Spectrum war in India getting murkier

By Vipin Agnihotri

The spectrum war in India is getting murkier by the day. It is worth mentioning in this regard that the cold war of words, which started with DOT’s recent policy of allowing the telecom service providers to offer services using both CDMA & GSM technologies in the same circle, has transformed into a big conflagration.

In my opinion, the DOT policy is a windfall for CDMA players such as Reliance Infocomm and Tata Tele, while for GSM lobby consisting of Airtel, Vodafone and Essar, the policy brings calamity right into their porch.

No one is going to argue with the fact that the recent brawl has emerged as one of the biggest clash, the sector has observed till date. According to sources, protesting against the move, Cellular Operators Association of India, the body responsible for governing the rights of GSM players, wrote a letter to DOT.

To flare up the whole issue, Arun Sarin, Vice Chairman, Vodafone Essar on November 5, 2007 forwarded a letter to both Prime Minister Manmohan Singh and Telecom Minister A Raja, expressing his concerns over the recently announced policy favoring CDMA players.

It has come into the notice of The India Street that in response to Sarin letter, Anil Ambani retaliated with a letter supporting the government’s decision of allowing CDMA operators to offer GSM services under their existing licenses. If experts are to be believed, Ambani backfired at GSM’s lobby with a series of charges such as cartelisation and trying to restrict fresh competition.

In the midst of all, telecom ministry on November 12, 2007 decided to auction the new world 3G spectrum. Point to be noted here is that apart from the existing players, firms without telecom license and foreign firms will be allowed to participate in the auction. Even worse, A Raja announced introduction of mobile number portability from next year onwards.

In my opinion, this move will certainly flare up poaching leading to a significant increase in cost of retaining customers.

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Mukesh Ambani vs Anil Ambani Which Brother's Companies are the better Investment?

Sundaramurthy Vadivelu

Disclosure Please click on the above link to view the disclosure document before reading this article. The contents may not be reproduced in any form without obtaining prior permission from the publisher. Please send your feedback

In my previous article, “Hot or Not? Ambanis on a dream run!” we discussed about Mukesh Ambani and Anil Ambani group companies’ stock performance. In this article let us analyze these stocks both from fundamental as well as technical perspective.

Mukesh Ambani

Anil Ambani

The combined wealth of the Ambani brothers works out to USD 78.6 billion, making them the richest Indian family and the second richest family in the world. While Mukesh Ambani’s assets are worth USD 53.9 billion, Anil Ambani’s companies are worth USD 24.7 billion. (Source: The New World’s 5 Richest Families by The India Street.)

The following table shows the stock market performance of the companies in the last 6 months and one year.

Mukesh Ambani group companies:

Scrip	6 month return	1 year return
Reliance Industries	67.31	117.76
Reliance Petroleum	130.46	173.83
Reliance Industrial Infra	484.97	435.31

Note: Indian Petrochemical Corporation Limited, a Mukesh Ambani group company has now been amalgamated with Reliance Industries Limited and its shareholders have been allotted 1 Reliance share for every 5 shares of IPCL held by them.

Anil Ambani group companies:

Scrip	6 month return	1 year return
Reliance Communications	62.05	104.00
Reliance Energy	190.51	227.49
Reliance Capital	145.09	213.46
Reliance Nat’l Resources	263.39	311.79

The minimum returns in either of the Ambani group companies is 62% by Reliance Communications in the last 6 months; The maximum return is 485% by Reliance Industrial Infrastructure Limited.

In my previous article, “5 Great Long Term India Stock Buys” we analyzed Reliance Petroleum and Limited and found it suitable for long term investment. In our “Stock of the Week” series, we analyzed Reliance Energy Limited and mentioned that long term investors need to look out for a monthly close above 818.40 with good volumes. It closed at 1206 last month. This month, it has touched a high of 1959. In another article, “Hot or Not? Ambanis on a dream run!” we discussed about Reliance Natural Resources Limited and Reliance Industrial Infrastructure Limited.

The daily chart of Reliance Industrial Infrastructure is shown below.

We can notice the “one sided” price movement in the above chart. After 4 consecutive 10% upper freeze sessions, the stock hit 19 successive 5% upper freeze sessions. This may be considered “over manipulation”.

RNRL closed at 52 on September 19. After 4 trading sessions, it closed at 95.30 on September 25, gaining 83.3%. Such sharp rise was definitely an unexpected one, though technically the stock had broken out in third week of July.

If we exclude these two companies, it can be seen that Reliance Industries has performed marginally better compared to Reliance Communications; Reliance Energy and Reliance Capital have performed better than Reliance Petroleum.

Ranking based on financial ratios:

The following table shows the market capitalization of the companies.

Scrip	M-Cap Rs. crores	Scrip	M-Cap Rs. crores
RELIANCE	360,779	RCOM	154,406
RPL	82,575	RELCAPITAL	43,796
RIIL	3,950	REL	36,043
		RNRL	15,792
Total	447,304	Total	250,037

Mukesh Ambani group companies’ market capitalization is much higher (more than Rs.197,000 crores).

The following tables list the P/E and P/BV ratios:

Scrip	P/E	P/BV
Reliance Industries	31.02	5.88
Reliance Petroleum	-	-
Reliance Industrial Infra	206.65	34.20

Note: According to Reliance Petroleum media release, the company has achieved over 70% overall progress in implementation of its large and complex refinery, coming up in a Special Economic Zone at Jamnagar. Based on the progress made till date, in the engineering, procurement and construction activities, RPL expects to complete the project ahead of December 2008. So P/E and P/BV ratios are not available.

Scrip	P/E	P/BV
Reliance Communications	54.96	7.52
Reliance Capital	50.85	8.42
Reliance Energy	42.36	4.17
Reliance Nat’l Resources	359.26	11.45

Due to the sharp price rise in RIIL and RNRL the P/E and P/BV ratios are high.

A P/E ratio of 10 to 17 is considered “fair” for many companies. If the P/E is between 17 and 25, the stock may be considered “growth” stock and the market may expect that the earnings are likely to increase substantially in future. However, for those stocks with a P/E of more than 25, it could be a case of “stock market bubble” i.e. overvaluation. This may be attributed to large amounts of money flowing into the market during a certain period of time.

The following table shows the P/E ratios of some of the ‘blue chip’ companies.

Scrip	M-Cap	P/E
ONGC	236,966	14.97
Infosys Tech.	105,360	26.30
ICICI Bank	122,049	37.37
Bharti Airtel	187,171	40.41
Larsen & Toubro	97,585	60.09

Reliance Industries has diversified businesses in polymers, petrochemical, refining etc. So it is difficult to compare this company with another company. Going by P/E ratios, we find that it is somewhat ‘cheaper’ compared Larsen & Toubro.

Reliance Communications has a much higher P/E compared to Bharti Airtel. IL & FS Investmart, which is an asset management company, has a P/E of 40.20, Cholamandalam DBS has a P/E of 15.17. These companies could be considered ‘cheaper’ than Reliance Capital. Tata Power has a lower P/E of 30.66 compared to Reliance Energy’s 42.36.

While Reliance Industries can be considered a ‘value’ stock (even at the current price levels), Reliance Communications, Reliance Energy and Reliance Capital may be considered ‘growth’ stocks.

Conclusion:

Based on the performance in last one year and at current valuations, Anil Ambani group stocks can be considered better valued in the stock market.

Sundaramurthy Vadivelu

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Mukesh and Anil Ambani once again at the negotiating table

By Vipin Agnihotri

I am sure that you are fully aware of the last time Mukesh and Anil Ambani negotiation across the table. It was in year of 2005, when their mother Kokila Ben oversaw the split of the Reliance empire between the two estranged brothers.

It has come into the notice of The India Street that both Mukesh and Anil Ambani are once again forced to come to the negotiating table. This time around it is the Bombay High Court that’s asking them to do so not Kokila Ben.

It is worth mentioning in this regard that few days back, Bombay High Court gave Ambani brothers a period of four month to negotiate the commercial details of a gas deal that was signed as part of the split two years ago.

According to highly placed sources, as part of the settlement, the Mukesh Ambani controlled Reliance Industries Limited would supply gas to the Anil Ambani controlled Reliance Energy’s proposed 7,000 MW power plant in Dadri, Uttar Pradesh.

The question now arises: What does it mean to the Ambani brothers? In my opinion, for Anil Ambani it validates the sanctity of the deal over which Mukesh Ambani has been dragging his feet. Point to be noted here is that if the gas price and terms of supply are sorted out, Anil Ambani can look forward to getting his mega project off the ground.

On the other side of the coin, for Mukesh Ambani the court order has precipitated a four-month delay in sewing up 37 per cent of the total supply from his gas wells in Krishna- Godavari basin, off the coast of Andhra Pradesh. This is quite important since production from the $ 6 billion investment is slated to commence next year.

There were some reports in the Indian media that Mukesh Ambani lobbied the government to hold a string of cabinet level meetings to approve Reliance Industries Limited gas pricing. The good news for Mukesh Ambani is that the court has not endorsed the pricing suggested in the original contract.

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Hot or Not? Ambanis on a dream run!

Sundaramurthy Vadivelu

Disclosure Please click on the above link to view the disclosure document before reading this article. The contents may not be reproduced in any form without obtaining prior permission from the publisher. Please send your feedback

The Ambanis: Anil, Dhirubhai and Mukesh

Dhirajlal Hirachand Ambani (28 December 1932 - 6 July 2002), was instrumental in bringing first time Indian investors to stock market. After working in Gulf as dispatch clerk, he returned to India to start Reliance Commercial Corporation with an investment of Rs.15,000. It was engaged in polyster yarn import.

He started a textile mill at Naroda, Ahmedabad to manufacture textiles using polyester fibre yarn. He implemented backward integration philosophy and a petrochemical complex at Patalganga in Maharashtra was set up to produce polyesters, intermediates and petrochemicals. Reliance established another petrochemical complex at Hazira near Surat in Gujarat to manufacture ethylene, propylene, ethylene glycols, polymers like polypropylene, polyvinyl chloride, polyester intermediates like pure terephthalic acid, polyester filament yarn etc.

His dream project, of course, was a grass root refinery. The 27 million metric ton grassroot refinery at Jamnagar, Gujarat came up in 1999. Reliance has diversified into power, telecom, infrastructure, capital markets, insurance, logistics, retail etc.

At the time of Dhirubhai’s demise, Reliance Group had a gross turnover of Rs. 75,000 crore. This was 1000 times its 1976 – 77 turnover of Rs.70 crore.

Reliance came out with their first IPO in 1977 and Dhirubhai convinced people in rural Gujarat that his company would yield substantial returns to shareholders. This happened at a time when the awareness among public about stock markets was minimum.

Have his sons, Mukesh and Anil, lived up to Dhirubhai’s repuations? The answer is a big YES, as can be seen from the tables below.

Mukesh Ambani Group Companies’ Performance:

Scrip	3 month return	1 year return	5 year return
IPCL	34	50	621
RELIANCE	38	104	822
RIIL	140	138	3,542
RPL	74	150	NA

Anil Ambani Group Companies’ Performance:

Scrip	3 month return	1 year return	5 year return
RCOM	17	72	NA
REL	85	137	396
RELCAPITAL	45	196	3,370
RNRL	167	307	NA

For details about close prices on various dates, please click here.

In the last 1 year, IPCL and RCOM have gained more than 50%; All other companies have gained more than 100%. In the last five years (After Dhirubhai’s demise) RELCAPITAL and RIIL have got multiplied by more than 30 times; REL, IPCL and RELIANCE have gained more than 4, 6 and 8 times respectively.

Dhirubhai is no more; but his dreams have become true. Those who had faith in him and his companies have been thoroughly rewarded.

Let us now analyze some of the medium term charts of these companies.

In late 2004, the media reported that there was some dispute among Ambani brothers regarding ownership of group companies. The Hindu Businessline dated November 30, 2004 read:

“THE Ambani controversy was today stoked further with the despatch of another e-mail to the employees of Reliance Industries Limited, this time by the Vice-Chairman, Mr Anil Ambani, obliquely emphasising the brothers' equal status in the corporate group.

… This is the third email to the employees from the Ambani brothers. The first one was from Mr Mukesh Ambani last week, telling his employees that the Chairman and Managing Director (who is himself) is the final authority at Reliance…”

What did this mean to the stock market? See the chart below.

http://groups.google.com/group/theindiastreet/web/RELIANCE_W_150705.jpg

The weekly chart of Reliance indicates that on November 5, 2004 the stock closed at 540.35. On June 10, 2005 it closed at 566.55.

Between November 5, 2004 and December 17. 2004, the Nifty gained 160 points whereas Reliance lost 59.80 rupees, indicating the market was not quite certain about the stock. Reliance is known to perform very much in line with both Sensex and Nifty due to its weightage. But during this period it was not so.

Finally, after the accord was reached between the brothers, the stock managed to break its resistance at 650 during the week ending June 24, 2005. Technically, a “three inside up” bullish candlestick pattern was formed during first week of June. There was a huge upward gap when the resistance was broken.

The Tribune reported on June 19, 2005 about the accord as follows:

“India’s biggest industrial conglomerate, Reliance Industries Limited, will finally be split up between Mukesh Ambani and his younger brother, Anil, thereby ending a seven-month war between the two.

Kokilaben Ambani, their mother and widow of Reliance Industries Limited founder Dhirubhai, announced the broad contours of the settlement in a statement released here today.”

All the companies mentioned above are currently trading at lifetime highs. There have been no reversal signals on any of the medium term charts. But it is better two book profits in RIIL and RNRL, since both have appreciated very sharply in the last one week or so.

Reliance Industrial Infrastructure Limited

(Group: B1, Scrip Code: 523445):

http://groups.google.com/group/theindiastreet/web/RIIL_W_250907.jpg

The stock formed a false “head and shoulder” pattern between January 2006 and March 2007. False, because, the neckline support was not broken; Volumes were increasing as right shoulder was formed. Between May and June 2006, stock had fallen from a high of 951.70 to a low of 357.40. A bullish three inside up candlestick pattern was formed during the week ending September 7, 2007. From a close of 498 it has appreciated to 1149 (131%) in just about 11 trading sessions. It is extremely overbought in daily charts as well. So profit booking may be considered in this counter.

Reliance Natural Resources Limited (Group: B1; Scrip Code: 532709):

http://groups.google.com/group/theindiastreet/web/RNRL_W_250907.jpg

This stock made a high of 41.65 in March 2006. It had broken this resistance during the week ending July 20, 2007. However, in the last six trading sessions the stock has already gained 84%. It is quite an unusual movement since no major price rise was observed for almost 2 months after the breakout. Profit booking may be considered in the stock for the medium term.

As mentioned earlier, we need to wait for a confirmation of trend reversal for these stocks. But short term investors may avoid these stocks due to overbought conditions and a reversal is expected anytime.

Sundaramurthy Vadivelu

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Weekly Review of the India Stock Market

Indices record new highs; but it’s time to be cautious

Sundaramurthy Vadivelu

Disclosure Please click on the above link to view the disclosure document before reading this article. The contents may not be reproduced in any form without obtaining prior permission from the publisher. Please send your feedback

On September 18, the US Fed Reserve cut the key interest rate by half percentage point and many Asian markets were reacting sharply to this news.

Has the Indian stock market over reacted to Fed rate cut news? It appears to be so. The following table shows the points/percentage change in various stock exchanges across Asia. It can be seen that Sensex and Hang Seng (Hong Kong) were the maximum beneficiaries. The news made did not make much impact on Taiwan and China’s stock markets.

Exchange/Index	Points	% Change
New York (DJIA)	335.97	2.51
Mumbai (Sensex)	653.63	4.17
Hong Kong (Hang Seng)	977.79	3.98
Osaka (Nikkei)	579.74	3.67
Seoul Composite	64.04	3.48
Singapore (Straight Times)	116.61	3.35
Jakarta Composite	73.48	3.28
Kuala Lampur Composite	19.83	1.55
Karachi 100	174.94	1.35
Taiwan Weighted	26.47	0.30
Colombo ASPI	(18.29)	(0.01)
Shanghai Composite	(29.94)	(0.55)

AOL India reported that some caution is warranted in the near term. It read:

Sounding a similar cautious note, Arun Kejriwal of Kejriwal Research and Investment Services (KRIS) said, "It is a milestone indeed, but considering the way the market has gained the last 600 to 800 points, it makes us believe that something is wrong somewhere."

In May 2006, US Fed Reserve increased the interest rates for the sixteenth consecutive time by 0.25% to 5.25%. On this occasion, the Sensex lost nearly 31% in just five weeks time. But it went on to break its previous high of 12671 and go past even 16000.

Let us now analyze the daily charts of Nifty and Sensex and try to understand why a cautious approach is needed. Following table shows the points gained/ lost by Nifty and Sensex during the week.

Date	Nifty	Sensex
17-Sep-07	-23.35	-99.37
18-Sep-07	51.55	164.69
19-Sep-07	186.15	653.63
20-Sep-07	15.20	25.20
21-Sep-07	90.00	216.28

The Nifty closed at 4838, gaining 319.55 points or 7.07% for the week while Sensex closed at 16564, gaining 960.43 points or 6.16%.

In the last week’s review we anticipated correction since profit booking was seen at higher levels. But we did not rule out the possibility of indices going upwards since there were no reversal patterns or signals. As expected, the week started with a corrective decline of 23.35 points. However Nifty had broken its previous resistance at 4648 and closed above it for three days in a row.

Generally, when the market lacks direction i.e. at top and bottom, some “force” or “trigger” may help in deciding further movment. In August, the markets were in overbought condition and the US Sub-prime mortgage crisis acted as a trigger for a quick fall. This time, when everyone was looking for a correction Fed rate cut news made the markets move up higher.

Whatever the reason for this movement may be, now technically the indices have breached their resistances.

http://groups.google.com/group/theindiastreet/web/Nifty_D_220907.jpg

In the daily chart, we can see an “ascending triangle” breakout with a triangle height of 646 points. The technical target for this breakout works to 5294.

However, ascending triangle breakouts have a tendency to fall back and test the support levels. This can be seen from the weekly chart shown below.

http://groups.google.com/group/theindiastreet/web/Nifty_W_220907.jpg

It can be seen that Nifty, after breaking resistance has tested the support (earlier resistance) and after another upmove has fallen back to close below these levels. Going by this chart, the Nifty may very well fall below 4648 (see daily chart) and that possibility certainly exists. But that decline should only be used as an opportunity to enter Nifty futures.

The last time that Nifty gained more than 7% in a week was 6 years ago, during the week ending April 20, 2001.

http://groups.google.com/group/theindiastreet/web/Sensex_D_220907.jpg

In the daily chart of Sensex too, the bullish continuation pattern, ascending triangle breakout has occurred. The triangle height is 2089 and technical target for this breakout is 17958. Watch the huge upward gap on September 19. This long white candle was followed by a doji, indicating indecision among traders about further movement. However, a white (green) candle and positive close has nullified the uncertainty.

Forecast for the next week:

There is a stock market saying: “News based rally seldom survives.” Technically the market has already entered overbought zones; As discussed in the weekly chart, ascending triangles are likely to test their support levels; Nifty has made a high of 4856 (it touched a low of 4002 last month) and gained about 21.3% without any significant correction. Let us now wait for a confirmation next week about the reversal. As I have mentioned in my earlier articles, a confirmation is important while deciding about future price movements.

Abnormal movers during the week:

On September 19, even as indices were soaring to new highs, sugar stocks witnessed heavy buying following an announcement that Government may allow sugar mills to produce ethanol and sell directly. Sree Renuka Sugars gained 24.16% during a single trading session.

On September 21, Reliance Natural Resources (RNRL) gained 35.30% and 209 million shares got traded. The market speculated that the company is getting into gas distribution. Technically it broke its resistance at 41.65 during July 2007.

Advance / Decline Ratio:

Date	Adv.	Dec.	Unch.
17-Sep-07	539	583	28
18-Sep-07	782	346	25
19-Sep-07	679	453	25
20-Sep-07	453	667	32
21-Sep-07	467	668	21

Inspite of Nifty gaining 90 points on Friday, 57.8% of stocks ended up as losers.

Top Gainers / Losers among Index stocks:

Scrip	% Gain	Scrip	% Loss
RPL	18.55	SATYAMCOMP	2.73
REL	14.33	CIPLA	2.70
GAIL	13.37	WIPRO	2.57
SAIL	12.44	SUNPHARMA	2.40
RELIANCE	12.08	RANBAXY	2.14

Top Gainers / Losers in overall market:

Scrip	% Gain	Scrip	% Loss
STCINDIA	75.08	SUBEX	17.23
RIIL	74.21	TORNTPHARM	10.62
RNRL	51.43	AFTEK	10.07
WALCHANNAG	51.09	KPIT	10.04
UNIENTER	48.19	LOTTEINDIA	9.16

Sundaramurthy Vadivelu

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Anil Ambani to foray into investment banking

Anil Ambani all set to become the next big deal maker. According to sources, with India Inc making acquisitions worth at least a billion dollar every month, the Reliance ADAG Group is ready for a foray into investment and merchant banking advisory services. It has come into the notice that the company is planning to float a 100 per cent subsidiary under Reliance Capital, which is a depository participant of the two major depositories in the country and carries out retail broking under the name Reliance Money. In addition, it also funds projects and acts as a cash cow to other ADAG subsidiaries. Initial signs are that the group is in talks with a couple of foreign investment banks not having a presence in India, sources close to the development said. "The proposed entity would be a fully-owned subsidiary of Reliance Capital. RADAG is scouting for a foreign partner to form a joint venture," pointed out official at Reliance Capital. At the present juncture, Reliance Capital’s subsidiaries include Reliance Capital Asset Management Ltd, Reliance Capital Trustee Co Ltd, Reliance General Insurance Company Ltd and Reliance Life Insurance Company Ltd. In theory, the total equity deals struck by India Inc in the last one-year period had crossed $50 billion, of which $46.8 billion was in 287 mergers and acquisitions and $5.1 billion was private equity investments, according to a Grant Thornton study. Point to be noted here is that investment banking firms, which act as advisors, financiers and brokers to mergers and acquisitions deals, usually earn 5 to 10 per cent in commissions. Not so long ago, Reliance Capital started its retail broking venture under the name of Reliance Money, which is trying to establish itself as a one-stop shop for customers' financial needs.

Source: Hindustan Times.com

What's next for Stock Market?

By Vipin Agnihotri

No doubt, Bombay Stock Exchange (BSE) Sensex is making valiant attempts to decisively cross the 14,697 peak it reached on February 8 but has not been able to ever since.

In theory, the NSE Nifty, which is not a free-float index such as the Sensex, has managed to cross its previous peak. “Two large IPOs, DLF and ICICI Bank, will divert part of the funds that could otherwise have gone into the secondary market,” pointed out Rangita Chatterjee, stock market expert.

Last week, the Sensex failed to get its chin above the 14,697 bar and dropped back to end the week at 14,003, down 506 points. The biggest contributors were Reliance Industries (with 98 of those 506 points), Larsen & Toubro (47) and ITC (44). Investors are wondering which way the breakout will happen.

As far as money flow into the stock market is concerned, it has come into the notice of The India Street that Life Insurance Corporation of India is planning to invest Rs 115,000 crore in equity and corporate debt.

In addition, pension funds will be allowed to invest partly in equity. Furthermore, private sector mutual funds will get access to surplus PSU funds. “The Reserve Bank of India is releasing $5 billion of its over $200 billion forex kitty for investment in infrastructure. As India’s economy grows and the equity cult spreads, more money will keep pouring into the stock market,” pointed out N Yadav, business journalist based at India.

But experts believe that there are reasons to being cautious in the short term. First and foremost, public governance is abysmal, and getting worse as elections approach. Quite a number of times it is downright foolish as in the quest to squeeze tax resources with not a thought on how poorly those already raised are being utilized.

In my opinion, the fringe benefit tax on sweat equity is one example. Another one is the levy of a 12.3 per cent service tax on sale of tickets for international flights out of India. The result: ticketing business has gone to other countries.

“The most valuable state-owned company is ONGC, which has been headless ever since the Government refused an extension to its former chairman who made the firm hugely profitable,” pointed out Ramesh G, CEO of India research.

It is worthwhile remembering that the man nominated by an internal committee, RS Sharma, was refused the post by the Prime Minister’s Office and now, funnily, has been re-nominated! Similarly, State Bank of India, which has an unbelievable uninterrupted dividend history of over 150 years, is valued at $17 billion, less than private sector ICICI Bank and far lower than ICBC of China, which is valued at over $230 billion.

To see how the private sector extracts value, it is of utmost importance that one observes the $1 billion valuation sought to be extracted by Reliance Communication by hiving off its tower business into a separate entity.

The present stock of 110,000 towers is expected by the telecom regulator to grow to 350,000 by 2010. Reliance Communication’s valuation has shot up.

On the other hand, that of public sector Bharat Petroleum, Hindustan Petroleum and Indian Oil Corporation are languishing, because of the burden of subsidy forced upon them. Its not that these managements cannot extract value but, sadly, they are not allowed to. All in all, it’s better, therefore, to await a better opportunity to invest.