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Posted: 22/Mar/2008 at 11:10am
Originally posted by nitin_jagtap
Yes one latest and classic example ..is Yes Bank
Indeed a classic example. Weren't markets (including us) just couple of months ago enthused with heavy speculation that the next QIP would be done between Rs. 350~400?
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Posted: 22/Mar/2008 at 11:17am
"Though preference shares do not have the voting rights, Preferred shareholders always receive their dividends first and, in the event the company goes bankrupt, preferred shareholders are paid off before common stockholders"
Could this be a reason promoters are opting for the preference shares (particularly those who already have comfortable controlling stake)?
Diversification is protection against ignorance, it makes little sense for those who know what they’re doing.
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Posted: 22/Mar/2008 at 11:27am
Indeed a classic example. Weren't markets (including us) just couple of months ago enthused with heavy speculation that the next QIP would be done between Rs. 350~400?
Count me in that list. But at that time what we forgot was Yen going past 100 and some serious knock outs that follows after that
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Posted: 22/Mar/2008 at 11:37am
It may be good to look at companies which raised good cash from QIPs or Preferntial whaeter just before the markets reversed directions....if that was to fund capex for say next 1 to two years....these companies are at twin advantage:
a. no need for them to bother about markets down in short term...already funded with very less equity dilutions...
b. their competitors if they missed rasing money at hieght of bull run wiull now have to go for relatively higher dilutions ...also may be able to grow lesser than those who alreadfy funded thyemselves.
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Posted: 23/Mar/2008 at 12:06pm
Originally posted by bharti
It may be good to look at companies which raised good cash from QIPs or Preferntial whaeter just before the markets reversed directions....if that was to fund capex for say next 1 to two years....these companies are at twin advantage:
a. no need for them to bother about markets down in short term...already funded with very less equity dilutions...
b. their competitors if they missed rasing money at hieght of bull run wiull now have to go for relatively higher dilutions ...also may be able to grow lesser than those who alreadfy funded thyemselves.
I think PGCIL too did a Placement at around 130 when the stock was at 115.
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Posted: 19/Jul/2008 at 11:53am
Originally posted by bharti
It may be good to look at companies which raised good cash from QIPs or Preferntial whaeter just before the markets reversed directions....if that was to fund capex for say next 1 to two years....these companies are at twin advantage:
a. no need for them to bother about markets down in short term...already funded with very less equity dilutions...
b. their competitors if they missed rasing money at hieght of bull run wiull now have to go for relatively higher dilutions ...also may be able to grow lesser than those who alreadfy funded thyemselves.
Exactly my thoughts. And probably the reason I added Cords Cable Industries, Precision Pipes, Sunil Hitech at current prices.
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Posted: 10/Feb/2009 at 7:26pm
We know Buffet boughts Preferred Stocks in Goldman Sachs worth $5 billion... How does that work??? The company dilutes equity by issuing more shares for Buffet??
If predictions were true then stock markets wouldn’t be this exciting!
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