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Message Icon Topic: Bilcare - A different Pharma company. Post Reply Post New Topic
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FutureBull
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Quote FutureBull Replybullet Posted: 20/Mar/2013 at 11:49pm
well, I have heard some accounting fraud to keep cash flows issues from surfacing. These are rumors only no material to prove it as such. May be pledges shares!
‘The market always does what it’s supposed to — BUT NEVER WHEN’.
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manishwithted
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Quote manishwithted Replybullet Posted: 20/Mar/2013 at 12:34pm
there is something seriously wrong.

The company has been consistently making ( read - reporting) profits all the time. Also last year they sold off one division to some other company - i forgot the amount recd. Also last acquisition they did was in fy 11, since then no major expansion - capex.

Then WHY WHY  their debt is not reducing ????
the finance costs are not reducing  ?????
where is all the money earned as profits is going ???

this clearly shows there is some serious cash flow problem, the profits doesnt seem to be real / flowing to the company????

it is for the invidual investor to decide what to do with his holding but i personally feel the mgmt is not honest and debt is something which can make a company bankrupt. I had sold out at a significant loss after Q3 results, however i dont have any evidence / proof to above, its just things were not making sense.
Long term thinking improves short term decision making - Brian Tracy
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FutureBull
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Quote FutureBull Replybullet Posted: 20/Mar/2013 at 12:53pm
This is another feather in my cap . Karuturi, KS oil and now Bilcare all three headed to being penny stock. I had sold almost 2 yrs back when I felt I was barking at the wrong tree. However, this had all the ingredients of being a good company. Sometimes looking for gems in dust we only get dust in our eyes.
‘The market always does what it’s supposed to — BUT NEVER WHEN’.
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manishwithted
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Quote manishwithted Replybullet Posted: 20/Mar/2013 at 1:33am
one thing i have learned the hard way, if we are investing in high debt company, we should have reasons to believe that the debt will reduce. and one should invest only when there is clear sign that the debt and finance costs are coming down. such companies need to be monitored on a qtrly basis.
in case of bilcare the debt was high due to acquisition and we should have waited for signs of easing of debt befroe making an investment which would be an indication that the business is recovering.

hope i am able to follow in future what i said above.Confused
Long term thinking improves short term decision making - Brian Tracy
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valueman
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Quote valueman Replybullet Posted: 28/Mar/2013 at 10:18am
Seeks BSE probe: Bilcare alleges cartel behind price crash
http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/seeks-bse-probe-bilcare-alleges-cartel-behind-price-crash/articleshow/19267665.cms


MUMBAI: Pharmaceutical packaging material maker Bilcare has asked BSE to probe a 48% crash in its share price last week, in the four trading sessions between Tuesday and Friday.

Bilcare shares crashed to Rs 73 from Rs 143 and volumes at the counter rose exceptionally high to Rs 5 lakh from a previous average of 30,000.

"Strangely, this sharp fall and high volume coincides with mobile message campaign which makes us belief that this steep fall in stock price happens to be a malafide act and managed by parties who are inimical to our business interest," says the letter written by company secretary Anil Tikekar to BSE.

Last week, one of India's largest mutual funds ICICI Prudential exited the company by selling its 11.73 lakh shares, or 4.98% stake, in the packaging material maker. ICICI Prudential spokesperson refused to comment on the share sale.

A fund manager, who did not wish to be named, said a few of the institutional investors raised questions over the financials published by the company over the past few months. These investors pressed the panic button after they failed to get satisfactory answers from the company.

A company spokesperson, while denying all allegations, blamed the bear cartel for the sharp fall in share price.

"This seems to be a vested-interest activity to malign the company and hence we have written to and requested the BSE to investigate the precipitate fall in our stock price," said a company spokesperson in a reply to ET queries. "As the leader in pharma packaging and with a global presence, Bilcare follows the highest corporate governance norms."

The stock, which hit a record of Rs 1,830 in January 2008, rose 10% to close at Rs 84 on Thursday.

India's billionaire investor Rakesh Jhunjhunwala owns 8.51% in the company as on December 31, 2012, according to filings to the exchange. The other major investors include Deutsche Bank (8.96%), Merrill Lynch Capital (1.67%), Monument Pte (7.48%) and UTI MFFund (1.35%).

Its promoters have reduced pledged shares from 95.3% to 9.3% in Q2 of FY13. It reported a 4.2% rise in net sales to Rs 2,784 crore for the nine months ended December 2012 over the same period year ago and its Net profit declined 27% to Rs 25.22 crore. 

To achieve satisfactory investment results is easier than most people realize ; to achieve superior results is harder than it looks .
Benjamin Graham.
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subu76
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Quote subu76 Replybullet Posted: 29/Mar/2013 at 3:37pm
Originally posted by FutureBull

Sometimes looking for gems in dust we only get dust in our eyes.


Master worthy statement for sure.

Generally speaking most of my money has been made in high quality companies but I do try to find gems in the dust all the time with very mixed results and limited conviction
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tigershark
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Quote tigershark Replybullet Posted: 29/Mar/2013 at 9:22pm
avoid businesses who ask for sebi probe when stock hits all time low- another another rough rule to investing.wonder why this same management didnt ask for sebi probe when the stock hit 1800(defying all fundamentals)
understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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