Any body else , who attended AGM? They can throw some light.
Disclosure: exited completely at 130 last month ( entry was at 216 )
Any body else , who attended AGM? They can throw some light.
Disclosure: exited completely at 130 last month ( entry was at 216 )
Any news on why Kellton is falling?
If quality companies are trading for 12-13 PE, isnât this still costly, shouldnât this fall even more?
@Hersh for the kind of growth they have the current valuation impplies Mr. Market is seeing their business partially at least as non existent/sustainable. If anyone has scuttlebutt insights that helps understand if business is real woulld help!
Sold with 0 profit after promoterâs near-hallucinating interview. Actually I have sold big chunk before after they couldnât do QIP.
Their growth plan was majorly dependent of their ability to raise money at good valuation and than acquire foreign cos at cheaper valuation. No QIP, and entire plan went kaput. Management interview totally destroyed market confidence.
Point taken on the overly optimistic management interview. Does the recent correction in stock price present them an opportunity to do the QIP? or does the sentimental hit rule that out?
People bought Kellton (myself included) primarily because of its superlative growth in revenue (Okay, Basant Maheshwari buying it & the SMAC hype played a part, too). Notwithstanding the managementâs penchant for giving revenue guidance, without the numbers, people wouldnât have bought it.
As Peter Lynch says in One Up on Wall Street, âA stock going up doesnât mean that your investment thesis is right. A stock going down doesnât mean your investment thesis is wrong.â
Humble questions to you, Did you not ever done mistake in analyzing a stock? Are you always able to foresight the underlying risks of a business? Is it recommended to post buy and sell decission before buying/selling in this forum?
I donât have any problem if a person appears arrogant or is actually arrogant. What matters is his view and reasoning. I follow Subas on Twitter as well and I find his arguments interesting and that gives me something to think about, though I do not agree with him most of the time. For that matter, many people find Basant Maheshwari arrogant but his ideas are always worth thinking about.
So, let us not focus on someoneâs mistake. It happens all the time. Let ideas keep flowing freely. After all, it is for individual to take decision and own up responsibility of consequences.
There is no place for personal remarks on this forum. Members are requested to restrain while posting. Thanks.
Is there any way to find out what happened at the AGM. The price seems to start falling around the same time. Any way to reach Investor Relations and get some clarity?
@bandlab1 attended the AGM. Kellton Tech - Growing IT company - #58 by bandlab1
I have âattendedâ the agm yesterday. It was at 11 AM, I reached the venue at 11:12 AM due to traffic, the meeting was already over by then !!! I could talk to CS and get some details , but I didnât feel confident that the data being shared is accurate. I could understand they are still talking about 900 cr revenue in fy17, they are working on a big acquisition in US. Looks like they are having funding issues. CS told QIP is not on plan as lot of IPOs are sucking out liquidity. They are working with the banks to get loans.
mSahet is postponed, but looks like its cancelled. They are not able to explain the reason for only 10% ebidta margins when they are in ânicheâ business, they kept on saying same thing we have hired some top level executives, the cost is accounted now but sales will come in later years.
Overall I got the feeling management is not willing to share details with minority share holders and the business itself has so many question marks.
Disc: I sold all the qty after the agm
most AGMs are like this only âŚso no issues on this front
Is Basant still invested in Kellton. I thought there was some negative comment given by Basant recently on twitter⌠Does anyone know?
I donât see BMâs or his wifeâs name in the latest shareholding pattern.
http://www.moneycontrol.com/company-facts/kelltontechsolutions/shareholding-pattern/VMF#VMF
I believe he said something on twitter along the lines of getting out when a stock corrects 30% from the buying price. Iâm not sure.
Well, Mr. Market is saying that the story is over. SMAC as a theme is not dead but this was a wrong horse to bet on. An investor doesnât have to make money on all its investments. Letâs move on after analyzing what went wrong. BM also suggested to diversify within SMAC space since we donât know which one would survive.
Letâs look at the worst case scenario. Assuming the QIP doesnât happen at all & the supposed big acquisition is off, do you think they canât grow much (& also improve the margins now that the inorganic route is shut off) with whatever companies & clients they have already acquired? Too much doubt/uncertainty on managementâs execution capabilities?
There is no promoter history except their college names. Their organic growth is in big doubt leading to acquisitions so what is the factor of safety (assets) available to an investor? Promoters subscribed the warrants and tried to jack up stock but looks like institutional guys have seen through the game.
you can see those only in annual report when they give top 10 shareholders not in qtrly statements
re Sumi000 - 2-3 weeks back it fell to 83 and shot right back to 140 âŚour perception of SMAC on / OFF shouldnt be based on price
though such low levels test everyoneâs patience big time !