Some interesting morning reading:
Infosys results over the last 5 years (CapitalMind)
Indian farmers using cell phones to access power (Bloomberg)
Militants attack Pakistan jail , free 400 inmates (Reuters)
A great read on short selling (Bronte Capital)
Diamonds as a commodity (Nytimes)
HSBC loots actress Suchitra Krishnamoorthy (Moneylife)
Wtf: Fairness creams in India now targeting private body parts (FashionScandal)
In 1932, the father of Security Analysis, Ben Graham wrote an article in Forbes called “Is American Business worth more dead than alive?” .He cited many instances where businesses where sold for a fraction of their net quick assets.
The wealth destruction in the Indian markets in small and mid cap stocks in the last six months has lead to many instances of good businesses being sold for less than their liquidation value
Take for instance Emkay Global..
Started in 1995,Emkay Global is one of the leading brokerages of India with around 350 retail outlets spread across the country.Its finances and stock price has taken a knocking in line with the markets.
For the year 2010-2011,its consolidated results show the following:
Long Term Debt:2.94 Crores
Net Current Assets: 114.15 Crores
Quick Liquidation Value = Net Current Assets- Long Term Debt i.e 111.21 Crores
Quick Liquidation Value/Share= Rs.45.57
Current Market Price of Emkay Global (as on 13 April, 2012) =Rs 29.3
Conclusion: As per the Indian markets, Emkay Global is worth more dead than alive
Wish all the readers a Happy Ugadi:
Some interesting reading for the weekend:
Spain, Italy under pressure (Macrobusiness)
Michael Steinhardt on Fed’s failure (ZeroHedge)
How the arms lobby in India really operate (Tehelka)
Is Facebook making us lonely? (Atlantic)
Does your financial guru resemble a cult ? (Cassandra)
Obama, like Buffett, had a lower tax rate than his secretary (Nytimes)
The Goan theory of relativity (Mint)
Struggles of India’s Ice Hockey Team (Open)
Chasing the Twitter God in India (Outlook)
Dr.R.H. Patil , the architect of the National Stock Exchange, died yesterday.
I had the opportunity to see him work at NSE, Mahindra Towers, Worli and then later at the Clearing Corporation, Kamala Mills,Lower Parel.
He was the rarest of rare individuals-a top class technocrat with phenomenal leadership and people skills.
His achievements were extraordinary and it would be fair to say that he was one of the builders of modern India
When the history of Capital Markets is narrated, his name will be written in golden letters
Now the President’s office has come under fire for a land grab (see here)
Now practically, every branch of the Government-President’s office, the Army,the Executive, the Legislature and even the Judiciary is embroiled in some controversy or the other.
Am reminded of a couplet of Akbar Allahabadi:
“Barbaad Gulistan karne ko,
ek hi ullu kafi hai,
har shaakh pe ullu baitha hai,
anjame gulistan kya hoga?’’
To destroy a garden
One owl (colloquial for fool) is enough
There is an owl on every branch,
What will be the fate of the garden?