Vijay Mallick also has a thread on Som.
Also if you see their promoter constant buying, it’s just a name change – there are a large number of weird investor names in the screener list and you can see their names in screener. The promoter holding is concurrently increasing proportionately to these shareholding decreasing. Seems like black ka white game to me.
It isn’t necessary that dishonest managements will not make money for us – it maybe that if you keep hanging by their coattails, they will reward. Like we’ve seen in Vedanta – dividends given from debt which are actually going to the promoter, multiple times company merges and demerges subsidiaries with no accountability but it’s stock price occasionally doubles or becomes 4 times in line with the sector. But as one of buffet or munger said, there’s never just one cockroach in the kitchen. How do we know that these managements are not diverting money to their unlisted businesses, are not doing cash sales, and so on.
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