Financial Affairs :: Intec Capital & Money Matters
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.
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:
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.