A Weak Week Gone by …Sensex shakes down 5% as Scams Surface and CBI makes ‘Listed’ arrests…have Selective Conviction

It’s been quite a weak week gone by….the Sensex shook 5% opening at 19841 last Monday but shaking in some shock down to 18955 on Friday…it has recovered to 19400 close as this week opens…..Looking beyond the Sensex shows that the shakedown has been more intense in the Mid cap and Low Cap Areas

IFCI has dropped to Rs 57 levels and IDBI Bank from Rs 200 ! to below Rs 160…both nearer Consolidated Book Value for this year….these price points offer lower risk Opportunities unless ofcourse scams unfold here too !

….what is also spooking the markets,apart from Korean War fears, is the CBI confirming a sense,long suspected by all of us really, that there have been huge sinster gameplans at work on the Exchanges…..collusions between Promoters,Bankers,Merchant Bankers,Politicians,Brokers,Fund Managers and  sadly even certain Print and Broadcasting Media…..to hype Companies and  rig up share prices to facilitate QIPs at high Prices with Fund Managers being paid off for participating in the QIPs…..it is alleged that even Exit Prices and Time Periods for this were pre decided….this would necessarily involve the need for Market Price manipulation…..where Loan has to be arranged it would involve Corruption…bribing those who can make decisions to deploy their Employers Huge Funds

CBI has made high level ‘Listed’ arrests…CEO of LIC Housing Finance….DGM of Bank of India and Independent Director of Central Bank of India,DGM of Punjab National Bank,Secretary (Investments) of LIC,CMD of listed Finance Intermediary, Money Matters Financial Services Ltd….the stink of corruption is polluting the markets….bribes being paid to Finance Heads of Listed Institutions through a Listed Financial Intermediary to faciliate Loans and QIP of Equity of hundreds of crores to Listed Corporates,especially Real Estate Companies….being ‘Listed’ seems to be the key….often manipulating the share price pays for the Corruption……..who suffers here ?….those primary market institutions and those secondary market  suckers who unknowing of this gameplan invested in the Share at an inflated price….if the situation is that of Loan Outstanding…it will probably remain outstanding till declared Non Perfoming and quietly written off after a few years !…and civil court cases takes years ! 

Maybe SEBI should report to the CBI !……..Because more often than not even this IPO High Obscene and Vulgar Pricing is a Scam of Sorts…though SEBI may argue it’s not their job to comment on Valuation and Pricing…and market forces will decide the success of the IPO…..but the truth is that most Investors are not educated enough to understand the Difference between Value and Price…and with no Protection now that the CCI Formula for Pricing the Premium gave the Promoters and Merchant Bankers will create Hype and milk Investors…we all know the Reliance Power IPO Debacle…probably only Mukesh Ambani did not invest in this !…Kishore Biyani’s Future Capital,Tanti’s Suzlon were nothing but IPO Loot Pricing….Adani Group is simply another story ! …of Satyam is now well known ! read more

It’s August 9 today…what a Day !…ROAR !

Are you aware of the significance of August 9 ?

It was on this Day in

1942…. that the Quit India Movement began…. to gain Independence

1945…. that USA dropped an Atom Bomb on Nagasaki in Japan during World War II

1974… that President of USA, Richard Nixon resigned due to the Watergate Scandal

…. and also on August 9, 1962, my Mother decided that I needed to stop kicking her from within and begin kicking others on Planet Earth !

…. I’m yet kicking… because it is widely believed that unless Times of India in their ‘Personals’ does not greet you personally on your birthday, like they did BIG Lawyer, Mahesh Jethmalani and BIG Bazaar, Kishore Biyani this morning, you are not BIG !

A ROAR from a Lion to you’ll !….. and especially a BIG ROAR to those who wished on email, sms, skype, phone and Facebook !

…….. Like a close friend observing that a Hug is like a Boomerang… you get it right back…. I asked her if she had ever tried hugging a Bear !?… she said she would leave that to me !…. and I said I’ve already done this !… you see in my line of work, my Wife is the Bear and I’m the Bull !

……. Like another wishing me Many Happy Returns of the Day… and I tell her that unless I celebrate, I observe I don’t get Happy ‘Returns’… if you know what I mean

…… and my niece said “Mamu, Happy Birthday”… and I just saw ‘Munnabhai MBBS’ yet again on TV last night and so ‘Mamu’ was fresh in my mind…. but niece’s ‘mamu’ denoted a family relationship… so that’s alright

……. and one wisely wished me hoping that ‘May the Stock markets go up and up and up …..”… you see that we often corelate Happiness with an Up and UP and Buoyant Stock Market!… believing that these two are not inversely corelated !

……. and  Incidentally, one of my cubs thinks ROAR stands for ‘ Rights Of A Retard !’…. she’s not getting her Allowance this week !

Cheers !