Sanguine Media Services: Updates:

Sanguine Media Services Ltd came with almost a flat topline and a disappointing bottomline in the Q3FY10. The stock however, is near its 52-week low and is a good option for accumulation by the medium to long term investors, as it is not possible to get a listed company at the current market cap of only Rs.4.46 Cr and book value of Rs.19.82 at Rs.3.16. This price is simply a misnomer considering the face value of the shares of the company is Rs.10 and not Re.1. 
When the companies in the media space (with a slightly different business model) like WWIL (BSE Code: 532795) which is continuously making losses and with face value of Re.1 can trade at Rs.17.55 (Rs.175.5 with Rs.10 face value), I do not understand the reasons for the shares of Sanguine Media to trade at less Rs.10 or less than its face value.   
It is to be remembered that we invest in a company not looking ONLY at the past data but also by its future outlook, which in all probability will improve going forward, for Sanguine Media Services Ltd. Recently Rakesh Bhai (Mr.Rakesh Jhunjhunwala) also echoed the same feeling....

Even the name of the web-site of the company given by http://www.moneycontrol.com/, which surprisingly got some awards for its web-site maintenance, is wrong, and should be http://www.sanguine.in/.

I was also a little worried with the Q3FY10 results as it was expected to be better and hence make lot of efforts to do more research on the company.

I have talked extensively with the sources close to me during my business trip and have found out some of the key reasons, listed below for its continuous bad showing in terms of financials and how it is trying to come to black again:

1. One of the two serials made by it was removed from Gemini TV for some issues. This has considerably dented its bottlines, during Q3F10, as the cost of making that serial could not be recovered. The problem is that the company cannot do serials for other television channels as long as it is doing the same for Gemini TV. This authoritative law is forbidding it to make television serials for other television channels as well. Once its representative in Bombay is able to get a contract from a Hindi Channel, this jinx could be cleared and the stock would get a quantum jump. 
2. The company's revenues are now dependent only on one Television Serial, which is still being aired on Gemini TV, a division of Sun TV. This is giving the much needed revenues for running the company.

3. The company last year closed down the Bombay and Delhi offices as it could not bear the cost of running the offices. However, the company has appointed a representative in Bombay, again to take care of the operations in Bombay or to look for any opportunities there.....This is a positive news for the company.

4. The company has struct two deals  very recently whose effects could be seen in Q4FY10 (March, 2010 quarter). However, the effects could be limited as the deals were very small.

5. The company is working out details for additional sources of revenues from various other fields, including event management and Voice Translation.

6. It is also putting renewed focus on:

• Rural Van Operation / Video on wheels
• Shandy Market Promotion
• Consumer Contact / Promotion
• Promotional Selling
• Promotional Distribution
• Market Research
• Rural Festivals

7. The company is expected to generate good revenues from the event management division/section and is continuously exploring various media options for  focused communication. Indian Film Industry with its enormous reach is one of the best platforms for the brands to reach their Target Consumers in a sublime level at a relatively low cost.

Hence, the brands needs to be positioned appropriately in the context of the artiste / situation; the positioning will be effective only if the brands are woven into the fabric of the film. It is a matter of great pride for the shareholders to know that Sanguine Media Services Ltd has developed an expertise to blend the brand into the film, keeping in focus the characters / scenes. This is expected to generate additional revenues for the company in the days to come. 

8. The company hopes to turn to black, hopefully by March, 2010.

Note: I am still out of station and I am writing this from a cyber cafe......I shall reach my destination within the next 4 to 5 days, after which normal operations would start.

Those who want to join the schemes of Instant Forex (http://www.instantforex.biz/) in this month (February), should keep their money ready for investment.

Also those who have received Euro (monthly profit from their investments in http://www.instanforex.biz) would be converted to Indian Rupees (IRN) very shortly (as soon as I reach the destination) and would be deposited in their Bank Accounts or they can try Western Union Money Transfer for the same.
I think most of  you have received 62.5 Euro on their investment of 250 Euro in instant forex monthly income plans for the month of February. 
Those who have opted for 6 months plans would get 200% every six months on their investment of Rs.17100 (or 250 Euro) according to the company's web-site/ URL: http://instantforex.biz/instantplans.php.
BUT THIS IS A HIGH RISK HIGH GAIN INVESTMENT PLAN AND HENCE PLEASE TAKE NOTE OF THIS FACT BEFORE PUTTING YOUR MONEY IN INSTANT FOREX SCHEMES......