Read, Learn, Improve – 27-May-17

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Only Robots Can Tally What the Largest U.S. Pension Fund Pays in Fees – Link here

Church of England made stunning 17% return on investments in 2016 – Link herenot sure if Mumbai’s Siddhivinayak or Shirdi Saibaba trust or any such religious trust have an active manager, I think it’s time their start doing so.

Unemployment in the U.S. Is Falling, So Why Isn’t Pay Rising? – Link here

Indian IT and the lightning bolt of layoffs – Link here – author Siddharth Pai  IT veteran, he has an interesting take on IT industry. I am not expert on IT but I remember post-dot.com crash, many of the analysts were bearish on IT companies because as per them, Indian IT companies grew on back of demand for Y2K and now (post-dot.com crash) problem is solved hence no demand. But survival is the mother of motivation (and innovation), growth did come but here we are again at a similar point, let see what leaders choose to do.

Raymond Limited: The Complete Rip-Off – (By Institutional  Investor Advisory Services) – Link here

The Real Problem With Productivity Is Measuring It – Link here

The Wild West of Deep-Sea Mining – Link here

ELIMINATING THE HUMANLink here

One para from this article that really caught my attention, especially given nature of work we as analyst/fund manager have to work rationally, based on data – ignore emotion. “Neuroscientist Antonio Damasio wrote about a patient he called Elliot, who had damage to his frontal lobe that made him unemotional. In all other respects he was fine—intelligent, healthy—but emotionally he was Spock. Elliot couldn’t make decisions. He’d waffle endlessly over details. Damasio concluded that though we think decision-making is rational and machinelike, it’s our emotions that enable us to actually decide”.

On a lighter side, I am yet to meet an individual who says he is happy with the telebanking facility of his bank, there is an endless list of menus and to figure out one to speak to human is a task by itself.

This is how black money holders are using a unique laundry to turn tainted money into white – Link here

Has This Silicon Valley Startup Finally Nailed The Indoor Farming Model? – Link here

10 Insights from the Berkshire Hathaway Weekend – Link here

Which Companies Have the Highest Revenue Per Employee? – Link here

The engineer who went on to become Paytm’s first CEO is eyeing half-a-billion users – Link here

Have to say investment management industry seems to be heavily dominated by male, there are very few female fund managers and this is a story of one such rich investor. – The Witch of Wall Street – Link here

The Advantage Of Being A Little Underemployed – Link here

Ten Year Futures – Link here

  

 

Panasonic Carbon India Company Ltd – again a costly typo or …?

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This post is not advice or recommendation to invest in company discussed, this is purely for educational and discussion purpose.  So before you go and act on this stock, suggest you control your urge [if possible get rid of those urges ;)] and then read ahead with an open mind.

Image result for Panasonic Carbon India Company Ltd

This is a guest post courtesy a good friend RUD, who is an excellent financial analyst and looks at small cap companies for personal investment. During one such hunt, he came across Panasonic Carbon.  63.27% owned by PANASONIC CORPORATION, the Japanese behemoth.  Laxmi Devi Jiwarajka, Gopal Kumar Jiwarajka and JSK Marketing Private Limited are other promoters owning – 1.38%/0.02%/0.54% respectively.  The company has a market cap of Rs219cr with no big domestic institutional investor (Which makes it perfect for undiscovered story).  So RUD started looking at this company post Q3FY17 results and this is what he found.

The Company is ino a business of manufacturing of Carbon Rods that is used in dry cell batteries. In FY16 66% of revenue was contributed by exports, balance 34% came in from Domestic.

In FY16 company did revenue of Rs490mn with a PAT of 135mn, with zero debt on balance sheet. The company does healthy RoCE and RoE of 30% and 19%. However, if you closely observe balance sheet there is cash of Rs735mn, meaning your RoCE/RoE is way more than discussed earlier (adjusting for cash networth would stand at mere Rs4mn). Dividend payout stood at 36% in FY16 vs 42%/49%/52%/86% in FY15/FY14/FY13/FY12.

Income Statement

For 9mFY17 company had posted revenue of Rs380mn with PAT of Rs131mn there was exceptional income of Rs14mn on account of sale of land so adj for that PAT would be at Rs~120mn, meaning on annualised basis PAT of ~Rs160mn a healthy growth of 19%. While cash on books at end of 6mFY17 was Rs738mn.  Business seemed decent and valuation at ~11x, with that plunge was taken.

Now comes Q4FY17 results

Here is the full copy of announcement –BSE Link here and in case that doesn’t work you can download it 4QFY17-Result-Copy-1.  This was released on 10-May-17 and posted on BSE site post 6 pm.

Here is first page

first-page

Here is second page that carries P&L

10-May-17-Income Stmt.JPG

However suddenly after 1 week on 18-May-17 Company sent notice again to BSE along with new P&L – reinstated income statement. BSE link or4QFY17-Result-Copy2

Here is P&L screenshot

18-May-17-Income Stmt

On the face of it sales and PAT remains same as earlier one, but now there is financial cost to the tune of Rs75.7mn (for a company which is debt free), which in earlier statement was missing or was equivalent to staff cost, of course, Power & Fuel cost is missing in new statement which was there in earlier one.  Just wondering if this is really a (costly) typo?

Another interesting announcement was done by the company on 9-May-17 (BSE Link or Board MD-9-May-17 with regards to board meeting conducted on 31-Jan-17. Company board had re-appointed Mr R Senthil Kumar, MD for a further period up to 31-Mar-18. Looks like somebody had a weak memory.

By the way, the company appointed (or rather promoted internal candidate) new CFO on 31-Jan-17 (BSE Link here or 31-Jan-17-New-CFO-Notice-BSE) and old company secretary resigned in Oct-16, so I assume the company has new company secretary also (BSE link here or 18-Oct-16-CS-resign-BSE).

any further views are welcome.

Read, Learn, Improve – 20-May-17

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These three firms own corporate America – Link here

Syphilis is on the rise because penicillin isn’t profitable – Link here

Make In Mozambique: The Real Reason Modi Visited – Link here

Just The Good Stuff From Wednesday’s Google I/O Keynote – Link here – (don’t miss Augmented Reality video)

America’s Cars Are Suddenly Getting Faster and More Efficient – Link here

Revenge of the Humans: How Discretionary Managers Can Crush Systematics – Link here

Autonomous Ships Will Be Great Link here

A new study has confirmed the science behind an ancient form of birth controlLink here

What know-it-alls don’t know, or the illusion of competence or Why a bank robber thought covering himself in lemon juice would help him get away with it – Link here

Think Global to Avoid the Shrinking U.S. Stock Market – Link here

Everything, in retrospect, is obvious – Link here

Supervised Drug-Injection Sites Are Spreading in Canada, Which Is Good – Link hereNot sure if you know but Netherlands / Holland has legal restaurants that even sell pure drugs.

AN EPIC TRADING TALE FROM NORWAY – Link here – This is something straight out of Hollywood movie, think about Sherlock Holmes meets investing.

Multiverse: have astronomers found evidence of parallel universes? – Link here

Planning to buy a car? Just rent it for Rs 25,000 per month from this startup – Link here

How safe are sanitary pads in India? – Since only 12% of menstruating women in India use sanitary napkins, questions haven’t been raised on hygiene and safety standards and practised by the makers – Link here

Why Do Colleges Give Out “Honorary” Degrees?Link here – I think most of us know the reason, but it shows interesting history and few numbers related to it.

Amazon’s epic 20-year run as a public company, explained in five charts – Link here

Interesting experiment – We Converted $100 Into As Many Currencies As Possible – Link here

Read, Learn, Improve – 13-May-17

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(Best read of the lot) Storytelling Animals – Link here

The Stock Market Is Weirdly Calm. Here’s a Theory of Why – Link here

This Tiny Arctic Town Loves Visitors, Unless They’re Automotive Spies – In the Northern Swedish village of Arjeplog, where automakers test secret prototypes, car photographers are considered a public nuisance – Link here

The Active Equity Renaissance: Behavioural Financial Markets – Link here

Better wisdom from crowds – MIT scholars produce new method of harvesting correct answers from groups – Link here (bit complicated to understand)

Charles Assisi is a veteran journalist when he writes you get an amazing insight into that topic. He wrote two articles closely related to each other, very interesting and insightful. Two idiots and three pigs – Link here and Link here

Ambit never fails to surprise you, their series of The Sceptical CEO is very insightful. Here is the latest one – As we read less and surf more, our investment habits are changingLink here (Page 2 to 8)

Couple of charts that caught my attention

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Is Your City Being Sold Off to Global Elites?  – Visas for sale, skyrocketing housing prices, miles of condos – Link here

Game Changers – How lobbyists are redeeming poker in the eyes of the lawLink here

Avoiding Filter Failure – Link here

Simple math is why Elon Musk’s companies keep doing what others don’t even consider possible – Link here

Confessions of a stock picker – Confessions are no guarantee that sins won’t be committed in future, but one at least hopes to not repeat earlier investing mistakes – Link here

Nifty Next 50: The Benchmark Index That No Mutual Fund Would Touch?! – Link here – interesting there is only 1 ETF and 1 Index fund replicating the portfolio.

My Friend is Beating Me – Link here

Fuel of the future – Data is giving rise to a new economy – How is it shaping up? – Link here

What’s My Investing Fee? A Frustrating Quest – Link here

Ex-LTCM trader on his unexpected conversion to passive investing – Link here

What’s it like to lose £350m? A rogue trader confesses – Link here

How to Predict If a Borrower Will Pay You Back – Link here

‘It is Wall Street porn’: Why Wall Street can’t stop talking about its favourite show – Link here

2017 National Geographic Travel Photographer of the Year Contest – Link here

Read, Learn, Improve – 6-May-17

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Watch: Robot bricklayers are here. Could they replace manual construction workers in India too? – Robotic process automation could lead to a loss of half of the world’s jobs by 2050 – Link here

What if You Could Grow a Baby in a Bottle? – Link here

A Chicken That Grows Slower and Tastes Better – Link here

If you observe every industry has its unique way of doing a scam, of course, its financial industry that’s probably at the forefront or is more highlighted in media, not sure which one. Here is one scam pertaining to wildlife photography – Love wildlife photos? There’s a good chance they weren’t shot in the wildLink here

Why I Lost My Bet With Warren Buffett – Link here

Experts on an Earlier Version of the World – Link here

ETFs Become the Investing World’s No. 1 Scapegoat – Link here

Trading volatility? Good luck catching that sharp knife – Link here

IIT Roorkee scientists create low-cost solar cells using Jamun – Link here

The Absolute Return Letter – Investment RulesLink here

UDAN: Giving flight to aam aadmi’s aspirations – Link here – Before UDAN, India had set up 76 operational airports in 70 years; and now in one year we will add 33.”

Prioritising these three things will improve your life — and maybe even save it – Link here

So this is phenomena that everybody would have witnessed, wherein new boss/CEO is appointed and he gets huge salary and you wonder why, well read on – The Clive Effect – Link here

Why Bargain Travel Sites May No Longer Be Bargains – Link here

How much money can you really expect when you turn in your manuscript to a publisher? – A handy guide for writers to advance payments for their books – Link here – a peek into the business model of a writer/authors/publishing industry.

I think as automation quicken its pace, this is one of the future job – Hyderabad’s Human Library – Link here

Ten Signs You’re Interviewing With The Wrong Companies – Link here

(Not related to market, but interesting) What Bullets Do to Bodies – The gun debate would change in an instant if Americans witnessed the horrors that trauma surgeons confront every day – Link here

Read, Learn, Improve – 29-Apr-17

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Frank and Steven’s Excellent Corporate-Raiding Adventure – Two law professors tried to mimic big activist hedge funds, investing their retirement savings in a small, languishing public company and trying to shake it up. Here’s what happenedLink here

Is It Time to Break Up Google? – Link here

Grantham: The Rules Have Changed for Value Investors – Link here

Trump Takes Aim at the H-1B Visa Program – Link hereinteresting analysis with actual numbers, however at the end of the day every company is a business and hence this may just add a push to increasing offshore component.

Animals Set Survival Record Inside Artificial Womb – Link here

A venture capitalist explains how to become insanely well-connected – Link here

And Now for Something on Index Funds – Link here

Not an inside job: How two analysts became SEC whistleblowers – Link here

Stress and Comfort: Careful What You Wish For – Link here

In Kotak Daily dated 24-Apr-17, there was report on India’s skill, here is the table that caught my attentionKotak-Education

Now what could be the reason behind such a poor reading skill – well most people would blame “Teacher” and reason would be “s/he doesn’t show up at school”. Here is fact on same – India’s Absent Teachers: Not As Big A Problem As We Think – Link here

If Whistle-blowers Want Action, They Have To Interact And TrustLink here

It seems to be an open season for whistle-blower letters these days—at least, at Moneylife. We keep getting one letter after another exposing the dirt on Indian capital markets and companies. Unfortunately, the deep expertise of insiders, and the excruciating detail they go into will not have the desired impact if the regulator fails to act. What is worse, anonymous whistle-blowers, lacking in courage and suffering from a trust deficit, seldom provide enough evidence of their charges to warrant an investigation by resource-strapped entities like ours.  On the other hand, large media organisations, which ought to be the first destination for such letters, are either compromised by the massive advertising budgets of the target entities, or their journalists are unwilling to alienate powerful people through investigative work.

There is a plot in Casino Royale between terrorist financer & terrorist operating in the African region if you remember it – the financier takes the money and use the same to short sell a stock and in turn arranges for an attack on company – crashing a truck in an airplane. All this is fiction, till the time you read this – Germany: Suspect bet against Dortmund then bombed its bus – Link here

Our Puny Human Brains Are Terrible at Thinking About the Future – Link here

Why Food Is Taking Over Your Life – Link here

From Netflix to rented homes, why are we less interested in ownership? – Link here

Elevators in an age of higher towers and bigger cities – During an era of rapid urbanisation, the humble lift is getting a high-tech upgradeLink here

Cadbury’s worms of graft: Whistleblower reveals all – Link here

The Truth About Earnings and Stock Valuations – Link here

Market has been abuzz with Trump govt coming up with proposal to reduce corporate tax but – How Markets Respond to Tax Reform – Link here

Cracking the Mystery of Labor’s Falling Share of GDP – Link here

Read, Learn, Improve – 22-Apr-17

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Everything about Self Driving Cars Explained for Non-Engineers – Link here

Unlike Hyperloop, Elon Musk’s Electric Big-Rig Actually Makes Sense – Link Here

Honey, I know what you did last night – Link here

Bravado and Investing – The line between irrational optimism and self-confidence is mighty thin – Link here

The Most Important Lessons – Lesson 2: Building and widening your moat – Link here

Idiots Scaring Themselves in the Dark – Link here

Which Graduate Degree Gets You Out of Debt the Fastest? – Link here

This Is How Climate Change Might Kill UsLink here

Welcome to Tencent’s Flipkart, Amazon’s new adversaryLink here

The math is staggering. The players have pumped in over $15 billion so far to woo a customer base of 10 million regular monthly transacting users.

Flipkart may be fighting Amazon. But Amazon is not fighting Flipkart. Amazon is fighting to create habit.

Flipkart’s funding is an indication of how everyone is betting, quite sensibly, that Amazon can’t own a 100% of the e-commerce market—that’s it.

Walmart’s e-commerce binge is one big Silicon Valley bailout – Link here

Old economics is based on false ‘laws of physics’ – new economics can save us – Link here

Why Tesla’s Stock Is in Ludicrous Mode – Link here

A history of global living conditions in 5 charts – Link here

News is bad for you – and giving up reading it will make you happier – Link here

This one’s for the energy nerds out there. The University of Texas Austin’s Energy Institute has put out an incredibly useful interactive map (Link here) showing what types of power plants are cheapest to build in every county in the continental United States. This interactive map shows why renewables and natural gas are taking over the US – Link here. How I wish Govt Of India makes one such for India, wishful thinking I guess.

3 lakh shell companies may soon vanish from Companies’ Register – Link here

What Dolly Kumari Learned–And How It Could Change India’s Textiles Industry – Link here

Batteries could be Tesla’s secret weapon – Link here

How Uganda fixed leakages with transparency, and why it matters to India – Link here

This sound likes death of back office – The Blockchain Could Change the Backbone of the Stock Market (Infographic)Link here

34 Startup Metrics for Tech Entrepreneurs (Infographic)Link here

There is general belief that people working in – Hedge fund, Venture Capital or Google or any of those fancy industry or company – are smart. They can never be wrong, however time & again it has been proved how much stupid we all can be. Here is one live example of the same – Silicon Valley’s $400 Juicer May Be Feeling the Squeeze – Link here

Babri Masjid case: LK Advani has paid political price, but SC order could be blessing in disguise for BJP – Link here

 

Read, Learn, Improve – 15-Apr-17

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The Most Important Lessons – Lesson 1: Know thyself, value investor – Link here

Outlook grows dimmer for stock-picking fund managers – Link here

The $90 Billion Investor Who’s Out to Fire Wall Street – Link here

Lies, Damn Lies, and Financial Statistics – Link here

China Is Playing a $9 Trillion Game of Chicken With Savers – Link here

With the rise of OTT platforms, are more Indians watching the IPL on their phones than television? – Link here

Here’s One More Thing to Blame on Senior ManagementLink here

The age of unenlightenment – An inflated sense of our own wisdom is making us dumber and less civil. Can the experts bring us back into line? – Link here

The Dark Secret at the Heart of AILink here

Humankind: The Post-Truth SpeciesLink here

There has been lot of noise about Aadhar and hence it makes immense sense to listen to founder Nandan Nilekani, two interviews with lot of good insights –Seminal year for move towards cashless paymentsLink here and Aadhaar is being demonised because it’s so transparentLink here

Deep Work: Rules for focussed success in a distracted worldLink here

Why Banning the Salary-History Question Is Good for Job ApplicantsLink here

Movie Studios love the blockbuster franchise because it tells what audience likes and studio can replicate the same again. Hollywood studio has truly understood this concept and made a science out of an Art. Unlike studio bosses or producer or director or anybody guessing what audience liked in movie, one has to show data what works and what doesn’t, here is what data analysis for a movie looks like for “The Fast & The Furious Series” – The Stats of the FuriousLink here

 The 20 Largest Stock Exchanges in the World – Link here

Stories, not places, inspire us to travel – Link here –if automation kicks in and takes up a lot of routine jobs, countries need to develop service jobs that can replace the same. There is need to create a job that is personalized in nature and hence not replaceable by machines, giving a guided tour, sharing stories of historic places is one such job which I believe has a lot of potentials in a country like India that has an awesome history and places to offer to the global tourist. No doubt there is a small risk of the guide being replaced by a handheld mp3 player that has pre-recorded stories.

 

Read, Learn, Improve – 8-Apr-17

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(Must read) – Gambling is a feature of capitalism—not a bug – Link heresome history on finance, its long read if you want to read just ONE thing for the weekend this is it.

How Uber Uses Psychological Tricks to Push Its Drivers’ Buttons – The company has undertaken an extraordinary experiment in behavioural science to subtly entice an independent work force to maximise its growth – Link here

 Jerks and the Start-Ups They Ruin – Link here

Mecca of Capitalism and biggest advocate of Corporate Governance seems to be going backwards with help of technology – US companies defy investors with switch to online annual meetingsLink here

The flip side of ‘one nation, one tax’ – India is the only large country in the world that is experiencing subnational income divergence – Link here

GST aims to forge an economic union of India at a time when the economic disparity among the various states of India is at its peak.

The average Tamilian earns Rs1.4 lakh per year, four times more than the average Bihari’s annual income of Rs35,000.

The big gamble of GST is that the economic benefits to the nation as a whole will trump the fissiparous predilections of India’s political union. Amid the jubilation over a newly forged tax union, it is perhaps appropriate to recall the warning of one of India’s tallest statesmen, C. Rajagopalachari, in the early years of the republic—“you cannot achieve unity of this country by imposing uniformity.”

Risk is How Much Time You Need – Link here

The most important question to ask when thinking about risk isn’t how much volatility or upside you’re looking for, but how much time your emotions and goals need for that volatility to and upside to play out.

Sometimes history does repeat itself and if you are a sell-side brokerage house or analyst you are bound to commit same mistake “Staying too bullish” – here is the first article – Morgan Stanley made an error analyzing Snapchat, and it shines a light on some big flaws in Wall Street researchLink here – needless to say, if you belong to sell side you would sympathize with the analyst. However, if you been bit old in a market, you would get a feeling of Déjà vu, Mary Meeker of same brokerage house made calculation error sometime in 2007/08- Found: Morgan Stanley’s Billion-Dollar YouTube MistakeLink here.  However most important is how as human we try to fool ourselves when our mistakes are pointed out. Prof Sanjeev Bakshi in past has written a very good piece on it connecting with concept of sunk cost fallacy – Link here – good time to revisit the same.

Continuing with fooling oneself – Living a Lie: We Deceive Ourselves to Better Deceive OthersLink here

The Arrival Of Artificial Intelligence Link here

Your Brain Wasn’t Built to Handle RealityLink here – just a few behavioural biases.

Uncovering the Secret History of Wall Street’s Largest Oil Trade – Link here

Old article, but makes a good read. It gives you an idea to stop & think before jumping on hyper growth company as your next portfolio overweight stock- Lessons from the Fall of SunEdisonLink here

India seems to be a hot bed of Multi-level/chain marketing companies, more so it seems like hydra-headed monster of which you cut one head and another 2 pops up – A Questionable Investment Scheme Dominated ASSOCHAM’s “Global Summit” On Bitcoin And Blockchain TechnologyLink here

Some insight into frauds happening – Who’s Stealing From Your Dad Right Now?Link here

The Death of the Monthly Salary – Link here

You must be aware of The Great Roman Empire and his army, however, do you know organisation chart of his army? (Video)Link here

For all those who wish to travel the world and work on the move – In Praise of a Nomadic Life – Link here

Interesting innovation – Mulund Man Wants To Save Lives With His ‘Anti-Suicide’ Ceiling Fan Rods – Link here