Kejriwal on radar instead of multibagger stocks
My super-sensitive radar is programmed to keep a tab on the activities of the ace investors as they make their way through the gold-paved streets of Dalal Street. The radar also scans through all the top news of the day and isolates those that are relevant to stocks while eliminating junkyard stuff.
So, when the radar suddenly crackled and came to life early today morning, I sprang from the comfortable sofa where I was dozing and day-dreaming about riches, super-excited that a new multibagger stock may have been detected.
Imagine my shock then, that instead of a multibagger stock, the radar displayed a picture of Arvind Kejriwal, the boss man of the Aam Aadmi Party (AAP) and the Hon’ble Chief Minister of Delhi.
My initial reaction was that the radar had conked off and required re-calibration. However, given that it has seldom been wrong, I listened carefully to what Arvind Kejriwal was saying.
His talk was a spiel to the voters of Goa about how AAP had revolutionized the life of Delhi’s citizens with Mohalla clinics etc and how he would do the same for the citizens of Goa, if AAP is elected into power.
Save Goa’s culture, Ban casinos
What everyone had missed – but what my radar had homed in – was a statement by Arvind Kejriwal that he would ban casinos in Goa and save Goan culture.
“Everyone in Goa wants casinos to be banned. However, the BJP and the Congress did not do this because the leaders from both parties are in collusion with the casino owners. Only the AAP can stop casinos. It can save the Goan culture from ruin,” Kejriwal said in a bone-chilling voice.
The AAP Goa office also made it clear that the party is dead serious about the proposal. It rushed off a clarification that all casino workers who would be affected by the closure of the casinos would be rehabilitated and provided alternate jobs.
AAP further clarifies it’s stand on Casinos. pic.twitter.com/dB2KZ9ZPw2
— Aam Aadmi Party Goa (@AAPGoa) November 7, 2016
Alarm bells clanging for Delta Corp, earlier called a “failed stock”
It is obvious that this proposal will spell doom for Delta Corp. As it is, the regulatory hassles of getting licenses to run a casino in Goa and Daman have plagued Delta Corp’s fortunes.
It may be recalled that the stock has been languishing for several years as the licenses have been few in number and far in between.
In fact, the sluggishness of Delta Corp caused so much despair to Kalpraj Dharamshi, the veteran value investor, that he described it as a “failed stock”.
It is only in recent times that the stock has seen some traction and led to multibagger gains for the investors (see Kalpraj Dharamshi’s “Failed” Stock Turns Multibagger & Proves Veracity Of Howard Marks Theory).
Gambling is part of Indian culture
Jaydev Mody, the boss of Delta Corp, is obviously beleaguered at the spate of difficulties that he is having with the regulatory authorities.
In an earlier interview, he put up a spirited defense of casinos as being “just a business” and “not a taboo”.
“Gambling has been part of our culture from thousands of years …. It is not really taboo” Jaydev Mody said, his eyes and voice somewhat weary at the unending battle he has been waging to save Delta Corp.
Yet another quixotic move by Arvind Kejriwal?
In the past, Arvind Kejriwal has committed several actions which allegedly betray lack of maturity.
He infamously claimed that Narendra Modi, the Prime Minister, was hatching a plot to assassinate him. This made him the subject of great ridicule by citizens across the Country.
He also played into the hands of Pakistan by alleging that the Indian army and Government had made up the story of a “surgical strike” against terrorist installations in Pakistan and demanded to see proof of the strike. Needless to say, this senseless allegation caused acute embarrassment to the Government and gave Pakistan an upper hand in international diplomacy circles.
In fact, such was the hostility of the public against Kejriwal for the buffoonery over the ‘surgical strike’ issue that even Rajdeep Desai and Barkha Dutt, who are known to be rabid NAMO haters, had to step in to admonish him and rein him in from doing further damage to the Country’s interests.
The latest allegation of Kejriwal is that the Government has “back stabbed” the Armed Forces over the OROP issue and is “demoralizing” them.
He has also been having a running feud with Najeeb Jung, the LG of Delhi.
Obviously, Arvind Kejriwal’s antics have not endeared him to knowledgeable investors.
Clowns in politics raise two worries: Voter's failure to elect good leaders & Politics' inability to attract talent:https://t.co/xityeraKD6
— Porinju Veliyath (@porinju) July 27, 2016
It is ok in India's Democracy for a joker become CM, but it is not funny when he goes to the extent of posing threat to national security! https://t.co/CXULSSEEfb
— Porinju Veliyath (@porinju) October 4, 2016
Game plan of Rakesh Jhunjhunwala and Kalpraj Dharamshi over the proposed ban?
Normally, investors abhor risk, especially when there is a lot of money at stake.
As of 30th September 2016, Rakesh Jhunjhunwala holds a massive treasure trove of 2,25,00,000 shares of Delta Corp (along with Rekha Jhunjhunwala). The investment is worth more than Rs. 350 crore.
Kalpraj Dharamshi’s holding (with family members) is also quite sizeable at 30,00,000 shares as of 31st March 2016. His present holding is not known.
It will be interesting to see how the two eminent wizards react to the threat to the viability of their investment.
According to one school of thought, investors should err on the side of caution and avoid taking unnecessary risk especially when there are several other stocks which are ripe for the picking. Whether the enlightened investors in Delta Corp subscribe to this school of thought or whether they decide to brazen it out requires to be closely watched!