To be fair to PCJ, I really cannot see much dirt in the financials. My bias is restricted to one lot of F&O at 210 protected by 150 PE, so max loss of 70. So maybe I will be happy if it goes to the dogs today again. But coming back to the financials:
- Cash tax of 189/139/128 crs over the last three years.
- The company shows interest income on deposits, so cash balance is not fake.
- For march ending 2017 (year of demon), no abnormal increase in sales or receivables (something which should be there if there were fake sales?)
- There is a sharp increase in the purchase of stock in trade. Do not understand that much. Are those wash transactions (buy from another jeweller and resell it with wafer margins)? Maybe.
- No increase in debt (rather decrease in 2017 from 2016). Cash of 822cr
- Really not gone into days receivables analysis. Not worth for 1 lot.
Thinking of adding in cash today.