July 24, 2011
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.
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 )
MPS ( Macmillan )
which I thought would be another Educom . Bought a couple of years at around Rs. 71 . CMP around Rs 40.
( 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 )
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.
Saw their profits in Ranbaxy share sale. Their Book Value . Bought around Rs. 600 - CMP Rs. 400
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 .
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 "
Bought around Rs. 800 .
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 "
Ashwani Kumar Aggarwal
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