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General

On Slack: Myntra blinks, Snapdeal buying Housing.com, Spectrum Auction destroyed sector, Flipkart valuation, Droughts in Decades, Dhanlaxmi Bank and much more…

The Slack Discussions

The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there, pop us a note by replying to this email. (If you’re a trial member this probably sound like Greek to you; it will be available when you sign up!)

A brief summary of some of the interesting things discussed there in the last few days:

Slack Logo

#general: Wall Street values Tesla Motors at $620,000 per car

Company founder and CEO Elon Musk may not mention Tesla Motors Inc’s (TSLA.O) stock price when his electric car company gives its latest financial update on Wednesday, but it will be front and center for investors divided over its seemingly rich valuation.

After a rally that ended in April, Tesla’s market capitalization is currently about $31 billion – equivalent to $620,000 for every car it delivered last year, or $63,000 for every car it hopes to produce in 2020. (Link)

#general: Tax payment: There are just 18,359 (taxpaying) crorepatis in India

Consumption and spending data for the year, especially of luxury products, shows how deceptive these numbers may be and blows holes in the government’s official estimate of the number of taxpayers. (Link)

#general: Myntra blinks, to relaunch desktop site on 1 June

Myntra expects 15-20% of its sales in this financial year to come from the return of the website.(Link)

#general: What It’s Like to live in the World’s Most Polluted City

Delhi, the capital territory of India, is home to unbreathable air and undrinkable water. (Link)

#general: Cracks in a state

Maharashtra’s social contract is fraying. Its political elites cannot comprehend, or handle, the situation. (Link)

#stocks: Parag Milk raises $52M from anchor investors

Dairy firm Parag Milk Foods Ltd has raised Rs 342.86 crore ($52 million from a clutch of anchor investors including sovereign wealth funds of Norway and Abu Dhabi. Other investors include funds under Nomura, Morgan Stanley, Tata MF, Neuberger Berman and Quantum.

It finalised the allocation of 15.1 million shares to the anchor investor at the upper end of the Rs 220-227 price band. (Link)

#general: Snapdeal close to buying Housing.com for $50-$100 mn

According to sources and investment bankers, the talks for the deal were on since December and the deal could be finalised for $50-100 million, the publication said. (Link)

#general: Telecom companies claim spectrum auction has destroyed sector; returns on investment less than 1%

Telecom companies, which have appealed in the Supreme Court against a High Court ruling upholding the regulatory body’s decision to slap call drop compensation charges on them, on Tuesday claimed that the 2G ruling mandating spectrum auction had virtually destroyed the sector and left them mired in debt. (Link)

#general: Google, Fiat Chrysler to partner on self-driving minivans

Alphabet Inc’s Google unit and Fiat Chrysler Automobiles have agreed to work together to build a fleet of 100 self-driving minivans in the most advanced collaboration to date between Silicon Valley and a traditional carmaker, the companies said Tuesday.

The deal marks the first time that Google has worked directly with an automaker “to integrate its self-driving system, including its sensors and software, into a passenger vehicle,” the companies said in a statement on Tuesday. (Link)

#general: Flipkart valuation marked down by two more investors

Fidelity fund marks down Flipkart valuation by as much as 39% from August. (Link)

#macronomics: India Is Suffering One of Its Worst Droughts in Decades

Hundreds of millions of people in India are grappling with one of the nation’s worst droughts since independence, following two years of poor rainfall and the onset of intense summer heat. The upcoming monsoon is expected to bring some relief, but a longer term challenge looms from competition for scarce groundwater and surface supplies among farmers, industries and cities. (Link)

@Rayner_Teo – Staring at charts isn’t going to get you very far. Get a trading plan. Get a trading journal. Get moving.

#general: Aberdeen oil executive Jacqueline McPhie embezzled more than £1.3m

An Aberdeen oil industry executive with a previous conviction for embezzlement stole more than £1.3m from her employers, a court has heard.

Jacqueline McPhie, 46, took the money while vice president for finance at Altus Intervention between March 2013 and April 2014. (Link)

#general: Drop in profits for Aberdeen Asset Management

Aberdeen Asset Management has reported a sharp drop in revenue, profits and assets in its portfolio of investments.

The firm saw pre-tax profits down by 47%, from £185m to £99m in the first six months of its financial year to 31 March. Much of this was explained by turbulence in emerging markets, in which the fund manager has specialised. (Link)

#general: Barclays offers 0% deposit mortgage to home buyers

British high street bank increases the multiple of earnings against which people can borrow on its ‘family springboard’ mortgage. (Link)

#stocks: Government May Offer Bluechip PSU Shares To FIIs, Domestic Buyers

Faced with lukewarm retail investor response, the government is mulling stake sale in selected bluechip PSUs, including Oil India and ONGC, by offering shares only to institutional investors.

A top government official said th
at the Ministry of Finance is considering opting for the Institutional Placement Programme (IPP) route for diluting stake in bluechip PSUs. (Link)

#general: Drought but why – It is time we understood that since drought is human-made it can be reversed

(Link)

#general: Onida’s iconic Devil turns angel

Onida Air-conditioners has come out with a new brand campaign, conceptualised by the recently hired agency Zero:Zero. The famous ‘Neighbour’s envy, owner’s pride’ positioning has changed to ‘Let there be Chill’. (Link)

#general: Mobius Says Buy Commodity Stocks as Rebound’s Just Beginning

Mark Mobius is piling into commodity stocks in China, saying that a rebound in raw-material markets is only getting started after prices sank too far and that gains may be extreme.

Templeton Emerging Markets Group will add more raw-material stocks from Asia’s top economy, according to Mobius, executive chairman of the group, who’s been investing in emerging markets for more than four decades. Many of them will be good holdings for the long term, he said in an e-mail interview, without identifying particular companies. (Link)

#general: Marc to Market Making Sense of Global Capital Markets

(Link)

#general: India to be among top three markets for Hitachi ACs, says global CEO

According to Franz Cerwinka, the company has about 11% market share in India which it aims to push up to 20% in next five years. (Link)

#stocks: Dhanlaxmi Bank: Director K Jayakumar exposes top brass while resigning

In his resignation letter, the former Chief Secretary of Kerala alleged harassment and subsequent removal of dissenting independent directors for not toeing up the line by Dhanlaxmi Bank’s CGM Manikandan and MD & CEO G Sreeram. (Link)

#general: IRCTC website hacked, info of lakhs feared stolen

Personal data of around 1 crore customers is feared to have been stolen from the server of the e-ticketing portal Indian Railway Catering and Tourism Corporation (IRCTC), thus raising fears of safety and security.

IRCTC is India’s largest e-commerce website, lakhs of transactions are conducted every day. Customers provide details like Pan Card numbers while filling up online reservation forms. A senior railway official said, “Somebody can create forged documents on the basis of the stolen data.” (Link)

Dunning Kruger Effect

#general: President Trump? Here’s How He Says It Would Look

Donald J. Trump is now the presumptive Republican presidential nominee, but he is also keenly aware that many in his own party — and many Americans, frankly — are scared and anxious about the idea of him in the Oval Office. Even he is not sure how a deeply divided nation would adjust to the first 100 days of a Trump presidency. (Link)

#general: Investors Call End to Drought by Picking Indian Monsoon Winners

Some Indian asset managers are investing in companies set to benefit from any resurgence in rural demand in a bet that one of the nation’s worst droughts in decades will soon end.

With the monsoon season about a month away, tractor producer Mahindra & Mahindra Ltd. and two-wheeler maker Hero MotoCorp Ltd. are among stocks that are rising. Both have climbed more than 17 percent from this year’s low as the India Meteorological Department predicts rainfall at 106 percent of the 50-year average. Poor rains for the past two years squeezed incomes and hurt company earnings. (Link)

#general: Former Ranbaxy promoters Malvinder and Shivinder Mohan Singh fined Rs 2,600 cr for hiding facts from Daiichi

Malvinder Mohan Singh and Shivinder Mohan Singh, the erstwhile promoters of RanbaxyBSE 5.63 % Laboratories suffered a major setback earlier this week when the Singapore Court of Arbitration awarded about Rs 2,600 crore ($400) million fine for concealing and misrepresenting facts from Japanese pharmaceutical company Daiichi Sankyo when they sold the promoters’ stake for $2.4 billion in 2008. (Link1) (Link2)

#general: Oil prices rise as Canadian wildfire threatens output

Oil prices pushed higher on Thursday, as a raging wildfire near Canada’s oil-sands district and fighting in Libya threatened production in those countries. (Link)

#macronomics: How to legally own another Person: The domestication of employees

(Link)

#macronomics: US job cuts rise to 65,141 in April; 2016 layoffs at 7-year high: Challenger

Layoffs by U.S.-based companies accelerated in April, sending year-to-date job cuts to the highest level since 2009, a private study reported Thursday.

Domestic companies announced plans to let go 65,141 workers last month, a 35 percent increase from March, according to the report by outplacement firm Challenger, Gray & Christmas. (Link)

#general: Ultra-rich must declare cost price of expensive assets: CBDT

The luxury items to be disclosed will also include utensils, apparels and furniture studded with precious stones and ornaments. (Link)

#general: Trumped! Why it happened and what comes next, Part 1

(Link) 

#general: 7-year jail, Rs 100 crore fine soon for showing PoK, Arunachal as disputed

Depiction of a wrong map of India like showing Pakistan-Occupied Kashmir (PoK) or the state of Arunachal Pradesh as not a part of India on any online or electronic platform or physical documents could mean a stiff jail term of seven years along with an heavy fine of up to Rs 100 Crore, as per a new law being proposed by the Narendra Modi government. (Link)

#general: RBI proposes on-tap bank licences, bars conglomerates

In its draft guidelines, RBI proposes to allow applications for universal bank licences at any time, subject to a list of conditions. (Link)

#general: How Donald Trump broke the rules of modern politics, and won anyway

Polling? Who needs to do that? Fundraising? Can’t be bothered. Parse your words? Fuhgetabout it.       

Donald Trump took the rules of modern politics, trashed them and became the last man standing for the Republican nomination anyway. (Link)

#stocks: China’s Dalian Wanda Group looks to buy multiplexes in India

Dalian Wanda in talks with Carnival Cinemas and PVR, among other multiplex firms; high valuations seen as hurdle to potential deal. (Link)

#forex-commodities: China’s Great Commodity Bubble Loses Air before It Can Burst

(Link)

#general: Hyderabad Metro project faces 18-month delay

S N Subrahmanyan, Deputy Managing Director and President, L&T said they are in discussions with the government on the delay and possible financial implications on the project. (Link)

#general: Ram Bharat: Meet Baba Ramdev’s low-profile younger brother who handles Patanjali’s day-to-day operations

Ram Bharat, the lowprofile younger brother of Baba Ramdev, has taken up the mantle to lead Patanjali Ayurved, acting as an informal chief executive officer of the Haridwar-based consumer products firm, three people in the know told ET.

While Ramdev is the face of the company and Acharya Balkrishna, managing director at Patanjali Ayurved, has a larger role in product development and innovation, Bharat, 38, is taking care of the day-to-day operations, they said. (Link)

#stocks: Index Investing Makes Markets and Economies More Efficient

(Link)

#stocks: India Mulls High-Speed Trading Curbs after Unfair Access Claims

India’s market regulator is in discussions with international experts and regulators to help it frame guidelines for high-frequency trading, according to its top official.

The Securities & Exchange Board of India is considering checks on super fast strategies in an effort to strengthen rules for algorithmic trading, Chairman U. K. Sinha said in Mumbai on Thursday. His comments came after the country’s top brokerage associations joined a growing chorus of voices calling for the regulator to take action. A report by one of its own advisory panels called for a full investigation into claims of collusion between the National Stock Exchange of India Ltd. and a high-frequency trading firm. (Link)

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Disclaimer

Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.