Author: Raoji

Categories
Links

Linkfest:March 14, 2013

Some stuff I am reading today morning:

In Gujarat, farmers grow the red potato (Businessline)

Is it time to give up on Tata Motors? (Firstpost)

HUL’s real estate is the secret behind its healthy state (ET)

Consultants gear up to help PE firms get exits (Mint)

LIC rescues RCF share auction (BS)

The Editor’s delivery vehicle (MediaCrooks)

Awesome career advice from LinkedIn’s billionaire founder (BusinessInsider)

Why time frames matter to you (BigPicture)

10 things I wish I knew before I started trading (BCLund)

Finding yield and value in dividend paying stocks (InstitutionalInvestor)

Categories
PrivateEquity

A tasty Dish for Apollo Private Equity India

Apollo is one of the largest alternate asset managers in the world with over 113 Billion $ under management.

In late 2009, they invested around 100 Million $ in Dish TV India.The deal was structured as follows:

  • DishTV agreed to issue 117,035,000 new equity shares of Re. 1 each @ Rs.39.8 per share
  • These shares were in the form of 117,035 Global Depositary Receipts (“GDRs”), at a price of US$ 854.5 per GDR (with each GDR representing 1,000 equity shares of Re 1.(works out to  1 USD=46.57 INR)

The good folks at Apollo even get a board seat at Dish TV so that they can keep a close eye on their investment.

Today, there is news release that Apollo plans to sell off its stake .

Now the current price of Dish TV (todays close) is Rs.66.25.Assuming the conversion rate to be 54.11, each GDR works out to be around 1224 $. They may be able to get a premium over the prevailing market price as well.

Not a bad $ return for around 3.5 years of work.

Now only if Apollo’s investment in Welspun Corp gave a similar kind of returns !

Categories
Video

Warren Buffett’s advice to Apple Inc and Tim Cook

Didn’t know Berkshire Hathway had gone down four times by 50% !

Categories
Ads Humor

Ipad Vs Paper

I just love the way he says “Emma…”

Categories
ForecastingFolly

Forecasting Folly: Crew B.O.S.

This post is in continuation of my forecasting folly series (see here)

On May 4, 2011, Sunidhi Securities came out with a buy call on Crew B.O.S. with a target price of Rs.145.

Then the prevailing price of the stock was around Rs 104 .So the call indicated an upside of around 40%

That buy call turned out to be the kiss of death for the stock.Over the next two years, the stock slid continuously and is now available for Rs. 10.55 !! (There is no indication online of Sunidhi Securities changing its recommendation during this period)

The current market price is actually 7% of the target price set two years back !!

Forecasting folly, anyone?