10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Tuesday, September 20, 2011

Wall Street Finance Ltd:-Buy/sell/,growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger

Calls review:Wall Street Finance Ltd
Suggested sell price:66(14.12.08)
Present price:18

Scripscan:Wall Street Finance

Story:In a carefully carried out plant, the guys behind the Wall Street Finance stock placed a release in a pink daily which confirmed its acquisition by an ADAG concern. Financial terms were not disclosed, neither was it disclosed whether the Patel family (current owners) have moved out already ceding management control to ADAG or this has to be done. More importantly, it was not disclosed whether the take-over consideration will be paid through Stock or Cash and if at all there would be an open offer to acquire the Wall Street Finance shares from the public or swap them with the shares of the unlisted Reliance Money Express stock.Looking at the pitiable financials of Wall Street Finance, one wonders who has been the Greater Fool in this acquisition. Is it Reliance Money Express and hence Anil Ambani by default or the Patels who were either disinterested or never ever knew how to run the Financial Services, FXConversion and Money Transfer business. Considering that Q1 Revenues for Wall Street Finance were a mere Rs 8 crore, with after tax profits of Rs 40 lakhs and a non annualised EPS of just 38 paise, it seems the "Fool" in this deal has been Reliance Money Express.The ADAG consortium is too Big to need a piffling, ludicrous, 38 branch operation of Money Transfer and FX conversion set up under Wall Street Finance which any small Lala is in a position to set up and run. So it is surprising that they even bothered about this useless piece of crap, which they could have done without considering that they already run a 9000 branch operation under Reliance Money.In any case the record of listed Forex changers in India has been poor throughout the past 20 years. LKP Forex got sold to Thomas Cook and Thomas Cook got sold to the Gulf Sheikhs. When concerns like LKP Forex and Thomas Cook could not make any money in this business, it quite possible that no one else can. Afterall, all these FX converters do is to make small commissions on currency conversions, and even smaller commissions on carrying out Money Order type of Post Office operations.At the same time all these currency changers carry massive amount of overnight Risk on currency fluctuations on Money in the pipeline and Money held as Stock in the form of Travellers Cheques and Currency Notes.To me it seems the stock is worthless, and inspite of Mr.Anil Ambani's track record in selling R-Power and RNRL to the mass public, this will be another shabby front like Adlabs, Rcap, Reliance Infra and Reliance Industrial Infra who's only purpose in life is to compete with larger industrialists without having a core, structured team on the ground. The Wall Street Finance deal is worth pennies for Mr. Ambani and is more like getting rid of a rather rabid type of persistent itch. Sell the damned stock, the Rs 80 crore market capitalisation is just too big to worth a concern that does nothing and has no future.

Present update:From Patels to ADAG and now to BK Modi group but the story changes from bad to worse.The company changes hand everytime only to disappoint the hopeful investors.It made losses for fy11 and future looks bleak.I know a few people aren't that happy on my calls review as they feel my timing was superb on all of them.Sensex moved hence everything moved.But that's not the case people as just like my buy suggestion I have penned a lot of sell suggestions too.Wall street finance has been a major nightmare for investors who have bought that company at such huge levels.As can be seen it has tanked by 70% from my suggested sell price.At present levels, hoping against hope, its a hold but do sell whenever you get a good rally in it.

No comments:

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner