September 12, 2014

Interesting Article - Reprinted - From Old Posts of 2011 of Rareindianshares

July 24, 2011


Satyakam Mishra Report on His Personal Investments


My Losses this year

Mphasis - Substantial price cuts from (parent company) HP, which accounts for 70% of total revenues, was responsible for the decline in revenues. HP’s interests as a customer will continue to hold primacy over its interests as a shareholder in Mphasis. CLSA has also cut its earnings estimates, reiterated its ‘sell’ rating on the stock, and slammed the management for poor corporate governance (Bought at 600 plus – Now quoting at 440 Odd) 

RCOM- corporate governance issues, the top line has been affected by low-profile subscriber base and price wars have reduced margins which in turn had reduced the stock to shambles. RCOM has been scouting around for buyers and has said there are several offers for Rcom Infratel stake. Everybody is talking to everybody. But these are only talks (Bought @ 250 and still holding. Waiting for the deal to happen) 


Delta Corp - Samir Arora and Rakesh Jhunjhunwala bought that stock and it worked like a charm for me as well. I am down 20% on this and still holding. 

Ashwaniji, please let me know yours too.

Satyakam Mishra

  reachsatyakam@gmail.com

http://equityconnect.blogspot.com/

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2011


Very very interesting subject.

 I must admit that I make frequent losses . But I try to be a long term investor. This I find reduces the losses. ( I prefer to hold shares in Physical rather than Demat ). My  selection approaches are up to 40 % Large caps , low Beta , high Liquidity . For rest  mainly Contrarian , Small Cap and High Beta
. ( Try to locate beforehand what experts would be recommending later )

My Losses

MPS ( Macmillan )
which I thought would be another Educom . Bought a couple of years at around Rs. 71 . CMP around Rs 40.

Sutlej Textiles
( got seduced by its less than 2 PE ratio ). Bought around Rs. 270 ( when the share price was moving up ,the feel good factor made me buy even more ), CMP around Rs. 200. I later realised that I bought when the traders syndicate was booking profits ( I have unwittingly contributed to their profits . Case of Dumb money Vs. Smart Money )

Gokak Textiles

Bought around Rs. 70 , CMP Rs. 60. Forbes group yet to oblige me.Forbes group shares proving to be very stubborn with regard to value unlocking . I consider Forbes And Company ( with all its subsidiaries including the 100 % owned Eureka Forbes ) to be very valuable.

Indian Card Clothing

Bought around Rs. 120 ( later also at 102 ). CMP Rs. 110 . Got carried away by its MNC status , low capital base , Reality project in Pune ). Recently , while passing in front of ICC's modern factory on very large land at Nalagarh ( Ropar - Nalagarh Road ) got very impressed . Took out  cell phone while travelling in car ( Nano ). Placed order for further buy. ICC yet to oblige.

Oscar Investments

Saw their profits in Ranbaxy share sale. Their Book Value  . Bought around Rs. 600 - CMP Rs. 400

Nalwasons.

Bought a few years ago around Rs. 1400 . CMP Rs. 700

Both investments in Oscar Invest and Nalwason taught , hopefully, valuable lessons regarding the deception in so called asset laden investment holding companies .( God bless one of the former Directors of The Punjab National Bank Limited who gave his PNB Finance ( in small hundreds ) at par. ( He told me that he had purchased these as a minimum holding requirement for Directors ). Later applied for rights .


Haria Exports

While in Vapi ( Gujarat ) was impressed by their factories ( from the road ). Bought around Rs. 6 . CMP Rs. 4. Got disenchanted with so called " Penny Stocks "

Frick India

Bought around Rs. 800 .

Tata Metalik

Bought around Rs. 160 . CMP around Rs. 100. Volatility in commodity shares ( pig iron )

Tata Motors DVR ( Differential Voting Rights )

Thought it would quote at a premium to ordinary equity. but instead it quotes at 40 % + discount. Similarly , cannot understand why Tata Motors associate company Automobile Corporation of Goa came down after excellent results ( 125 % Dividend )

But We still believe in the India's growth story and in long term prospects of Indian shares ( we believe we have just begun )

And overall , we are not in loss

I am 51 years old. After the last 30 years + association with shares , I have learnt that for the losses the blame lies solely with me. For profits , God and blessings of my elders are responsible.

Being humble pays. Always try to learn from others. The day one feels he has become a Master, well that day his goose is cooked.

In share markets " JO JEETA WOHI SIKANDAR "

Regards ,

Ashwani Kumar Aggarwal

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Trivia : A Telephone Conversation

akaj88 : Hello , Hello Balmer Lawrie And Company Kolkata ?

BLC : YES

akaj188 : Sir , I am your Shareholder Calling from Jalandhar Punjab

BLC : YES

akaj188 : Sir , I have received by Speed Post a notice from you that for a Remat Share Certificate I need to send you a Demand Draft payable at par at Kolkata for Rupees Two.

BLC : That is what the Articles of Association of the Company state.

akaj88 : Sir , it will cost me Rs. 40  commission to purchase the Draft and another Rs. 25 for the Speed Post.
Sir , May I ask you for a favour

BLC : YES

akaj88 : Sir next time I come to CAL , I would treat you to MASHOR  JHOL and ROSHOGULLAS . For , now , please give me Rupees Two and credit the same for the New Certificate

Ashwani Kumar Aggarwal
( akaj88 on moneycontrol.com Board 

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