Want to receive updates?

Note: If you wish to receive updates then 'follow this page' by joining this site and also drop a mail: niteen.dharmawat@gmail.com

You can follow me at: Twitter and Slideshare: www.slideshare.net/ndharmawat


Search This Blog

Friday, May 30, 2014

Comparing returns of BSE Sectoral indices - a guest post


I have written a guest post for Subhankar.

In this guest post, Comparing returns of BSE Sectoral indices, I analysed data to show the outperforming and underperforming sectors over various time frames. A contrarian approach would be to invest in the underperforming sectors – but not blindly. One still has to be stock specific.

Read more at: http://investmentsfordummieslikeme.blogspot.in/2014/05/comparing-returns-of-bse-sectoral.html

Please share your views.

Niteen S Dharmawat
Blog: http://dharmawat.blogspot.com/
Twitter: @niteen_india
Facebook: https://www.facebook.com/dharmawat
slideshare: www.slideshare.net/ndharmawat/

Sunday, May 25, 2014

Can you find the stock? – ‘NOT’ my next find

I got intrigued when within a short span I was asked about this company from multiple sources. This included analysts, common investors, and retired professionals. So thought to spend time to understand this company and that is how it has become ‘NOT’ my next find. :-)

  • The company claims to be the 'Premier Consulting partner' and says that it is one of the 15s in the world. Is it so?
  • It has changed its name in the past and gave a ‘fancy’ name that at least I could not understand
  • It was a steel manufacturer, after name change and alteration of object clause A of MoA, it has entered into the field that is the talk of the town
  • The name and MoA modifications proved good for the company. The market cap has gone up more than 25 times in last 4 years
  • The stock is trading more than 6 times the book value of 2013
  • The stock is trading more than 40 times its revenue of 2013, and ‘we’ expect to see moon now.
  • The company has not paid dividends at least in last 6 years
  • The promoters issued additional shares and increased authorized capital at least two times in last 5 years
  •  It has issued the bonus shares also in the past, what else do you want?
  • The promoters holding is healthy at around 66% but with a caveat. More than 50% of promoters holding is pledged (i.e. 36% of the total holding). It means unpledged promoters holding is just 30%
  • The OCF was negative in 2013 and ‘zero’ OCF was reported for four years from 2008-2011.
  • I know at least one leading brokerage house that has a report on this company and also issued a visit note to its clients
  • No wonder the stock price is doing ‘so well’ and ‘gullible investors’ want to ride on the ‘left out’ wave.

As always, I will wait to hear from you. Please flood my mailbox niteen.dharmawat@gmail.com with your responses. :-)
Disc.: I do not hold this stock.

Niteen S Dharmawat

p.s.: The above factsheet is based on the sources that I consider reliable. However, I do not vouch for the accuracy of the data and will not be responsible for any profit or loss. Please carry your research before you take any financial decision.

Previous two quizzes: You can see the answers under the comments section using following links - http://goo.gl/5ZQVdE and http://goo.gl/5Dv8qE