would be reedeemed at Rs 125.55 in eighteen months from allottment.FPI/FIIs?Non Resident shareholders had to sell their shares back to the Promoters or their affiliates. read more

Promoters rooting for Change of Infosys Chair~Seshasayee to Subrahmanyam?

3 Comments / Controversies, Corporate Governance, Information Technology, Insider Trading, Inspiring and Motivating, Interesting News Sightings, Investing Approaches, Investing Themes, INVESTOR MISTAKES, Reflections, SEBI, Sectors, STOCKS, VALUATION, When the Heart Explodes through the helpless Mind / By Gaurav Parikh

The Infosys Situation is getting as explosive as the Tata Group’s did with Promoters rooting for Change of Infosys Chair~Seshasayee to Subrahmanyam?

Corporate (Mis)Governance Issues~First Tatas & now Infosys !~Chairman & Board under Attack by Promoters

It’s been disruptive global times in many ways with Trump now US President and India re-gearing up Post Demonetisation & the Indian Corporate Big League crying out “Me Too” .

Headlines were hogged for months as first Promoter Family’s Ratan Tata led the unusually aggressive initiative in the illustrious Tata Group to fire it’s Chairman, Cyrus Mistry & now Promoter N R Narayana Murthy has called to replace Infosys Chairman with Prof Marti Subrahmanyam .Ex Directors T V Mohandas Pai & V Balakrishnan support Murthy on this & are calling for the Chairman’s resignation for serious misgovernance on issues of High Severance Packages,Hike in CEO Package ,Director Appointments,Inducements to bag Contracts,non disclosures among others that strike at the very core values Infosys was build on

Narayan Murthy has just asserted in an interview that the unusually high severance package to the ex CFO was just hush money cloaked & that he was concerned about falling standards in corporate governance

Whoa ! That’s a criminal charge in my view !

N R Narayana Murthy is rooting to replace Seshasayee with Prof Marti Subrahmanyam,Charles E Merrill Professor of Finance at the New York University Stern School of Business.The Professor has already served as an independent director on the Infosys Board for thirteen years till 2011

Four Years ago in January 2013 I had an opportunity to interact with Prof Marti Subrahmanyam when he delivered a paper at BSE on the manipulation of Libor Rates.I had blogged on this then.I had asked him if the Banks simply had to rig the rates to survive & if this was the case then the orders had to come from the top.Prof was taken aback a bit by the query & clearly reluctant to confirm this.Expected truthful answer should have been “Yes” as the question was rhetoric.Instead he had brushed it off abruptly & I got the impression of an intellectual arrogance at display.That view has stayed as I’ve not got another opportunity to interact to be able to change this view …He’s quickly thrown in the hat to become Infosys Chairman.Clearly Narayan Murthy has been in touch with him on this before putting up his name to replace Seshasayee,Murthy has always been straightforward and blunt like in yesterday’s interview calling the severance pay as hush money !.Can’t imagine Subrahmanyam to be as straightforward & I daresay will be Murthy’s ‘Voice’ just as Ratan Tata,in my arguable view,wanted a ‘Yes’ Man Chairman to head Tata & which Cyrus Mistry turned out to be not read more

Equity ~Life Changers or Life Maimers ?

6 Comments / Controversies, Corporate Governance, Insider Trading, Inspiring and Motivating, Investing Approaches, Investing Themes, Investor Gurus, INVESTOR MISTAKES, IPOs, Kingfisher Airlines ~ Machiavellian Mallyas, My Speaking Engagements, Open Offers & Buy Backs, Reflections, Restructuring Companies, Rights Issues, SEBI, Seminars & Workshops, STOCKS, VALUATION, When My Mind Meanders..., When the Heart Explodes through the helpless Mind / By Gaurav Parikh

Equity ~Life Changers or Life Maimers ?

This Thought was inspired by a Whatsapp Forward received this morning titled Power of Equity .It listed many Life Changing Wealth Creators that grew many fold from just Rs 10000 invested in each & carried a concluding Message in Capitals ” INVEST WISELY WITH LOTS OF PATIENCE “

This was the List & I’m assuming the Years & CAGR Maths is correct with Dividends not being considered :

Eicher Motors-1992 => Rs 80 lakhs
Asian Paints-1986 => Rs 90 lakhs
HDFC -1990 => Rs One Crore
Brittania – 1985 => Rs 1.06 crs
MRF – 1985 => Rs 1.10 crs
BOSCH -1985 => Rs 1.20 crs
Amara Raja -1991 => Rs 1.25 crs
Shree Cement -1990 => Rs 2.90 crs
Infosys – 1993 => Rs 3 crs
Dr Reddys -1986 => Rs 10 crs
WIPRO -1981 => Rs 400 crs

Cannot Argue with this Message for I’ve seen three of my Scrips,in even relatively quick time inside five years of investment too becoming over 100 Baggers ~Matrix Labs( early Millenium & now delisted as sold to Mylan),Mercator(early Millenium) & WIPRO ( from 1997 to early 2001)

It is rare for most investors to live the Conviction & Temperament to hold for long & ride the Huge Life Changing Gains.Imagine if more than Rs 10000 had been invested in each of the above,especially WIPRO!

However my Thought is what about Wrong Convictions on the High Fliers that became Wealth Destroyers & Life Maimers !

Here are a few of them ,most yet listed & struggling to revive & how much worth would your Rs 10000 invested in each of them be now ….most are Horror Stories of the past decade or a little more…sure you can contribute more…My Horror Stories have been the Damania Group’s Damania Capital Markets to mention one.Bad Judgement Call that Cost!It was compulsory delisted in July 2004.

~Suzlon -2005=>Rs 842 & 2008=>Rs 348 ! => 92% to 97% wiped out after considering 10:2 Split in January 2008 when it reached an all time high of Rs 2300 before split.Current Price Rs 16.Promoter Tulsi Tanti is yet on board though Dilip Shanghvi of Sun Pharma Group has acquired a major stake in it @ Rs 18 in February 2015.Mandatory Open Offer at Rs 18 to other Shareholders in January 2016 met with no success.The Share Price had raced to Rs 30 from where it has halved & is below the Open Offer & Stake Price of Rs 18.Shareholders hold out Hope of Revival back to Glory Days in the years ahead under Dilip Shanghavi.So far it’s been a muted share price trading range in recent months.

~Unitech-2006 => Rs 505 => 95% wiped out after adjusting for 12:1 Bonus & 10:2 Split in June 2006 & 1:1 Bonus in Aug 2007.Reached a high of Rs 14800 in 2006 before Bonus & split .Current Price under Rs 6

~Kingfisher Airlines-2006/7 => 0 ! => 100% wiped out & scrip suspended for trading from 2012/2013 & restricted trading from June 2015 ~ reached a High of Rs 335 in 2007 read more

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2020 & 20-20 ~ The Long & Short of it