67% of allocation to one stock is very high. If stock goes down by 10% and then 15% and then again by 20%, how you would react? ask this question to yourself?

Received open offer few months back from Fairfox at 195.

Stock is low beta but posting very good results q-o-q and likely to be re-rated with their focus on NBFC operations, increasing margins and scale.

Can give safe 50%+ return in next 1-2 years.

I also read this on Twitter. It was a big puzzle why Eros Plc shares are crashing in USA market. Today it got answered by Bloomberg post. Here are my understanding of this. Eros Media International and Eros PLC has just relationship of holding company. EMIL( Eros Media international, BSE listed company) has no stake in Eros Now platform. It only gets revenue from Movie production, distribution in India, TV syndication. Eros takes care of digital platform. There is no definitive agreement between these entities yet on revenue sharing.
EROS earns revenue from Digital platform and overseas distribution. As per the twitter handle Market_farce, the number of users in Eros now is over rated. He is citing sites like App annie. App annie can only track downloads done thru Market place. Eros Now has a bus app which you can down load thru wifi network. I have downloaded it in Goa trip. I guess EROS adds those number as subscription which will not be visible on App annie. I think we should take these numbers with a pinch of salt. Digital world with number of subscription is always over rated, be it Google also. I have developed app and published it and find these number funny.

I am scared of their claim of inflating numbers from UAE. It does not impact EMIL a bit. However it just raises doubt on Promoter integrity. I have contacted investor relation on this. They gave clarity to USA analysts, they should do this to Indian analyst too.

FII are net seller in Sept quarter which is also worrisome. Finger crossed.

Disc:- I have 1% portfolio holding. Was building conviction and this story pops up.

Hey Nishant,

Good list you got there. The only exception in my view would probably be Vakrangee. There are several allegations against the promoter, just one of which is in the moneylife article below.

http://www.indianstocksnews.com/2009/06/vakrangee-softwares-limited-moneylife.html

I was invested in Vakrangee for a while as well, sold my holding not just because of the above article and many others like them, but mainly because I do not trust their numbers. They seem to be capitalizing expenses as opposed to expensing them, HINT: Take a look at the foot notes for their PP&E (Property Plant & Equipment / Gross Block)

And I disagree with hard and fast rules about a strict 33% allocation / stock. Let's say you own 5 stocks at 20% of pf each, and one of them appreciates 3x while the others lets say do nothing or go up only 20 -30%, does that mean you should sell down your winner? I would think that % allocation of portfolio should be based on a balance between conviction and risk management.

Hello All,
First of all, the past of this company was not great, however the present developments and as per management's commentary in the latest AR, the company has started the E Commerce venture and when I checked the websites for this E Commerce they looked good.

They have around 7 different website to shop different kinds of things and all are linked to the main web site of the company : http://www.niharonline.com/
As per management this is India's first multilingual movie and entertainment portal launched in English, Hindi & Telugu with good number of views in past.

Now the big question is, will it be able to attract customers and compete the unlisted bug giants Flipkart, Snapdeal etc.?

Well, that's a quite tough job because on today's date, maximum people do online shopping from these giants say Flipkart/Snaldeal.

So, it will cost huge for any new E Commerce player to promoter them and reach to the user and advertisement cost. However Nihar has one advantage to reach customers which is that----the main website contains the news on recent movie, politics and I have seen their presentation is good with content and picture of recent political development and recent movie of Bollywood and South Indians and I think the South Indian people are following this website on a regular basis----and on the top of this site only they have put the links of the E Commerce shopping website with appropriate signs , so people who are following this website they might check these links as well and if they likes the products/price then they might shop.
So it is comparatively easy for Nihar increase the viewers and user base which is a good way to increase customer base on E Commerce website.

The more people visits their main website for news, the more chances of checking those E Commerce links, the more chance of shopping, provided products are good with competitive price.

Company has tied up with many brands/suppliers to sell their products on Nihar's E Commerce websites and disclosed all the details to the BSE.

Company has clarified BSE on the reason of increasing stock price and in that reply it has mentioned all the recent development.

Please check the document in this links which contains all recent development.
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=3efa0878-48ac-4588-8bda-68f295839191

Action Points: Now the company has created those E Commerce websites, management has talked big in the latest AR, but can management walk the talk and make it a successful venture?
To get idea on that, we will have to dig it further on the promoters quality, seriousness on this ventures, ground actions, business model for E Commerce, and the expected revenue which company can generated from this E Commerce venture. While I will continue further investigation, I would request all the Valuepickrs to investigate further on the above mentioned things and get out with the details.

I have not talked about the financials, market cap, stock price because we will check those things only after we think the ventures itself can be successful, if we think it cannot be successful then it will be a reject before checking these market cap, stock prices etc.

Link to AR 2015:
http://www.bseindia.com/stock-share-price/stockreach_annualreports.aspx?scripcode=531083&expandable=0

After all the investigation if we think it can be successful then we can think about investing in this company, not before that. Any company can start any venture but we will have to know whether that will be successful or not , so it is very important to investigate these types of ventures in detail before investing.

Disclosure : Not invested.

Awaiting views from all Valuepickrs.