Why isnt pc jewellers suing vakrangee for price manipulation?
Can any one please clarify if PC Chand Jewellers is also part of PC Jewellers?
I see a PC Chand Jewellers showrooms nearby my area, in Kolkata?
PC Chandra Jewellers is completely unrelated to PCJ. The former is a much older jeweller with major presence in Kolkata and some other cities like Bangalore. On the other hand the listed company PCJewellers is a relatively new company.
Most of them are amongst the largest algorithmic traders active in India. You will consistently find these names in all stocks which see a spurt in volumes. Particularly those stocks which are in F&O. Additionally, you will always find them in bulk deals and not block deals. Bulk deals are those wherein a single entity has traded >0.5% of equity shares in a single trading session. (This definition might be old). Need not be a single trade but a single trading session.
I have only one question for PCJ management. Why didn’t you go for an open market buyback?
Tender offer is more tax efficient for the seller as stt is paid when he tenders shares. Further, retail benefits as 15% buyback size is reserved for them.
Disc: not invested
have they fixed any date for buyback ?
I know about the benefits for retail shareholders. But for PCJ, even at an average buyback price of 175, they will be able to suck 2x the outstanding shares as compared to 350 making stock a lot more stable. And if the stock becomes stable then everyone makes money instead of those whose shares are accepted in tender offer. Additionally, at an average of 175 amount of capital gains will be minimal for most people reducing the tax efficiency argument further.
I completely understand from where you are coming. Given that the promoters are not participating, open market would have been perfectly OK. It is a move driven more to improve market sentiments than capital efficiency.
Look at history of companies which declared share buy back (in spite of weak balance sheet) when share price crashing - you will find that share prices goes down more instead of reversal …investors are more worried about promoters intention !! Who want to take risk of buying more shares and selling back to company (as buy back offer) as there is no surety that he will be lucky to get profit!
That is the million dollar question…promoter’s intention!! One would imagine that the promoter’s primary (if not sole) intention would be to maximize economic value for herself (the stock price is the most definitive proxy for that) and if the prompter’s value increases other co-owners benefit commensurately, Now in this case the stock price is falling like a stone. So on a relative basis the promoter should also be losing as much as other stock owners- may be her grief is even more intense .
So how do we figure out what is the underlying intention…what do they want!! I really wish if there was a metric for that.
This is pure speculation. Once can never be sure about promoters intention, Any promoter will always try to paint a rosy picture only. In this case they have given clarifications time to time. However , Mr. market do not seems to be satisfied. Only time will tell who is right/wrong. Though stock looks highly undervalued (8-9 trailing PE), one has to take this risk and believe the promoters , if they are interested to buy.
These fellows are total sloths or total crooks. Announced the buyback on May 15th and when asked in the conference call on May 25th as to when the buy back process will commence- Srikrishna said in a week. Till today the merchant bankers (IDBI plus some local Delhi) guy has not even been able to draft the papers for shareholder communication. Not that all this really means anything- but at least we will know that the company still exists and is able to pay fees to its merchant bankers
Disc: Invested to make a quick buck but looks like stuck with them for ever:(
I don’t know if it is possible to check but are they able to pay salaries to their staff… are the stores open…any customers buying or at least walking in. May be people from North India/NCR would know. Any friends/ex friends/acquaintances who with work with PCJ
I am from Vadodara, Gujarat. Haven’t visited the store, but yes it is open and functional. If this helps.
Thanks Antariksh bhai. If you are going in that area pls see from outside if lights etc are functioning and/or if people resembling customers can be seen in the vicinity
Today visited PCJ showroom. 30 sales persons were waiting for customers but few people just came and went without buying anything but enjoying free AC in this scratching heat
which city was this?
I belong to Delhi… PC jewelers are pretty reputed jewelers in Delhi… We used to buy exclusively from TBZ only… But since last 4/5 yrs have started buying jewelry from pcjeweller too… They only sell hallmark Gold jewelry and certified diamond jewelry…people mainly shop for gold jewelry here… Not much diamond sales though… Both mine and my sister’s wedding jewelry was bought from pcj only.(Had shifted to pcj from tbz because to modern designs, low making charges, similar quality gold)… Have seen showrooms in at Indirapuram, South extension and Karol Bagh. All three are good showrooms with lots of customers whenever I went there.
Every jeweler has their own geographic dominance. If you take Chennai, Saravana stores dominate there, followed by GRT, Lalitha and other players, even I saw these stores being empty sometimes, because gold is not something people buy everyday… We can’t simply generalize. Heard lot of positive feedback from Delhiites about pcj.
The postal ballot notice for buyback is out.