Author: Raoji
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The fall of Arshiya International
In an earlier post, I had briefly commented on Arshiya International.
Today again Arshiya has hit the lower circuit.In an article in Economic Times, employees of the company had alleged financial irregularities in the company.
“The promoters have misguided investors, stakeholders by painting a rosy picture so far, while the company is hollow – it is a mini Satyam,” said one of the sacked employees.”
Some bloggers had also wondered
how is that Arshiya with a networth of @ Rs 550 crs and ROCE of @ 10% and a Market Cap of under Rs 800 crs and a relatively high Debt Equity is executing Warehousing Projects of Thousands of Crs.
Only time will tell if Arshiya will turn out to be like DCHL.In the meantime, the ill-fated investors will have to grin and bear the losses.
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Bond Investors search everywhere for yield
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Linkfest:Jan 10, 2013
Some stuff I am reading today morning:
LIC hikes Infosys stake by over 2% (BusinessLine)
Why it is a good time to lock your money in fixed deposits (Firstpost)
No takers for Capt.Gopinath’s Simply Fly plan (ET)
SEBI to introduce safety net for IPO investors (Mint)
Will course correction help Fortis Healthcare? (BS)
No friendship with barbarians (MediaCrooks)
Avoid paying taxes the Warren Buffett way (SeekingAlpha)
Five Brutal Years teach investors to sit tight (BusinessWeek)
The future according to Google’s Larry Page (CNNMoney)
A word about portfolio rebalancing (BigPicture)
Samir Arora of Helios Capital is one of those fund managers who irritates the hell out of me.
No surprises, as I was one of the unfortunate investors in his Alliance New Millennium Fund.Like all naive investors, I invested at the FPO at 10 Rs/share.I exited a few years later at around 4 Rs !!
Now, I find our man on the cover of Outlook Business with a tongue in cheek article titled “Do Not Invest in Indian Equities”. In an article full of hindsight bias, he quotes various stocks which have gone up by 200%-600% since Dec 2008.Well, the timing of the month and year is significant as that was when the markets had more or less bottomed out.Hindsight bias, again !!
Its interesting to see how his own favorite stock fared since then.His favorite stock is Arshiya International as quoted in this interview to CNBC in Sept 2011 “The company that we like very much is Arshiya International , which owns India’s first free trade warehouse zone and also the second free trade warehouse zone. This a very strong and completely new business, which India needed since long time.”
Now the markets have rallied big time since then but Arshiya is still at multi year lows.Today it hit the lower circuit with no takers for its stock.
Maybe Samir Arora should take his own advice seriously and stay away from Indian equities !