What's wrong with Lycos Internet as Value Pick ?

Hi ValueGuyz what's up ? Today let's talk a little about transparency between a business & its shareholders jise finance ki bhasha main kehte hai 'Corporate Governance'.

India main mostly lala companies hai ya family firms hai jha sirf naam ki shareholding publicly bechi gayi hai.

Look at Reliance Industries Ltd, it is burning or experimenting with a minor amount of 1,50,000 Crore /- only with launching Jio Telecom services which may or may not be profitable in short/long term. Woh bhi by appointing his twin kids at a tender age 23 to board of directors. Agar yeh US hota to activist investors like Carl Icahn in harkaton ke wajah se kab ka Mr. Ambani ko company se hi vote out kar deta.

Gambling away with investors money.. kya baat hai Mr Ambani ji aren't you suppose to do Oil business ? Then what the hell are you doing gallivanting into Telecom space which is damn crowded already.

India is full of Lala businesses & Family firms who do whatever & whenever they want. They just vote out minority shareholders altogether every fucking time

India main chalta hai, now let's take up another business jo corporate governance ki maar kha rha hai stock market main.

This business was given as Value Pick value pick in November 2015 with lot of optimism on business front.

Original Value Pick link : Lycos Internet

What's wrong with Lycos Internet ?

Every other day I get a question on what's wrong with lycos internet & I revert back but with growing number of question I think it is important for valueguyz to know what's happening with this business. It is one hell of a lesson either way if you are invested in it or not.

Let's start with what's going right with it.

Positives

  • Everything is running fine business-wise as reported by current employees.
  • As per Annual reports its valuations makes it an excellent choice with current value of about 40. It is deeply undervalued with huge upside

Negatives

  • Lycos Internet has not filed quarterly results with SEBI or NSE & BSE for Q1 & Q2 of FY 16-17.
  • It has not submitted Annual report of FY 15-16 till date with SEBI or RoC ( Registrar of Companies ).
  • It has changed its auditor in-between the year without taking proper consent of investors via Annual General Meeting (AGM).
  • It has postponed its AGM which was scheduled in Sep16 to date in next year ie, 2017. It also got approval for the same by RoC (Hyderabad).
  • Mr. M Suresh Kumar Reddy (Promoter) has pledged a significant amount of his shareholding in Q2 FY16-17 ie (Jul-Sep16) which means essentially he sold off his holding at avg. price of 8-10.


Clearly negatives are outweighing positives. This business has serious corporate governance issues which is all of a sudden.


Who's responsible ?

If something is really wrong with Lycos Internet Ltd. & is clearly not reported before then its SEBI's , ROC's responsibility to check before publishing this in public domain.

I mean common isn't it a public company then howcome it can contain information from its investor & what about SEBI & NSE ?? Investor from all over the world trust these Institutions for ensuring corporate governance of listed companies.

Ab isme ek aam aadmi kya karega jab reporting hi wrong ho toh. This is a very sad state to be in for these institutions.


What about ValueGuyz ?

Numbers speak louder than words, take a look...


From Nov15 ---------------- > Oct16


Lycos Internet

From 30 ------------------- > 8

While

From Nov15 ---------------- > Oct16


VGEX

From 95% ------------------- > 132%

What you witness above is a clear example of how valueguyz work. We are not some fly-by night pseudo class of value investors or Sattebaaj who throw in as soon as shit hits the fan but know our way around. Valueguyz.com wisely manages risk of investing.

I proudly manage more than 4 Cr grown from 1 Cr (approx.) in less than 4 yrs in a family-owned hedge fund using the exactly same techniques & picks which I share here at valueguyz.com

Even though Lycos has failed up to date yet VGEX got stronger is a beautiful thing. Doston ise kehte hai Intelligent Investing, I have developed VGEX in such manner that even though it constitutes all the value picks & premium value picks in it yet it is able to withstand unseen risk that Mr. Market throws at it. 1 more thing is that everything here at VGEX is transparent & open to you. Observer & learn.

Self-reliance is 1st human liberty. Trust yourself as a valueguy & wonderful things will start coming to you.

regards,

jasmeet singh

Founder & Investor

SEBI Regd.(INH100004951)

Jasmeet Singh

About me :

Currently managing assets of 5 Crore+ & still sleep like a baby every night because Valueguyz makes life simpler.

I am passionate about 3 things in my life Financial System, Fitness & Photography

I got introduced to Financial system through Forex Trading back in 2007 during my 3rd Year of Engineering & It was too complex yet magnificent. Officially I entered Indian Stock Market in early 2008 at the very beginning of Global Financial Crisis, but what the hell did I know for me it was the last semester & time to get serious about my passion ie, Counter Strike

DISCLAIMER

This analysis is my personal opinion shared on public media (Blog) & is not a recommendation of any sort in any manner. I am currently not registered with SEBI in any capacity but in process of being a registered Research Analyst with SEBI. I have no financial interest in aforesaid company & don't hold any stock on the date of writing this post.