ValuePickr Forum

Corporate Actions : Buyback , Market Purchase or Sell

The thread is only dedicated to the Corporate happenings taking place in Companies. Since it is tough for all to track all the companies , collectively this thread may help as a common source to discuss the latest happenings like Promoter Purchase , Promoter Sell , Buybacks taking place in companies.
These details may help to dig deeper and i believe interesting things may come up. This thread should only be used to inform of the corporate actions while company fundamental details and reasons Behind such Sale / Purchase should be discussed in respective company thread.

Below are the business i track where some corporate actions is taking place.

  1. Greaves Cotton
    Promoters have bought 17.5 lakh shares (0.72% in last 3-4 months)

  2. Jindal Stainless Ltd
    Promoters have bought 6.6 Lakh shares (0.14% in last 2 Months)

  3. Aarti Industries
    Promoter sold 0.1% Shares in last 1 Month.

Buybacks where promoters did not participate

  1. Thyrocare has completed the buyback at Rs 670 per share (Current Price : Rs 540 per share)
  2. Oriental Carbon is buying back from Open Market (Current Price: 1150)

Disc: If the thread does not seem to be of use or violate the forum rules or if there exist any other thread for the similar topic , moderators are free to delete this thread…
Personally i think that tracking these corporate developments can help in little ways to dig deeper.
I was looking for such thread but did not find which is why started the thread.

6 Likes

Please track corporate actions in the respective company threads. Please use this thread only for informing about a particular corp action. That is, the specific discussion on a corp action should take place on the respective company thread.

Agree with the point made.

I think it would be helpful for everyone to post Corporate actions here for companies that do not have their own threads.

1 Like

I have a database of corporate actions that updates daily as I use it for adjusting prices. I can make it available on phreakonomics.in if you like. It is quite useful information when clubbed with a lot of other information. On its own it’s quite useless.

In a bull market or in a cyclical earnings peak, there are lots of splits and bonuses and in a sideways/bear market there is a lot of what I like to call “cheap signaling” in terms of buybacks or open market purchases. It is important to analyse the incremental skin in the game when these happen. If other negative factors like inclement market weather, corporate governance issues or sectoral headwinds exist, this kind of cheap signaling doesn’t do much. There are very interesting cases that come to attention early though, like mangalam organics but these are very few and far between and require a lot of manual analysis to profit from.

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The purpose of this thread is not to discuss any company specific details even if no thread exist for any company. It is only for the purpose of highlighting Corporate Actions so that one can dig deeper for more insights into respective company thread or initiate a new thread if no thread exist.

Bonuses or splits have no value and thus should be avoided here.
Regarding promoter Purchase , Promoter Sell or any buybacks (especially where promoters do not participate) , no matter the market is bull or bear , does help and can bring interesting picture as promoters better know the prospects of the business. It is on individual to know the reasons behind such Sale or Purchase and those details should be discussed in the respective company thread.
Also it is to be made sure that who ever posts any such details , it should not be on a daily basis. It can be over a period of 2-4 months and should be of some significant quantity like in Greaves Cotton.

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Byke Hospitality :
One of the promoter has acquired 4.83 Lakh Shares (1.2%) of the company in between Dec 2017 to March 2018 at an average price of around Rs 170. The shares started falling from April 2018 and currently are at Rs 40.
Promoters buying from the market does not necessarily means good times for the Company.
An Investor should connect a lot of dots and such purchases should not be seen in Isolation.
There were lot of issues highlighted in the respective thread of the company. One can visit the entire thread for a better understanding. Byke Hospitality

2 Likes

Dear Bharat,

YES, your point is very well taken … I have observed it many times that when promoters are buying it may (also) be to provide an “exit” to some entities (likely operator associated entities, whatever its name may be i.e. an individual or corporate entity) who have invested in the company… but that we came to know ONLY after some time-lag so practically such events cannot be taken advantage of by most lay investors…

McLeod Russel is the very latest example of Company Buyback, I have observed… i.e. after buy back, the share is continuously falling in the price… so the precise modus operandi of the Promoter+Operator are rather difficult to analyze from the point of view “to benefit from that” …

The message is: what ever become public, has little value for ALL the lay investors…

But you can do your own research, buy good company in SIP manner and HOLD for next 10 to 20 years… you can really make very good money… time frame of less than 10 year is relatively less profitable… SIT-TIGHT on your holding and enjoy the long - very long term ride !!!

Wish you ALL “Profit with Peace of Mind”

ARB

Is this database through some software or using Excel spreadsheets?

Srikalahasti Pipes : Promoter group companies are buying constantly in last 2 Months. They have bought close to 3.32% from Market in 2 Months !
G K & Sons Pvt Ltd : 0.46% to 1.3%
Uttam Commercial Company Ltd : 0.5% to 0.87%
G.K.INVESTMENTS LIMITED : 0.58% to 1.79%
Murari Investment & Trading Company Ltd : 1.13% to 2.03%
https://www.bseindia.com/stock-share-price/disclosures/insider-trading-2015/513605/

Promoter Holdings :
Jun-18 : 43.24%
Sep-18 : 43.64 %
Dec-18 : 44%

Discussions behind the reasons and company fundamentals should be discussed in respective thread Srikalahasthi Pipes - Can it continue on its growth trajectory?

Disc: No Holdings