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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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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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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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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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