LIC-The Public Body to Dump Operator Stocks
Yesterday there were messages
that LIC took pass-back in Gitanjali Gems, Responsive Industires. Rainbow
Papers and Pipavav Doc along with 18 20 other names . Here is the modus
operandi that people are talking about as the names involved are Ketan Parekh (the
fame K10 stocks) Dinesh Singhania, Sanjay Dangi,Rakesh Jhunjhunwala and others
Ketan Parekh and Dinesh Singhania
: Stocks operated in last few years Gitanjali Gems, Pipavadoc, Tulip
Technologies, Radico Khaitan and many more
Approach Cash stricken
promoter, cooks up a story and then
squeeze float from market. Once the float is squeezed they start to ask for
broker funding, than the rotation of volumes starts. Favorite funders Motilal
JM Financial Nirmal Bang etc They cook up the balance sheet and also take stock
to alleviated levels. Afterwards they
meet fund houses likes of LIC and others to buy the stock simply asking them to
take a pass-back
Talking to few brokerages that
why foreign fund managers do it they say its book keeping entry of adjusting
loss which is taken as political money is involved . They cited us two examples
PFL Infotech Parichay Investments. With the block deal KP and his associates hyped
the fundamentals and stock got reversed at 1/10th of deal price.
They said political parties need bribe and thus they ask the foreign players
companies to buy their LTCG stocks that’s how Member of Parliament has been
growing their assets. Take CWG, invest
in dummy company take the stock 10-20 times and then ask the bribing party to
reverse the deal and money is white for them
Similarly such deals happens in
LIC too
Rakesh Jhunjhunwala: Is he really
warren buffet of India. He is pied piper of India here is the reason
Rakesh the so called warren
buffet meets promoters with his contacts ask the promoters to cook up and take
stocks in benami account than with him he ask a cleaner image Rk D to buy
shares as preferences and than they start the story. Rakesh makes bhav as
whatever he buys retail investors follow him to give the list of
disappointments its never ending
Hind Oil Exploration, Bilcare,
Subex Compucom A2Z management services,Praj Industries, Autoline Industries,
Viceroy, Geojit, VIP, Zen tech, Delta Corp, NCC and many more.
RJ has found another formula
where he lends his name to a company or operator and in exchange ask them to
give shares for free. Compucom Subex , Zen Tech Pipavav, Kesoram,Hanung, and Alok all are classical examples of such
company passback as quoted by broking sources and you compare him as Warren
Buffet. Is he Warren Buffett or a white collar scamster. This part of deal was told by an old investor
However the bigger thing is how
LIC is acting as a safeguard to the so called operators. Here is the investment
of LIC in last oneyear which has become 5-20 percent to a Rupee. Question is
not about how a stock became 10p or 20p to a Rupee. Its about looking at
fundamentals any tom dick harry can say its not the investment grade valuation
wise there lies a bigger question and someone has to answer the uncomfortable
question
Here is the list of stocks which
LIC will have to answer for their purchase in last one year. Many of the likes
Core Dalmia Gitanjali Flexituff Kiri Mandhana pipavav rainbow responsive summit
tamboli transpek zylog where LIC managers are offered commission from K10
Dangi’s and other operators anywhere between 10-30%
| Company Name | lic%holding | Sales | Profit | EPS | Mkt_Cap | Book_Value |
| Core Education & Technologies Ltd. | 3.97 | 878.39 | 188.07 | 16.72 | 337.15 | 128.43 |
| Dalmia Bharat Ltd. | 1.55 | 156.79 | 32.4 | 3.99 | 956 | 66.53 |
| DCW Ltd. | 3.99 | 1280.64 | 30.67 | 1.51 | 223.43 | 25.18 |
| Deccan Chronicle Holdings Ltd. | 2.45 | 786.08 | -1040.4 | -49.79 | 61.23 | 1.08 |
| Fiberweb (India) Ltd. | 3.64 | 47.03 | 2.55 | 2.32 | 9.01 | -67.85 |
| Flexituff International Ltd. | 4.35 | 626.38 | 34.36 | 15.81 | 498.79 | 135.9 |
| Gitanjali Gems Ltd. | 4.36 | 7755.47 | 258.34 | 28.35 | 1011.34 | 304.58 |
| Innovasynth Investment Ltd | 4.51 | -0.2 | -0.08 | 5.71 | 10.01 | |
| Joonktollee Tea & Industries Ltd | 5.95 | 50.26 | 4.23 | 12.99 | 61.72 | 300.46 |
| Kiri Industries Ltd. | 1.03 | 565.57 | -23.59 | -12.42 | 9.63 | 101.61 |
| Kopran Ltd. | 1.02 | 204.96 | 6.17 | 1.58 | 54.59 | 30.61 |
| Lakshmi Automatic Loom Works Ltd. | 3.28 | 5.67 | 1.28 | 1.26 | 17.82 | 17.5 |
| Lime Chemicals Ltd. | 1.95 | 15.17 | -8.19 | -25.14 | 0.32 | -152.31 |
| Longview Tea Company Ltd. | 3.5 | 1.09 | 0.65 | 2.19 | 4.48 | 34.66 |
| Mahamaya Investments Ltd. | 4.46 | 0.02 | -0.02 | -0.06 | 3.67 | 31.46 |
| Mandhana Industries Ltd. | 1.81 | 982.04 | 73.1 | 22.07 | 779.9 | 142.5 |
| Pearl Global Industries Ltd. | 1.18 | 646.7 | 3.66 | 1.69 | 274.59 | 167.27 |
| PipavavDoc | 7.94 | 1867.23 | 18.52 | 0.27 | 5138.72 | 31.63 |
| Quadrant Televentures Ltd | 1.76 | 281.3 | -179.16 | -2.93 | 185.51 | 10.11 |
| Rainbow Papers Ltd. | 4.56 | 459.88 | 32.76 | 3.59 | 740.87 | 39.18 |
| Responsive Industries Ltd. | 3.6 | 1108.43 | 48.95 | 1.83 | 2403.55 | 15.49 |
| SE Investments Ltd. | 1.46 | 210.98 | 70.32 | 17.34 | 1595.43 | 106.24 |
| Shalimar Wires Industries Ltd. | 2.12 | 93.71 | 13.08 | 7.03 | 18.99 | -55.97 |
| Summit Securities Ltd. | 2.73 | 7.98 | 7.07 | 6.49 | 65.79 | 379.54 |
| Tamboli Capital Ltd. | 2.18 | 0.99 | 0.73 | 0.74 | 17.86 | 11.45 |
| Thana Electric Supply Company Ltd. | 16.04 | -0.21 | -1.04 | 1.43 | -40.48 | |
| Transpek Industry Ltd. | 3.68 | 219.81 | 10.23 | 17.43 | 52.23 | 105.16 |
| Wanbury Ltd. | 1.61 | 349.59 | -16.14 | -9.29 | 35.98 | 39.92 |
| Welspun | 1.45 | 1884.04 | 16.27 | 15.53 | 59.71 | 93.29 |
| Zylog Systems Ltd. | 4.13 | 1218.76 | 173.89 | 105.73 | 77.59 | 172.53 |
The views expressed here are compilation of various investors and data found online. Author has not gone and verified the same. Its a compilation of views expressed by various investors who are free to express there thoughts however we offer no responsibility in any form as this is not a solicitation to advise
