Category: Stock

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Balaji Telefilms:Promoters selling Company land to themselves

Balaji Telefilms,lead by the redoubtable Ekta Kapoor, is one of the leading production houses in the country.

The share price has been going nowhere due to adverse market conditions and corporate governance issues.

Check this out from the notes of their latest financial result:

The Company, in the previous year, had invested in three adjacent plots of land admeasuring approximately 38,870 sq. mtrs. in aggregate, situated within the limits of Mira Bhayander Municipal Corporation. During the current quarter, the Company has sold the plots of land for a consolidated consideration aggregating to Rs.5,100.00 lacs on an ‘as-is where-is’ basis vide two separate
transactions and has accounted for the profit on sale aggregating to Rs. 122.89 lacs (net of related
expenses). Part of the land has been sold to M/s JK Developers a sole proprietary firm owned by one
of the Directors of the Company.

 

JK Developers probably stands for Jitendra Kapoor Developers (Jitendra is the father of Ekta Kapoor)

Hmmm…

 

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Stock

Mercator Promoters chicken out

Mercator Ltd in its Extraordinary General Meeting (EGM) held on Oct 28, 2010 issued 1.88 Crore warrants to its promoters and persons acting in concert.Each warrant gave the holder the right to convert it into one share of Mercator Ltd by May 08, 2012

The warrants were priced at Rs.55 per warrant.This, despite the fact, that the prevailing price of Mercator then was around Rs.67 per share.This made the warrants in the money from Day 1 and caused corporate governance misgivings.

Since then, Mercator stock has crashed to around Rs.20.25 per share.Not surprisingly, the promoters have chickened out and have not exercised their option to convert the warrants to shares .As a result, their application money (around 23 Crores) has been forfeited.

The Gods surely have a good sense of humor.

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Stock

Hard Landing for Kale Consultants?

Kale Consultants is a leading solutions provider to the global airlines and travel industry.

On Feb 6, 2012 , it had announced a buyback of its shares at up to Rs. 160/ share

The buyback closed on May 2 ,2012 having utilized the full amount of the buyback (around Rs.12.97 Crores)

Now that a significant source of buying power for the stock has been removed, expect the stock to drift lower from its current levels of Rs.125

 

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Stock

Will Tilaknagar Industries Follow?

In earlier posts here and here, I had mentioned that a departing CFO indicates bearish times ahead for the stock.

This was also proved by the departure of the CFO of Educomp Solutions and the damning report by Espirito Santo on the stock.

Now the CFO of Tilaknagar Industries has resigned with effect from May 01, 2012 due to personal and family commitments.

What does he know that we don’t ?