July 20, 2016

Bharat Nidhi Shares - A Goldmine - An Investor's Perspective

Bharat Nidhi:

I have been wondering:

Is there really no logic behind why the share market or a particular script moves up or down, and are the share holders so naive not to see thru the game?
Is there no trigger except a devastation or a sudden plus news that move the figures down or up, sorry in this order, more often than not?
After a couple of years this time, BN moves from 3000 to 10500 approx. 
can anybody explain why?

One article appeared in ET, ironically a Bennett company, on 26 May 2016.
SEBI wants to delist companies in non trading regional exchanges. A simple enough reporting that the non trading companies sitting tight for years, if not decades, with their easy gotten assets and effectively no liabilities, will now have to delist, and buyout or pay off the shareholders a fair price for their holdings.
Who determines the fair price? A third party!
Does it mean that the real values will unlock? In all probability, yes!

Now look at the timing.
The 1st article appeared on May 12 'SEBI to encourage delisting of suspended companies'
The next on May 26, 'Stuck with dud stocks? Sebi's new move could help you get your money back'
Fantastic!
This time the managements are in a lock in situation.
If Mr Sinha means business, Bharat Nidhi as an example will have a payout of 300,000 x ₹100,000, accounting for just 10% shares that are in public domain and an intrinsic value of 1.0 lacs per share.
That is 3000 crores!
So who acts?
We can be sure that BN and other Bennett holding companies were aware well before time that such a move was coming. This government means business. The events start unfolding before the news appears in the media.
First the company, and next the big investors looking for a large piece of cake.
Price shoots up to 10500+.

Caution:

We the investors are sitting on a good amount of wealth!
Watch out or be short changed, your choice!

Importantly, money moves from the impatient to the patient!

Deepak
98106 29141 

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Blog Disclaimer : These are the Investor's / Reader's Views

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