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Financial Affairs :: Intec Capital & Money Matters

with 27 comments

That is the name of both companies I am long on. Intec Capital is building a pretty good team to take on growth in SME sector. They can manage to be a far bigger organisation than the current one, management can do heavy lifting. I do not feel Intec is cheap but best is yet to come out of it. I feel they can also emulate the success of bigger two I mentioned in previous post and Magma Fincorp.

Money Matters Financial Services Ltd – MMFSL : Scam can provide great trading bets. This one dived down from 800 levels to 50 Rs, faster than F16 shot down by scud missile in war zone. I am ready to bet that pilot can escape way before jet hits the ground. When I contemplated buying it last month @ 62 my game plan was to buy 100 X quantity.  I bought 1x quantity @ 62 Rs, then 5x @ 53 Rs, plan was to buy 20X @ 30-40 range and 70X @ 20 Rs and below. So I could buy only 5% of my desired quantity as yet.

Its hilarious to see board, auditors, CA, friends and lead manager to QIP boycott MMFSL like plague. The interview provides a perspective on how defeat is an orphan, this is what Nirmal Jain  of Indiainfoline has to say.



http://www.moneycontrol.com/news/business/unawaremoney-matters-scam-during-qip-india-infoline_501292-1.html

Q: So, you would no longer want to be associated with any kind of business transaction with them?
A: No doubt about it.

I must thank Indiainfoline though for arranging 450 Crores in MMFSL’s bank accounts. Now they have 750+ Crores cash in bank and can hopefully take a hit of 100-300 Crores fine, if at all imposed that much, by regulators. A few crores bribe may resolve the matter for all we know. I condemn bribe and corruption but as an investor I cannot overlook an opportunity. What market cannot decide is difference between risk and uncertainty. So, I am befriending uncertainty of 700 crores cash and broken bribe model for a 200 Crore market cap with expectations that company will become a leasing and finance entity. I have not met anyone who got their passport within a week or two without paying bribe. And do you think MPs are lenient enough to let the rank and file make lacs and crores without their due cut ? Give me a break.

The ranking by Transparency International speaks volumes about India:

http://www.transparency.org/policy_research/surveys_indices/cpi/2010/results

http://www.transparency.org/content/download/55725/890310

Denmark, Singapore and New Zealand at #1

United States is at #22

And our great nation (Mera Bharat Mahaan) India at #87. Actually I expected India in bottom 10, politicians have left no stone unturned to screw up the nation. Its perchance a bit of luck and lots of private enterprise saving the day.

PS: Please do your diligence in investing in stocks mentioned, I am merely expressing my opinion and not recommending to buy or sell.

Written by amitdipsite

May 26, 2011 at 10:08 am

Posted in Uncategorized

27 Responses

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  1. hey Amit,

    like always a good insight..thnx.
    totally irrelevant to your post i would like to know one thing about photoquip..

    recently (or probably some time ago)…you sold around 10000 shares of photoquip and brought down ur stake in photoquip…was it just a portfolio re-shuffling or there was any specific reason for that action?

    i will understand if you may not want to answer it but thought i will ask you anyways…

    ta,
    shadab

    mystics

    May 26, 2011 at 1:00 pm

  2. I heard there money is frozen in there account..

    jm

    May 26, 2011 at 7:15 pm

  3. Bank accounts are no longer frozen for MMFSL😉

    Photoquip: I want to bring my holding in all accounts to less than 1% as SEBI keeps emailing me every second day when I buy or sell any other share. Actually that account has come under surveillance, so I want to not be watched daily.

    Amit Arora

    May 26, 2011 at 8:01 pm

  4. Hi Amit,

    Every time i see such scandal hit scrips…i always try to compare it with the famous warren buffet scrip…the salad oil scandal hit American express.But the reason Buffet invested in this scrip because its core business the travelers card business wasn't hit and the loss compared to revenue was not that big,but was shunned by Wall street due to uncertainty of the loss due to scandal.

    But looking at Money matters financial ( i had position in this Multibagger scrip but sold it before scandal hit), here the core business model itself is affected…. and i don't think any so called reputed business firms will be interested in doing the business.No doubt its a perfect cash bargain scrip but mkt isn't sure about whether the cash will be there in future.If market is not giving its due to current cash bargains like Piramal Healthcare and Smartlink which are run by good promoters then i don't see MMFSL standing any chance in near future.

    These are my opinions which might be wrong…looking forward for you inputs on the same.

    Regards,
    Vikas

    Vikas

    May 27, 2011 at 12:24 am

  5. Smarlink is also a smart choice ! I think market has rewarded it somewhat due to 30 Rs dividend. Although I don't understand the Piramal Healthcare business, so can't comment what they will do with that money.

    I can imagine with MMFS can do with the money. One person or a small team of five is enough to milk the money. Cant compare MMFSL with AMEX sea and sky. Lets see what happens.

    Regards

    Amit Arora

    May 27, 2011 at 1:01 am

  6. Sir,

    Do you feel that Cravatex @870 levels is not expensive and can be bought at these levels ?? I strongly feel that once this bonus shares euphoria chills down we will get the script at around 600-650 levels… pls provide your inputs …

    sandeep maddali

    May 27, 2011 at 7:07 am

  7. Just confirmed from MMFSL that in worst case scenario liability is ZERO for the company. Liability is that of CMD. Company re-organising not recruiting yet.

    Amit Arora

    May 27, 2011 at 8:02 am

  8. Sandeep,

    Regarding Cravatex – I don't watch stock price of my long term holdings, they are not on my stock screener. Otherwise one can't hold stocks one wants to hold for long term. I learnt some of my family members sold @ 200 Rs about 8 months back and some @ 700 Rs two weeks back. Its your free will to buy, sell, short, trade or invest..

    Amit Arora

    May 27, 2011 at 10:06 am

  9. Hi Amit,

    There is no result analysis and updates for last quarter from you on cravatex ,photoquip and globus in your blog.
    was waiting to hear from you on the quarter results.

    Thanks
    Umang

    umang

    May 27, 2011 at 3:21 pm

  10. Dear Amit,

    Money Matters is really a classic contra bet (most hated, out of flavor blaw blaw) but also a play of strong hearted!!!

    Rahul Kumar Paliwal

    May 27, 2011 at 7:09 pm

  11. Good Q4 Results or on track:

    Astral Poly
    TTK Healthcare
    Cera Sanitaryware
    Cravatex
    Photoquip
    Magma Fincorp (new)
    Money Matters (new)
    Intec Capital (new)
    Page Industries
    Some PSU Banks
    LIC HF

    Too much govt. regulation but will do better next year:

    Globus Spirits

    Maybe can reduce:

    TTK Prestige @ 3300

    Amit Arora

    May 27, 2011 at 7:46 pm

  12. Hi Amit,

    Simran Farms Declared Divinded of Rs 1/Share,What you have to say about the Managament.As far as I see Its good company only question mark was on Managament.Lately Also see some interest from Reputed Investors

    Neeraj

    May 28, 2011 at 10:44 am

  13. hey Amit,
    Do you actually think MMFSL could go down to the <30 levels? It seems to be going from up here?

    Daddy

    May 29, 2011 at 5:47 am

  14. Simran : Don't know.

    MMFSL: When it came down from 800 –> 50, thirty did not seem far. Anything is possible. If it does come down, we can take a call. I find value in it as well as growth.

    Amit Arora

    May 29, 2011 at 6:14 am

  15. Best/Worst/Average case : where do you see thisgoing a couple of years from now?

    Daddy

    May 31, 2011 at 3:52 am

  16. Panama Petrochem : Good Q4 Results.

    MMFSL : I wish it comes down to 20-40 range but it may not as results are great, next quarter may be deep into black. No targets or upper limit. 220+ Book Value.

    Amit Arora

    May 31, 2011 at 6:34 am

  17. Hi Amit,
    Piccadily Agro- which side of the coin would you prefer – tainted image of former director Manu Sharma or good performance in country liquor business?

    Amar

    Amar

    June 1, 2011 at 1:01 pm

  18. Hi Amar,

    Greasing palms by an ambitious person to expedite work in time is OK given the environment and super abundance political swines and donkeys in our great nation. Not to forget asinine police not far behind. Everyone has done this or doing this including Ambanis, Tatas, Birlas.

    Oh my ! Murder 8-/ For now its a pass. Not because of murder case but I find Globus more merit based organisation than polical influence driven. I prefer self made people to those getting inheritance.

    Regards

    Amit

    Amit Arora

    June 1, 2011 at 10:30 pm

  19. Also if compare look at Piccadily Agro with Globus Spirits on EV / Sales ratio, the discount is over. Do they have a website ?

    Amit Arora

    June 1, 2011 at 10:36 pm

  20. Thanks Amit. No, They do not have a website.
    You are right. If one has patience Globus Spirit is definitely a better choice over Pccadily Agro irrespective of the later’s murky settings.

    Btw Siddartha Vashishta (Manu Sharma) is still active in Piccadilly Agro.

    http://www.bseindia.com/xml-data/corpfiling/AttachHis/Piccadily_Agro_Industries_Ltd_050510_SAST.pdf

    http://en.wikipedia.org/wiki/Manu_Sharma

    Regards,
    Amar

    Amar

    June 2, 2011 at 6:46 am

  21. Thanks for the link Amar.

    Amit Arora

    June 2, 2011 at 10:27 pm

  22. Wanted to pick some MMSFL but it is hitting the upper circuit for last few days. Is it that you've started upping your stake in the script😉

    Ferrari

    June 16, 2011 at 3:50 pm

  23. 🙂 It was just a chance that short squeeze came so swiftly, in days of my writing about it. Like you I am wondering why I did not buy even more earlier on. I haven't bought more since 53 Rs levels so not contributing to the madness of 7 straight upper circuits.

    Amit Arora

    June 16, 2011 at 4:07 pm

  24. Hi Amit,

    You said that you talked to MMSFL & that the company has no liability. Can you plz tell whom you talked to & how? Asking coz I called CS & he is not disclosing any info & is asking to wait for AR & AGM.
    Thanks.

    JK

    June 29, 2011 at 8:13 am

  25. Hi Amit,
    As you are bullish on Intec Cap so I am.I am tracking Intec since 2007 or even 2006.
    They wants to become big and wants to come in a league of 1000 cr sales and looking at things developing at Intec , they should achieve organically or inorganically.
    Couple of days back Intec acquired “M/s. Amulet Technologies Private Limited ” their 100% sub and while trying to google to find info I am unable to find the same.
    It would be great to read something on M/s. Amulet Technologies Private Limited from you or from anyone else here….

    Rajeev Desai

    March 28, 2012 at 4:32 am

  26. Hi Rajeev,

    Look at their recruitment frenzy, even today. Finance opportunity is giant enough to warrant any diversification in software, therefore at first glance I perceive it as negative. I don't know the number involved, could have been influence of his brother Rajeev Goel who runs this http://www.intecinfonet.com/about.html

    Regards

    Amit Arora

    March 28, 2012 at 4:48 am


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