Promoters “gifted” to “relative” that relative sold that in market. Now you can claim that promoter has not exited, at the same time he made money as well. Also if you gift more than 1%, the receiver has to disclose, hence smartly “gifted” only 0.8%. Now this is sums up for me !
Most of your points are right.
- PC Jeweller is a pumping-and-dumping stock where operators push the prices higher, and dump those at higher levels
- People prefer Tanishq over PCJ
- Although jewellery business is nice, but most businessmen running it are not (All these from below link)
Everyone feels there’s something really wrong with PCJ.
Disc: Invested and trapped, took a hard hit, lesson learnt
Does not add up. Total shares gifted as per management is 2%, 85lakhs. Very unlikely the person to who it was gifted sold it right away. That would defeat the purpose of raising funds. With average volumes delivered before this was 14L, even if the new holder were to sell 3L daily, in one month he would have cleared it neatly.
The most unusual thing is that no shares are pledged also.
Todays delivery at 86L. So three day delivery at 2.3cr shares or 65% of all retail and small investors have sold off.
Once more company have given the justification about the sudden decrease in the price. and reassured the investor about good fundamentals of the company and a great future ahead.
The total selling/gifting is 1.03cr shares/2.24% share capital.The promoters’ stake has fallen from 60.24% to 58%. They make these disclosures after 6 days. I won’t be surprised if there was further gifting/selling in the past 2-3 days.
The post talks about how much the reported Operating Profits (OP or EBITDA) get converted in Cash Flow from Operations. It’s very difficult to track from a single year of reporting. But basically, if you plot EBITDA and OCF of a company, it should largely coincide. For PC Jeweller Ltd, it looks like this:
You see how the Reported Profit rise smoothly and the OCF fluctuate wildly? It’s not necessarily fraud or manipulation, but it shows poor financial management skills of the part of the management.
I think on a year to year basis, swings should be common to high working capital companies with receivable cash being recovered in a non linear manner. Sum of EBITDA n CFO could highlight if there is trend of improvement or deterioration or it’s mere accounting but no cash. So, agree with u difficult to say something just on this metric
If you plot it for Titan, it will be no different or even worse. One needs to look at the industry dynamics and trends to take a coherent call.
Brahmal Vasudevan’s Idria Loses Fortune In ‘Pump N Dump’ Stock While Fears Plague Kenneth Andrade’s Fav Stock
PWC has appealed against sebi order.Secondly, if it’s resignation is because of sebi ban, it would not be restricted to one company as I believe PWC must b auditing at least 100top companies in India.If they HV come across something wrong or suspect, they should bring it to the notice of sebi
A meeting of the Board of Directors of the Company will be held on Friday, May 25, 2018, inter-alia, to:
consider and approve the audited standalone and consolidated financial results of the Company for the quarter / financial year ended March 31, 2018;
consider recommendation of dividend on preference shares for the period from April 1, 2017 to September 1, 2017.
consider recommendation of dividend, if any, on equity shares for the financial year 2017-18.
consider the proposal for buy back of fully paid-up equity shares of the Company.
Too much similarities between vakrangee and PCJ. Vakrangee also declared 1000 cr buyback, but after announcement there is no update on it in more than 2 months (Except for appointment of merchant banker). And PCJ has announced board meeting on 25th may. Why wait for about a month to have a board meeting???
Moneycontrol showed a block deal of Rs. 437 crore on PCJeweller at around 2.30pm on Friday. That truly concerned me. I wrote to the cs to try to get some details on the so called gifting of shares and why are promoters selling. CS did not have much to share, and only says that the business growth is strong, promoters are passionate, it’s a family business, bear cartels n some other sources are pulling the price down, etc.
This is not very assuring. The price is going to be volatile over the next few days.
The buyback coming out seems to be interesting. It looks to be the promoters methods to increase their stake back in the company, but by using shareholder’s funds.
This got me thinking. Last year they issued bonus shares. Post that the promoter group share selling started. They again used the shareholder funds to increase the number of shares, and then started selling. This makes me question the management integrity.
What made the investors jittery is “Did promoters exited ?”. On the first look, it seems like they want to bring back the confidence by shares buy back. But this needs more investigation. But the vakrangee story is bit different from PCJ. Atleast PCJ doesn’t have fake stores.
If they wanted to make some money, they could’ve don’t it in a honest/transparent way, instead of gift -> sell. That’s why market is punishing.
Here the issue is not only just gifting the shares, but selling/dumping them as soon as gifted…and surely the guy who received the gift shares made money, lots of money.
Guys its our hard earned money…to protect it think reversely to our law system:
Guilty until proven innocent. .
“Post that the promoter group share selling started”…I thought this was the first time promoters have sold (gifted). We do not know if they were sold or not for sure.
This was the first instance of gifting. However other than Balram Garg and his family, there were other family member promoters who held stakes mostly from PC Gupta’s side and have sold all their shares starting from September last year.
Got this by comparing the shareholding pattern since September last year
PCJ had convertibles which got converted to equity which brought down promoter stake not total shares.
These companies traded high quantity on 26-Apr. There was no disposal in bulk deals from one particular person/entity between 23-26 Apr.
WAY2WEALTH SECURITIES P LTD (it’s website says, it’s a coffee day company)
SHARE INDIA SECURITIES LIMITED (a broker)
ALPHAGREP COMMODITIES PRIVATE LIMITED (as per its website, a trading company)