Dear Mr. Basant,

Now I would like to give a detailed explanation for my views above hoping that you will take it in good taste:

1) Schablona: I am not sure what the company does but I has 2000 shares from the sin I committed in the Harshad Mehta times. The stock was  delisted and I finally sold it off at Rs15.00 last year. Any management that has to see its stock delisted for over 12 months is not share holder friendly.

a) We all invest into the markets because there is liquidity and the management that cannot take care of creating liquidity through legal means is appalling otherwise we could have put that money into our brother-in-laws project.

b) Any company that has gets into  restructuring mode is bad. This is another way of washing off old sins.

c) If I can recall correctly this promoter group has multiple entities listed in similar or associated businesses. That again is incorrect. Why not have one company that does all the back end and front end.

Without asking you I am sure you are holding this company for more then 5 year or if anyone else is ask him how much CAGR he has made on this investment. I bet you have lost money over a 10 year period. Even the Govt.  double money in 7 to 8 years. 

2) Not sure on Varun but I would rather put my money in a GE shipping rather then in a Varun or an SCI. consider this if tomorrow you had two of your neighbors one an IIM Grad and another a simple second grade B School pass coming to you for a loan of Rs 100,000 and if  that was all you had what would you do:

a) divide the money among them

b) refuse to loan out any money to the second grade grad and provide the full cash to the IIM  grad.

I am sure you would have followed (b) above. That is how I think for stocks also.

3) Albert David: See these companies belong to managements that has made money in protectionist, biased, beurocratic, license raj regimes. As soon as the economy was opened they faltered. I think Albert David is a commodity player in pharmaceutical industry they probably make IV Fluids and very simple  items that can be made by any one else. What is the specialty? See how many R& D Engineers they employ and what their percent of sales they spend on research is. You will have the answer. A Pharma company’s life span is directly proportional to how much it spends on research otherwise it is a akin to a commodity company.

In all the 3 companies that I discussed tell me the 10 year CAGR on an original investment made in 1996 and you will know what i am talking about.

If you want I can write about the other ones also.