I would like to thank you for your wonderful magazine that increases my knowledge on investments and makes me a smart investor. Your magazine imparts some useful insights and a great understanding about investments, which have been very useful for people like me with just a basic knowledge about investments. The cover story “Cash Rich Micro-caps” (7th June) gave some extremely useful information about usually ignored small stocks reporting outstanding results and has aided me in making a few investment decisions on my own. The Street Beat section of your magazine with highlights of companies having high rolling returns has further helped me in my decision-making. Also, the cautionary articles on budget airlines, “The Hidden Cost of Low-cost Airlines” and “How To Get the Best of Low-cost Airlines” were an eye-opener and my recent experience with Go Air has further alerted me about low-cost airlines. I had booked a low-cost Delhi - Pune ticket with Go Air nearly two months in advance. But a few days before leaving when I called the airlines to confirm my ticket, I was informed that the airline had closed its booking for Pune completely and had cancelled the flight! Further, to add to my agony, when I asked for an explanation for not informing me about this before-hand, I was given a silly excuse about my mobile phone being out of range. This displayed complete negligence and lack of responsibility on the part of the airline. As compensation, I was offered a ticket only till Mumbai. This incident has made me lose trust in the entire low-cost airlines industry.
Priya Dighe, 2 Heenal, Pashan Pune - 411021, by email
I would like to share this incident with you. About a year and a half ago, I was tracking Kernex Micro and was impressed by its products, etc. One day a caption on CNBC-TV18 stated that Kernex Micro had received an order worth Rs1000 crore from Indian Railways, according to sources. At that time Kernex’s turnover was just below Rs100 crore. This prompted me to buy Kernex’s shares at Rs320 and also recommend it to some of my friends. I have since learnt that the company never received any order of even one crore rupees. I wonder what is the source of CNBC-TV18’s exclusive news and from where they got the Rs100 crore figure. The channel has been posting captions about Kernex securing a big order by month end. However, Kernex management declined to comment. The stock is currently trading at Rs325. After I bought this stock it started slipping and touched a low of Rs105. Can you please help me in finding out what was behind this?
On another note, I think remakes of old Hindi movie hits like ‘Ram Gopal Varma Ki Aag’ and ‘Victoria No - 203’ are set to send film company stocks into the doldrums. Both the films are a complete disaster and reflect our film-makers’ inability to produce decent interpretations of erstwhile classics. Investors who are bullish on media stocks need to be very careful before investing in them. Multiplex business will tend to get under pressure if such movies continue to be released in future.
Having said that, the MoneyLIFE issue of 30th August was the most attractive so far and the best thing about it was Amitabh Bachhan’s interview. According to me it is the longest interview of Big B, better than any interview in any film magazine and it was not a typically ‘filmy’ interview.
I also want to appreciate the effort and interest taken by you to identify new stocks. I feel the review of your past recommendations on stocks has resulted in a set of totally new recommendations! Coming to Noida Toll Bridge, its land area and valuation are striking and the Commonwealth games due in the near future will only increase the traffic, hence increase the toll collection in future. Your recommendations on Evinix Accessories, Integra Hindustan Controls and Godawari Power are also good and these seem to be in a strong bull mode. Your tone of analysis on TV Today suggests a bright future for the media company. I would like to recommend to you to cover Diamond Cable, which I feel is a fine example of a ‘Losses to Growth Story’. I also want to know whether IPO grading is compulsory for every company?
Santosh Mhamunkar, by email
The Kernex case is for the Securities and Exchange Board of India’s Inter Market Surveillance System to detect and act against. It is also SEBI’s job to investigate the source of the report. And yes, IPO grading is now mandatory, although there is little attention focused on it - Editor