Thursday…not some stray thoughts !

It’s another Thursday..the last in January 2011…and as Derivatives settle themselves for the routine monthly close,I’m trying to settle a few not so stray thoughts……

…..An Additional Collector is burnt to death by the Kerosene Mafia near Nasik…an Activist seeking Information under RTI on a Builder is beaten up badly by the builder’s goons accompanied by a local Political Party MLA….FIRs are recorded reluctantly after some pressure….Methinks the Government Law Enforcement Machinery is unwilling and unable to protect honest people who do their jobs…..because somewhere or the other they are involved…..not a good sign of the times

…..Final CA Results were announced last week…and they have been quite disastrous….Intermediate Rankers have failed both Final groups…those who thought they had done exceptionally well and were planning parties to celebrate their passing have flunked…..the morale is extremely low and increasing frustration is evident…I know quite a few of those who appeared…..Methinks the ICAI needs to revist and rethink their  approach in controlling and regulating the number of successful candidiates lest they be termed as sadistic !…..the Relative Marking too is causing agony and is not viewed as being fair.….An Intermediate Ranker gets just 8 in IT ! after having self assessed that the Paper went of  very well !…..Frustrated Youngsters,many of them really brilliant,lose self esteem and most  will increasingly shun and switch from CA as a career on Failing ….My advice to Youngsters is to stay off CA if they do not have the ability and willingness to devout to serious stuides for months before appearing for Exams…these are not College Exams…this is a Professional Qualification and is therefore bound to be tough….and do not take it personally if you Fail….it’s not that the ICAI is out to get you…it’s just that the number of successful candidates will always be controlled at low levels…this time it was just under 15% of all those who appeared…that’s 1 in 7 passing…some centres it was 1 in 12….and when I talk to practising CAs they complain of a shortage of professional staff !…so what’s with the Balance !….if the objective is to preserve or up the worth of a CA by limiting the number of successful candidates,it may just end up in CA being seen as a Worthless Option !…Ask the Youngsters      read more

SEBI bans Austral Coke from raising Capital…was it sleeping when it allowed it to raise Capital through an IPO last year !?

It can’t be just a coincidence that this is my Blog Post No 420 !

Austral Coke came out with it’s controversial IPO in August 2008 in the price band Rs 164-Rs 196 for a FV Rs 10 share…The price was fixed at Rs 196 and it got listed on BSE on September 4,2008 rising to Rs 309,before closing at Rs 225…On October 28,2008 it dived below Rs 60 and since then has recovered to touch a high of Rs 570 last month before reacting ex split and post SEBI ban to Rs 48 today

The Company recently sub-divided the share into FV Rs 1 and it closed at Rs 48 today after SEBI banned it from raising capital…following disclosure by the Income Tax Authorities of Fradulent transactions of over Rs 1000 crs !

SEBI should have investigated it more last year before permitting the Company to raise Capital through an IPO.I had blogged this controversial IPO on August 8,2008 commenting that SEBI should have then itself verified claims of the Company on it’s capacities that were contested by Gujarat NRE Coke

Austral Coke went on to raise Capital in the IPO and it has now been also accused of diverting the proceeds too.

SEBI needs to get real serious about it’s prime objective of Investor Protection without fear or favour and probe Insider Trading more stringently

Expect the share price to fall further from Rs 48…if it does not then you know it’s being supported artificially by the company

If you hold the share,I would strongly advice you to sell as Promoters’ credibility continues to be suspect..and regulatory and tax authorities will continue to have Austral Coke under a heavy scanner…….and if you are an IPO allottee you’re already sitting on over 100% long term  gains….Take them