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Sunday, July 08, 2007

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Views abt PSUs

Heavy weight...ONGC - white elephant...but is it worth your the article in Business Today (apr 2006)..which clearly shows the money laundering going on on ONGC which can be safely generalised to other PSUs like IOCL, BPCL etc etc...there is so much wastage of resources...manpower something really dangerous...ONGC has made no significant gas find ever after Bombay High...ONGC is heavily over paying for various machines..rigs..and other compared to common sensical market price !!!few months back i read another article...tht (with no disrespect to profession) - peons...floor clearners in these PSUs are earning Rs.20000 p.m ( m not against equality of wages but wat abot merits) and above because of the simple reason tht thy hanged thr for 20 years or so, Privatisation is the only way to save these co.s other wise god only much of shareholders wealth...govt be spent on these monsters !

Network 18 - a media conglomorate in the making !!
According to the 2007 PricewaterHouse Coopers report on the Indian media and entertainment industry, film entertainment is estimated at Rs 84.5 billion and projected to grow to Rs 175 billion by 2011.

Network 18, the holding company of TV 18, Global News Broadcast, Web 18 and Studio 18, is investing $10 million in a new entertainment company - The Indian Film Company, to be listed on the Alternative Investment Market (AIM) of the London Stock Exchange by mid-May 2007.

The point is whether -Network 18 will be holding co only all the time - or does it plan to enter into any real business as well that will be a key issue which co. will decide upon!!

Wats the point in making holding co a listed one - just to raise funds onli !! a knidda SPV !!its like VSNL and MTNL n Infy having prime land - at cheap rates !! but thy will never/rarely sell those assets !! similar wud be the case with holding co.s as well - thy mite never sell those holdings and due to no business - even if thy sell wat will thy do with tht cash/asset neways - re-invest in holding business again !! so its the business whichs growing - so why the holding co - Mcdowel Holding, UB Holding, JSW Holding, NW18 fincap etc etc !!! merely to create value and keep business within family and hence wealth for Promoters !! So, there has to be game plan which will unfold slowly n steadily !!

Lotta MFs n FIIs are already into this stock, which reduces the liquidity to certain extent (June 2007)!!Oflate the movies produced by NW18 has not been doing good either !!Yatra n Homeshop are very tiny business as of now with fierece competition n unless something really good turns out for studio18 or IFC, NW 18 mite hover ard these levels, its still 20% lower thn its all time high whereas Indices are near all time high !!

Overall the best part if -Management !! n thts the most imp aspect rather than EPS growth or FII holdings etc. Because its the people who run the business and if they are convicted, no matter what mkt conditions are they will survive all odds and will deliver results !! thats what i expcted from TV 18/Nw18 group in next 2-5 years !!

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