We get enamoured by legends talking of common sense investing. Sounds so simple. But we don't c all their hard work. Most r voracious readers/thinkers. Others spend hrs/day talking 2 their network. Either way – they do due diligence. Common Sense investing is Not lazy investing
— Deepak Kapur (@tapak7) December 12, 2017
For investors, want 2 make quick money:
1.Stop watching Indian Business channels & Stop reading Indian Newspapers
2.Stop hunting whatsapp groups & twitter for tipsStart reading CHINA newspapers & updates from Pollution dept. for next sector they going 2 ban
Current :PAPER
— Zafar (@Maaachaaa69) December 9, 2017
Bull markets are a great time for fraudster promoters to make money. If you are a fraudster and also want to benefit from this bull market, here's a thread that explains how you can defraud shareholders and get rich.
— Amit Mantri (@amitmantri) November 28, 2017
2. Draw analogies to D-Mart or other businesses that investors love (next Page Industries maybe?). Doesn't matter if your business is nothing like the ones you are comparing it with.
— Amit Mantri (@amitmantri) November 28, 2017
4. Start making up the numbers. Only Revenue and PAT matters. So don't worry if the Balance Sheet has all sorts of large unexplained scary stuff. No one looks at the BS in a bull market.
— Amit Mantri (@amitmantri) November 28, 2017
6. Gold plate the capex to siphon out funds. Pay salaries and other operating expenses using siphoned cash resulting in even higher profits and market cap. No one questions absurdly low salaries or purchase of computers worth 20 lakhs per employee.
— Amit Mantri (@amitmantri) November 28, 2017
8. Also, don't worry if you have almost zero on-ground sales or operations. No one will check. Even the outlets you mention in the investor presentation don't really have to exist. Just don't do the mistake of providing store location links on Google Maps or your website.
— Amit Mantri (@amitmantri) November 28, 2017
10. Start advertising on CNBC and Economic Times. Why? Because your audience is the investor community. Doesn't matter if actual consumers have never heard of your products, the investors should hear about it every week.
— Amit Mantri (@amitmantri) November 28, 2017
12. Publish fancy quarterly investor presentations, glossy annual reports with language that would wow even Shashi Tharoor, hold con-calls after every good quarter reiterating aggressive guidance.
— Amit Mantri (@amitmantri) November 28, 2017
14. Buy few shares of your own company. Investors will take your buying as a sure sign of a booming business. Doesn't matter if other related parties are selling. Follow the PP Waterballs playbook – https://t.co/5X4Zb96pxn
— Amit Mantri (@amitmantri) November 28, 2017
16. Announce de-merger of a part of the biz. Nothing creates as much value as a de-merger even if it makes no logical sense. Promise other value-unlocking measures.
— Amit Mantri (@amitmantri) November 28, 2017
18. Pledge your stock as much as you can. Spread rumour that you are pledging stock to buy your own stock which will again be taken as a +ve.
— Amit Mantri (@amitmantri) November 28, 2017
20. Pledges will be invoked, stock will crash. Announce that you are facing temporary cash flow problems which will be quickly resolved. Of course, they will never be resolved. After few weeks of panic, yelling, and abuse, investors will forget your company ever existed.
— Amit Mantri (@amitmantri) November 28, 2017
21. Wait for the next bull market. Repeat from 1.
(END)
— Amit Mantri (@amitmantri) November 28, 2017
Travelled more than 500 km through rural and semi-urban Rajasthan yesterday. Coke and Pepsi products available even in areas with no phone network. No sign of any products from the mythical desi beverage champion that claims to dominate these areas.
— Amit Mantri (@amitmantri) November 24, 2017
Cyclicals: Investor interest max in red zone->research reports start appearing. They value using PE or EV/ EBIDTA on up-coming yr earnings. Worst way 2 value such business! 8x FY19 EBIDTA might turn out 2 b 20x FY20/21. There r Better ways 2 value pic.twitter.com/pGtKQdhqz8
— Deepak Kapur (@tapak7) November 22, 2017