TAP GAP….. Equity Poser 7/11……Respond by July 15,2011
Winning Response wins the gauravblog hamper that includes a gauravblog Collared T Shirt above….Ten Hampers have already been won in earlier Equity Posers.You can check out the Winners Scroll and their comments after they were delivered the hamper…Winners of TAP GAP 6/11 will begin receiving their hampers next week
Thanks Raoji for suggesting this one
Which Listed Company will be a huge Wealth Destroyer for Shareholders in the next Five Years ,in that it should not be in any Equity Portfolio and if available in the Derivatives Segment,Aggressive Players should short it and keep rolling over their positions ?
A Guiding Note from me……
We’ve seen decimation in India and Overseas of many companies in the past …even Blue Chips like Kodak are now in the Blues having declined from US $ 80+ levels in the late 1990s to just US $ 3.50 today as ‘ New Tech wrecked Old Tech’
In India we’ve seen Corporate Governance Issues damage shareholder wealth permanently….Silverline…Cranes….Austral Coke….list of lemons goes on
We’ve seen Vulgar Vertical Valuations laid flat horizontally….real estate sector scrips are good illustrations….IPOs at Obscene Premiums in the Primary Market have faced a ‘waterloo’ in the Secondary Market….Big Example is Biyani’s Future Capital Holdings…issued in January 2008 at Rs 765,three and a half years later it’s struggling at Rs 130 levels today…Suzlon is another glaring example….enjoying an inflated bubble Market Cap of over Rs 50000 crs at one time post listing and with Promoters Tanti’s being the toast of India,the Market Cap dropped towards Rs 5000 crs and is now at Rs 8600 crs
So do give your caution and critical reason for it of any company or companies that you would simply stay away from…or if aggressive even short aggressively to mint monies…..
Greenlight Capital began shorting Lehman Brothers in July 2007…Lehman went bankrupt in September 2008 ….This Hedge Fund, walked away with a record US $ 3.1 Billion in gains because it’s Creator and Founder,David Einhorn kept on shorting Lehman from US $ 60 …..he repeatedly challenged Lehman CEO Richard Fuld to disclose the real exposure to mortgage related bonds….In June 2008 Einhorn sarcastically commented on CNBC that Fuld had raised US $ 6 billion…money he had earlier stated Lehman did not need…..to fund Losses that he had stated he did not have !
Your reasons for your choice of wealth destroyer could therefore be vulgar valuations,specific corporate governance issues ,demand erosion,outdated technology,adverse government policy and regulation changes,excessive financial leveraging and huge debt overhang,huge exchange risk and exposure,cannot cope with competition on quality or pricing or domain expertise or rampant financial chicanery that overstates assets and profits and camouflages liabilities and losses,wrong Investment and Financing Decisions,Business Model Viability in question……
All the best….and please do respond more vigorously than you’ll did for TAP GAP 6/11