Wednesday, June 23, 2010
LOKAYUKTHA RESIGNS
Justice Santosh Hegde, the Lokayuktha of Karnataka has resigned. Among others, Mr. Hegde has quoted non co-operation from the state government, including inaction against corrupt officials trapped by Lokayuktha and is protecting mining lobby.
Saturday, June 5, 2010
IPO FROM AN INTANGIBLE ASSET COMPANY: FAT PIPE NETWORKS INDIA LIMITED.
The company earned a net profit after tax of Rs 399.37 lacs for the year 08-09, which was transferred to General Reserve. The balance at the end of the previous year in General Reserve was Rs 49.97 lacs. If you add, the profit transferred this year, to the figure it should be Rs 449.34 lacs. Simple arithmetic. However, as per the statement of accounts as furnished in the DRHP filed with SEBI, the figure is Rs 2103.04 lacs. For the difference, the corresponding entry shown in the balance sheet is Intangible assets.
Some of the comments made by the readers of First Choice IPO analysis are hereby reproduced.
DO NOT BUY!! Failure to report multiple litigation as well as challenges to its patents. Currently under federal investigation of its labor practices. Financials would not stand up to a US SEC audit, hence the reason to change from a U.S. company to an India company and run the IPO there. Numbers are misleading and inaccurate.
Dr.Raghula Bhaskar and Ms Sanchaita Datta are the promoters of the company. They take in excess of $400,000USD of income on a VC supported venture. They claim profit, but no listing of dividends to its investors. If you scrutinize some of the other ventures such as their India based programmers company BOX, you will find the company is listed as being based out of their home. Makes one wonder whether the VC's are even aware, they may have financed these other entities. This begs to question: Is this IPO merely a sham to pay back the VC is who by now must be impatient for a return.
Bottom Line: Fat Pipe years ago was at the right place at the right time. However, it has failed miserably to stay up with the ever-changing technology and marketplace. Other companies, new technologies, have sprung up bringing with them new technologies and innovation. Sorry Fat Pipe, you are OBSOLETE!!! Do you remember Iomega with the zip drive...? IOmmm who? A bet in Las Vegas would be a better risk.
FOR DETAILED ANALYSIS LOG ON TO FIRSTCHOICEIPOANALYSIS.COM
Some of the comments made by the readers of First Choice IPO analysis are hereby reproduced.
DO NOT BUY!! Failure to report multiple litigation as well as challenges to its patents. Currently under federal investigation of its labor practices. Financials would not stand up to a US SEC audit, hence the reason to change from a U.S. company to an India company and run the IPO there. Numbers are misleading and inaccurate.
Dr.Raghula Bhaskar and Ms Sanchaita Datta are the promoters of the company. They take in excess of $400,000USD of income on a VC supported venture. They claim profit, but no listing of dividends to its investors. If you scrutinize some of the other ventures such as their India based programmers company BOX, you will find the company is listed as being based out of their home. Makes one wonder whether the VC's are even aware, they may have financed these other entities. This begs to question: Is this IPO merely a sham to pay back the VC is who by now must be impatient for a return.
Bottom Line: Fat Pipe years ago was at the right place at the right time. However, it has failed miserably to stay up with the ever-changing technology and marketplace. Other companies, new technologies, have sprung up bringing with them new technologies and innovation. Sorry Fat Pipe, you are OBSOLETE!!! Do you remember Iomega with the zip drive...? IOmmm who? A bet in Las Vegas would be a better risk.
FOR DETAILED ANALYSIS LOG ON TO FIRSTCHOICEIPOANALYSIS.COM
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