Category: Stock

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Stock

Timing is everything when you short a stock !

On 4th Feb, 2013 Jubilant Foodworks releases its quarterly results to the exchange.The markets are disappointed with same store sales and the stock falls by 5.3% to 1138.2

The management has an analyst call the same evening post market hours.

On 5th Feb, 2013 the stock falls by around 8.5% to 1041

There is panic amongst investors and traders built up short positions

On 6th Feb, 2013 morning, Deutsche Bank puts out a Buy target of 1260 Rs on Jubilant Foodworks.The stock rallies and closes to 1134.65, squeezing the traders who went short.

People who lost money naturally suspect the timing of the report.They point out that Deutsche Bank has relationships with the Jubilant group (It was appointed the joint broker in Oct 2011 by Jubilant Energy ).

Ah well, you win some, you lose some

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Promoters Stock

Why Bhaskar Bhat of Titan is like a God to Investors

The market cap of Titan over the years says it all (from AxisCapital)

titan

 

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Stock

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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Stock

Samir Arora of Helios Capital should take his own advice

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 !

Categories
Stock

NaMo Adani

The Adani group has always been percieved to be close to Narendra Modi.

It is interesting to see how this perception plays out in the stock markets.

The Gujarat elections ended on 17th Dec, 2012.As soon as it ended, news channels started predicting a landslide win for Narendra Modi.

This seems to have acted as a tonic to the Adani group stocks.

In the last two days alone, check out the performance of the Adani Group:

Adani Ports:1.39%

Adani Enterprises:4.47%

Adani Power:8.37%

Would be interesting to see the performance of the Adani group once the results are declared tomorrow.