First of all I have to apologize to Amitabh Bachchan, the doyen of Bollywood. When I last spoke about his latest stock pick (On 1st June 2014), I had a snicker in my voice. The tone of my article “Ever Heard Of Stampede Capital? Its’ Amitabh Bachchan’s Latest Stock Pick” was also slightly contemptuous. I hinted in the article that Amitabh Bachchan appeared to have been conned into buying an unknown stock engaged in some unknown activity called “bitcoin mining” and “financial cloud”.
Today, one year later, I am astonished to note that Amitabh Bachchan has an incredible gain of 480% from Stampede Capital.
Amitabh Bachchan holds 847,500 shares of Stampede Capital. He bought the shares in several lots between 14th May 2014 and 6th June 2014. His first bulk purchase of 110,000 shares was on 14th May 2014 at a paltry price of Rs. 88 per share. Today, Stampede is at Rs. 511. This means that Amitabh has made a gigantic profit of 480% in about a year’s time. His holding of 847,500 shares is worth Rs. 43 crore.
Stampede Capital’s business model is still a big mystery to me. According to the latest press release, its subsidiary “has achieved trading turnover of INR 56,655 Crores (USD 8.99 Billion) with Global Exchanges Singapore Exchange (SGX), Dubai Gold and Commodities Exchange (DGCX) and Chicago Mercantile Exchange (CME) and INR 3,506 Crores with domestic exchanges of NSE, BSE and MCX(SX)”. This suggests that Stampede is a broker of some sort on foreign exchanges, earning a commission on each deal. But, where does “bitcoin mining” and “financial cloud” come in, and how it helps generate revenue, is still not clear.
Also, how Amitabh Bachchan homed in on a gold mine stock like Stampede Capital is a big mystery. However, what is important is that this is not his only successful stock pick.
His first recorded blockbuster multibagger stock is Just Dial where, in a brilliant strategic move, he negotiated a deal with the management for pre-IPO placement when he was its brand ambassador. Amitabh got a chunk of 62,794 shares at the throwaway price of Rs. 10. Today, the stock quotes at Rs. 1250. This means that Amitabh Bachchan has a 100+ bagger on his hands!
Fineotex Chemicals is another stock which shows Amitabh Bachchan’s mettle as a stock picker. When the stock was in the doldrums, Amitabh bought aggressively. The stock has given a mind-blowing return of 1880% in two years and 471% in one year. Amitabh is the largest shareholder of Fineotex Chemicals with a holding of 531,092 shares.
Birla Pacific Medspa is the only stock where Amitabh has lost serious money. However, here you cannot blame Amitabh. After all, the company was backed by the mighty Birla group and had a tie-up with Pacific Medspa and also a robust business model. The business model was expected to be a hit with teeny-boppers and it was expected that mega profits would gush into the company. Unfortunately, Yash Birla’s wayward ways sent the company down the path of ruin. If it were not for Yash Birla, we could have complimented Amitabh Bachchan for yet another multibagger stock in his portfolio.
You are still making a small mistake. It is not Amitabh Bachchan who is investing in these stocks but his CIOs who invest for him. Thanks.
So now .. Amitabhji is tracking your Blog updates. Congrats 🙂
Who is Amitabh’s CIO ?
Regards,
Zafar
Worth investigating by SEBI. The fundamentals of the company does not justify the price rise.
Stampede capital is not seriously involved in any great business model. One can hardly justify investment of huge amounts in such companies, unless it is for illegal purposes like conversion of black money. Its purely a case of circular trading with a view to create huge tax-free capital gains for such investors.
Can’t believe that a celebrity like Amitabh can indulge in such illegal activities. Because of such people, Finance Ministry can even rethink on exempting capital gains from tax. And it is because of such people, capital markets suffer in the long run.
Though I have nothing against Amitabh, I have written little harshly with a view that gullible investors should not fall prey to such things and then blame stock markets later.
I don’t understand what “unethical” thing AB did by buying the stock. He has bought the stock and holding it in his personal portfilio. He never “recommended” anyone to buy the stock. What us wrong with that?
sour grapes buddy
Dear editor,
your standard of editorial will take a hit if you write that Amitabh is an ace investor.
Please think it over.
When investing in companies like Stampede be careful. But no one cares for it . Stampede is a momentum stock . The herd is behind it . The question is whether Stampede will survive as a listed entity beyond this bull run . Only time will. Till such time it is partying time . The Music is on . The party is on . No one knows when the music will stop.
Its not the question of “recommending” to someone to invest in Stampede Cap. The very practice of investing in stocks for unethical purposes (like generating tax-free income, converting unaccounted money etc.,) and using stock markets for such purposes is questionable.
Who told you that he has invested to create tax free income and unaccounted money. He may have invested just as an investor. Just like you and me invest.
ya this is very unethical on mr bachan part if ever he is doing it
He has got
AB is not a great human being. He is very selfish and sh-rude man like Shahrukh Khan. People should not give him so much respect becoz it is a bitter fact that he has been above average selfish person. I would like to confess that Right from my childhood I have admired him as a filmstar.
Its black money conversion into white money. The most preferred way to convert black money into white money is stock market. If one(SEBI) takes hard look on small unknown companies, big companies with good businesses also can be used for this, like ADAG did in 2007-2008… Big genuine investors are very sensitive and once they recognize such people they kick them from portfolio badly, that’s why RInfra and RCap is trading at such cheap valuation.
Is the stock value grow after the purchase made by Amithabji or otherwise?
Normally and always when ever I buy a stock the value is only in descending order.
Hey. Listen up. Firstly, Big B didn’t force anyone else to buy this stock. He put his own money. I seriously doubt he knew what he was investing in. Only following the “expert” advice of his workers.the serious question should come if he is able to off load his stock at the current price. Companies like this should not be making money. But it is simple. Retail investors have no clue what they are investing in. So they follow the masses. If Big B bought some ocean water, the masses followed him and the price of the ocean water increased, then Big B sold his ocean water back either to the ocean who collected a lot of money from other investors, then Big B is not to be blamed. I think the big question here should be why didn’t Babyshek invest with him?
Its solely conversion of black money into white, amitabh, tendulkar, sharad pawar, lalit modi, etc are all pieces of same fabric.