Comments on Unfair Value: MALCO Delisting: Name your price

The last split was on 24/07/2008 when the Stock Sp...

2011-01-17T06:50:09.950-08:00

The last split was on
24/07/2008 when the Stock Split from Rs. 10/- to Rs. 2/-

There is nothing wrong in selling out if you need liquidity. I'll continue holding on because in my opinion, the value of the company is more compared to the valuation I had arrived at in this article.

Hi, My Father in law holds MALCO stock certificat...

2011-01-10T08:39:11.995-08:00

Hi,

My Father in law holds MALCO stock certificates... We have also received this latest off of 115.. however, I think the shares have split recently, and maybe earlier.

Do you have the split history of the shares, so I can tell how many shares I actually have.

Also, I am considering tendering, since that is the only way to monitize shares currently.

When i decided to remain invested, I had made 4 as...

2010-11-23T01:42:48.513-08:00

When i decided to remain invested, I had made 4 assumptions.
(1) The price of Sterlite does not reflect it's true value.
(2) the price of MALCO doesn't reflect true value of it's own business, let alone it's stake in Sterlite
(3) Delisting does not mean that you will have no option sell. The promoters know that the company is valuable and they will try to get shares from you.
(4) The other significant shareholder Tamil Nadu Industrial Investment Corporation Limited(TIIC), which holds 3.11% in MALCO, is unlikely to sell. This will keep the promoters from asset striping.

All of these assumptions have come true. Malco made enough profit this year to justify the valuation of Rs 115 without putting any value on sterlite stake. Sterlite has gone substantially up since the time this message was posted. And you do have an option to sell if you want. Finally TIIC did not sell MALCO.

Things are going as I had predicted and I see no reason to sell.

At the same time, I don't think any investor should try to copy what I do because I operate with a different mindset and with different financial situation. If you financial situation forces you to sell out now at 115, you made a mistake by not selling it during delisting.

It is not now or never for MALCO shareholders. It is another attempt by the promoters to get your shares cheaply.

Dear Kamlesh, Is it worthwhile to exit at the rev...

2010-11-21T20:57:07.419-08:00

Dear Kamlesh, Is it worthwhile to exit at the revised offer of Rs. 115 ? I don't mind holding on to the stocks, but the fear remains that the company might be stripped off its assets by the promotors and made a shell company

Some of you had written that you are stuck with MA...

2010-11-17T00:38:32.391-08:00

Some of you had written that you are stuck with MALCO shares. The promoters have made another offer at the same price(115) and you would have got a letter from them. IF you want to exit, you have an option.

well, I don't think you can do much except wai...

2010-01-11T11:20:03.853-08:00

well, I don't think you can do much except waiting to hear from the promoters or any other buyers. You can approach the company to see if they are interested in buying your stocks. This may not be easy because you will have to find the right contact people in the company. A call to their registered office may help.

At the same time, you don't need to panic because you own just the same percentage in the company as you did before delisting. You are entitled to dividends and all other rights that come from part ownership. Though I've no way to substantiate my claim but the company will approach you within next few years. It makes sense for them to buy you out.

I've never lost money on unlisted companies...so far

I have 2000 shares of MALCO as of today but not su...

2010-01-11T10:14:24.787-08:00

I have 2000 shares of MALCO as of today but not sure what to do. I never know this company is getting delisted. Help me as I am stuck with huge amount of money.
Email : rajivk2k@gmail.com

Illegal executies inside the company chit chatting...

2009-10-20T07:52:22.556-07:00

Illegal executies inside the company chit chatting and eating the assets of promoters.Then wont the shares get delisted leading a loss to people and promoters killing the vision of board and ordinary people

You can still tender your shares to them at Rs 115...

2009-06-11T22:52:44.210-07:00

You can still tender your shares to them at Rs 115 per share upto 6 months from today.

I must concede that the scrap dealer managed to snatch gold at the price of scrap.

Malco's stake in Sterlite is valued at 2061 crores at today's price, which is Rs 183 per share of Malco.

Good report on malco i had no idea that today malc...

2009-06-11T22:06:15.097-07:00

Good report on malco i had no idea that today malco will stop trading, and i m stuck with 2000 shares of malco. what will i get now from scrap dealer VEdanta agarwal.

When the 6 month deadline for open offer to remain...

2009-03-31T11:32:00.000-07:00

When the 6 month deadline for open offer to remaining investors expires, they become private investors. They have no market to sell their shares to except to the promoters. I don't think you will be able to bargain with the promoters, so if you want to sell off, do it now.

For the investors who invest in a business, as opposed to a stock, it doesn't matter if the stock is not listed. You do get dividends. You have all the rights that the majority shareholders have.

But you should note one thing. Should the management infringe upon those rights, you will have to take them to court which may not be a feasible option if you hold small number of shares.

I had declined the delisting offer from Eicher Ltd and I became private investor. Later I got slightly better deal from the promoters and I exchanged my stocks for bonds. Such a thing may or may not happen in other companies.

Thanks a lot Mr.Kamlesh for your inputs. I wanted ...

2009-03-31T08:18:00.000-07:00

Thanks a lot Mr.Kamlesh for your inputs. I wanted to know who is going to bargain with the acquirers on behalf of the share holders wrt the correct pricing of our shares.

Also, if we want to sell the shares to the acquirers at an agreed price, what will be the procedure to do that?

Please let me know at your convenient earliest.

Thanks a ton in advance

I would like to ask Mr. Kamlesh what will happen t...

2009-03-29T09:24:00.000-07:00

I would like to ask Mr. Kamlesh what will happen to our shares once the dealine for buy back expires. Will our shares go kaput or will we get an amount as decide by the acquirers?

Who is going to bargain with the acquirers to clinch a final price?

Please enlighten.

Thanks n Kind regards
Mudassar

Investors protest Madras Aluminium delisting proposal

thank you very much kamlesh for bringing uo this c...

2009-03-02T23:13:00.000-08:00

thank you very much kamlesh for bringing uo this calculation to all.
i have 5000 shares and i am not going to accept anything less than rs 200.
mr anil agarwal has proved once again that he started as a scrap dealer and i hope that he ends as a scrap dealer only. he cannot come on par with tatas in the next 100 generations.
naresh

The valuation of MALCO above has been done on basi...

2009-03-02T00:22:00.000-08:00

The valuation of MALCO above has been done on basis of its value to long term investor. The premium attached to the price is the control premium which is typical of large transactions involving management change/delisting or any other strategic benefit that are available to the buyer.

I want to clarify that the suggested price of 197 does not mean that people should jump to buy it at current price of 103 in the hope of doubling their money in a month. Such a bet is purely speculative and has a chance of ending in steep losses if the promoters decline to accept the discovered price. Such a scenario, which can result in price falling back sharply, has disastrous consequences for short term investors. Long term investors can afford to ignore such price fluctuations.

Thanks Prem.
I've corrected the mistake.

2009-03-01T20:20:00.000-08:00

Thanks Prem.
I've corrected the mistake.

Exhaustive report. Thanks Kamlesh. However the sen...

2009-03-01T20:10:00.000-08:00

Exhaustive report. Thanks Kamlesh. However the sentence below needs correction.
"When we are not in hurry to sell and promoters seem in a hurry to buy, why should investors expect a premium above fair valuation?"
It should have been... why should'nt investors expect a premium....

Comments on Unfair Value: MALCO Delisting: Name your price

The last split was on 24/07/2008 when the Stock Sp...

Hi, My Father in law holds MALCO stock certificat...

When i decided to remain invested, I had made 4 as...

Dear Kamlesh, Is it worthwhile to exit at the rev...

Some of you had written that you are stuck with MA...

well, I don't think you can do much except wai...

I have 2000 shares of MALCO as of today but not su...

Illegal executies inside the company chit chatting...

You can still tender your shares to them at Rs 115...

Good report on malco i had no idea that today malc...

When the 6 month deadline for open offer to remain...

Thanks a lot Mr.Kamlesh for your inputs. I wanted ...

I would like to ask Mr. Kamlesh what will happen t...

Investors protest Madras Aluminium delisting proposal

thank you very much kamlesh for bringing uo this c...

The valuation of MALCO above has been done on basi...

Thanks Prem. I've corrected the mistake.

Exhaustive report. Thanks Kamlesh. However the sen...

Thanks Prem.
I've corrected the mistake.