also, if you could provide me the email ID to which you sent mail; I too could try from my end to clarify future prospects and as Harsh_Vijh requested; possibly if you could share what company’s reply broadly suggested. Thanks in advance
has anyone asked for the clarification from the company about the reduction in the promoter’s equity…I m sure almost all of us will be interested in knowing the exact truth…
I also want to know so many truths.Early this year I met him and asked about a new venture.The answer was a binary- yes or no and he told me he will not answer till September this year.Obviously he was contemplating various options though announcement was made.Last year I told him the intangible assets do not inspire confidence and gave him 3 options.I have seen his AR this year and there are major changes made to intangible assets.
I still see a total overhauling of accounts by Deloitte or they quitting.The reserves have also been marked down.He doesn’t have cash to buy his own shares at Rs150 though he made a preferential issue in 2014-15 at Rs 398.Even to meet the working capital on turnover of about Rs900 crs he needs about Rs250-300 crs and he appears to be broke.Either he issues fresh shares in the Indian outfit ( if someone is willing to buy) to raise about Rs.200-250 crs,which will mean a dilution of 30% or he issues shares in US subsidiary which means lesser profits for the Indian listed unit.Looks there will be a substantial downgrading of EPS for this year plus selling pressure from institutions now that the Outlook has been marked negative by CARE.Some of his peers in Chennai are baffled at the way things have panned out.The acts of his CFO and the accusation by his previous auditor have caused irreparable damage to the reputation.
Have you spoken to SV directly ?Are you a news reporter or any research analyst
What do you mean by “his peers at Chennai are unhappy by the way things are panned out”.
Please provide more info sir
can you please share emails.
As i had said earlier, i have very little(if not nil) knowledge of how to read BS and audits. First time in 6 years that a trade seems on the verge of failing and cash being completely eroded for me. Can’t even say it will be a lesson learnt as there were practically zero hints of anything like this happening in April when i bought for the 2nd time after previous successful trade. I doubt anyone did as i can make out from the discussion. Only thing i see some are confident(hopeful) that business will be back to normal (hopeful) and some are totally negative following all the bad(confusing) news surrounding 8KMS. Personally i never use “hope” for a trade; same as i try to avoid panic in crashes. Buying stocks at multi year lows mainly cos of market, sector, earnings,etc going down has always helped my trade a bit late also if not in my stipulated planned time of exit. As i said, personally it would be better to leave 8k alone for now and not average more on such uncertainty on the back of chances of more bad news Vs chances of good news being very high. Better idea would be to see earnings and growth and allow a quarter or so (same time Nifty and Dow suggest they can fall also) and buy on technical strength(which will be on the back of good news and fundamental strength too) once stock moves above 235-274 zone. I know that is double of what is trading now but past data suggests the stock is capable of doing 250-700% in 2-14 months. just my observation. Not that history has to repeat this time but from history, i have seen in past that bad news does somehow get absorbed and things happen positively. Such was the case with Sathyam too. Can happen again with 8k also given past performance and all the accolades the company had received. Would like to hear more “gut feels” and “ideas” from other boarders. Another point to be noted is there are many other stocks in my portfolio battered down to 20-30% of original buy price (though now they have been averaged) but none are giving me the spooks as this one, so after final buy at 191, i decided to call it a day. Weekly support levels now are placed at 117, 113, 99, 84, 78, 63, 58 and all time low of 36-37(these are not LC prices). I had said earlier that i do not expect 117 to break. Can be utter chaos if it does (not that we haven’t already gone through enough mayhem )
i know this forum, as indicated from what i’ve read suggests that it is a dominantly Fundamental forum with most adding inputs about management, BS,PL,etc. If ok with all, i would like to add inputs which are technical in nature also for those so inclined. Not just for 8k, but any stock, index. For now would only like to discuss the following 3-4.
Brent as i felt in March had breached the crucial resistance of 69-70 levels (cross of red line on chart below) and entered the zone between the 2 black lines. It seems quite probable now that we may see levels of 97-104 by Dec or maybe early next year.
USD/INR charts hinting that we can go all the way to 77-80 on the dollar soon enough (as was obvious by recent RBI meet)
Dow charts made it quite clear in past 3 weeks that a peak is in progress and 27000 may well not breach though we kept falling and Dow kept rising. (as shown by green line). Following which, we have to see levels where support (demand) can be met as a 1st stage. Blue line shows that level marked at 24,714 or roughly 900 points fall.
Yesterdays 800+ point fall came as no surprise to me though nifty was up yesterday (dow futures had already impended doom by 2pm yesterday)
4 Next brings me to our favourite Nifty. There was a very good chance for us to beat all time highs and go higher till we fell below the red line at 11,392, which signalled sell-off. immediate target and support is marked by blue line at 10,460 which we breached and bounced above again yesterday. Next support and target is signalled by yellow line marked at 9813 which we can surely expect in weeks to come. I would even further venture and say by quarterly charts (not shown) that we may breach 9800 and go lower to 9500-9250 zone. Last word being, we can expect 2 quarters of fall (consolidation with negative bias) which may coincide with elections next year for bullishness to return considering all the above factors.
Also just found out that as a new user, i am allowed only 3 replies in the forum. Till they extend that, i guess i can’t post. Hope above info was helpful. OOPs. also found out allowed only 2 links in a post so, forced to delete dollar/inr and brent charts.
My post is clear on my meeting.I am not a reporter.
I wear many hats -predominantly as an analyst.
I said his peers are"baffled".Baffled that the company has fallen from a position of strength to where it is due to self inflicted damage.
Whether Amazon falls or not is immaterial.
What stands out is the fall in price from Rs600 to Rs130 continuously,no response from management, no response from institutional investors who have stake,the resignation in early April of Company secretary, the resignation a few months back of one of the independent directors,the charges by ex auditor against the CFO(though it relates to another co,you cannot ignore his role),the redrawing of past years accounts by Deloitte,the resignation by CFO,the sale by CEO of which I haven’t seen any notice to Stock exchanges though listing agreement requires it–am I missing something.The list is long.Surely this is not normal or will not happen to Amazon.
Surely the growth will be more than 40%( caveat- unless the auditor reveals something unknown.)
In all this for survival there is going to be dilution when some investor enters.All things being equal if you as shareholder were getting 65,% of Rs100 profit last year,you will get much less next year.Is it going to be 50% or 40%or 30% is the question which will determine the price.If a Google or Amazon or TCS were to be the stategic investor,it will go one way to Rs800-1000.Anything can happen in future.
Finally I didn’t say “fallen” but someone in the industry said.
I have read many view points of both the sides in above messages.
No one can deny the fact that there are many fault lines in this company ! The best thing would be to remain sideways and observe the movements. Those who wish to invest and are confident about the business should wait for the clarity and proper audits of the accounts of the subsidiaries. Right now around 90% of revenue (approx) is not audited by deloitte.
I can not say anything to the members who are holding it in their portfolio as their may be some bias. Those who are not invested can bring the unbiased opinions on this forum. Market knows some thing ahead of us and that too reflects most of the time in share price behavior.
Disc: Neither invested nor interested ! Just learning from here.
Update on BSE site for Suresh venketachari shareholding…
Finally the much awaited clarification. He sticks to his words that he is not selling any shares ! However , why everything bad keeps happening to this company only I wonder ?!
Something fishy going on. Today’s bulk deals show that Kirit Gogri sold 1,59,000 shares. Searching Quantum Global Securities shows that Kirit is/was associated with Quantum.
Kirit was not associated with quantum … he was with Quant Broking ! Two are different companies with different promoters altogether !
This is the closest financial equivalent of “It wasn’t me” or “I forgot” excuses children use often. If someone actually believes this, then I would love to play poker with them.
Sure !! Anytime !! As I told you … either I ll lose my money or it’ll be a multibagger for me ! And I am still banking on the company. Let’s see !
Why such things happens to such companies only. Did not few monthly back some broker sold kwality promoter shares . Market is intelligent enough.
I agree but market had not priced this in ! The free fall was due to various other reasons ! This is something completely new for which the market reaction to stock price is yet to be seen.
Two ( note two not one)broking firms sell.What quantity they sold.Not known.Was it after June30 when shareholding Pattern was disclosed.?
25 lac shares transferred and Adroit the share transfer agent did not know till September middle that SVs shares were coming for transfer.Unbelievable.
GHS associates, the auditor accuses CFO of forgery.
The auditor Deloitte mentions of “inadvertent” errors in account classification .
The CEO accuses two sharebrokers of illegal transfer of his shares.
The co declared Rs7 dividend and revises it to Rs1 and CFO sells his shares in the interim period.The company pleads ignorance of laws.
The company couldn’t finalise its accounts on time as it did not anticipate time required for complying with new laws.
Too much of coincidence?Will they use this alibi for the fall in share price and delay in results?
I have seen many frauds over the last decade and it happens with regularity within the tech sector. Satyam, Geodesic, Bartronics, Bilcare and many others … and now add two more names… 8K and Kellton. As I said before, it is mind boggling to see that someone is still interested in this. This is heading towards being a penny stock. Textile, diamond and now IT sector is favorite of money launderers and scammers.