http://seekingalpha.com/article/3621886-unlike-the-name-investors-should-not-love-eros?auth_param=180i7a:1b36s7d:a1535a7ab29b1e2df0dcf7f25a96a7a9&dr=1

Read this. This solves to complete puzzle. It is turning out to be another Raju Story as done in India. Finger crossed.

Hi Gaurav,

I agree with you on all point except Cash Issue. I have used all other points mentioned by you and some other points not mentioned by you as a counter balance against the cash issue and hence I have remained invested (as I said in my post above that i give mgmt. the benefit of doubt).

Your Interest rate point would have been valid if it was a conversion on the basis of prevalent interest rates in both countries. In this case however the comparison is between cost of funds (domestic interest payments on Loans) Vs the advantage of converting at a better conversion rate. hence I don’t think the example provided by you is valid. It would have been valid if one wants to convert to take benefit by investing the converted money into say a govt. bond. Going by the invesment mgr. logic the same investment mgrs. also withdraw money when the interest rates in US go up. In short I don’t think your example here is valid as the cost of holding onto this funds (domestic interest payments) is higher Vs. the benefits of converting it after another 3% upmove.

I have replied only ‘coz I find the interest rate logic given above as flawed in this scenario.

I agree that same point shouldn’t be repeatedly discussed, but at the same time I think one should reserve the right to criticize a mgmt. if the response provided is not adequate.

With all due respect.

Regards.

Thanks Hitesh. That was quick

I feel PI is a much superior business model as compared to dhanuka.

Not looked at dhanuka for a while now.

There is no harm in dissecting an issue and discussing if it brings out better clarity which is what VP is known for. Here people have real money at stake and people are not playing paper cricket. Truth will come out only through proactive analysis.

If the management does NOT reply to concerns in a straight forward manner there bound to be questions asked and repeatedly.

When management knows that investor community is uneasy and if they are not doing anything wrong, what stops them in clarifying their position in a crystal clear manner –

• We have cash of X amount in Y Bank with Z a/c number (if can be disclosed) and we are hoarding this cash because of W, U, V reasons. If W, U,V are not logical then investors will take appropriate decision to be part of the business or not though equity stake.

Please don’t taunt as real money is at stake here. Some could have made this as a part of core holding and IF there is any issue exiting will be difficult and could lead to financial loss.

I absolutely have no stake here, so please don’t misunderstand my post. Even MPS has money of 178 crore and management AND investors know exactly why that much cash is there. People are not over analysing the cash with MPS right? There is clarity in MPS and that makes holding the stock comfortable. So when so many people are analysing, then there is some reason to it. Only in hindsight we can tell if this analysis was hyper or lower. I hold MPS. Sorry if I hurt any sentiments here.

Moderators: Delete the post if you felt this is over the board.