COMPACT DISC / TOTAL EXPORTS - AVOID

It is very rare to see a company trading at a P/E below just 1. Yes , it is Compact Disc which posted an EPS of Rs.50/- last year and currently trading around Rs.39/- . No need to get exited and punch order to BUY this stock because of  its throw away  valuation. There is lot of questionable practices going on here . This multimedia - animation company is announcing the beginning of many projects but then there is nothing about its completion or releasing and cash flow from such projects. Instead of that ,company is announcing the beginning of another projects and so on. To keep the faith of the investors and shore up the share prices ,promoters are playing various tricks like dividend,de-listing ..etc. After declaring dividends company deferred it and again announced a date for reconsidering the same .But even after 6 months of the date of EGM for re considering the dividend ,there is no announcement about it. In the case of de- listing ,company announced an EGM after three months to take final decision .If past is any indication they will cancel the de listing decision in that EGM .  It is really funny to see that Forbes Asia Editors have selected Compact Disc India Ltd. as one of the 'Best Under A Billion' Company.I don't know ,what is the meaning of ' BEST'  the Forbes means .If they are selecting this types of companies it will only  help to destroy the reputation of even the well known 'Forbes' . Since we - the investors - have limited  options to check the validity of claims made by companies and no chance to check their  bank accounts ,we can see these type of results and claims even after the story of Satyam Computer. But the shocking part is ,even the police authorities informed the activities of the promoters of  Compact Disc  about a decade back ,the watchdog of Capital market did not take any action or inquiry about these people .You can read that story HERE

TOTAL EXPORTS is another company from the same management and its suspension revoked recently and now trading around its 52 week high .

So ,it is better to study the history of promoters before started buying stocks only on the basis of published financial results.

FCS SOFTWARE SOLUTIONS LTD - ADVERTISEMENT FROM ONE SIDE SELLING THROUGH OTHER SIDE

We are seeing lot of advertisements of FCS software  in
business channels like CNBC in these days claiming its
glory and  expansion plans.This is increasing the confidence
of retailers and they are buying in bulk with very big dreams.
But what is really happening through the other side is really
alarming .Promoters are offloading their holding in open market
on a daily basis . But they are very smart  and it seems that the
major sellers are absent in last half an hour to get a higher closing
rate(closing rate is calculated on the basis of Weighted average of
last half an hour only) and continue their selling on the next day.
Have a look at the latest sale figure of its Main promoter

cum MD cum Chairman Mr Dalip Kumar  in open market.

Date of Sale                      Qty Sold

3 June 2010                       5000000     (Fifty Lac)

6 July 2010                        5000000      (Fifty Lac)

14 July 2010                      10000000   (One Crore)

15 July 2010                      15000000    (1.5 Crore)

Now everybody knows the reason of daily advertisement

through business channels . If everything claimed by company
are true ,what is the meaning of these huge sell figures of the
promoter ???? .So take utmost care while buying shares
of companies giving unnecessary

advertisements and  announcements through channels.

If more companies following this trend ,it is better to

considering  a buy of  the shares of companies running

business channels ,since they are the only beneficiaries

other than promoters of these type fraud companies.