Tag: geodesic

Categories
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
CoatTailing

Portfolio of Raiffeisen Capital Management in India

This post is a continuation of my coat tailing series (see here)

Raiffeisen Capital Management is a well known German Asset Management Company.

Their portfolio in India as on 31 Dec 2012 as per stock exchange filings is given below:

Company Name # of Shares %
Geodesic 1059200 1.17
Apar Inds 1000000 2.6

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Categories
AGM

What I heard and saw at Geodesic AGM Feb 11, 2013

I attended the Geodesic AGM today (Full Disclosure:I own shares of Geodesic in my personal and family portfolio).Here is what I heard and saw:

  1. The AGM was well attended
  2. The management troika-Pankaj,Kiran and Prashant-understood the extent of investor angst and anger.
  3. In his opening remarks,Pankaj Kumar mentioned that Geodesic may go for restructuring and spin offs to unlock value for its investors.This was not taken up for further discussions
  4. Some attendees raised questions about various aspects of the accounts.They were answered by Prashant
  5. One Chennai investor raised the topic of perception-why Geodesic management are considered crooks etc.Also, why the management did not address the exchanges when the stock price was falling.Kiran’s response to this was that his coming on TV would not have helped etc.This did not go down well with attendees.They felt it is the management’s duty to communicate often and well
  6. Kiran and Prashant explained how the FCCBs were to be paid.It involves transferring funds from the subsidiaries to Geodesic Ltd .Its fairly complex but necessary from a legal,tax and compliance angle.Only, investors felt they should have been doing this in Sept-Oct 2012, instead of Jan-Feb 2013.By delaying this process, the management goofed up.
  7. One person from the audience shouted “There are no funds.The management has pilfered them.”The Chairman Pankaj Kumar got visibly anguished at this.The management reassured investors again and again that they had the money for the FCCBs.
  8. The management gave a commitment that it will send out a communique to the exchanges that the FCCBs will be repaid in full by March 5, 2013
  9. The management explained to investors that dividend will be paid to investors only after FCCBs are repaid due to certain covenants.As such, this resolution was not taken up.
  10. The management assured the investors that as soon as FCCBs are repaid, dividends will be paid out to eligible investors by March 2013.
  11. The issue of buyback (max price Rs.75/share) was discussed.Investors expressed their ire that buyback was first discussed in Aug, 2012 and still no progress was made.Management assured investors that buyback will happen 100% in 2013.Many investors expressed the desire that the buyback be a tender one instead of open market.
  12. Kiran Kulkarni assured investors that Geodesic will be a debt free company by March 2013.When asked where the funds for the buyback will come from, he mentioned it will come from the free cash flows of the company.
  13. Spoke to a few investors after the AGM.Many were perplexed at the low market cap of the company.In 2008, the company had revenues of 330 Crores,PAT of 148 Crores and Market Cap of 1700 Crores.In 2012 (15 months),the company had revenues of 1302 Crores,PAT of 260 Crores and a market cap of 200 Crores !So even though the business has grown considerably, the market cap has eroded by around 90% !!
  14. Many investors expressed the fear that this scrip may become a penny stock used by day traders to make a few bucks.
  15. The last words belong to Kiran Kulkarni who said “Give me a few months to make things right”