Wednesday, February 23, 2011


It is very rare to see a company trading at a P/E below just 1. Yes , it is Compact Disc which posted an EPS of Rs.50/- last year and currently trading around Rs.39/- . No need to get exited and punch order to BUY this stock because of  its throw away  valuation. There is lot of questionable practices going on here . This multimedia - animation company is announcing the beginning of many projects but then there is nothing about its completion or releasing and cash flow from such projects. Instead of that ,company is announcing the beginning of another projects and so on. To keep the faith of the investors and shore up the share prices ,promoters are playing various tricks like dividend,de-listing ..etc. After declaring dividends company deferred it and again announced a date for reconsidering the same .But even after 6 months of the date of EGM for re considering the dividend ,there is no announcement about it. In the case of de- listing ,company announced an EGM after three months to take final decision .If past is any indication they will cancel the de listing decision in that EGM .  It is really funny to see that Forbes Asia Editors have selected Compact Disc India Ltd. as one of the 'Best Under A Billion' Company.I don't know ,what is the meaning of ' BEST'  the Forbes means .If they are selecting this types of companies it will only  help to destroy the reputation of even the well known 'Forbes' . Since we - the investors - have limited  options to check the validity of claims made by companies and no chance to check their  bank accounts ,we can see these type of results and claims even after the story of Satyam Computer. But the shocking part is ,even the police authorities informed the activities of the promoters of  Compact Disc  about a decade back ,the watchdog of Capital market did not take any action or inquiry about these people .You can read that story HERE

TOTAL EXPORTS is another company from the same management and its suspension revoked recently and now trading around its 52 week high .

So ,it is better to study the history of promoters before started buying stocks only on the basis of published financial results.


  1. Valuepick sir,

    The same story lies in temptation food.

    I really learned promoter analysis by you.

    Thank you so much.

  2. Dear Sir

    we want to buy Transgene Biotek Ltd stock give me update
    on it


  3. A real eye opener report.

    Kudos to Valuepick.

  4. I would like put Midvalley Entertainment also in same category ....It is going in same way story of Pyramid Samaria..and SEBI will not do any thing till investor burnt their figures.



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