1 APPLE = 10 RELIANCE as APPLE crosses a Market Cap of US $ 500 Billion !

Apple has crossed Market Cap of US $ 500 Billion…only the fifth company in history to do so….Microsoft and Cisco have been there only to reverse back down

……so 4 Apples make India’s GDP…or 1 Apple= 10 Reliance !

…and 1 Apple is more than the GDP of most nations on Planet Earth

…and Apple is just 15 times Trailing Earnings with IPad 3,IPhone 5 and ITv Innovations being launched soon…and existing products like Macs hold just 10% of worldwide PC Sales while iPhones hold just upto 20% of world market share….

….so will Apple cross US $ One Trillion and double from the US $ 543 Levels it currently trades at !?…the market is divided on this,more so as Steve Jobs is no longer on this Planet to take Apple to greater heights and patriotic Americans are getting increasingly critical of Apple for not bringing jobs back to USA and manufacturing it’s products in China and other South East Asian Countries to maintain global competitive pricing advantage

….much as Indian markets are divided on Reliance !….Today Reliance closed at Rs 810 giving a Market Cap of Rs 265367 crs or just above US $ 53 Billion

So should a High NetWorth Indian with a Global Portfolio lean towards Innovative  Apple of USA or rely on Reliance in India to power his portfolio ahead ! ?

Maybe Apple needs to diversify !…in the mid 1990s Apple was just about surviving….Maybe it can buy out India’s largest Market Cap Company,Reliance in such a strategy !

Just a Thought !

Am biting into a lusciously red Apple while I blog this !…and it’s not Indian !

Cheers !

 

PG Electroplast IPO at Rs 210 sizzles on listing yesterday and hits upper circuit at Rs 493 today !….don’t get seduced by this Item Girl !

PG Electroplast IPO at Rs 210 sizzles on listing yesterday and hits upper circuit at Rs 493 today !….don’t get seduced by this Item Girl !….If in,get out before the Dance ends !…don’t be so enamoured as to consider marriage !

I’m really worried that the same old IPO Game is allowed to play out on our Stock Exchanges again and again and again !

Just yesterday PG Electroplast made an impressive listing debut and today hit and closed at upper circuit at Rs 493.95 on BSE with near 7.4 million shares being transacted…IPO was for 5.74 million shares

The Nature and Quantum of Bulk Deals confirmed my suspicion that this was an orchestrated IPO from Start and has yet to Finish!

The Company’s fundas do not hold up this sort of Market Price Acrobatics !

  • PGEL was promoted by Promod Gupta in 2002 to manufacture plastic injection moulding.It later began Electronic Manufacturing Services for Original Equipment Manufacturers
  • The Facilities are at four places in three States…two at  Greater Noida in UP and one each at Roorkee in Uttrakhand and Ahmednagar in Maharashtra 
  • Post IPO Equity  of FV Rs 10 Share is Rs 16.41 crs with 65% held by Promoters
  • FY 11 PAT is Rs 17.90 crs giving an EPS of Rs 10.90 on Post Issue Equity
  • P/E at IPO Pricing of Rs 210 is 19…while at Rs 493.95 it zooms to 45!
  • The Company will find it difficult to grow and probably even sustain profitability as it has lost ISI certification + repeat orders for 14″ CTV from the Electronic Corporation of Tamil Nadu are not forthcoming.CTVs contributed 77% of FY 11 Sales of  Rs 424 crs
  • Over half of Sales are to related Parties and Debtors form over half of Sales
  • IPO Proceeds of Rs 121 crs are earmarked for Phase II expansion at two units of Rs 14 crs and Rs 37 crs each and repaying loans of Rs 24 crs and Rs 15 crs for Long Term Working Cap + others
  • Product Expansion Plans include manufacture of Components for refrigerators,washing machines and microwaves,automotive components,Water Purifiers and LCD TVs
  • A Subsidiary Diamond Mattress Company Pvt Ltd manufactures and sells coir foam products and matteress 

The IPO Allotments were Firm in all categories

Sr. No. Category No. of Applications Received No. of Equity Shares No. of times subscribed
A Retail Individual Bidders 4,188 32,25,510 1.6041
B Non Institutional Bidders 28 15,72,990 1.8253
C Qualified Institutional Bidders 6 28,22,550 0.9826
  Total 4,222 76,21,050 1.3265

 

My Experience tells me that PGEL will not hold up unless held up !

For me it’s a Price v/s Value Argument….and an orchestrated Informed or Insider Play

Exchanges and Regulators need to have a closer look at what’s happened here