WINNING STROKES: THINK DIFFERENT

Kohinoor Broadcasting Corporation Ltd

Kohinoor Broadcasting Corporation Ltd hit the buyer freeze in the opening trade, before cooling just below the circuit limit. The stock today moved up with good volumes. I have already said, that the company has come up with the proposed news channel, KBC News, which is available in Cable Network. Another news channel KBC Gold is also in the offing. The company today came out with Q4FY12, results, which is along the expected lines. However, in the statement of Asset & Liabilities, as of 31st March, 2012, we find that the Trade Receivables (It is a subset of Accounts Receivable. Trade receivables are considered a current asset in the balance sheet of company, as they can be readily turned into cash) at Rs.48.33 Cr as against Rs.18.88 Cr in the same period previous year. Also, inventories shot up to Rs.41.77 Cr as of 31st March, 2012, as against Rs.4.48 Cr in the same period previous year. The other current assets also shot up to around Rs.100 Cr as of 31st March, 2012, as against Rs.37.56 Cr in the same period previous  year.  I think you understood the significance of the above figures. Therefore, one should buy the scrip in bulk, as all these negatives are already factored in the current price. The company has two subsidiaries, Kohinoor Broadcasting Corporation FZE, Sharjah (UAE) where it invested Rs. 96.06 Cr and KBC Power Corporation Ltd (its solar energy venture, which is expected to come up next year) where it has invested Rs.37.57 lakhs till, 31st March, 2012. Kohinoor Broadcasting Corporation Ltd is is currently engaged in the media and entertainment industry with a particular focus on the TV industry. The Company is currently engaged in the production of TV content including current affairs, music, serialized drama and other entertainment programmes. The company has received permission from Ministry of Broadcasting for up-linking of News and current Affairs channel. It has obtained the WPC clearances from Ministry of Communication and Information Technology. The company has already completed setting up of the earth station that is capable of up-linking 8 TV Channels in Punjab and are focusing on play out station and other infrastructure for broadcasting. It is the first company of north India to have its own earth station and up-linking Tele port. n, 2007 the company established a wholly owned subsidiary under the name of Kohinoor Broadcasting Corporation FZE, in Dubai, as its distribution hub in United Arab Emirates.
The company is diversifying its portfolio by entering into solar energy sector. For this, another wholly owned subsidiary under the name KBC Power Corporation Limited has been incorporated in the year 2010. The company has a target to commence commercial production in April, 2013. The shares of the company are trading, less than 1/10th (one tenth) their book value and face value, which is simply absurd for a broadcasting and a renewable company like Kohinoor Broadcasting Corporation Ltd. Also amazing its is market cap, which is only Rs.8.60 Cr at the CMP of Re.0.78; which can only be termed as bizarre, especially when the loss making NDTV Ltd has Price/Book value as 0.65 (In case of Kohinoor Broadcasting Corporation Ltd it is only 0.08. On a similar scale, the shares of Kohinoor Broadcasting Corporation Ltd should not trade below Rs.5-5.50, after providing suitable discounts, against its CMP of Re.0.78). For more on the company one can visit their website: http://www.kohinoorbroadcasting.com. To find the news of uplinking of the Channels by Kohinoor Broadcasting Corporation Ltd, CLICK HERE.  
The fine prints in that link clearly read as: The company has uplinked its free to air channel, during the quarter (Q3FY12). It is available in cable network. Therefore, the company has stopped outright sell of its programmes. 
It is most unfortunate that some people make comments, without knowing A, B, C, D of anything--these people do not feel shame also, spreading nonsense. One such fellow has newly opened a blog, to fool people around...If they do not believe in my source based information, then why do they visit my  blog and invest in my scrips--there is no need na.........Moreover, a vast section of people think stock market is a lottery, so their money should double in 6 months--the problem with these categories of people is that they never make money from the markets (only watches other to make money). Some even have too much confidence in their own research or chart based predictions, even though out of 100 attempts, their failure rate is more than 80%....Huh!! Still they would not go for the advice of the experts. According to them--they are the most intelligent ones in the markets, we people who are here for more than a few decades are all rubbish.....Strange Dreams or if we quote Shakespeare, then can we call it, "Midsummer Night's Dream"? These days everyone becomes analysts,  after taking a mandatory course in chart watch or what they call by an fancy name, "Technical Analysis" (I call it clerical analysis as it does not require too much brain to analyze dead based charts) for 5-6 months---like we have a hobby of Bird Watching or Nature Watching....Huh!! Most dangerous part is that many of these fellows have no idea of the fundamentals of companies or how to value a company based on the existing parameters. It is like eating bread and butter without knowing whether bread is vegetarian or non-vegetarian food item.
Anyway, though I have nothing to prove, after decades of my presence in the Indian Stock market, but let me remind my altiloquent detractors, the names of some of my recommendations which gave superb or multi-bagger returns even in a bad market conditions, are: Ennore Coke Ltd, Premier Explosives Ltd, Yes Bank Ltd, DCB Ltd, Cochin Mineral & Rutile (more than 10 times in 2 years), Chandra Prabhu International Ltd (more then 4 times in 3 years), UCO Bank Ltd (more than 3 times in 2 years), Arshiya International Ltd, IFCI Ltd (around double in less than 6 months), Kohinoor Broadcasting Corporation Ltd (from Rs.3-4 to around Rs.9.70 in two three occasions), Sanguine Media Services Ltd (from Rs.2-3 to around Rs.5), Sarda Energy and Minerals Ltd, Hanung Toys Ltd, Satyam Computers Ltd (more than 4 times in one year), Essar Shipping Ltd, Reliance Industrial Infrastructure Ltd, HDIL, Monnet Ispat Ltd, Zydus Wellness, Atlanta Ltd, and so on (the list of multi-baggers is endless). Apart from this there could be at least 100 of scrips, like D B Realty, J P Associates Ltd, Atlanta Ltd, Jai Corporation Ltd, IVRCL Infrastructure Ltd, etc where the investors made short term returns.

The Indian markets moved up today as expected and as was mentioned in this blog, yesterday.  Now both Dow and Nasdaq are trading slightly in the negative territory, but I think it should recover their losses at the end of the day. It is because we now have a direction in Europe, either they form a government or go for fresh elections; but then the message is clear, whichever government comes to power in Greece, has to abide by the EU/IMF bailout package as it would be virtually impossible for the Greeks to exit the EURO. I did not know that these two developed countries vote (or have stupid voters) like us and there are large number of wooly-headed voters like us, who choose wrong party for wrong reasons--these group have no idea what is going on in the country. In both the places it is those Socialists (or you can moderated communists) who are the real trouble maker, like always. It is very easy to become a communist or a socilast---if you are not happy with the government,  you start killing people or in extreme cases, KILL THE KING and take his throne. Or if want to be a "bhadralok" (or gentleman) socialist then you don't have to do any, like some of those in West Bengal, Tripura and Kerala, simply run a trade union and keep on extracting from either the management of the companies or the government for your team--the work is over. 
Meanwhile, consumer shares led a modest rebound on Wall Street on Tuesday, after the S&P 500 fell for four of the past five sessions, but gains were capped as investors kept an eye on the political impasse in Greece.U.S. retail sales rose 0.1 percent in April, slightly below expectations. However, details in the Commerce Department's report indicating underlying strength in demand and a rebound in manufacturing activity in New York State calmed concerns that the economy was stalling. Meanwhile, if you remember, I had earlier year asked all to exit Gold Futures, as the USD was becoming strong. Now after a legendary run culminating in a peak near $2,000 an ounce in August 2011 gold has been cooling its heels of late. The yellow metal has given back all of what were once impressive 2012 gains. More disquieting for those who regard it as the ultimate hedge, gold has loss twice as much as the S&P500 during the choppy markets in May to date. Therefore, the time  has come to invest in equities leaving the bullion market. At the moment gold is could be sliding towards $1,550/oz. However, gold isn't a speculative bet, but a store of value. 
Meanwhile, Facebook Inc increased the price range of its initial public offering, aiming to raise more than $12 billion and giving the world's largest social network a valuation potentially exceeding $100 billion. The indications of high demand for Facebook's IPO bolstered the shares of other social media companies, with online game maker Zynga (ZNGA.O) up 7.4 percent at $8.54 and professional network LinkedIn up 3 percent at $113.80. This could have some effect on the shares of "Indian Facebook", Northgate Technologies Ltd. India has nothing much to do with the happenings in Europe, unless the Indian government becomes inactive. We export not only to Europe, but also in whole of Africa, Latin America, North America and Asia including sizable export to the Gulf countries. Moreover, we have a 70% domestic consumption story, which after successive interest rate cuts in the near future by the RBI should slowly move towards the growth path.Therefore, keep investing in good stocks.

Lanco Infratech Ltd today moved to Rs.12.33, before cooling down a bit. I think the stock has formed a bottom yesterday on the Candle Stick Charts. The company is coming up with results at the end of this month. If one looks at the shareholding pattern then one would find that the promoters hold a whooping, 72.22% of the shares of the company, while DIIs have increased their stakes in the company, speaking sequentially.

Those who have applied for opening accounts in my brokerage house, are requested to give me a day or two respond to your queries and also send you Demat/Trading forms to your home/office. Opening of commodity account along with share trading account is free. Many have asked me if it would be alright if instead of Rs.2 lakhs (Mandatory capital), one can open the account in my brokearge house with an equivalent of share capital. My reply would be: Yes, you can do that.....in fact since the brokerage is somewhat at par with ICICI Securities Ltd one can shift from there to my brokerage, with an additional advantage of margin funding and opening of Free Commodities account. There are also other facilities too, which I mentioned in my earlier write up. In addition to that, there are other SPECIAL FACILITIES too for HNI Investors (for portfolios over Rs.10 lakhs). You can also go for profit sharing arrangement here....with my assistants guiding you to make money in difficult circumstances. Please do not go for cheap brokerage houses, as you never know, when they would suddenly stop functioning and create problems for you. Also, once the forms are send, please try to fill them up quickly and return to the office address either in Mumbai, Kolkata or Delhi. I have seen many people ask to send them forms, then after that, all the problems of the world start for them, making unnecessary delays. These days, a large section of people in India, do not have the required responsibility, sincerity and faithfulness towards their job or their words of mouth---and unfortunately it cuts across all sections of Indian society, starting from Doctors, to Engineers, to NRIs, to CEOs, to sales or sports personalities in India and so on; this malice is present in every religious/linguistic communities in India. But then there are some genuinely good persons too, some of whose name, I think I must mention Indrakanti Ram (of Nampula, Mozambique), Arumugampillai Manikandan (Qatar), Md.Mujtaba (Saudi Arabia), Dr.K S Sridhar (Bangalore), Navin Kondabolu (Australia), Hemant Ramagowda (US), Vikash Gupta (Rohtak), Yogesh Patwal (New Delhi), Manjit Singh (New Delhi), etc. to name a few.