Category: Observations

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Observations

Geodesic Investors Go To War

Fed up by the Geodesic management,retail shareholders of Geodesic have decided to launch an online campaign to muster enough votes to oust the current Board/management.

According to Geoinvestors Blog,

Like all long term Geodesic investors, I am anguished at the sheer incompetence and possible fraud by the existing management.

A Company that has a book value of Rs.188 being traded around Rs.8 is something that is truly unbelievable.

It is clear that if the stock price has to be near its book value, the existing management has to go and be replaced by a new professional management.

Investors based out of Mumbai/Pune are planning steps in this regard and want to reach out to other investors of Geodesic.

For investors who are interested in ousting this management and replacing it with a professional board/management may write to me with the following details:
Name:
# of shares:
DP ID:
Client ID:
Folio No:
Phone No:
Email Address:

My email address is iamshilpamane@gmail.com

 

This is probably the first time in India that ordinary retail investors are trying to get rid of an existing management.

Am reminded of this great AC/DC number…This Means War !!

 

I just love the lyrics of this number

AC/DC – This Means War from the Blow Up Your Video album.

(You get your head down, will you)
I
I want you
I want you to
I want you to march

Eyes go right, shoulder arms
Left wheel turn, show your charms
Change your clothes, cut your hair
Ain’t no joke, ain’t no place for kids
When the flags are high, hear the battle cry
Treaty gone, see the bandit fly
Dig that trench, watch the blast
Shell shock come, coming fast

Name and rank on parade
Might get laid by a hand grenade
Do you know what this means?
Do you know what this means?
This – means – war

This means war, this means war
I said this means war, this means war
This means war

(Run for cover, hit the deck, call for your mother)

I
I need you
I need you to
I need you to fire

Cock your gun, wet your sights
Get the bull dead to rights
Volunteers, one pace back
On the beach ain’t no place for kids
When the flack is high on a bomber run
You don’t talk back to an ack-ack gun
Fire range, and you’re in the blitz
Keep your head or you’re blown to bits

Name and rank on parade
Might get laid by a hand grenade
Do you know what it means?
Do you know what it means?
This – means – war

Who’s going there, is it a friend or foe?
Propaganda time on the radio
Top brass shout as they clown around
Peace talks die in Geneva town

Do you know what it means? (This means war)
Do you know what it means? (This means war)
Do you know what it means? (This means war)
Do you know what it means? (This means)
This – means – war

This means war
I said this means war, this means war
This means war

(Where’s the second gun?)
This means war,
I told you before, this means war
You know the score, said this means war
This means war
This-means-war

You’re all dead

Categories
Observations

List of 696 Stocks Below 2008 lows

Data Courtesy MoneyControl

[gview file=”https://alphaideas.in/wp-content/uploads/2013/04/Stocksbelow2008lows.xls”]

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Observations

My predictions get a 4/5 !

I normally refrain from making predictions.As regular readers of the blog would know, I even started a series called forecasting folly to highlight the follies of making predictions and setting target prices.

In a moment of temporary insanity, I had written a post about the implications of Chidambaram becoming the Finance Minister.In that post, I had predicted the following:

1.He will focus on raising revenues via spectrum sale.Most telcos are already bleeding, these auctions will increase their debt burden further.Negative for telcos like Bharti etc

 

2.He will kickstart the disinvestment process by selling stakes in state owned enterprises such as SAIL,NMDC,Coal India,MMTC.If past history is any indicator, expect these stocks to underperform the market.

 

3.He will push for RBI to cut rates.Positive for NBFCs and private banks

 

4.He will announce interest waivers for farmers and weaker sections of society.Negative for PSU banks.

 

5.He will target business groups aligned with opposing political parties.Negative for Adani,Torrent,Aurobindo Pharma etc

These predictions were made on Aug 10,2012 and around 8 months later, the first four have come true.There has been no adverse impact on the business groups who seem to be close to the opposition parties.

Memo to myself:Stop making predictions now that you are ahead !

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Observations This is India !

Banks have been exposed…and the market has yawned

Today there was a press conference by Cobrapost where they alleged that HDFC Bank,ICICI Bank and Axis Bank indulged in money laundering.

The markets saw this breaking news conference and yawned.At the time of writing this,

Axis Bank (-0.82%)

HDFC Bank (-0.33%)

ICICI Bank (-0.47%)

These declines are par for the course when Nifty is down by 0.18% and Bank Nifty is down by 0.13%

Does this mean that the markets already knew this “news” or does it mean that markets know that these banks will not face any material fines/penalties?

This is India !

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Observations

If you want a friend on Dalal Street

One of the oldest adages on Wall Street is “If you want a friend on Wall Street, get a dog”

Nothing illustrates this more than the carnage of NHPC.

In the case of NHPC, talk in the market is that a big trader was holding sizeable positions through a combination of margin funding, loan against shares and stock futures. This trader had been told by one of his many brokers that he would have to shift a chunk of his positions elsewhere, as the broker was unable to finance it. The trader had been in the market for the last couple of days, scouting for financiers to fund the position. He is said to have sought the help of a former BSE President who is renowned for his bearish calls on the market.

And while this bear operator declined to fund the position, he is learnt to teamed up with another old hand in the market, also renowned for his bearish calls. The duo is said to have short sold NHPC futures heavily last week. Open interest in NHPC stock futures shot up from under two crore shares (the equivalent of) to over 20 crore shares in a week. On Friday, NHPC March futures were trading at a 5 paise discount to the spot price, indicating massive short selling.

Open interest in NHPC futures declined around 40 percent to 14.55 crore shares on Monday, indicating that bears may have used the steep decline in price to cover up a good part of their short positions.-from MoneyControl