Wed, 10th February 2016

Anirudh Sethi Report


Archives of “Analysis” Category

If Knowledge Is Power, Is It Also Wealth?

Ironically perhaps, the ideas that are scarce are those that disrupt “business as usual” by automating what has not yet been automated.

Let’s consider a syllogism: Knowledge is power, power equals wealth, so knowledge equals wealth.

Is this true? Author George Gilder thinks so. His book Knowledge and Power: The Information Theory of Capitalism and How it is Revolutionizing our World, proposes that (in Bill Bonner’s apt phrase) “the economy is fundamentally a learning system, not a way for distributing wealth.”

In Gilder’s view, new information (i.e. knowledge) enables us to do things better, i.e. increase productivity. New knowledge is what creates value.

New knowledge is always surprising, and it naturally disrupts “business as usual.” So those earning money from business as usual must suppress the disruption arising from new knowledge to maintain their incomes/profits.

Bonner summarizes the conflict between vested interests (cronies and zombies) and those with new knowledge in this lively fashion: 

“In an economy, the person who is the source of most important new information is the entrepreneur. He is the fellow who takes risks and builds a new business.

The cronies want to stop him, before he undermines the value of their old assets and old business models with new information. The zombies want to drag him down, leeching on him so greedily that he runs out of energy.”

Gilder views vested interests limiting new knowledge as the real threat to the economy. This is the danger of “regulatory capture,” when vested interests bribe the state (government) to erect barriers to competition to maintain monopolies and rentier privileges.

Global Stocks Enter Bear Market

With stock markets from every continent plunging (Japan most recently), it should be no surprise that MSCI’s world index has entered a bear market – dropping over 20% from its April 2015 record highs. However, as Gavekal notes, while much of the drag on global stocks is from collapsing emerging markets, the average developed market stock is down 23% in the past year.

The World enters a bear market… at a crucial level…


FIVE things to watch from Fed Head Yellen in her testimony to Congress

Yes, that’s right, its time for Janet Yellen to answer questions from the US Congress

  • Testimony to the reps on Wednesday
  • Testimony to the Senate on Thursday
  • Through gritted teeth to the imbeciles grandstanders axe-grinders point scorers both days

She fronts ’em at 10am (eastern time in the US0 on Wednesday, but her prepared remarks will be published at 8.30 ET, along with the Federal Reserve’s monetary policy report

The Wall Street Journal has ‘5 things’ to watch for:

  1. Is she concerned with recent market volatility spilling into the real US economy?
  2. What guidance she will give on a March meeting decision
  3. Her inflation outlook
  4. She’ll also address regulatory issues (which will give us time to go get a cup of tea)
  5. Not just here testimony and answers, but also the details of the Monetary Policy Statement

Thinks: “Who are these morons?”

PNB-PFC -GAIL………..All 3 Down Down Down !Apollo Tyres-Sell if u can.Target 128–125–102–95 soon.On Rise Sell & Mint Millions

Ipca Laboratories -Warning Letter :Full Text (Watch 567-525 Support and Last Hope )

January 29, 2016


Mr. Premchand Godha
Chairman & Managing Director
Ipca Laboratories Ltd.
48, Kandivli Industrial Estate
Kandivli (West), Mumbai 400 067
Dear Mr. Godha:
In 2014, the U.S. Food and Drug Administration (FDA) inspected three Ipca pharmaceutical manufacturing facilities. 
  1. July 14–18: P.O. No. 33 Village Sejavata, Ratlam 457 002 Madhya Pradesh (Ratlam facility)
  2. October 13–17: 1 Pharma Zone, SEZ Phase II, Sector 3, District Dhar, Pithampur, Madhya Pradesh (Pithampur facility)
  3. December 1–19: Plot 65 & 99, Danudyog Industrial Estate, Piparia Silvassa 396 230 (Union Territory of Dadra & Nagar Haveli) (Piparia Silvassa facility)
At your Ratlam facility, we identified significant deviations from current good manufacturing practice (CGMP) for active pharmaceutical ingredients (API). At your Pithampur and Piparia Silvassa facilities, we identified significant violations of CGMP for finished pharmaceuticals, Title 21, Code of Federal Regulations, Parts 210 and 211.
These deviations and violations cause your drugs to be adulterated within the meaning of Section 501(a)(2)(B) of the Federal Food, Drug, and Cosmetic Act (the FD&C Act), 21 U.S.C. 351(a)(2)(B). The methods used in, or the facilities or controls used for, their manufacture, processing, packing, or holding do not conform to, or are not operated or administered in conformity with, CGMP.

Jaiprakash Power -Deadline to Repay Debt on Feb 13th-Where Money gone ?

Debt-ridden Jaiprakash Power Ventures said on Tuesday it may once again seek board approval for a standstill agreement with bondholders to extend the deadline to repay money it owes them. Foreign currency convertible bonds (FCCBs) issued by the company in February 2010 are due for redemption on February 13 after the company negotiated a similar agreement in February last year.

Since then it has paid bondholders close to $125 million and owes them another $101.41 million. The FCCBs have a conversion price of Rs 85.81 per share. On Tuesday, shares of JP Power Ventures closed at Rs 5.98 on the BSE. In early February 2010, when the company issued FCCBs, the stock was trading at close to Rs 68.

In a filing to the stock exchanges, the company said, “With reference to the earlier letter dated February 01, 2016 informing about holding of next Board Meeting on February 11, 2016, inter alia, to consider Quarterly Results, Jaiprakash Power Ventures Ltd has now informed BSE that the Board in that meeting shall also be apprised of the possibility of signing a standstill agreement with a majority of the holders of outstanding FCCBs issued by the Company, since the Company may require additional time beyond February 13, 2016 to repay the FCCBs in full.”

At the end of March 2015, the consolidated net debt stood at Rs 31,409.73 crore, according to Bloomberg data.

In September last year, Jaiprakash Power sold its Karcham Wangtoo and Himachal Baspa II hydropower units to JSW Energy for an enterprise value of  Rs 9,700 crore. Analysts observed at the time that the asset sale was necessitated by high interest costs and and losses on account of its coal blocks for the 1.3 GW Nigrie project being cancelled. In addition, the company also signed an MoU with JSW Energy to sell its 500 MW Bina thermal plant in Madhya Pradesh for which the due diligence is understood to be in process. The company has synchronised the 1.9 GW Bara plant which is expected to be commissioned by March.