uNCLE, just see the previous movemrnt from 17/09/09 (Dt. of my message) Happy days will be here again... ...

It`s good issue you pointed out...SEBI needs to perform action against promoter for misleading investors......

dear joy u had read all views above in the section. so keep waiting until around 8 Rs. and do margin for sure. i e1 hold at avg price of 16 :( hope for the best and it will touch 8 :) rest lets c what nachuji have his views:) regards alok...

Nothing new in ABAN debt situation and market has already priced in all these long before, when Aban tanked to Rs.220. It is a past story with revenue visibility by way of deployment of all most all Aban Rigs at good rates....

thanks for ur advise mr nachu :) would again see this stock around 8 it that level good for entering...

Respected mr nachu do u still think this share would move furthur with good gains. see from many days high no of buyers and delivery then also share falling. this scrip is basedon rumours generally made by its promoters. you please give some light if u have other reasons for this scrip to move upward regards alok...

I have not recieved my bonus yet..can anyone throw some light on it..plz...

14-10-09

A boarder writing under the pen name of that legendary investor “WarrenBuffet-In”, sings paeans of praise on R Power, even as he throws mud at Adani Power a couple of months ago. He has said

“R Power is a Super Star (Proven Capability) and “Adani Power is futpathiya (Raste ka maal sasten mein)”

At best, I would describe his effort as an effort to pen a nursery rhyme of mediocre quality.

Reliance Power came out with the most hyped IPO with a price offer of Rs.430/- (Retail segment Rs.400/-) last year. The hype that floated in the market was that on the day of listing, it would list for Rs.900/-, meaning that investors would fetch over 100% profit on the day of listing itself! Touted also as the largest IPO ever till then, it won the highest ever volume of money, around Rs.7.5 lakh crores. It listed at around Rs.130/-, a third of of the offer price. The collapse of R power in the stock market, caused a deluge which drowned hundreds of stock brokers, thousands of investors. The emergency offer of 3 bonus shares to every 5 shares held, despite violating all norms of making bonus offers, failed to revive investor confidence.

This is not all. Reliance Energy which was quoting above Rs.2300/- at that time, due to its comfortable order book position then, started bleeding because, those orders started getting diverted to R Power, then only a paper company. Consequently, the market prices of Reliance Energy nose dived in the market, resulting in huge losses being incurred by its investors. This boarder “WarrenBuffet-In”, is only rubbing salt into the wounds of the traumatized investors of Reliance Power and Reliance Energy, when he makes his irresponsible comments. Many have adversely commented on his views.

He tries to make fun when he says Adani Power buying Chinese – futpathiya- equipments...first of its kind in India...What ignorance! Several power projects in India already have equipments made in China. If you travel in the major ports of USA, like those in Seattle, San Francisco, etc., which I recently visited, you will see giant sized facilities, all made and installed by China, functioning flawlessly for years. In India itself, there are several power projects running to capacity with equipments procured from China. Is “WarrenBuffet-In”, aware that the Dhabol Power plant where the critical equipments were procured from
G.E., and G.E.’s refusal to restart the same, was the cause of the enormous delay in putting the power plant back in operation? The issue is even now not fully resolved.

What is it that investors in Adani Power have lost since it was listed? Not over 2% if at all! That too only during certain trading sessions. The share is trading marginally at higher leves otherwise. In fact, I have been wanting to buy to increase my inventory of Adani Power, and am waiting the price to dip, so that I could bring the average cost to lower than IPO price of Rs.100/-, but it does not seem likely to happen.

If the track record of Adani Port and other infrastructure cos. in the Adani group is anything to go buy, Adani Power will also go on stream on time, if not earlier. Contrast this with the delays, for one reason or the other, that Reliance Power or Reliance Energy has been dishing out. State govts., are increasingly getting concerned about these issues, and also the efforts of Reliance Power to keep tendering and bagging more and more orders for power projects, regardless of its track record. There is a move therefore, to put an limit on the number and size of projects that can be awarded to Reliance Power.

So, “WarrenBuffet-In”, should focus more on improving his skill on writing nursery rhymes……….and leave the job of advising investors to others!

...

Yes, there has been some upward price movement. This is primarily because of the news that some restructuring of its galloping debt has been arrived at with the financial instutions.

The improvement becomes sustainable and will get reflected only if (a) its sales and other incomes go up significantly,
(b) its crippling interest burden comes down significantly, yielding place to increased cash profits, or, (c) the management changes.

I would not be attending Gangotri Textiles forthcoming AGM on the 25th inst., since I am holydaying in the US. ...

21st Sept. 09

Certain Managements use any excuse – except their own sheer incompetence to manage, as reason good enough to say why the finances of the company they manage – rather mismanage – moved in to the shit house and has been going deeper into that pitiable state, year or after. The management of Gangotri Textiles is one such sordid example.

Four years ago, Gangotri Textiles extended a loan of Rs.15.00 crores, nearly double the size then of its own then equity capital of Rs.8.00 crores, to the brother of the Managing Director, to set up another similar but so far unlisted company, Jagannath Textiles. in a family settlement which its share holders came to know only after it was put through! The loan was at simple interest of 6%, whereas loans availed Gangotri was at thrice that rate, and on compounded interest! The Directors nominated by the banks and financial institutions have been in deep slumber all these years! The shocked share holders have been raising this issue every year. and been demanding that this unauthorized loan given by Gangotri Textiles, be got back immediately.

At the last AGM, the Managing Director revealed that Rs.8.00 crores was coming into the company’s coffers, not as part return of the unauthorized loan, but as an interest free loan arranged by promoters! The demand of the shareholders that money be accounted as part return of the unauthorised loan, has gone unheeded! If the loss in terms of the interest differential is to compensated, and we ignore the compounding factor, the balance amount to be recovered after adjusting this Rs.8.00 crores, works out to 12.48 crores!

What have been the consequences suffered by Gangotri Textiles and its shareholders?

The interest burden of the company, expressed as a percentage of its total income, has sky rocketed from 3.93% in qtr. ending March 07, to 44.87% in the qtr. ending March 09! It has come down to 31.19% in the June 09 qtr., thanks to the mobilization of Rs.8.00 to retire some part of the high cost debt.

The choking of funds due to unabsorbed and therefore compounded interest, has crippled Gangotri’s total income itself from Rs.41.42 crores in March 07 qtr., to half, Rs.22.35 crores, in March 09 qtr. The co.’s income has improved to Rs.27.99 crores in the June 09 qtr., thanks to slight release of the choke of working funds.

Its BSE prices (Face Value Rs.5.00) which was Rs.27.60/-, on 28th Feb.07, whenthe SENSEX closed at 12,938.09, but collapsed to Rs.3,45 on 28th Nov. 08 when SENSEX only came down by a third to 9,092.72, and has improved to Rs.8.06 on 31st Aug. 09, not because the SENSEX soared by 72.30%, to 15666.64, but because of rumours that some progress has taken place in its negotiation with the financial institutions, on restructuring its financial liabilities, including its interest arrears, as a part of rehabilitating the company.

I am amazed that some boarders are yet optimistic and are indicating that bonanza awaits investors. Let me quote a couple of them.

Mr. “jose123” writing in these columns on 17-Jan-08 , says “But there is a limit for a company to fall.” He also says Gangotri Textile’s market prices :is in its life-time low levels. So it can recover, and it will” and advises me “you don`t try to panic people.” He puts a share price value to his optimism when he says “In my view, it can cross 30 levels easily.”

18 months later, “ jimima” writes on 17-Sep-09 “Not baD AT CMP.” And advises investors, “Buy for long term” and puts another price for his optimism, when he says “Target for 2Yrs. 100Rs.”!

Borders will perhaps remember that I have been researching and commenting on some stocks. The list includes Teledata, Pentium, Anus Labs etc., also. The spirit of sharing these observations is investor education, not self trumpeting, as is proved by the fact that seldom have my observations been proved wrong.

In the case of Gangotri Textiles, I would be the happiest to see substantial upward movement of stock prices, because I will also gain, being an investor myself. Therefore I will be happy to be proved wrong!

...

Dear Mr. Aloka27:

I have never advocated panic selling of shares of Anus Labs. What I have advised those who have bought these shares at substantially higher prices is buy at present low market prices and drastically bring down your average cost of purchase. And sell the whole stock when the prices equal to exceed that average price price. I am not recommending investors to buy at the present prices, first time purchase of these shares.

I repeat my "hold" advice to investors like you who will lose money if you sell at current low prices.

I should imagine that in 2 or 3 quarters, prices of this stock could pick up....

11-09-09.


Aban Offshore has been smarting under a burden of interest on its borrowing, which has been worsening quarter after quarter from 11.88 in June 08, 14.61% in Sep.08, 23.67% in Dec.08, 28.29% in March 09, and 28.71% in the June 09 qtr. In contrast, ABG Shipard, seems to be doing better. In these 5 quarters, its burden of interest to its total income has been 5.47%, 12.94%, 10.49%, coming down to 8.15% and marginally increasing to 8.58% in the June 09 qtr.

Consequently, consecutive 3 qtrs. cash profit to equity capital ratio of Aban has been coming down from 33.54 in Dec.08, to 24.92 in March 09 and down to 18.48 in the Jun 09 qtr. Its earlier enviable track record on this score, which helped its share prices to hit through roof in the market, is under serious threat. In these 3 qtrs. in the case of ABG Shipyard, this ratio has actually been improving from 2.40 to 2.52 to 2.93. .

Aban’s main business is oil rigs and jack ups, and its expertise is in shallow water oil drilling. Higher the market price of crude, greater becomes the profitability of its business despite the high share of interests in its total income. Business Standard has studied and published a report in its issue dated 16th Dec. 08, which is self explanatory on this score.

I would wait and watch for some more quarters to find out how run away burden of interest to total income is managed and brought under heel, before thinking of investing any money in Aban.

There is no meaning however, in referring to Aban in the context of Anu’s Labs., as a boarder has done.




...

11-09-09.

ABAN OFFSHORE INTEREST BURDEN UNSUSTAINABLE


Aban Offshore has been smarting under a burden of interest on its borrowing, which has been worsening quarter after quarter from 11.88 in June 08, 14.61% in Sep.08, 23.67% in Dec.08, 28.29% in March 09, and 28.71% in the June 09 qtr. In contrast, ABG Shipard, seems to be doing better. In these 5 quarters, its burden of interest to its total income has been 5.47%, 12.94%, 10.49%, coming down to 8.15% and marginally increasing to 8.58% in the June 09 qtr.

Consequently, consecutive 3 qtrs. cash profit to equity capital ratio of Aban has been coming down from 33.54 in Dec.08, to 24.92 in March 09 and down to 18.48 in the Jun 09 qtr. Its earlier enviable track record on this score, which helped its share prices to hit through roof in the market, is under serious threat. In these 3 qtrs. in the case of ABG Shipyard, this ratio has actually been improving from 2.40 to 2.52 to 2.93. .

Aban’s main business is oil rigs and jack ups, and its expertise is in shallow water oil drilling. Higher the market price of crude, greater becomes the profitability of its business despite the high share of interests in its total income. Business Standard has studied and published a report in its issue dated 16th Dec. 08, which is self explanatory on this score.

I would wait and watch for some more quarters to find out how run away burden of interest to total income is managed and brought under heel, before thinking of investing any money in Aban.

There is no meaning however, in referring to Aban in the context of Anu’s Labs., as a boarder has done.
...

11-09-09.


Aban Offshore has been smarting under a burden of interest on its borrowing, which has been worsening quarter after quarter from 11.88 in June 08, 14.61% in Sep.08, 23.67% in Dec.08, 28.29% in March 09, and 28.71% in the June 09 qtr. In contrast, ABG Shipard, seems to be doing better. In these 5 quarters, its burden of interest to its total income has been 5.47%, 12.94%, 10.49%, coming down to 8.15% and marginally increasing to 8.58% in the June 09 qtr.

Consequently, consecutive 3 qtrs. cash profit to equity capital ratio of Aban has been coming down from 33.54 in Dec.08, to 24.92 in March 09 and down to 18.48 in the Jun 09 qtr. Its earlier enviable track record on this score, which helped its share prices to hit through roof in the market, is under serious threat. In these 3 qtrs. in the case of ABG Shipyard, this ratio has actually been improving from 2.40 to 2.52 to 2.93. .

Aban’s main business is oil rigs and jack ups, and its expertise is in shallow water oil drilling. Higher the market price of crude, greater becomes the profitability of its business despite the high share of interests in its total income. Business Standard has studied and published a report in its issue dated 16th Dec. 08, which is self explanatory on this score.

I would wait and watch for some more quarters to find out how run away burden of interest to total income is managed and brought under heel, before thinking of investing any money in Aban.

There is no meaning however, in referring to Aban in the context of Anu’s Labs., as a boarder has done.



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