Tuesday, August 12, 2014

WINNING STROKES: THINK DIFFERENT
PhotoPearl Potluri
Can you recognize the woman in the photo ?
Yesterday, a buy call was initiated on Nifty ('Therefore, LIGHT long term positions may be taken, with a target of 7750 on the upside'), after it moved above 7600 and was threatening to break the immediate resistance of 7630. Today also the buy call was continued on the Paid Blog ('There are lot of shorts in the market and the market is expected to move up further on short covering alone'). I  hope those Premium Members who play on the Nifty Futures must have made good money, in the two days (Yesterday and today).
Western India Shipyard Ltd (Rs.2.08), which came up with comparatively good results in Q1FY15, on sequential basis, surprisingly came down today also. Also, both the net and operating profit margins improved sequentially, which indicates that good days are ahead for the company. In turnaround companies, we should always look at sequential results instead of Y-o-Y view. 
PVP Ventures Ltd (Rs.6.54), came out with slightly better results on sequential basis in Q1FY15, but what is surprising is the net profit, which is only Rs.57 lakhs, inspite of having the wife of Potluri Vara Prasad, who is one of the promoters of PVP Square Mall in Vijayawada, as one of the promoters of PVP Ventures Ltd!! Where is the money of PVP Ventures Ltd going? Moreover, when Sureddi Jhansi (the wife of Potluri Vara Prasad) and Potluri Sai Padma, could not bring any good to, PVP Ventures Ltd during the last 4-5 years, then on what basis the banks gave loans to them, to open PVP Square Mall? So, are the banks aware that the money is being siphoned off from the PVP Ventures Ltd by balance sheet mismanagement? The management has sucked up the company in such a way that even when the Nifty is near 7000, the share of PVP Ventures Ltd (CMP: Rs.6.54, Face Value: Rs.10) is still trading not only below its book value but also its face value. Meanwhile both Sureddi Jhansi and Potluri Sai Padma were able to come up with a mega-enterprise in Vijayawada, as Potluri Vara Prasad, dabbled with politics. In between, Potluri Vara Prasad was able to create a personal fortune worth crores, while the shareholders of PVP Ventures Ltd were left with a begging pan, like what is happening in SEL Manufacturing Company Ltd (Rs.4.43). How strange!! Now they might talk of buying the PVP Square mall, with whatever money is left in the kitty of PVP Ventures Ltd--this time the money going directly to the accounts of Sureddi Jhansi and Potluri Sai Padma. The moot point is that, the condition of the shareholders remains the same whether it is the UPA or NDA rule. Unfortunate!! Another point which I would like to stress is the gradual transformation of the Hyderabad (Erstwhile Andhra Pradesh) based companies to "Ahmedabadi Companies" (earlier the companies based in Gujarat had a very bad reputation of balance sheet manipulation) 
Allied Digital Services Ltd (Rs.18.65), having a Gujarati Promoter is coming up with Q1FY15 results on 14th August, 2014. It would be interesting to see if the company, comes up with dividend or not. It is to be noted that the company's fundamentals' have improved slightly during the last few quarters. 
It seems the correction in IVRCL Ltd (Rs.19.50) is over. The sock could move up in the near term as the SEBI on Sunday approved Real Estate Investment Trust norms. The company has an order book of around Rs.20, 000 crores and got its loans restructured, through a CDR package. 
My recommended A2Z Maintenance and Engineering Services Ltd hit another buyer freeze today at Rs.17.75. I received lot of flak when the scrip was recommended in this blog at around Rs.11-12. 
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