Stocks for the long and short term portfolio

[jamit_05]

I discovered this problem with the Numbers in the Annual Report of Exide Industries Ltd.

Their total assets have jumped from last year's Rs.3925 Crore to Rs.11309 Crore. The recent Annual Report has listed this under Non-Current Asset class as Policymaker's Fund.

Could someone explain what this really is?
Did the company have to make an expense to acquire this entry, if so then from where did it get the difference of Rs.7384 Crore from without equity dilution or increasing Long term debt?

Regards.

 

[jain.er]

1. Look for Note to B/S for this particulary line item
2. Look for a corresponding increase in liablities to see how the B/S has balanced

So let us know if you find an answer.

 

[jain.er]

Oh... I got got it now

Exide is also engaged in Insurance business so its nothing but related to Policies which it sold

 

[jamit_05]

Oh... I got got it now

Exide is also engaged in Insurance business so its nothing but related to Policies which it sold

Hmm... by what brand name do they run the Insurance Business?

 

[jamit_05]

1. Look for Note to B/S for this particulary line item
2. Look for a corresponding increase in liablities to see how the B/S has balanced

So let us know if you find an answer.

I found this in Note 9. They are listing it as Policyholders Fund.

Liabilities side shows only a counter entry.

It is a huge sum... 6000 Crores!!

 

[Einstein]

This is a nice finding. Note 19. they have stake in ING Vysya Insurance, Faering Capital etc. They might sell this soon.

http://www.livemint.com/Companies/3...remaining-50-in-ING-Vysya-Life-Insurance.html

They might sell this and generate cash for the company, but with that cash and they will be hovering with D*ck in their hand, its not a joke to convert cash into business which can generate revenue. it takes time, anyways...

According to the current B/S company is fairly valued 100Rs per Share, but after adjusted book value per share, value CAN drop by atleast 15-20% from CMP.

SELL

 

[shreeux]

What about Ranbaxy...today major fall.....it is advise to accumulate..?

 

[jain.er]

Techinally Ranbaxy good at 300/275 and 250
I have seen you need to be brave and buy such falls in stocks like MCX this has rewarded traders

 

[jain.er]

Why DLF hasnt gone up when property prices in Gurgaon has doubled from 2009
DLF was 125 all time low in 2009 and in Aug 2013 it touched 125.
What has happened to the company are they removing off cash/profit or what?

 

[jamit_05]

MCX, Ranbaxy, DLF are companies that may not see the other side of the decade, even if they do they are very unlikely to give any value to its minority shareholders. No matter how cheap they get, I do not see my capital's safety with them.

Ranbaxy has the USFDA at its back cancelling licenses for its units, DLF has deep Congressy-neta (vadra) nexus. If Congress goes DLF may not survive much longer and we all know the story of scam with MCX.

Why even bother with such entities, when there are some really good companies out there. This reminds me of a parable: 'Two men looked out from prison bars,One saw the mud, the other saw stars.'