Honest 836 Report post Posted February 10, 2011 ADAG blames rumours as stocks tank The Times of India l 10 Feb l Mumbai Stocks of companies from Anil Ambani's Reliance (ADA) group were hammered on Wednesday on the back of rumours as well as news reports suggesting that the Institute of Chartered Accountants (ICAI) was looking into their accounts. At the close of trading, group companies like Reliance Infra and Reliance Power lost over 14% each. Investors in all the ADAG companies together were poorer by about Rs 11,500 crore. After the market close, a group spokesman said its corporate rivals were yet again spreading baseless rumours to affect investor sentiment. The spokesman said the group has already approached market regulator Sebi for an investigation into the crash. It started during afternoon trades, when a news channel reported that ICAI was looking into allegations that two ADAG companies — Reliance Infra and RNRL — had used funds raised through foreign currency bonds in the stock market, classified them as 'yield management certificates/deposits', and misrepresented them in the annual reports. At the same time, there were reports that group chairman Anil Ambani was meeting telecom minister Kapil Sibal about the investigations in the 2G scam. Both reports affected market sentiment and all the seven ADAG stocks tanked, with Reliance Power crashing to a new all-time low at Rs 91 on the BSE in intra-day trades before closing at Rs 95, down 14.3%. Among the other ADAG stocks, Reliance Infra lost nearly 19% to Rs 535, Reliance Capital was down 14.1% at Rs 413 and Reliance Power was down 9% at Rs 113. Compared to these slides, the benchmark BSE sensex closed a little over 1% off. Dealers said there was no particular negative news about the group that could have led to such panic selling in the ADAG counters. After close of trading, a release from ADAG said that several "completely baseless and motivated rumours" were being spread by the group's corporate rivals, which was accompanied by "vicious and illegal bear hammering of (ADAG's) listed stocks, to create panic and destabilize the markets". The release added: "We have made a formal complaint to Sebi and the stock exchanges to immediately investigate these illegal trades, and take appropriate action to safeguard the interests of our over 11 million investors." Share this post Link to post Share on other sites
city02 63 Report post Posted February 11, 2011 and i thought i was so clever when i started buying at rs. 255/= thinking it was reaching a bottom in 2008 even though i brought my avg cost to about rs. 170 i'm still screwed! debating if i should try to 'catch a falling knife' and further reduce avg costs below rs. 150 or not any other 'losers' stuck with rcom out there? ADAG blames rumours as stocks tank The Times of India l 10 Feb l Mumbai ... Share this post Link to post Share on other sites
sarang 0 Report post Posted February 11, 2011 (edited) 800 to 90 in 3 years. CDMA, GSM, 3G, Data, All India Optical fiber and tower network, Flag telecom network...... Yes, other telcos too are not doing well but it seems Rcom is getting beaten out of shape. Does it say something about its future? Edited February 11, 2011 by Honest << Topic Merged >> Share this post Link to post Share on other sites
Honest 836 Report post Posted February 11, 2011 << Topic Merged >> Share this post Link to post Share on other sites
kkdeep 6 Report post Posted February 11, 2011 stuck at 442 Share this post Link to post Share on other sites
Arun 795 Report post Posted February 11, 2011 any other 'losers' stuck with rcom out there? Sure do, I am not sure how much it is going to bottom out in this free fall to think about averaging Share this post Link to post Share on other sites
KumaarShah 143 Report post Posted February 11, 2011 Yet another comedy movie waiting to be scripted by our Rajan Mehta........ Sorry Rajan, don't get offended, just joking.... Share this post Link to post Share on other sites
vishalmcp 8 Report post Posted February 11, 2011 guys i think, this is the right time to average out your buying in the stocks, if purchased at very high price.... Share this post Link to post Share on other sites
rajanmehta 4,056 Report post Posted February 11, 2011 Was thinking of posting my view here and then come across this on the net... The time to buy is when everyone is selling. Just buy rcom now. Forget about it for one or two years. It doesn`t matter where it will go from here in the short term. In the medium to long term rcom will easily triple from current levels even with the existing net profit. Let us say net profit doesn`t change and remains stable. Even then rcom is worth at least double if not triple current levels. It is currently selling at a trailing p/e of only 6. Not forward p/e but trailing p/e. In a bullish scenario we see a trailing p/e of minimum 18 and possibly 24. So rcom can even quadruple from current levels with the existing net profit remaining unchanged over a two to three year period. They have to barely pay 100 crores in extra spectrum fees. That is less than 50 paise per share value. So what`s the problem. Forget about where rcom will go in the short term. In the medium to long term you will at least double your value and most like triple your value. You can even quadruple your value from current levels. Buy now and you will not be sorry in about one to two years. Just remember to thank you when you make lot of money. Price when posted : BSE: Rs 91.70 ( -5.02 % ), NSE: Rs. 91.75 ( -5.02 % ) about 8 hrs 17 min 8 sec ago 1 Share this post Link to post Share on other sites
digitalnirvana 646 Report post Posted February 11, 2011 Hosni Mubarak has just left the country, expect markets to move up on cue. 16.19 People falling to their knees, crying. Others setting off home-made fireworks after 30 years of Mubarak ends with a 30 second statement. 16.18 The US stock market has surged after news of Hosni Mubarak's departure. The Dow moved from an early slight loss to add 0.30 percent, while the Nasdaq also rose 0.30 percent. 16.17 Reports now confirming that it will be the military taking over from Mubarak not Omar Suleiman. 16.14 Richard Spencer is amongst the cheering crowds in Cairo. He reports an immediate uproar with the streets full of cars honking their horns. "Immediate uproar from tahrir square - i am near it now and now the streets are full of cars honking horns. incredible moment. And of course the inevitable question - who's next?" 16.11 Many saying this is the most important moment they have ever experienced. Amira Salah-Ahmed tweets: "THIS is the most important moment we have ever experienced...we just ousted a dictator! #egypt" 16.05 Reaction on Twitter now. Cries of "we are free". Zeinobia tweets: "The army council is ruling the country now , I got tears in my eyes , we are free , yes we are free." 16.04 The crowd has erupted into a sea of cheers. Jubilation that the embattled former president Hosni Mubarak has finally gone. 16.03 Omar Suleiman is now speaking saying Mubarak has left. A very brief announcement. Share this post Link to post Share on other sites
Sadikk 301 Report post Posted February 11, 2011 Dont do that.. swan DB mess is actually very deep.. if government made them pay more, scrip will bleed further.. new very small quantity entry with some extra cash in bank to average out is suggested.. Its risky.. bigger the risk charges of bigger gain.. IMO. bought 300 of these in 99. 1 Share this post Link to post Share on other sites
Sadikk 301 Report post Posted February 11, 2011 Hosni Mubarak has just left the country, expect markets to move up on cue. hosni left is bad news for US and allies.. and further bad news if al-beriedi come in power... Share this post Link to post Share on other sites
digitalnirvana 646 Report post Posted February 11, 2011 ^ That is true but he had no other option, the US effectively asked him to move out when Obama refused to back him. The region will now move from autocracy to Iran like religious extremism, bad for Israel, US, India etc. Share this post Link to post Share on other sites
Karthik R 246 Report post Posted February 11, 2011 Anil Ambani group said it has identified stockbrokers behind the spread of malicious rumours and "baseless sensational charges" against it and sought immediate action by SEBI against the perpetrators. Share this post Link to post Share on other sites
vvinayakpai 26 Report post Posted February 11, 2011 Each time his share prices nose dive, Anil AMbani addresses the media stating that a CARTEL IS AT WORK and also shoots letters to SEBI asking for an investigation!!!!!!!! My question is why are ADAG stocks being the target of "cartels" as Mr. AMbani calls them? In fact they are the worst performing stocks, so what is the need to form a cartel to beat them down anyway???? Share this post Link to post Share on other sites
Honest 836 Report post Posted February 11, 2011 ICAI asks ADAG cos to clarify misclassification of accounts The Economic Times l 11 Feb l New Delhi Accounting regulator ICAI today said it has sought clarification from the ADA Group companies RNRL and Reliance Infra on the issue of "misclassification" in their accounts as pointed out by market regulator Sebi. "We have sought clarifications as to why this consent order (by SEBI) has gone. If the consent order had not mentioned accounts, we would not have sought clarifications," ICAI President Amarjit Chopra told reporters on the sidelines of ICAI Annual Day celebrations. Last month Sebi passed a consent order saying that its probe has revealed that prima facie RNRL and R-Infra were responsible for misrepresenting the nature of investments in yield management certificates/deposits and profits and loss accounts thereof, in their annual reports for fiscal years 2006-07, 2007-08 and 2008-09. The order asked the two companies to implement the policy of rotation of statutory auditors "and therefore the statutory auditors of March 2010 shall not be re-appointed for period of three years from March 2010-11." "The consent order clearly refers to accounting issues involved. It speaks of three things-- one is misclassification of nature on investments, second wrong booking of profit and loss and third why auditors have not been re-appointed," Chopra added. He said ICAI has sent letters to the two companies as well the auditors involved. Stocks of various companies belonging to the Reliance Anil Dhirubhai Ambani Group have fallen sharply in the past few weeks and the group has blamed corporate rivals, a cartel of stock market manipulators and "rumour mongering" for this heavy sell-off. While the group has already sought an investigation by Sebi, the stock exchanges and investigation agencies into the matter, the Group today said it has "identified stockbrokers sending mass e-mails/SMS/voice calls with baseless sensational charges against ADA Group." Share this post Link to post Share on other sites
theking 35 Report post Posted February 12, 2011 http://www.asianage.com/india/reliance-gets-sc-rap-over-amar-phone-tap-007 New Delhi, Feb. 11: The Amar Singh phone tapping case took a new turn on Friday, with the Supreme Court taking serious view of the Reliance Communications putting his phone on surveillance on a forged letter of the Delhi home secretary, and asked the Centre why the licence of the service provider was not cancelled for such a casual approach. Pointing out at least eight grammatical and spelling mistakes in the letter bearing the date of November 9, 2005, and forged signature of the then Delhi government home secretary, Mr Ramesh Narayanswamy, a bench of Justices G.S. Singhvi and A.K. Ganguly, told the Solicitor General, Mr Gopal Subramaniam, that no service provider could be allowed to get away with such a lapse as it would put the freedom of an individual in “jeopardy”. “Any service provider will not act on this kind of communication, it is gross negligence. It either has been done deliberately or they are incompetent enough to act on an order full of mistakes. Why did you not cancel its (Reliance) licence? You should have cancelled the licence per se on such an order full of mistakes coming from the home secretary, who is a high ranking IAS officer,” the court told the Solicitor General. The apex court pointed out that when several people in the country were raising serious questions on phone tapping, no service provider could be allowed to function in such a casual manner. “Tomorrow if the telephone of Chief of Army staff is given to some terrorist organisations and his conversation is transferred to some other country what will happen to this country? This way any body’s communication can be intercepted by a unscrupulous service provider,” the bench observed. While SG acknowledged that it was a “serious lapse” on the part of Reliance, the service provider’s lawyer will respond on February 14 to the apex court’s query. ------------------------------------------------------- My hard earned money... The king is dead...long live the king! 1 Share this post Link to post Share on other sites
Karthik R 246 Report post Posted February 12, 2011 Reliance acted like a criminal, forging documents and all. And I guess the letter was written by Rcom's very own illiterate customer care executives. Share this post Link to post Share on other sites
