Unfair Value

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

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

I found this site using [url=http://google.com]goo...

2009-11-07T15:01:02.802-08:00

I found this site using [url=http://google.com]google.com[/url] And i want to thank you for your work. You have done really very good site. Great work, great site! Thank you!

Sorry for offtopic

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

Hi Ravi, It's December 21, 2009. You can refer to ...

2009-08-21T03:54:08.343-07:00

Hi Ravi, It's December 21, 2009.
You can refer to this Public Announcement

Please let me know the date when the open offer ex...

2009-08-19T04:30:33.438-07:00

Please let me know the date when the open offer expires. My father owns MALCO for the past 46 years. I don't want to cashout cheap at the same time I do not want to hold to an illiquid stock. Thanks in advance!
Ravi

In reply to comment from light: The Bank has not r...

2009-08-04T21:35:04.441-07:00

In reply to comment from light: The Bank has not reported incorrect numbers. They have given incorrect interpretation of reported numbers. The results are unaudited when they are reported and the results have to be audited by auditors(not by RBI) at a later date. Companies have a free hand to interpret the results in the way they want. That's why most companies have a press release associated with the results and the interpretations are incorrect more often than not.

My advise is simple..don't rely exclusively on ready-to-eat products served on your plate. Cook your own food..Add a pinch of salt..Rip the flesh...Chew it well before you gulp it down.

You are right. Colgate has a strong brand, impress...

2009-08-04T12:41:25.457-07:00

You are right. Colgate has a strong brand, impressive track record but it's too pricey for my taste.

Hi Kamlesh, Nice blog..Did you ever look at the l...

2009-08-04T08:01:52.602-07:00

Hi Kamlesh,

Nice blog..Did you ever look at the long-term record for Colgate India? I guess it would also qualify as one of the top businesses (although grossly valued currently) in the country.

As usual, a good article to enlighten the average ...

2009-07-31T00:27:35.803-07:00

As usual, a good article to enlighten the average investor who goes by headlines. Looking forward to more such surgeries!
With such a legacy, ICICI should concentrate on cleaning up the mess. Instead, they are suing an executive of another bank who said that he doesnt recruit people who are from ICICI because he doesn't like the "ICICI" culture.

Sorry Dixon. I don't know enough about Page indust...

2009-07-30T23:12:03.878-07:00

Sorry Dixon. I don't know enough about Page industries and Kirloskar pneumatic to be able to comment on these.

Kamlesh, Appreciate your sincere rely...

2009-07-30T00:31:52.716-07:00

Kamlesh,
Appreciate your sincere rely.I do agree with you 100% on castrol.However being from Kochi,Kerala,i have not seen the way indraprashta or Guj Gas operates.However i was watching closely Page industries for their asset light model and kirloskar pneumatic.Have you gone through those.Just wanted to know the same

don't bank results have to be audited and past thr...

2009-07-28T23:35:43.817-07:00

don't bank results have to be audited and past through the RBI before sign off ?

As you would know, I stay away from giving stock t...

2009-07-28T21:16:46.866-07:00

As you would know, I stay away from giving stock tips and only refer to individual stocks for their educational value rather than their profit potential.

If you have lesser constraints, as you have mentioned, you can pick companies with stronger brands even at fair prices and hold term for long. Another interesting area could be the projects with long gestation periods which have potential to give good return on invested capital. Such companies tend to get underpriced during their investment phase and cashflows later on make up for the wait.

Kamlesh, Well framed portfolio- not based...

2009-07-28T03:57:12.159-07:00

Kamlesh,
Well framed portfolio- not based on returns but on pure investment philosophy.
However what you recommend for a person looking for higher returns with longer time horizon.Not worried about capital protection,willing to take risk and could digest most of the industries

Actually despite the hogwash there's an important ...

2009-07-26T23:46:40.535-07:00

Actually despite the hogwash there's an important mental model at work here and its the one called 'Framing'.

You can frame anything and any one actually if you have the skill for and in offices which have public interest attached to them i.e large corporates, public companies, governments etc. they will always this tool of 'framing' at their disposal and they will not shy away from using it! So its not an ostrich approach actually but its what i called 'communication management' and you will see it abundantly during the earnings season!

Needless to say its a commendable post! Keep 'em coming.

Insightful .. this is a concrete example of "polis...

2009-07-26T10:59:47.073-07:00

Insightful .. this is a concrete example of "polishing" and "re-packaging" the numbers to create a feel-good... thanks Kamlesh for the good work

You are right about suboptimal use of cash at Venk...

2009-07-20T23:18:28.612-07:00

You are right about suboptimal use of cash at Venky's. It is a cigar butt stock selling below book value and giving good dividend yield. And it's safe. This company isn't going to vanish into thin year like many real estate firms will and it can definitely throw positive surprises.

Professional management is definitely an issue. Smaller companies suffer from lack of depth in management with control passed down the family tree. In long term it only takes on bad apple in family to bring down a business. Part of the reason why I stick to large companies.

Having said that, a portfolio aimed at capital protection and dividend income can include such stocks. In such cases, the key is to keep expectations low and exit when you get good price.

Dear Kamlesh, Good article which cleared a lots of...

2009-07-20T08:18:18.699-07:00

Dear Kamlesh,
Good article which cleared a lots of doubt regarding value investing with some illiquid stocks.
Thanks a lot.
Regards

Corelating 2 articles of yours and point of usage ...

2009-07-20T05:12:07.575-07:00

Corelating 2 articles of yours and point of usage of funds. Venky's too is very inefficient in usage of funds given the fact that they have 92+ crores in loans and they have merrily invested 52 crores in multiple mutual funds.

Secondly - should management ageing be a factor to consider while investing? Given the fact in many of the companies line of succession is never well planned as is most of times inherited by their sons and daughters - this is with reference to Venkys again!

Good set of stocks in a portfolio which are famili...

2009-07-20T00:24:10.289-07:00

Good set of stocks in a portfolio which are familiar businesses to a common man.

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.

Focusing only on the financial numbers while ignor...

2009-06-07T11:18:50.573-07:00

Focusing only on the financial numbers while ignoring the business analysis is
as big a mistake as focusing only on the business and buying a stock of a good
company without looking at its valuation.

If you search the database of Indian companies with the financial ratios better
than Chennai Petro, you will find hundreds of companies? Why should you buy this
one, not the other ones?

The answer has to come from business analysis. You got to start reading about
operating economics of its business and the competitive strengths of this
company.

Also when you check net current assets, you need to subtract the debt from it
because if the company were to be liquidated today, you will have to pay the
creditors before you can get any money out as a shareholder.

Regards
Kamlesh

Hello Kamalesh, As I have been a regular reader o...

2009-06-04T19:02:56.200-07:00

Hello Kamalesh,

As I have been a regular reader of your blog, I tried to strat analyzing a company based on the support levels you mentioned. Please tell me if I am proceeding in the right direction?

It is Chennai Petroleum Limited.
I share is trading at 193 Rs as of 4/6/09.
Its book value is 232,66. So, trading below the book value.
Its Net assest per share value is 165,18. So, trading a bit higher than that.
Its earning yield is 0,223. Taking the average of last 5 years earnings, including various cylcles of oil prices.
Its dividend yield is 9%, slightly higher than what normal fixed deposits would offer me today.
Its debt to equity ratio is 0.7.

Based upon these support levels, I consider this stock to do well in long term.

Kind guide me if I am on the right path to analyze a stock?

Many Thanks upfront!

Vamsi