Delisting proposal price:11455 rs
"Warren Buffett Quote":I never attempt to make money on the stock market.I buy on the assumption that they could close the market the next day and not reopen it for five years.
Story:The above quote finds much resemblance to the story of an unknown counter called Elcid investments.If you have invested 10000rs in elcid investments much less than couple of years ago it would have vaulted to over 4crs now(4crs 20 lakhs to be precise).The company which last traded at 2.73 rs on September 19,2011 recently announced a voluntary delisting offer at 11,455rs per share.The floor price was arrived at as per the valuation report dated February 20 of SSPA & Co, Chartered Accountants.For the financial year ended March 2012, the company reported a net profit of Rs 10.26 crore on a revenue of Rs 10.64 crore. Earnings per share for FY12 stood at Rs 512.80.Promoters presently own around 80% of the equity cap.The company boasts of 229 retail shareholders who by now are having extravagant grand celebrations.So stock market isnt that bad a place as overscrupulous brag about.Its hard to find an elcid investment but provided you are right about few basic stuff,you ought to smile big in the longer horizon. When companies are making losses,be it an existing company or a new company,investors shy away from the stock and wrongly extrapolate the current condition well into the future.So much so,that asset prices go significantly below the replacements costs.Problem is that people understand price and hardly bother about the "value" in the market.Elcid too on the first glance gets immediately dismissed but once you dig about its holding and intrinsic value,your eyes would lit up.So you see even if a company is not making profits it can well be the next success story.But thing is that you would need to have patience in clinging on to them.They can very well disappoint you bigtime with their underperformance in a good period but over the long run they would make you a hell lot wealthier.