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Commentary

Links: IPO to Invest in NSEL, MCX Brokers Demand Cash Back, Gold Stocks Might Be Hit

A quick note to say I’m in the Trader’s Carnival 2013, and my talk is over. If you have any feedback please let me know. Will upload slides soon.

In interesting news, supposedly someone created a small business IPO on the SME exchange, entirely to invest in the NSEL opportunity. This was started on August 1, after the NSEL settlement crisis started. Still, people have put in Rs. 7 crore into this company’s IPO – which, admittedly was not vetted by SEBI. It’s incredible how little research people do before putting their money.

It gets worse for FT, as MCX brokers demand their cash margins back and want an independent audit of that exchange, which shares FT as a promoter (NSEL does too).

That was one of the themes I spoke about. About being cynical. About how it’s difficult to trade fundamentals because you can’t believe balance sheets anymore. And the feedback is that prices are telling us a lot more than results are, and those price signals can be traded. I’m learning new techniques which I hope to summarize in a post soon.

Yesterday’s no “gold on lease” change by the RBI – which I mentioned as upfront-cash only – seems to have hit sentiment at gold stocks, says Business Standard. Gitanjali Gems, after falling from Rs. 550 to Rs. 58, has been recovering recently – this news should take it right back down if it’s really that depressing. But you can never say.

I’m in Pune for the next two days, and I’ll keep posting, but the frequency may be lower. Happy Independence day, Folks!