dearest rohit, happy new year.hope u r enjoying urself and partying hard while i'm busy flunking my first semester exams....LOL...:p Anyways i couldnt help noticing the money matters situation...the co. Is selling at a p/e of 3 , b/v of 1.8 and has zero debt(which means, i believe that i can hold riskier assets as well as hold them for longer period with less severe consequences than an average nbfc/financial institution).it will not be too much of a stretch 2 consider dat it effectively rules the debt market.it is involved in bond trading, debt syndication etc and was about to launch a home loan division.Due to the recent LIC scam, it 's board has ( showing great presence of mind and the fact that despite key officials in jail , money matters has a shot at surviving), blocked the money receieved from the recent QIP in term deposits (445 crore), while the company trades for 417 crore approx!(note:it had issued quite dilutive warrants which seem pretty unlikely to be exercised before the due date in march hence i've not entered them in2 d analysis) In short, i believe this is an oppurtunity worth investigating subject to a few key questions- Q.will the company be able to continue the activities which fuelled its spectacular growth? (most likely, whoever heard of a co. Being banned from the securities industry?) Q.the kind and extent of penalties to be imposed on the company(i mean ,yeah it was a 2000crore scam but co. Have gotten away with paying much less for much more. Also as a soon-to-be rusticated first year law student, i'm quite sure majority of the pain will be borne by the persons involved,i dont think the court is going to penalise the shareholders?) Hopefully i havent missed out anything important(if i have please tell me) Eagerly awaiting ur views and also the views of the readers(a.k.a rohit's fans..;))of this blog. P.s you might have heard of geoff gannon's international value investing post by now. Please please please send a post and for once let there be an indian entry for once !
hi rayhaan i have never heard of this company. i dont have much idea of bond trading or syndication etc. finally, if as you say some of the management is in jail ..i personally stay away from such companies ..not comfortable at all. there are lot more other companies in the market to look at rather than risk such as situation
8 comments:
Hey Rohit,
wish you and your family a very happy and prosperous 2011!
Best,
Vidyanshu.
Thanks Rohit, wish you and your family a very happy new year as well.
I look forward to all your posts on this blog, it is a great joy and learning.
Thanks,
Vikas
Thanks, Wish the same to u and ur family
Thx
Aneel
Hi vidyanshu
thanks. wish you and your family a happy new year too
rgds
rohit
hi vic
thanks. wish you and your family a happy new year too
rgds
rohit
hi aneel
thanks. wish you and your family a happy new year too
rgds
rohit
dearest rohit, happy new year.hope u r enjoying urself and partying hard while i'm busy flunking my first semester exams....LOL...:p
Anyways i couldnt help noticing the money matters situation...the co. Is selling at a p/e of 3 , b/v of 1.8 and has zero debt(which means, i believe that i can hold riskier assets as well as hold them for longer period with less severe consequences than an average nbfc/financial institution).it will not be too much of a stretch 2 consider dat it effectively rules the debt market.it is involved in bond trading, debt syndication etc and was about to launch a home loan division.Due to the recent LIC scam, it 's board has ( showing great presence of mind and the fact that despite key officials in jail , money matters has a shot at surviving), blocked the money receieved from the recent QIP in term deposits (445 crore), while the company trades for 417 crore approx!(note:it had issued quite dilutive warrants which seem pretty unlikely to be exercised before the due date in march hence i've not entered them in2 d analysis)
In short, i believe this is an oppurtunity worth investigating subject to a few key questions-
Q.will the company be able to continue the activities which fuelled its spectacular growth? (most likely, whoever heard of a co. Being banned from the securities industry?)
Q.the kind and extent of penalties to be imposed on the company(i mean ,yeah it was a 2000crore scam but co. Have gotten away with paying much less for much more. Also as a soon-to-be rusticated first year law student, i'm quite sure majority of the pain will be borne by the persons involved,i dont think the court is going to penalise the shareholders?)
Hopefully i havent missed out anything important(if i have please tell me)
Eagerly awaiting ur views and also the views of the readers(a.k.a rohit's fans..;))of this blog.
P.s you might have heard of geoff gannon's international value investing post by now. Please please please send a post and for once let there be an indian entry for once !
hi rayhaan
i have never heard of this company. i dont have much idea of bond trading or syndication etc. finally, if as you say some of the management is in jail ..i personally stay away from such companies ..not comfortable at all. there are lot more other companies in the market to look at rather than risk such as situation
rgds
rohit
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