8k Miles Software Ltd, Cloud Computing


(Krishnaraj) #684

That was closed because Mods felt that it may get out of hand, and they know better. It was good while it lasted!!!

I am new to blockchain and Barrons had a cover story this week that I liked:

https://www.barrons.com/this_week?mod=BOL_TOPNAV_MAG

So you may want to spare them, else my subscription will have to be written off :slight_smile:

Cheers,


(Silmaril) #685

Does anybody have access to the march 18 cash flow statement. Im not able to find it anywhere…


(vikas sinha) #686

You might as well write it off :laughing:

The Bank for International Settlements, which is also known as the central bank of central banks…
“Put in the simplest terms, the quest for decentralised trust has quickly become an environmental disaster.”


(Vilas D'Souza) #687

You can make one yourself from the balance sheet. It’s pretty simple.


(samrat_kolkata) #688

My first message on this thread. I am not adding any analysis. Just two first hand experience.

Incident 1 - I talked with two employees 1 year back through LinkdIn. Seems to me that these people worked in actual cloud computing related tech. So, no doubt about what they are doing.

Incident 2 - I checked two websites - cornerstone advisory - This website design seems to me 10 years old stuff. An US based entity working in cutting edge technology does not have a mobile compatible website ! I really find it difficult to believe.

Recently I came across “8khealthedge.com” which is a separate domain of 8k miles to showcase blockchain capability of the company. When I opened the website in smart phone and try to access the mobile breadcrumbs menu from top, I found the background is black and the font is in blue. Again worst user experience in mobile. Needless to say, the new site is thin in information. They are showing this platform as 56 crore in the last Q intangible asset and to me it seems that they spent 5000 Rs to develop the website to market this product. Very bad.

Yesterday 8K miles announce some Pharma client win through twitter and I replied back on that tweet asking this two questions.

  1. why the cornerstone advisory website looks like a non compliant design in today’s highly responsive mobile UX ?

  2. Why the newly launched 8khealthedge.com has such a bad mobile UX ? ( menu design seems utterly novice & unprofessional )

I asked two highly relevant questions and today I found the original tweet is deleted and they tweeted the same update fresh today morning.

I am not rockstar on balancesheet & do not have huge knowledge like many boarders here. But it seems to me that the top management is not good. They are not professional and constantly trying to hide information from the minority stakeholders.

They can always answer back to the tweet saying something positive. But they just deleted it as I pointed true technical issues and asked the hard questions.

Regards


(vikas sinha) #689

Welcome Samrat, your first message ever in VP it seems!

I think you missed posting this link:

Correction: It is not Advisory, as you have mentioned, but Advisors!


(samrat_kolkata) #690

Yes Vikas. My first message on VP.

Disclaimer : Invested in 8K and still holding.


(Krishnaraj) #691

Interesting way to look at it. It doesn’t matter whether or not you are great in analysing balance sheet etc. Too much knowledge without a knowledge of its limitations can deceive one to trading common sense for heavy intellectualisation. The outcome is generally negative for money making.

That is best said by Buffett that what matters in investing is temperament and not IQ beyond a point.

When things don’t add up like in case of 8K Miles, they don’t add up from many angles, some financially, some like you mention, some like @phreakv6 mentions. Each is shaped by our experience. Let’s see what the FY 18 annual report of the fim throws up.


(Silmaril) #692

I’ve started using the simpleginzu valuation model from Ashwath Damodaran to value 8K miles. Below is the set of assumption I made for the model. Let me know your comments on these

Please validate my assumptions below, in particular, the growth rate assumptions. Risk-free rate and cost of capital are all US numbers because the operations are primarily US-based

  1. All financials are picked from the recent filings and conversion rate of 70/$ used. This is mostly because the excel is based on $
  2. Compounded annual revenue growth rate over next 5 years = 22%
  3. Target pre-tax operating margin (EBIT as % of sales in year 10) = 28%
  4. Year of convergence = 10
  5. Sales to capital ratio (for computing reinvestment) = 1.57
  6. Risk free rate = 2.85% (US 10y T bond)
  7. Cost of Capital = 9.98% (US technology sectory WACC)

This is what I get… (Estimate Price Per share = 1067.5 INR)

  • Terminal cash flow $69,794,062.75
  • Terminal cost of capital 7.35%
  • Terminal value $1,550,979,172.30
  • PV(Terminal value) $647,735,358.80
  • PV (CF over next 10 years) $310,357,573.69
  • Sum of PV $958,092,932.49
  • Probability of failure = 20.00%
  • Proceeds if firm fails = $479,046,466.24
  • Value of operating assets = $862,283,639.24
    • Debt $11,402,857.14
    • Minority interests $387,200,000.00
    • Cash $1,570,000.00
    • Non-operating assets $-
  • Value of equity $465,250,782.09
    • Value of options $0.00
  • Value of equity in common stock $465,250,782.09
  • Number of shares 30,517,605.00
  • Estimated value /share $15.25
  • Price $4.28
  • Price as % of value 28.07%

(udayp) #693

AGM has been announced for Sept 29. I think it will a good forum to ask all the questions on accounting practices face to face. Although we may not get all the answers, we will have management response on record.

Please let me know if anyone is interested in attending. We can also prepare a comprehensive list of questions to ask.


(Krishnaraj) #694

One of the items for resolution is adoption of Consolidated Accounts. So shareholders may ask for annual report or accounts for the US entity before resolution.

A set of queries may be posed to them, and with evoting, you or others may decide to vote against the resolution to adopt accounts, if the response is not satisfactory.

I can help with preparation of queries related to accounts and on claimed trademarks that are not registered with US authorities. Especially if I can get the US accounts. (If I were based in Chennai, I would have offered to be a proxy for bonafide shareholders)

Another quirk I noticed was that the AGM starts at 8:59 am on Saturday. I realized later that ‘Rahu Kalam’ on Saturday starts at 9:00 am. So at 8:59 am they will avoid the Rahu Kalam!!


(udayp) #695

I’m a shareholder from Bangalore. I’m planning to attend to get some clarification on issues discussed on this thread.

I understand they will publish the annual report but can you please explain the process for requesting US entity accounts and other queries to be put up for evoting. The evoting starts on 26th and ends on 28th before the AGM, so should the process be done now.


(Krishnaraj) #696

I am also based out of Bangalore…I sent you a direct message, and we can talk over phone.


(Funda_Buffett) #697

I will be attending the AGM. Shoot your questions to me!


(udayp) #698

Does anyone have information on the credibility of the below article and author:
http://cnafinance.com/8k-miles-software-8kmiles-stock-setting-the-stage-for-an-incredible-investment-opportunity/20224


(arvind) #699

In one the interview they said they will buyback at 600 a piece. Now price is so depressed Can you ask why not a single share is being bought by promoters? The link to interview:

Below is the question asked:
There are indications of promoters’ holding being hiked. How do you plan in this regard?
We plan to increase stake through creeping acquisition by purchasing from open market upto price of Rs600 per share.


(Harsh Vijh) #700

This will be know in the Q2 shareholding report to be published by end Oct 2018.


(Harsh Vijh) #701

Sounds like a planted advertorial. Sounds too good amidst all the big Q’s being raised around the firm’s finances and their reporting credentials.


(Krishnaraj) #702

I wrote an article in alphaideas about 8K Miles. Interested folks may find it here:

The same version which also has the sources for some claims can be found here. 17092018 8KMiles and the minority shareholder v1.3.pdf (434.2 KB)


(Silmaril) #703

@diffsoft you have mentioned in your article that the auditors have written that the companies accounts cannot be relied upon and that there could be a big change in the numbers. Can you please mention which page in the annual report has the comment. I went through all the auditors opinions in the annual reports and could not find such statement… Am I missing something.

Wouldn’t the auditor be obliged to give an opinion and refrain from signing off on the reports if they are certain that the numbers are not auditable?