BC FINANCIAL SHENANIGANS

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Leading Nowhere
@leading_nowhere 4 years, 7 months ago 577 views

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Insolvency resolutions suck for creditors, but this one takes the cake.

Listed company gave loan to related party, defaulted along with other dues. Related party creditor acquired the listed entity via insolvency.

Only losers are operational creditors w/ 88% haircut.

Company name is Covidh Technologies Ltd - really old bankrupt company. Not a significant event, just an observation.

Correction: Listed company *took* a loan from related party (in first tweet)

More from Leading Nowhere

Leading Nowhere
@leading_nowhere

Every annual report tells a story.

In small companies, you can read between the lines to get a feel of the management style and business economics.

I take Fredun Pharmaceuticals Ltd (FPL) to illustrate how to go about this (it's not pretty).

Let's go 👇 (1/n)

Please note that the main objective of this review is to get a preliminary understanding without doing a thesis.

It is oriented towards a "quick and dirty" review to decide if you want to dig deeper.

Review financials on a screener website before reading further. (2/n)

Now, you can already guess Fredun Pharmaceuticals is named after Fredun Medhora. His mother, Dr Daulat Medhora and his father, Nariman Medhora, are the original promoters of the company. Interestingly, Nariman Medhora has stepped down from active involvement in June 2021. (3/n)

Then we have Dr Daulat Medhora, who seems to have the qualifications and a decent background in the pharma industry. However, she is 76 years old and unlikely to be actively involved for much longer. (4/n)

That leaves Fredun Medhora, who does not have a technical or scientific background and his primary qualification is an MBA.

The biography provided in the AR describes the CV of an MBA student, nothing on the contribution or role in the company. (5/n)

Leading Nowhere
@leading_nowhere

@Dinesh_Sairam @a_basumallick @ashwinidamani Questions that are only answered with time haha.

@a_basumallick @ashwinidamani Just to add - sustainable FCF is a faraway concept for most till (if) they gain scale or innovate/add value. Till then, it's generally always a struggle to manage WC and capacity addition. Wouldn't expect that to change for a while.

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Leading Nowhere
@leading_nowhere

Paying 50-100x earnings for 'blue ocean' sectors has become normalized with promise of changing trends and immense future opportunity. Stock markets look forward, if the future opportunity is great, in most cases that 100x valuation already factors a 30x valuation in 3 years.

For investors, the question of where the buck stops is difficult to answer, because the goal post keeps changing. 30x is reasonable for one business, for another 70x is acceptable. So why not everything in between too?

Not every business captures the opportunity available. There is many a slip between the cup and the lip, as my English teacher used to say. When investors have seen valuations creep from 20x to 100x in a matter of a year or two, it is easy to to keep dancing to the same music.

But like we used to play musical chairs in childhood, someone will be left standing too. And here the rules aren't that 1 person gets eliminated at a time, hundreds get crushed at the same time. In childhood, we had a 1/X chance of being caught standing when the music stopped.

The margin of safety was high till you got down to the last 3-4 people playing the game. Similarly, your margin of safety reduces dramatically when valuation becomes irrelevant. A few months of underperformance and suddenly things don't look so rosy any more.

Leading Nowhere
@leading_nowhere

The anatomy of Private Equity (PE) funding in a public listed company.

A thread 👇 (1/n)

PG Electroplast Limited, a contract manufacturer of various kinds of electrical goods and appliances, recently announced an 80 crore fund-raise through preferential allotment of equity shares and compulsorily convertible debentures (CCD) to Baring PE and family funds. (2/n)

Such transactions are a great way to understand Private Equity deals in a public setting. Because of disclosure norms for listed companies, everything related to a fund infusion in a listed company is made available to the public. (3/n)

From a retail investor’s perspective, it is easy to focus only on WHO is investing. In this thread, I will try to look at such a transaction from the perspective of all stakeholders – the company, the PE investors, and the public shareholders. (4/n)

PG Electroplast sees an opportunity in the Productivity-Linked Incentives (PLI) by GoI. Under this scheme, companies making incremental investments into manufacturing facilities receive up to 6% of the incremental sales generated from such investment as an “incentive”. (5/n)

Leading Nowhere
@leading_nowhere

Bull runs in small caps are usually fast and furious, and the cycle repeats itself every 3-4 years. Every time, retail is sold stories of business turnaround and stock charts look fantastic for meteoric wealth creation. For the class of 2020-21, here's a couple of past stars.

These small cap stocks with 30-40 crore market cap went up 23X and 11x in a span of 24 months between April 16 and April 18. The story looked great then, but subsequently once liquidity and interest disappeared, the prices went right back to where they came from.

When in the thick of the action, it can be difficult to keep a level mindset. To keep the narrative believable, these companies are able to massage their top-line and bottom-line for a short period of time to show an imminent turnaround. Note the trends in these financials.

The company usually exhausts its ability to massage the financial statements very soon and the business health plummets dramatically. One collapsed so dramatically it has been selling fixed assets. The other one is Uniply Industries - a simple search on Twitter will suffice.

Newer small cap investors may be subscribed to many Twitter handles, Telegram channels, groups and even premium advisory services. Don't take anybody's word for the narrative being sold to you. On-the-ground-research and scuttlebutt can be plain fiction.

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Brian Cates
@drawandstrike

Great article from @AsheSchow. I lived thru the 'Satanic Panic' of the 1980's/early 1990's asking myself "Has eveyrbody lost their GODDAMN MINDS?!"

For three years I have wanted to write an article on moral panics. I have collected anecdotes and similarities between today\u2019s moral panic and those of the past - particularly the Satanic Panic of the 80s.

This is my finished product: https://t.co/otcM1uuUDk
— Ashe Schow (@AsheSchow) September 29, 2018

The 3 big things that made the 1980's/early 1990's surreal for me.

1) Satanic Panic - satanism in the day cares ahhhh!

2) "Repressed memory" syndrome

3) Facilitated Communication [FC]

All 3 led to massive abuse.

"Therapists" -and I use the term to describe these quacks loosely - would hypnotize people & convince they they were 'reliving' past memories of Mom & Dad killing babies in Satanic rituals in the basement while they were growing up.

Other 'therapists' would badger kids until they invented stories about watching alligators eat babies dropped into a lake from a hot air balloon. Kids would deny anything happened for hours until the therapist 'broke through' and 'found' the 'truth'.

FC was a movement that started with the claim severely handicapped individuals were able to 'type' legible sentences & communicate if a 'helper' guided their hands over a keyboard.

Aditya Shyam Jalan
@Dr_Aditya_Jalan

A chartbook collection of 50 Examples from @Qullamaggie Sir's Swing Trading School.

https://t.co/kylxkesTmA

The entry points are marked with a orange arrow, 10,20 and 50 Daily Moving average are used and the commentary by @Qullamaggie sir is written on the chart itself.

The setups are breakout setups, where the stock makes a big move,
surfs (takes support) either on the 10,20 or the 50 MA,
Makes Higher Low's,
Forms a Tight Range with Narrow candles,
then
BREAKOUT's!!

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$Henry George \u0646$

Henry George ن
@intothefuture45

Thread: *Post-Liberal reading list*
1/ Religion and the Rise of Capitalism - R.H. Tawney
Unto This Last - John Ruskin
Liberty, Equality, Fraternity - James Fitzjames Stephen
The Great Transformation - Karl Polanyi
The Quest for Community - Robert Nisbet

2/ Family and Civilisation - Carle C. Zimmerman
Science, Politics and Gnosticism - Eric Voegelin
Liberty Before Liberalism - Quentin Skinner
The Great Debate - Yuval Levin
Lincoln and the Politics of Christian Love - Grant Havers
Where We Are - Roger Scruton

3/ The Humane Vision of Wendell Berry - Various
The Unsettling of America - Wendell Berry
Moral Matters - Mark Dooley
Red Tory - Phillip Blond
Blue Labour - Eds. Ian Geary and Adrian Pabst
Together for the Common Good - Eds. Nicholas Sagovsky & Peter McGrail

4/ The Politics of Virtue - John Milbank & Adrian Pabst
Localism in a Mass Age - Eds. Mark T. Mitchell & Jason Peters
The Antimodern Condition - Peter King
The Principle of Duty - David Selbourne
Nostalgia - Anthony Esolen
A Common Human Ground - Claes G. Ryn

5/ The Politics of Gratitude - Mark T. Mitchell
A Time to Build - Yuval Levin
Remaking One Nation - Nick Timothy
Despised - Paul Embery
Defending Identity - Natan Sharansky
Between Kin and Cosmopolis - Nigel Biggar
The Virtue of Nationalism - Yoram Hazony

Lakshminarayan G
@narayanagl

The Chanting of following names of Bhagwan Vishnu, immensely helps us in overcoming the obstacles in our daily life.
These names are from Sri Vishnu Sahasranama!
|. "Om Vashatkaaraaya Namaha" : For Success in Business.
||. "Om Aksharaaya Namaha" : For Success in Studies.

|||. "Om Bhuthabhavanaya Namaha" : For Good Health.
|V. "Om Paramaathmane Namaha" : For Self Confidence.

Src: VAK magazine from Chilkur Balaji Temple, Hyderabad - Sri @csranga
#SanatanaDharma #SanatanaSanskriti #Sattology

One needs to chant the following slokas 28 times to get rid of certain problems in life.
Om Hrushikesaya Namah - For Overcoming Bad habits
Om Vashatkaaraya Namah - For Success in Business, Interviews, visa interviews, building relationships

Om Srimate Namah - For Handsome appearance & wealth
Om Aksharaya Namah - For Education & better financial strength
Om Paramatmane Namah - For self employed people, for promotions and success in games.
Om Putatmane Namah - To remove mental stress & for mental peace

Om Sarmane Namah - For Job Satisfaction
Om Bhutadaye Namah -To amend soured friendship or any personal relationship
Om Dhatre Namah - For issueless couple
Om vidhatre Namah - Pregnant Ladies to Chant for healthy babies.
Chant the following 108 times :

Suchi Sharma
@Suchi_sharma_

#THREAD
1.Meenakshi Amman Temple(472ft High)also called as Meenakshi Sundareswarar is a famous Hindu temple located on the southern bank of Vaigai River in temple city of Madurai, #TamilNadu.It is dedicated to Parvati(Meenakshi)& her consort Shiva(Sundareswarar). @LostTemple7

2.Madurai Meenakshi Sundareswarar temple was built by King Kulasekara Pandya (1190-1216 CE).This popular temple visits over 15000 visitors daily & around 25000 on #Friday !Friday sees the most number of devotees visit the temple with the number going as high as +25,000.

3.Meenakshi Temple also hosts an annual festival called Meenakshi Thirukalayanam that is held in April. A celestial wedding of the god and goddess marks the end of the festival. About 1 million devotees visit the temple during this festival.

4.the temple has been tagged as one of the seven wonders of India along with stunning Architecture.The temple is built using Dravidian South Indian style of architecture, and is one of the most impressive temple structures in South India.

5.The principle deity here is MEENAKSHI, a form of Goddess Parvati. The idol of the goddess is carved in emerald hued stone. The Meenakshi idol has 3 breasts as Meenakshi was born with three breasts and was blessed that the 3rd breast would vanish once meets right man of her life