PC Jewellers

They have given the disclosure too on BSE , regarding fake news of arrest and CBI inquiry.

Hi, Would you help me to understand the smoke which you see, apart from the vakrangee & gift saga?

Yeah , I agree with you but even scrap has some value. Isn’t it value investing about finding value when stocks are going down and blood on street. Their would be some point where their could be margin of safety.

How the successful investors picks stocks when no one touches them. Just trying to follow their path. Though not easy and fingers can be burnt but learning is great.

Few years back I bought MCX at price of 300 when it fell down from 1600 , considering the monopoly business and debt free balance sheet. and that risk paid off. PC Jwellary business is not monopoly but indian market size is huge and debt is also less.

I agree the brightest of the minds can/ do make mistakes and their actions solely shouldn’t dictate ours. Having said that, i do like to watch out for such events as they then trigger me to research more on my part/ understand reasoning for 2 reasons- 1) there actions will dictate market reaction in short term. 2) They have more resources than me and i give them the benefit of doubt of having done their due diligence specially in scenarios where they might be booking heavy losses. Again, i want to re-iterate this for any new investors, their actions SOLELY should NOT dictate your decisions, do your homework.

Disc: Invested

@manivannan.g
As a retail investor i am the last one to know, if at all there is smoke, but by that time damage is done (In this case damage is already done), but with experience in similar stories/situations recent example Vakarange and last year or so Tree House Education - Check the price chart from Peak - we will learn the Hard way and pay tuition fees.

But the screen is showing - its not rocket science - price drop - there is something seriously wrong here, a business wont lose 80% of value in a couple of months without reasons, thats enough for any retail investor here just to get out.

PS: Nothing against PCJ, No investment here, not interested, wont even touch with a barge pole.

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I have been watching it since long. I find that the deliveries are hardly
25% - Source BSE. Therefore it appears to be case of aggressive short
selling.Therefore, after quite a lot of deliberation I have made a good
investment today. Not much downward risk from about Rs 100- 110. If
financials are genuine and good, every thing should become normal with
time.The price movement today appears to give an indication of bottoming
out.

Download last 1 year of bulk n block deal data. U ll see these guys doing intra day regularly . Specially in low grade volatile names if i recall. Shastra n way to wealth i ve seen frequently while going through periodic bulk block tracking exercise

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Fidelity sold another 1.4cr shares on 30th. Now left 1.3cr shares which they must have sold yesterday. That explains the delivery volumes.

So if we assume they have sold all thier holdings today and yesterday and no other big investors were selling , we can see some support at current prices (assuming their is no further sell off from any other big investor). ? what do you say ?

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This is the recent video of Mr Balram Garg Zee Business . Everything is fine in the company. no fundamental change reassurance to investors again board meeting May prepond. In Buy back offer no promoter will take part…

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Worth noting what PC Jewellers meant to Fidelity Emerging Markets fund.

When they first made the entry

PC Jewellers was among some serious names like Alibaba, Baidu, Naspers, HDFC, Reliance!

And contributed a fair bit to fund’s performance

This is quite a bitter pill for Fidelity and I am curious to see what rationale they provide for selling in their performance report. It definitely cannot be good for Indian equities, considering they had increased their weightage on India quite recently and have burnt their fingers in the process.

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Did you refer their quarterly review report ? They said vakrangee relationship was led to the crash.

image

Looks like they found something which we couldn’t or may be the corporate governance issue didn’t comfort them ? I think they’ll disclose the reason only in the current quarter report which is at the month of July, but by that time it’ll be done and dusted eitherwise.

Looks like the fund managers exit strategy is not right, they could have disposed in small increments so that market would have absorbed them naturally. Advantage, they would have got a better price. The panic selling doesn’t help anyone and the price they got would be definitely less.

Rajeev

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I am sure after this incident no one will dare to enter PC Jeweller showroom. Sooner or later it will reflect in its sales.

One simple Question I would like to ask the mgmt that when Mr Garg was asked who was the person to him shares were gifted he could have spoken on dat topic rather he refused to say anything.

Such small things too show the attitude of mgmt towards the Shareholders. This Rs10-15 rally is shown intentionally so that big players can offload their holdings to retail people.

Whetehr it was Shilpi Cable or Vakrange or Gitanjali in each story Mgmt came & clarified lot of things but what was the use see their Prices now. Prices itself speak many things. In market we all here to get return & we all are Paying Price for some Price so it doesnt mean we are buying Mgmt Talk or Mgmt Assurance.

Guys hope you all remember the Interview of Shilpi Cables Mgmt.

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7% delivery volume on NSE speaks that all played intraday today out of 21 Cr shares traded today…no one really took serious about this…we should watch when it comes out of FNO ban…not sure when though…everyone will be eager to take shorts then…

I know someone who was working at co secretary level in shipping cable and was told how the company siphoned money to make a personal investment out of it in a gulf country

In terms of percentage of delivered is less but quantity wise 1.7Cr shares in both exchanges which is higher than last 2 days.

What can be inferred from this?Just trying to understand

Your analysis has a basis flaw & looks biased. What a person has to do while entering in showrooms of PC Jewellers. Are u trying to say that because stock price is down, people will not enter showrooms & buy jewellery. They own a 3 floor showroom in South ex Delhi, only real state is worth more than 50 cr in Delhi. Gitanjali, vakrangee & Shilpi cables had huge debts on books, comparatively PC Jeweller looks ok for the time being, even auditors are very prestigious. Disclosure, took position in last 3 days, 5% of portfolio.

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