http://www.dnaindia.com/money/report_yes-bank-moves-to-recall-deccan-loan_1779106 QUOTE: “The Deccan account is still not an NPA." UNQUOTE Just an example of Psychological denial amongst bankers. If an unpaid loan is not an NPA, what is it? Reminds me of similar words once penned by Warren Buffett many years ago. He questioned the logic of companies not treating stock options as expense… Continue reading Yes Bank moves to recall Deccan loan
I have lost 100% of my money in Kingfisher and I am pissed. Pissed with Kingfisher. Pissed with Wife. Pissed with Amex. Pissed with Amex? What's wrong with me? And how did I end up investing in Kingfisher? Well, one evening, I took a friend to a very nice fusion food restaurant in south Delhi called Indian Accent.… Continue reading How I Blew it all in Kingfisher
The chronicles of Deccan Chronicle have been covered by the media extensively so I won't go there. The stock price tells the story quite vividly. Take a look. Since Jan 2008, the stock's down 96% while the market is down 7%. What's an IPL team worth when its owner's have no staying power? Between zero… Continue reading So, Ultimately for Deccan Chronicle, it Boils Down to an Ultimatum
The Children's Investment Fund of UK is Coal India's second largest shareholder and owns 1% of the company's equity. The largest shareholder is The President of India who owns 90% of this $ 41 billion market cap behemoth. The owner of 1% of this behemoth is now battling the owner of 90%. This "epic battle"… Continue reading Why Coal India is Not a Child’s Play
Pantaloon Retail has a DVR (differential voting rights) outstanding which carries 1/10th of the voting rights enjoyed by the equity shares but also enjoys 5% more dividend rights than the common stock. As of this writing, the stock sells at 163 and the DVR sells at 98. That's a discount of 40%. On 8 February,… Continue reading The Curious Case of Pantaloon DVR
The following is the transcript of a talk I gave to students of IIM Lucknow on March 17, 2011: Today, I am going to tell you a story. Its a detective story with eight witnesses — each with a different point of view. How many of you have seen the movie, “Vantage Point?” In any case,… Continue reading Vantage Point: 8 Points of View For Evaluating a Stock
Even if you put zero value on Ajay Piramal, as the stock market is doing right now, you'd have to agree that he's beaten the hell out of that insanely crazy market. Since 1988, when he took charge over what is now called Piramal Healthcare, and may soon be called by another name — Ajay… Continue reading The Grand Strategy of Ajay Piramal
I was amused today while reading a story in the Business Standard titled, "Indian Overseas Bank cashes in on Realty."The paper reports that the Bank plans to "sell" some of its real estate to a "special purpose vehicle (SPV)."The sale, at current market price, will produce a "profit" for the bank because the real estate… Continue reading Indian Overseas Bank Tries its Hand in The Alchemy of Finance
Take a look at the chart below. It shows something very very interesting. This is the stock price chart (adjusted for splits, bonus issues etc) of Infosys, one of India's most admired companies.The fellow who bought the stock in March 2000 (the peak of the tech bubble) and held on to the shares in Infosys… Continue reading What Should Infy Do to Restore its Honor?
The stock price of IFCI (IFCI@IN) shot up by 13% today, presumably on rumors that International Finance Corporation (IFC) may buy a strategic stake in IFCI. See, for example, the following:http://sify.com/finance/fullstory.php?id=14570297http://www.reuters.com/article/bankingfinancial-SP/idUSBOM23903720071203Suppose that the rumor was true. I have no clue, but let's just suppose that it was true.That is, suppose that IFC bought a strategic… Continue reading Quiz: If IFC buys into IFCI, then what?