Category: Observations

Categories
Observations

Remember this the next time you watch CNBC TV 18

While researching for Investor Wisdom newsletter, I came across this interesting factoid: The TV18 group which runs the CNBC TV-18 channel owns around 1.78% of a company called Refex Refrigerants.

Apparently,this stake was bought way back in Jan 2008 (when markets were at its peak).The purchase price?A princely Rs.200 per share.

At that time, B. Sai Kumar, Group COO of TV18 Group said:“We are very happy with this partnership since we believe that Refex’s aggressive growth plans combined with our ability to reach them in an engaging way and the reach of our multi-platform media vehicle will ensure that Refex is a significant player in the fast-growing environmental friendly refrigeration market”

Fast forward, five years later, Refex is quoting at 3 Rs/share..a colossal wealth destruction of 98% of its purchase price!!And TV18 is still clinging on its shares.

So running a 24 hour news channel is no guarantee that you will make money on your investments.

Remember this the next time you watch CNBC TV18 !

Categories
Movie Observations

Why BCCI reminds me of Casablanca

BCCI conducted an investigation into the various shenanigans of its IPL and gave a clean chit to all the owners and powerful bosses who run it.

It’s difficult not be cynical about the whole exercise and the sheer chutzpah reminds me of this great scene “Round up the usual suspects” from Casablanca.

 

 

Categories
Observations

Expect Private Bank Stocks to get hit today

I had earlier blogged about how private bank stocks have been hammered over the last one week.

Well, yesterday,RBI went one step further-it added two more tightening measures:

  • The overall limit for access to LAF by each individual bank is set at 0.5 per cent of its own NDTL outstanding as on the last Friday of the second preceding fortnight. This measure will come into effect immediately, i.e., from July 24, 2013 and will remain in force until further notice.
  • Currently, banks are allowed to maintain their Cash Reserve Ratio (CRR) prescribed by the RBI on an average daily basis during a reporting fortnight, with a minimum of 70 per cent of the required CRR on a daily basis. Effective from the first day of the next reporting fortnight i.e., from July 27, 2013, banks will be required to maintain a minimum daily CRR balance of 99 per cent of the requirement.

Expect private bank stocks to get hit today

 

Categories
Observations

Why N Jayakumar of Prime is a smooth operator

I had earlier blogged of how N Jayakumar of Prime Securities is in trouble.

Today’s ET has a cover story of how some of the clients of Prime Securities have filed a FIR against him.

Now, what is amusing is the twitter timeline of Jakes

In his tweets, there is no mention of the various troubles he is going thru.Instead, his tweets talk about cricket etc.

I am reminded of this great song from Chicago-Razzle Dazzle

The lyrics are simply wonderful

Give ’em the old razzle dazzle

Razzle Dazzle ’em

Give ’em an act with lots of flash in it

And the reaction will be passionate

Give ’em the old hocus pocus

Bead and feather ’em

How can they see with sequins in their eyes?
What if your hinges all are rusting?

What if, in fact, you’re just disgusting?
Razzle dazzle ’em And they;ll never catch wise!
Give ’em the old Razzle Dazzle

 

BILLY AND COMPANY

Razzle dazzle ’em

Give ’em a show that’s so splendiferous

 

BILLY Row after row will grow vociferous
BILLY AND COMPANY

Give ’em the old flim flam

flummox Fool and fracture ’em
How can they hear the truth above the roar?

 

COMPANY Roar, roar, roar!
BILLY AND COMPANY Throw ’em a fake and a finagle They’ll never know you’re just a bagel,

 

Razzle dazzle ’em

And they’ll beg you for more!
Give ’em the old double whammy

Daze and dizzy ’em

Back since the days of old Methuselah Everyone loves the big bambooz-a-lah
Give ’em the old three ring circus Stun and stagger ’em When you’re in trouble, go into your dance
Though you are stiffer than a girder

They’ll let you get away with murder

Razzle dazzle ’em And you’ve got a romance

 

Give ’em the old Razzle Dazzle
Give ’em the old Razzle Dazzle

Razzle dazzle ’em

Show ’em the first rate sorcerer you are

Long as you keep ’em way off balance

How can they spot you’ve got no talents?

Razzle Dazzle ’em
Razzle Dazzle ’em Razzle Dazzle ’em
And they’ll make you a star!

Categories
Observations

Basab Pradhan Quits Infosys….Seen this movie before !

Basab Pradhan , the global head of sales, marketing and alliances at Infosys has resigned.

In 2005, he had quit Infosys and started his own company called Gridstone Research.After 4 years there, he quit his own company and rejoined Infosys !

Here is what he wrote when he quit Gridstone Research:

From tomorrow I will no longer be CEO of Gridstone Research. Once again, as I have done twice before in my career, I step into the unknown.

I devoted the last three and a half years to our journey at Gridstone. We set out to build an important technology company serving the capital markets. However, Gridstone’s market, the investment managment industry, has been going through one of its worse downturns ever. Needless to say, budgets have been slashed and Gridstone had to take cost-reduction measures to adjust to the new reality.

A few weeks back I started feeling that my presence was no longer necessary for the company and that the rest of the management team was strong enough to carry on with the good work without me. I asked the board to relieve me of my duties as CEO. My colleague and co-founder P R Ganapathy (Guns) will be the new CEO and take over my responsibilities.

I continue to be a big supporter of the company and a believer in its vision. I will stay on the board of the company to help it in whatever way I can. Even in a down market and with a reduced cost structure and I am confident in the team’s ability to see it through.

So what now? I don’t have any well laid out plans of what I am going to do next. The only thing I know is that I am going to take my time. There is no reason to rush into anything and every reason to make a careful, considered decision. The last few years have been entirely focused on the capital markets. I need to reconnect with what’s happening in other industries, in the US and in India. So the first thing I am going to do is meet people who are in the flow of what’s going on. There’s nothing like a conversation with a smart businessman to clear out the cobwebs.

Basab Pradhan was smart enough to see the writing on the wall.He knew his own company was doomed and so started looking out for outside opportunities.This is indeed the first instance I know where the captain instead of manning the ship slinks out !I still remember the shock of Gridstone employees when they came to know that Basab Pradhan has quit their company…many of them had joined because of him.

So now he has quit again to “go back to the startup world”. If History is any guide, he won’t stay there for long.