tag:blogger.com,1999:blog-1784375842090766909.comments2023-09-24T03:25:13.523-07:00Unfair ValueKamlesh Pandeyhttp://www.blogger.com/profile/01428406137191219341noreply@blogger.comBlogger142125tag:blogger.com,1999:blog-1784375842090766909.post-67440374086515858532011-01-17T06:50:09.950-08:002011-01-17T06:50:09.950-08:00The last split was on
24/07/2008 when the Stock Sp...The last split was on<br />24/07/2008 when the Stock Split from Rs. 10/- to Rs. 2/-<br /><br />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.Kamlesh Pandeyhttps://www.blogger.com/profile/01428406137191219341noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-68679357202006887512011-01-10T08:39:11.995-08:002011-01-10T08:39:11.995-08:00Hi,
My Father in law holds MALCO stock certificat...Hi,<br /><br />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. <br /><br />Do you have the split history of the shares, so I can tell how many shares I actually have. <br /><br />Also, I am considering tendering, since that is the only way to monitize shares currently.Unknownhttps://www.blogger.com/profile/05459105582313488037noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-15251291622557207752010-11-24T08:56:04.313-08:002010-11-24T08:56:04.313-08:00Thanks for an idea, you sparked at thought from a ...Thanks for an idea, you sparked at thought from a angle I hadn’t given thoguht to yet. Now lets see if I can do something with it.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-12587180195785361312010-11-23T01:42:48.513-08:002010-11-23T01:42:48.513-08:00When i decided to remain invested, I had made 4 as...When i decided to remain invested, I had made 4 assumptions.<br />(1) The price of Sterlite does not reflect it's true value.<br />(2) the price of MALCO doesn't reflect true value of it's own business, let alone it's stake in Sterlite<br />(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.<br />(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.<br /><br />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.<br /><br />Things are going as I had predicted and I see no reason to sell.<br /><br />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. <br /><br />It is not now or never for MALCO shareholders. It is another attempt by the promoters to get your shares cheaply.Kamlesh Pandeyhttps://www.blogger.com/profile/01428406137191219341noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-45730853402304882012010-11-21T20:57:07.419-08:002010-11-21T20:57:07.419-08:00Dear Kamlesh, Is it worthwhile to exit at the rev...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 companyKalpeshnoreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-40229702488940588712010-11-17T00:38:32.391-08:002010-11-17T00:38:32.391-08:00Some of you had written that you are stuck with MA...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.Kamlesh Pandeyhttps://www.blogger.com/profile/01428406137191219341noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-91273562615753045672010-11-10T03:25:49.077-08:002010-11-10T03:25:49.077-08:00Nice post. This post is different from what I read...Nice post. This post is different from what I read on most blog. And it have so many valuable things to learn.<br />Thank you for your sharing!Engine Additivehttp://www.lubechem.net/noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-15683966429601315622010-10-22T13:07:03.562-07:002010-10-22T13:07:03.562-07:00Depends on your broker. I use ICICIDirect and it a...Depends on your broker. I use ICICIDirect and it allows you to buy listed bonds just the way you but stocksKamlesh Pandeyhttps://www.blogger.com/profile/01428406137191219341noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-46576384422230628892010-10-21T12:05:50.034-07:002010-10-21T12:05:50.034-07:00Can one buy bonds in the same trading account as f...Can one buy bonds in the same trading account as for stocks if they are listed in NSE?<br /><br />- LWB FollowerAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-38164060521513858962010-10-18T04:13:36.076-07:002010-10-18T04:13:36.076-07:00If you don't sell before September 2011, you s...If you don't sell before September 2011, you still remain a shareholder of a private company. You will not have a ready market to sell your stock. You will be forced to hold until promoters decide to buy you out. The promoters have no obligation to buy your shares after September 2011 but you still have all the shareholder rights like dividends, option to subscribe to newly issued shares on proportionate basis.Kamlesh Pandeyhttps://www.blogger.com/profile/01428406137191219341noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-49246797687431121662010-10-17T21:21:47.487-07:002010-10-17T21:21:47.487-07:00Hi Kamlesh
I am holding few shares of Sulzer Indi...Hi Kamlesh<br /><br />I am holding few shares of Sulzer India. What will happen if I continue to hold them beyond September 2011? Will Sulzer get listed in BSE, so that I can sell them?<br />Please giude me.Thank YouAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-20549193846523974512010-10-17T19:17:30.076-07:002010-10-17T19:17:30.076-07:00I am doing research for my college thesis, thanks ...I am doing research for my college thesis, thanks for your brilliant points, now I am acting on a sudden impulse.<br /><br />- KrisAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-9608064976846741982010-09-24T11:58:01.317-07:002010-09-24T11:58:01.317-07:00This is the most influential read that I have read...This is the most influential read that I have read this year :P<br /><br /> FerdinandAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-31003877570667438192010-08-22T01:40:57.608-07:002010-08-22T01:40:57.608-07:00Kamlesh,
Congratulations to you. Hope as you sett...Kamlesh,<br /><br />Congratulations to you. Hope as you settle down, we get more regular posts from you and the editor.<br /><br />I know you have great interest in M&M. What are your views on the Ssangyong buy? -ANAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-63675706766620794312010-07-31T02:35:29.427-07:002010-07-31T02:35:29.427-07:00The issues is complicated and so far, I haven'...The issues is complicated and so far, I haven't reached the same conclusion as you did i.e. there will be a significant increase in royalty payments. <br /><br />The main problem is that an MNC which charges disproportionate royalty will be able to charge it as expense and the Tax dept would like to see rationalization of such a high charge.<br /><a href="http://www.business-standard.com/india/news/mncs-to-document-rationalise-royalty-payments/400957/" rel="nofollow">MNCs to document, rationalise royalty payments</a><br /><br />I read somewhere that the royalty payments are also subject to higher taxes in foreign countries and hence it may not be the best way to take profits abroad.<br /><br />But this definitely requires more analysis. Will keep you posted if I reach a conclusion.Kamlesh Pandeyhttps://www.blogger.com/profile/01428406137191219341noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-89526240629053616212010-07-30T23:44:27.143-07:002010-07-30T23:44:27.143-07:00Hi Kamalesh,
Now that govt has allowed MNC subsidi...Hi Kamalesh,<br />Now that govt has allowed MNC subsidiaries in India to send UNLIMITED royalty to parent companies, I am sure everyone will start using it to push the indian ops to break-even point or to loss and then stop giving dividends. Note that they do not need shareholders or their money. Maruti has done it and HUL has increased royalty to Unilever. So, I think the best thing for us is to avoid these MNC companies. I love Colgate, Castrol, HUL, BASF etc. But because of this Royalty monster sitting in my head, i have sold almost all of them and will sell remaining stocks also in few weeks. can you analyse this.<br />Regards,<br />BhushanAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-76299815788101365992010-07-22T03:48:35.493-07:002010-07-22T03:48:35.493-07:00Hi Ravi, thx for your best wishes.
You are wrong ...Hi Ravi, thx for your best wishes.<br /><br />You are wrong in taking a special case where n1=n2=1 and generalizing it.<br /><br />If company1 is merged into company2, company2 should own mcap2/(mcap2+ mcap1) of the combined entity. You are right till here.<br /><br />Suppose the swap ratio is x shares of company2 for each share of company1.<br /><br />new shares issued = n1*x<br />total shares of merged company = n1*x + n2<br /><br />For swap ratio to be in line with market valuation<br />mcap2/(mcap2+ mcap1) = n2/(n1*x+n2)<br /><br />Invert<br />1 + (mcap1/mcap2) = 1 + (n1*x/n2)<br /><br />mcap1/mcap2 = n1*x/n2<br /><br />x = (mcap1/n1)/ (mcap2/n2)<br /> = p1 / p2<br /><br />In the special case you have taken where both company have only 1 share n1=n2=1<br /><br />x = mcap1/mcap2<br /><br />I hope you get it..if not, try taking the same scenario but assume that first company has 1 cr shares and other has only 1Kamlesh Pandeyhttps://www.blogger.com/profile/01428406137191219341noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-19675435685492284682010-07-21T19:28:31.859-07:002010-07-21T19:28:31.859-07:00Hi Kamlesh,
Good to see you back after a long bre...Hi Kamlesh,<br /><br />Good to see you back after a long break. Wish you and Seema a very happy married life.<br />Now coming to the article, While I dont have any comments on reliance's ways of managing shareholders and business, I am confused with the math you had explained. Let me depict the scenario you mentioned into a simple one and explain. Please let me know where I am wrong. This is purely to understand your explanation better and in noway to challenge your analysis. Let us assume you are the sole shareholder of your business worth 41,979 cr and I am the only shareholder of another business worth 10,394 cr. Now we both thought its good if we merge our business and come together. Also, let us assume that the IV of the business is the same. So we are assuming that we are bringing in the capital that our business is worth. So our combined entity is now worth 52,373 cr. Now you shareholding in this combined entity is circa 80% (52k crore/41.9k cr) and mine is 20% (52k cr/10.3 k cr). In another way you own 4 times the share for every share I hold in the combined entity. This translates to to 3:12 ratio that the deal was struck at. I do not understand the math of n1*p1/p2. Please let me know if I am missing something here.<br /><br /><br />Regards<br />RaviRavinoreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-76426589047151500712010-07-20T04:19:18.651-07:002010-07-20T04:19:18.651-07:00Hi Kamlesh,
its really nice to see that you are ba...Hi Kamlesh,<br />its really nice to see that you are back.<br />Your portfolio has given excellent returns. Especially Hawkins Cooker and Venkys.<br />Unfortunately I came across your blog only in Nov. and missed out on your recommendations as they were already flying by that time.<br />Anyway now that you are back, can you please give us few still undervalued stocks which may give excellent returns in future(long term)<br />I am a strict value investor and came across two companies which are a value buy.<br />1- TFCIL - Tourism Finance Corporation Of India<br />2 - Bartronics.<br />Do you think, they can be multi-bagger in few years.<br />Thanks in advance,<br />Dr.VikasVikashttps://www.blogger.com/profile/15773793906094163924noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-30717758995258348172010-07-19T05:09:51.166-07:002010-07-19T05:09:51.166-07:00Dear Mr. Kamlesh,
It is indeed good to see you...Dear Mr. Kamlesh,<br /> It is indeed good to see you back. Most of your articles are extremely enlightening. It is nice to see you settling down with a life partner. I only hope that domestic bliss does not result in one more long disappearance from this blog. <br /><br /> I would like to bring some of your blogs (particulary the one on delisting and the RNRL and Rel Power merger) to the attention of more investors on other websites. The state of our country seems to be more like that of a banana republic than that of a vibrant, vigilant democracy. That is why guys like Ambanis, Madhu Kodas, Shibu Soren etc. seem to go from strength to strength.<br />CooldudeUnknownhttps://www.blogger.com/profile/15742830707564558200noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-20303073713964781042010-07-17T22:55:17.922-07:002010-07-17T22:55:17.922-07:00Charlie, Thanks a lot for your best wishes. Family...Charlie, Thanks a lot for your best wishes. Family is actually the only 'for life' investment and it's a field that is outside the scope of law of diminishing returns..I can hope to do better than finance.Kamlesh Pandeyhttps://www.blogger.com/profile/01428406137191219341noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-44906791269466684142010-07-17T22:50:55.419-07:002010-07-17T22:50:55.419-07:00valueinvestor2010, I haven't heard of the comp...valueinvestor2010, I haven't heard of the companies you have listed here except Goodyear about which I know a little. So I don't have any opinion on these.Kamlesh Pandeyhttps://www.blogger.com/profile/01428406137191219341noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-12558489695316915542010-07-17T07:27:23.890-07:002010-07-17T07:27:23.890-07:00Kamlesh good to see a new post on Unfair Value. Th...Kamlesh good to see a new post on Unfair Value. Thanks for sharing your picks with readers of LWB and unfair value. I used to look forward to your article on Unfair Value and was therefore suprised that you had not posted for quite a few months. I thought you must be quite busy with your primary job as that is where our priority lies, but did not know that you were busy investing time in even more fruitful purpose than stock market. The return on your portfolio has been excellent and I hope that married life rewards you even better. Best of Luck and wishes from all of us LWB members.Charliehttps://www.blogger.com/profile/04890956328094324603noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-78808276790576034052010-07-16T04:09:16.847-07:002010-07-16T04:09:16.847-07:00Apart from rise in expenditure, the other critical...Apart from rise in expenditure, the other critical factor was the fall in other income which went down from 29.51 crs to 6.3 crs. So the profits of year 2005 may have been inflated due to other income. You can look for the reasons behind rise in cost and fall in other income in annual report for 2006(that is, if you can find it. I don't have the report)Kamlesh Pandeyhttps://www.blogger.com/profile/01428406137191219341noreply@blogger.comtag:blogger.com,1999:blog-1784375842090766909.post-14577927795969578502010-07-15T23:07:44.719-07:002010-07-15T23:07:44.719-07:00Would you be kind enough to let me know as to how ...Would you be kind enough to let me know as to how in the year 2006 the company managed to increase its sales but still ended up posting tremendously less profit? i mean the only item that did the most damage was expenses which stand at 71 crs. <br /><br />Can you shed some light on it pls.<br /><br />BTW welcome back from your slumber!<br /><br />Await your commentsAnonymousnoreply@blogger.com