...is a famous theme song from the movie - Mission Impossible II. The song has interesting lyrics, part of which says:
----------------
...its like russian roulette
when your placin your bet
so dont be upset
when your broke
and your done
cuz i'm a be the one till i jet(i'm a be the one til i jet)
i know why you wanna hate me
i know why you wanna hate me
i know why you wanna hate me
cause hate is all the world has even seen lately
i know why you wanna hate me
i know why you wanna hate me
now i know why you wanna hate me
cause hate is all the world has even seen lately
why you wanna hate me
cause hate is all the world has even seen lately
why you wanna hate me
cause hate is all the world has even seen lately
does anybody really know the secret
or the combination for this life
and where they keep it
its kinda sad when u don't know the meaning
but everything happens for a reason (everything happens for a reason)...
-------------------
sounds a lot like the overall sentiment prevailing in the stock market these days! But it's times like these that set the base for out-sized returns in the future. The skill really lies in surviving the turmoil, both, emotionally and ofcourse financially!
Live to fight another day, literally!
Monday, March 02, 2009
Sunday, March 01, 2009
The saga continues...its Lok Housing now!
Lok Housing made the following disclosure [link] during the just concluded quarter:
"The global economy in general and the real estate industry in particular is passing through recessionary scenario, which has resulted in to financial melt down of un-precedential scale. From time to time the Company had entered several agreements for sale of plots, properties, development rights and constructed units held by it as stock in trade. In accordance with the consistently followed accounting policy of the Company, sales revenue and profit thereon were recognised at the time of entering in to such agreements to sell. Due to the financial melt down and Severe economic recession, some of the parties with whom the Company had entered in to agreement to sell have failed to meet their commitments and considering the overall interest of the Company, the agreement for sale entered in to in the past financial years and in respect of which revenues already recognized have been mutually terminated / cancelled. The Company has been legally advised that though the agreements for cancellation of sales have been entered in to during this quarter (being October to December 2008), but since cancellation of sales pertains to sales recognised earlier, the financial statements of the period during which sales and profits were recognised needs re-construction / amendment, on the doctrine of "Relation back". The Company shall amend the financial statements of earlier years and get the same approved in the next general body meeting. Accordingly no effect in respect of cancellation of sale agreements has been given in the financial statements of this quarter. During the quarter under review the Company has entered in to 53 agreements for cancellation of sales made in the earlier financial years, the sale value of which is Rs 282.14 crores and the resulting loss / reversal of profit recognized earlier being Rs 225.01 crores" (This is all of what Lok Housing earned in the last three years!)
Are financial shenanigans at play here??...and the worst part is accounting policies in India seem to allow it happily. It's about time, accounting of sales for real estate companies is changed. You simply cannot allow companies to book sales in their income statements purely on the basis of a purchase/sale agreement with the real cash coming in after a few months/years and in case of companies like Lok Housing, NEVER!
Update: I have a detailed article on this on Dr.Ajay Shah's blog [link]
"The global economy in general and the real estate industry in particular is passing through recessionary scenario, which has resulted in to financial melt down of un-precedential scale. From time to time the Company had entered several agreements for sale of plots, properties, development rights and constructed units held by it as stock in trade. In accordance with the consistently followed accounting policy of the Company, sales revenue and profit thereon were recognised at the time of entering in to such agreements to sell. Due to the financial melt down and Severe economic recession, some of the parties with whom the Company had entered in to agreement to sell have failed to meet their commitments and considering the overall interest of the Company, the agreement for sale entered in to in the past financial years and in respect of which revenues already recognized have been mutually terminated / cancelled. The Company has been legally advised that though the agreements for cancellation of sales have been entered in to during this quarter (being October to December 2008), but since cancellation of sales pertains to sales recognised earlier, the financial statements of the period during which sales and profits were recognised needs re-construction / amendment, on the doctrine of "Relation back". The Company shall amend the financial statements of earlier years and get the same approved in the next general body meeting. Accordingly no effect in respect of cancellation of sale agreements has been given in the financial statements of this quarter. During the quarter under review the Company has entered in to 53 agreements for cancellation of sales made in the earlier financial years, the sale value of which is Rs 282.14 crores and the resulting loss / reversal of profit recognized earlier being Rs 225.01 crores" (This is all of what Lok Housing earned in the last three years!)
Are financial shenanigans at play here??...and the worst part is accounting policies in India seem to allow it happily. It's about time, accounting of sales for real estate companies is changed. You simply cannot allow companies to book sales in their income statements purely on the basis of a purchase/sale agreement with the real cash coming in after a few months/years and in case of companies like Lok Housing, NEVER!
Update: I have a detailed article on this on Dr.Ajay Shah's blog [link]
Saturday, February 28, 2009
Warren Buffett's Letter to Shareholders for 2008...
Monday, February 09, 2009
Adv hindsight: Peter Schiff got it bang on in 2006...
...on the US economy and the then still upcoming debt crisis. If the video is for real, then one must give the guy huge credit for being able to see what many of his peers could not even comprehend!
...also have a look at the contemptuousness of the other "experts"... and i thought "dissent" was an ugly word only in this part of the world!
source for the link:
http://www.contrarianvalueinvesting.com/2009/02/03/why-wall-street-will-never-get-it-right/
...also have a look at the contemptuousness of the other "experts"... and i thought "dissent" was an ugly word only in this part of the world!
source for the link:
http://www.contrarianvalueinvesting.com/2009/02/03/why-wall-street-will-never-get-it-right/
Sunday, February 08, 2009
P&G's official reply...
...to Rohan Shah's letter has been posted on capitalideasonline.com. Click here to access the letter from P&G's Indian representatives and here to read a previous mention of this letter on this blog.
The message implicit in the response is quite simple:
We will do as we please, but nevertheless thanks for taking the pains to write a letter to us.
We appreciate your effort, but you can take a walk.
The message implicit in the response is quite simple:
We will do as we please, but nevertheless thanks for taking the pains to write a letter to us.
We appreciate your effort, but you can take a walk.
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