Read, Learn, Improve – 22-Jul-17

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Beauty of Leh

 

China’s Tough-Talking Theme-Park Mogul Surrenders to Minnie Mouse – Link here (very interesting insights if you are evaluating theme park business)

20 Million Mosquitoes to Hit Fresno; That’s a Good Thing, Really – Link here

Will the death of US retail be the next big short? – Link here

Curta: a mechanical pocket calculator – Link here (a calculator that you would have never seen)

What I Believe Most – Link here

Basic Income Could Empower Millions Of Indians, But India May Find Cost Too High – Link here

The Myth of Drug Expiration Dates – Link here

In Long Run, There’s No Such Thing as an Einstein Investor – Link here

Counter-terrorism was never meant to be Silicon Valley’s job. Is that why it’s failing? – Link here

Conspicuous consumption is over. It’s all about intangibles now – Link here

Seven signs of over-hyped Fintech – Many Fintech tools are too complex and are unlikely to solve real problems or work better than existing technology, writes Martin Walker – Link here

An inside look at how Koch Industries does business – Link here

Stocks Still Don’t Look Very Expensive – Link here

Ancient Romans made world’s ‘most durable’ concrete. We might use it to stop rising seas – Link here

Keep Eye on Sovereign Debt for Next Minsky Moment – Link here

What is the daily economics of a roadside poha business in Mumbai? (Hint: It is very profitable) – Link here

Read, Learn, Improve – 15-Jul-17

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Paradox of our age

(Must Read) – Tim Harford: what we get wrong about technology – Forget flying cars or humanoid robots, the most disruptive inventions are often cheap, simple and easy to overlook – Link here

Why have so many people stopped eating ice-cream? – Link here , not to worry about India, case is opposite – Link here

Special Situation Investing and Tube Investments of India – Link here

ITC’s succession plan: Letting it go – Link here

Life is unfair. Deal with it. – Link here

Antibiotics: A biography – What exactly are antibiotics? How do they work? And why haven’t we curbed their use, despite the overwhelming evidence of growing antibiotic resistance? – Link here

Jawbone’s demise a case of ‘death by over funding’ in Silicon Valley – Link here

An Amazon Bot Is Making the Greatest Smartphone Cases – Link here

Warren Buffet Made So Much Money When He Was 14 – Link here

Why Simple Beats Complex – Link here

Micro-investing startup Stash raises $40 million – Link here (imagine potential for Paytm, makes me want to buy Alibaba)

Understanding Coal / Thermal Power Supply Chain in India – Link here

Split Brain: Understanding Cause and Effect – Link here

The Reasonable Formation of Unreasonable ThingsLink here

No matter what kind of investor you are, the key to success is not participating in a game other than the one you intended to play. And you can only do that if you make an effort to identify what games the people surrounding you are playing, separating them from your own. It is the only way I know of to have a reasonable shot at not getting sucked into bubbles in the first place.

Trump’s Russian Laundromat – How to use Trump Tower and other luxury high-rises to clean dirty money, run an international crime syndicate, and propel a failed real estate developer into the White House – Link here

Many Glaring Errors in SEBI PMS Data; Misleads Investors – Link here

The Bounty Hunter of Wall Street – Link here

 

Read, Learn, Improve – 24-Jun-17

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reading is fundamental

 

Kindly note there would be no Read, Learn, Improve for the week ending 1-Jul-17 and 8-Jul-17.

Yours is the Earth and everything that’s in it – Link here

How Yahoo Blew It – Selling ads against search – it seemed like such a simple thing. But while CEO Terry Semel fumbled and bumbled, Google pulled ahead – Link here (Blast from the past, makes an interesting read).

When Yahoo decided it was going to buy Overture in 2002, Overture dominated search-related advertising; its revenue was two times Google’s. By the time the deal was actually announced in 2003, the two companies were neck and neck. Two years later, Google’s revenue was 2.5 times Overture’s.

How to screen stocks – Link here

How this angel investor became a billionaire – Link here

Fattened, genetically engineered algae might fuel the future – Link here

How Two Common Medications Became One $455 Million Speciality Pill – Link here

SEBI Needs Internal Clean Up – Link here

Amazon’s New Customer – Link here

Where physical meets digital – The art of the possible now lies in obtaining and then orchestrating that technology solution so that it can translate the imagination into reality – Link here

Cracking the Biggest Art Heist in History – Link here

And Just Like That, Google Becomes The World’s Largest Job Board – Link here

Patience Exemplified – Link here

Bull Market in Tech Stock Acronyms Reaches Perplexing Heights – Link here

Money Manager Cliches – Link here

 

Read, Learn, Improve – 17-Jun-17

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Image result for reading and success

How 15,080 Profitable Indian Companies Paid No Tax in 2015-16 – Link here

Bulls, Bears & Charlatans – Link here

The Unsung Heroes of Investing – Link here

No One Has Ever Made a Corruption Machine Like This One – Link here

To err is human; so is the failure to admit it – Link here

Amazon and Walmart’s all-out price war is terrifying America’s biggest brands – Link here (super insight into Amazon business model/tricks/pressure tactics, etc.)

A Tale of Two Markets: Politics and Investing! (By Damodaran) – Link here

Stop Waiting for the ‘All Clear’ From Markets – Link here

India’s space business is ready for lift-off – Link here

The grave implications of Infosys’s moves – Link here

Amazon is about to transform how you buy groceries – Link here

Are Modi’s Schemes Old Wine in New Bottles? – Link here

14 Things the Market Does Not Care About – Link here

The Seduction of Pessimism – Link here

Why the World’s Billionaire Investors Buy Precious Metals (Infographic) – Link here

The business of GIFs: Then and now – (Video) – Link here

Why it’s so hard to say no to your boss — even if you’re director of the FBI – Link here – I wonder if similar thing happens in sell side when HoR tells analyst to come up with Buy report on a particular stock ;-).

Why we do what we do, and where does money come into it – Link here

 

 

Read, Learn, Improve – 10-Jun-17

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Image result for reading is good

The 1% rule explains why a few people end up with most of the rewards – Link here or Link here

The Doctor Is In. Co-Pay? $40,000 – Link here

How Ravi Narain built the NSE, and then lost his grip – Link here

A Dozen Thoughts from Charlie Munger from the 2017 Berkshire Annual Meeting – Link here

‘Himalayan Viagra’ is threatened by fervent Chinese demand and climate change – Link here

Operation Car Wash: Is this the biggest corruption scandal in history? – What began as an investigation into money laundering quickly turned into something much greater, uncovering a vast and intricate web of political and corporate racketeering. By Jonathan Watts – Link here

Meet the Winner of the Financial Inclusion Challenge – Link here (have a look at 3 videos that showcase innovative strategies used by companies in emerging market that help financial inclusion)

Break it down and reason up by Jana Vembunarayanan – Link here

The 2% of Everything! – Link here

The Whistleblower Behind Caterpillar’s Massive Tax Headache Could Make $600 Million – Link here

The Bernie Madoff Fraud: Five Lessons for Investors from ‘The Wizard of Lies’ – Link here

Technology is making the world more unequal. Only technology can fix this – Link here

Why Apple is struggling to become an artificial-intelligence powerhouse – Link here

The Riddle of the Wall Street Brain Drain – Link here

Machine Learning And A Learning Machine – Link here

The lost stories of Number 4 Squadron: India’s flyboys in post-WWII Japan – Link here

Read, Learn, Improve – 3-Jun-17

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Image result for read

I and my friend came across this interesting company, have a look and please let me know your views/feedback/comment, anything on the same – Link here

Mumbai has an efficient, exclusive food-delivery service—if you can afford it – Link here

WHY WE LIE: THE SCIENCE BEHIND OUR DECEPTIVE WAYS – Honesty may be the best policy, but scheming and dishonesty are part of what makes us human – Link here

How to be your own quant by Jason ZweigLink here

I have discussed a lot about CRISPR in past (you can search for CRISPR in the search box to check out old articles) in continuation with the same here is an interesting video on the same – A Biologist Explains CRISPR In Five Increasingly Complex Ways – Link here (Video). One key risk that most people have about CRISPR is the ability to have a designer baby, however, if you go through the link you would understand that it’s probably far off, before we actually start seeing any practical/real life application of CRISPR.

Offshore wind won a German power auction without needing any subsidies – As prices plummet, offshore wind is now competitive with nuclear power, and gas is ‘in sight’ – Link here

Bad Experiences – Link here (interesting take on how culture affects or decides risk appetite)

Is efficient-market theory becoming more efficient? – Theory is changing traders’ behaviour. And vice versa – Link here

The Unfortunate Rise Of The Misleading ‘Scary Chart’ Comparisons Again – Link here

How Nvidia is surfing the AI wave – Link here

If you have been following autonomous car projects, you would know that it would be stages – that is we would not have the fully autonomous car at one go, but rather it would happen in stages – Autonomous driving levels 0 to 5: Understanding the differences – Link here. Hence after reading this, it would become evident that if you are a believer of autonomous car and want to take early exposure to the same – of course, it would probably be 5/10/20year theme – auto ancillary (Bosch or ZF Steering ) are the best placed to take advantage of it.

Don’t Be Fooled By High Dividend Yields – Link here

Reframing the Concept of Risk – Link here and (ppt) Crashes, Terrorists, Sharks – Oh, My!Link here

Oil Price Target: $0 (by 2050) – The Absolute Return Letter – Link here

The ghost who writes: Thriving business of anonymous authorship – Link here

Healthy Relationships, Healthy Life – Link here

Why UBER will be a massively valuable Company – Link here

Maruti Suzuki, General Motors and the auto wars in India – Link here – written by ex-Maruti  Chief General Manager of Marketing and Sales.

Have stocks reached ‘a permanently high plateau’? Or: Whatever happened to market corrections? – Link here

What George Carlin Can Teach You About Pitch Books – Link here

 

Read, Learn, Improve – 27-May-17

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Image result for reading helps

 

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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Image result for reading is good habit

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

Image result for reading is awesome

(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

 ambit-1ambit-2

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