Venkat Meenavalli’s talk gives out very little on the company or operations. And wow, there were shlokas recitation in between, philosophical explanations etc. Strangely reminded me the fable "The Cat who went to Kashi"
But the book mentioned in the Q&A - Flash Boys gives out a lot of inner workings of Wall Street’s greed and HFT companies’ modus operandi.
Youtube gave a 2-3 links of Meenavalli’s interview for Northgate. Interesting one was where he is explaining how it went from 20 crores profit to 350 crore losses in 1 year.
Regretfully, Stampede has very little information on their operations or management commentary on their annual reports. Even where information is given, is about industry, prospects, virtu financial, renaissance, getco etc. than what Stampede does. Purposefully what they do has been kept as tech gibberish.
If it’s so high growth, not sure why they want to keep it under a public company. Especially a public company Brilliant Securities was taken over and reverse merged. Given the promoter’s knowledge on the inner workings of exchange, he did it for a reason - however holy or unholy it is.
The numerous name changes that Northgate (Proseed now) went through. I can count 6 or 7 such name changess, often including change of business lines. Again, he is a knowledgeable person who knows the inner workings of stock market & he did it for a reason, each time.
So many foreign exchanges where they are EMM are mentioned. Humongous trade volume in $. Forex outflows mentioned in Annual Reports, seems to be outrageously low. Where is the gap?
Even, if it’s argued that foreign subsidiaries retained forex, not sure how the initial investment for providing liquidity in global exchanges was generated? No traceability exists. Not much mention in annual reports either.
No break up by exchange volume available in those foreign exchanges.
No mention on the number of employees anywhere. Search elsewhere didn’t get many employees. EMM firms are known to be run with few people. So may be they have few staff. What’s surprising is there is only CS mentioned as key management personnel, outside Directors.
Doing the math on salary expenses less the stated compensation of directors, leaves very little for many employees. Leading me to conclude the salary budget for others (read high freq trading experts / technocrats) is very less. Not adding up.
If it’s such a great opportunity, why is that no one else is doing it? Even in US there is atleast 3 companies competing, as per the company itself.
Even assuming this is such a hard-to-get expertise, nothing prevents Industry players from buying a stake. Sadly no institutions (except for 1 Mauritius entity)
Principal promoter suddenly gifting almost all his stock to his wife. Ring fencing? Not sure ring fencing what, but certainly sounds fishy.
Promoter selling shares to finance a zero per cent loan to the company, in its efforts to list in foreign land. How sweet. True [email protected] street.
Numbers are definitely good but those innocent days when one believed the published numbers are long gone. Hard facts gleaned around company, promoters, their past behavior show more big red flags.
Space they claim to be in is certainly interesting. So certainly will be on watch list for sometime.