Insider Information - Informed Intelligence!
Printed From: The Equity Desk
Category: Market Strategies
Forum Name: Fundamental
Forum Discription: Discuss the operations and finances of any of your companies.Make the other participants aware on the investment opportunities available in a stock on PE free cash flow etc
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1250
Printed Date: 04/May/2025 at 8:57am
Topic: Insider Information - Informed Intelligence!
Posted By: smartcat
Subject: Insider Information - Informed Intelligence!
Date Posted: 01/Oct/2007 at 3:55pm
|
Reliance Energy was a stock that was flying under the radar for many years now. Suddenly, it started moving from Rs. 500 to Rs. 1200 almost vertically. Only after that did the news come out - that Reliance Energy is coming out with India's largest IPO ever.
Obviously, people in the top management (insiders) deliberately or unintentionally leaked this information to certain investors. Either that, or the merchant bankers let their top customers know about this beforehand.
Whatever it is, this sort of insider information really helps a set of investors - those with connections and those with a big purse. Our own member Ritesh's brokerage house knew about NIIT Tech's PE deal beforehand. So obviously, this kind of insider information leaks happen quite often.
So perhaps http://en.wikipedia.org/wiki/Efficient_market_hypothesis - Efficient Market Hypothesis theory is relevant - that the price of a stock already reflects all known/unknown news and information
|
Replies:
Posted By: catchsudipto
Date Posted: 01/Oct/2007 at 4:37pm
|
those with connections and those with a big purse
-------------------------------------------------
I have also heard about it many times. But I always try to avoid those kind of news ( bad or good) and may be missing many oppertunities. But i am happy to miss those.  ------------- Make your Life as simple as possible. |
Posted By: smartcat
Date Posted: 01/Oct/2007 at 4:45pm
| Ideally, I would have liked Rel Energy's management to announce on TV that they are planning to come out with an IPO, as soon as the idea was conceptualized. This kind of information dissemination will level the playing field a bit. |
Posted By: s_praharaj
Date Posted: 02/Oct/2007 at 1:10pm
|
This I think is a tactics of the management to price their shares high in IPO. They leak the news, take the price to a great height and price their IPO accordingly. ICICI Bank also did the same thing. If we can find out, persons close to ADAG group might have cornered the stock. ------------- Shashi Praharaj |
Posted By: basant
Date Posted: 02/Oct/2007 at 1:55pm
|
Best thing to watch out would be Reliance MF holdings for August - September 2007! Did kela get the bananas before any one else? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: monu_duggad
Date Posted: 03/Oct/2007 at 7:47pm
|
Basantji He is smart enuff not to keep any holding of Rel energy in his Mf lest he provocate Damodaran... You think Rel energy share went up like rocket without the knowledge of insiders ....obviously some merchant bankers (and there are host of them if u take a look at there DRHP which they filed today) would have leaked the story to there institutional clients obviously after front loading....and then market lapped it up with both hands....with retail guys being the last to join the party to capture the last 5-10 % of upside... funnier thing to understand is....how come nobody knew of this impending ipo of rel power ...i mean this entire process of selecting merchant bankers etc takes long time..so markets shud have got a whiff of it long back...i mean its not possible to just come out with info on ipo and then in 2 weeks BINGO...the price is up 100 %...i am sure people in the top management would have known about this ipo atleast six months - one year back...wud be interesting to check there (friend's,relative's etc) demat accounts ;) anyways everyone knows that the entire group is a chor (with due respect to the wealth that they have created)..so wht one can do is..participate in that newsflow and earn whatever one can :-)... Mr Marathon is buying 1.4 crore shares in the ipo...wht he wud have done is...loaded himself up with Rel energy at 500-600 Rs...leaked the news of ipo now....sold of his shares at 1200-1300....and use this money to subscribe to the 1.4 crore shares of Rel power...
can anyone enlighten me....tell me any country where a corporate house can run his own asset management company ?
while we are at it...look at Rel Cap....with the way price has gone up 14 % on monday...am sure there is some news coming on it...with privileged few having got smell of it already.... hamam me sab nange hain especially when we have such a lax and teethless regulator who unearths scams only in hapless stocks like Ballarpur etc....thats why its easier to move Indian markets at the whims and fancies of few operators and corporates ....
------------- If you think you can,You Can |
Posted By: monu_duggad
Date Posted: 03/Oct/2007 at 7:56pm
|
And yeah....market is abuzz with the talk that...Marathon bought Rel energy shares with the help of P-Notes :-)...
Interesting thing is...nobody in the brokerage space has the guts to come out with "Sell" report on Reliance group shares...(Citi did a week back..put sell on Rel Energy at 1100.....and lost out in the Rel Power ipo where all and sundry has been given the mandate..who knows..perhaps they came out with sell cos they havent been given the mandate :-) )...even at 1804 ...no one will ask u to sell RCAP...when everyone knows SOTP for RCAP in fy09 works out to 1890 that too after assuming the most optimistic set of scenarios...
RPL..at 160...everyone is waxing eloquent on how he is running ahead of time and all that...but no one realizes ...we r giving it a market cap = market cap of (bpcl+hpcl+iocl) without producing a drop of oil....and same set of people were saying..."u know...till dec 08 ..RPl wont move much from its ipo price"...
RNRL...what can one say about it...
time has come...where ambani just announces he is getting into xyz
business...and market is ready to reward with 10-15 billion $ mcap...
~ i dont have any reliance shares.....u can say its the case of "Sour Grapes" ------------- If you think you can,You Can |
Posted By: kulman
Date Posted: 03/Oct/2007 at 8:18pm
|
Monu jee
That's a nice observation: nobody in the brokerage space has the guts to come out with "Sell" report on Reliance group.
Perhaps Dhirubhai's memories (of early 80s) still haunt brokerages!!!
By the way, you seem to be very regularly irregular on TED! Busy? Clean-up your PM inbox.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: kg
Date Posted: 03/Oct/2007 at 9:54pm
|
My friend in MF told me that Rel Power is owned 49% by Anil Ambani and assosciates . He had won the Sassan Bid thru Rel Energy and now has put the venture into an entity which he owns ...isnt it a loss to the shareholders of Rel Energy ...( i am jss bein greedy...) ------------- Lets rock |
Posted By: deveshkayal
Date Posted: 03/Oct/2007 at 10:35pm
|
Rel Energy holds 51% stake in Rel Power....Rel Diversified Power holds 7.2% of its assets in Rel Energy. But the Fund Manager has been holding since long. Rel MF Fund Managers are very bullish on Ambani brothers. Go back to CNBC's interview of Madhu Kela.
I think its the investment bankers who leaks out the information. But in some cases the information is false just to jack up the price. For excercise write down all the EXCLUSIVES of CNBC and see for yourself. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: basant
Date Posted: 03/Oct/2007 at 10:39pm
|
Most of the exclusives at CNBC are off target - I also thought that way God knows why?
BTW a cousin of mine sent me this SMS:
ADA group = > Anil Dhirubhai Announcement group. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: smartcat
Date Posted: 03/Oct/2007 at 12:34pm
Hey! I'm offended.
But I agree.
|
Posted By: PKB2000
Date Posted: 03/Oct/2007 at 1:01am
Being a TED fan ON 05-09-2007 I INVESTED 10000 RS In Reliance media and entertainment growth fund and after almost a month my income is only 80 rs
Whereas my wife invested on Reliance div powersector gr fund same amount on same day and she is getting 1100.00
I do not tell her the latest postion and do not want to do so as long as possible. Will reliance MF not give any pleasure to the media loving people!
The worst is KOTAK LIFE STYLE fund. for past eight months it has given hardly any return to its investor. Surprisingly ET projected a great prospect about this life style fund! To whom should we follow, The taus at CNBC or the news paper! ------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: johnnybravo
Date Posted: 03/Oct/2007 at 11:25am
|
I too was invested in Kotak Lifestyle based on what Nilesh Shah and Uday Kotak had to say about the consumption boom story etc etc....But I never found the fund to be actually addressing this a few months back. Interestingly, the present top 10 of the Ktk LifeStyle fund has the following stocks: Reliance Comm Telecom Sun Pharma Pharmaceuticals Bharti Airtel Telecom ICICI Bank Banking/Finance Indian Hotels Services United Spirits Food & Beverage DeccanChronicle Media Rel Capital Banking/Finance HUL Cons NonDurable HDFC Bank Banking/Finance And all of these indeed seem to be good (and most of them are TED favorites)...So what's really wrong with the fund??? Probably they remember of their theme only when the markets are on a rise, they invest in lifestyle stocks at the peak! |
Posted By: basant
Date Posted: 03/Oct/2007 at 11:53am
|
"Wrong" is the fund manager's appetite to be risk averse. Stocks like HUL and Indian Hotels lend stability (underpeformance).
Also if you look at the bottom of their portfolio they had a large number of nothing stocks.
Initially I was also upbeat onn the Lifestyle fund. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: monu_duggad
Date Posted: 04/Oct/2007 at 6:05pm
|
how to clena up inbox...
thoda busy tha...
since we r at ambani brothers....did u notice Jai Corp (am sure everyone
wud have)...1600 to 16000...isnt it a phenomenal journey...
and if sources r to be believed...Rel Infra is also catching up :)......expected to reach 5000....lets see...
------------- If you think you can,You Can |
Posted By: PKB2000
Date Posted: 04/Oct/2007 at 9:18pm
|
"Reliance Energy - Reliance Power Limited files Draft Red Herring Prospectus with SEBI ----Kotak Mahindra Capital Company Ltd, UBS Securities India Pvt Ltd, ABN Amro securities (India) Pvt Ltd, Deutsche Equities India Pvt Ltd, Enam Securities Pvt Ltd, ICICI Securities Ltd, JM Financial Consultants Pvt Ltd & J P Morgan India Pvt Ltd are acting as the Book Running Lead Managers to the issue ------------" Only one name SBI that I did not find in the above list. So many population behind one! God knows where that will take us! ------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |