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.