Review the facts mentioned previously and decide for yourself. Consider that shares are currently down about 95% from their previous high of four years ago despite the $80m spent on infrastructure and all the good news out of India. Institutions owned around 17m shares when SIFY was just a chain of internet cafes and they now own only about 500k, ask yourself why? And it's not because they're stupid.
Hi Ranjo, we both did very well with SIFY in the past and my retirement has benefited enormously from those huge profits. I can afford to be 55% in cash, sleep well with the balance in a highly diversified income portfolio of mostly CEFs bought right and yielding around 8.5%. Right now would be a great time to buy, there's a good argument for interest rates staying low or non existent for much longer than most expect. Too late in the cycle right now for speculating in micro caps but there may be another opportunity down the road. Too bad about SIFY, if Raju was aligned with shareholders PPS would have been back in the teens by now as they're finally making a profit and with India back in the news and doing so well. Like the saying goes "when the facts change I change my mind" Good luck to you and take a look at CEFs or even PCEF retirement comes up fast. Be well!
Institutions don't invest in companies where 85% of the shares are privately held especially when that company is based in a still third world country. If they did they would have already bought back shares sold at 6 - 13 x current prices and now with over $80m invested in infrastructure, little or no debt and now profitable wouldn't they ???. Invest on facts not wishes and emotion.
I first invested in SIFY late in 2004 and then again in 2009 and made really significant gains both times. Being deeply involved with a company for over a decade, reading all the transcripts, press releases and comments as well as noting institutional behavior I think gives me some credibility to offer an opinion. The very reason is the fact that some might still have a huge position and not be fully aware of the risks involved. One has to look beyond the obvious with this company because of its unique corporate structure, one based in India, with no shares issued there and controlled by one man owning 85% of the company with his wife and brother on the BOD. Those institutions that previously owned about a third of the companies shares (prior to the private issuance) and sold at five to six times the current price and prior to an 80m dollar investment have not returned even at this low price! If you want to still own it knowing all this, good luck to you!
In fact he owns over 150 million shares. The plan has always been to either sell the company or do an IPO in India, that's why he issued himself a massive 120m privately held shares a few years ago. The company is absurdly cheap, he can do either in India and reap a massive profit for himself there (and a significant tax loss here), why share it with shareholders? Note the absence of any significant institutional ownership. There was about a 33% prior to the private share issuance, they knew what was coming, sold and have not returned even at a fraction of their selling price. On the contrary, if you are familiar with all the facts and history, it makes complete sense, wait and see.
No way general, buy out will be well under $1, probably around his previous buy figure of .88c. Remember he owns over 85% of this companies shares, his wife and brother are on the BOD, the company is based in India and there are no large institutional owners. As I've been saying for years, he can do anything he wants.
If the PPS keeps dropping and gets below $1 it might not be long before it gets taken private. That I believe is the goal of the principle holder and has been for a long time. Again this is not a negative critique of the business itself but an observation regarding the ambitions of its major owner.
High yield, diversification and quarterly re balancing, rotating to those funds with largest discounts. For those wanting high steady income and can tolerate some volatility this fund should be considered.
Around .86 cents and there are 23 million ADRs he does not own. Buyout would cost around $20m. An IPO in India at the equivalent of $5.8 a share makes SIFY a $1b company.
With ownership of around 30 million ADRs and the low volume lately it would be easy for Raju (or a family member) to sell a few shares and help the market move the price down to a point where a buyout would be attractive, or perhaps the market will do that without any help. It would also avoid the kind of previous outrage that erupted when he issued those cheap private shares. The excuse that the market does not value the company realistically would be the perfect reason to take the company private and create a huge tax loss for him to cover any profit he may decide to bring home in the future after either an outright sale or an IPO in India.
It also offers good diversification and continued rebalancing. If you like CEFs for their income this is an excellent fund.
Analyst is an entry level position, anybody with a clue is a trader and they don't advertise their moves or at least not until they have built their position.
There is a tendency for stocks to overshoot to the upside on optimism and to the downside on pessimism and this stock is probably no different. The most money is made by those taking advantage of these situations either as a seller or buyer respectively, as a look back in history will prove.
Luck as much as many may deny plays a large part in most stories of success in my opinion, be it place or timing or whatever. I appreciate the the gesture of your wishing it for me and I hope you enjoy some too.
Had an adjusted cost basis of $1 on a 1000 shares, never lost any sleep or suffered headaches on that small amount. Made around $1600 no fortune by any means but more than I expected. The whole point of the exercise is profit not winning any debate and with my profit booked what would be the point of re entry? I think you're confused between brave and foolish. Enjoy your posting and those empty pockets since you were neither brave enough to go long or short despite your strong opinions.
You sat on the sidelines and ignored the staggering increase in volume and capital invested in this stock the thirty days or so that preceded the event of yesterday and missed even today a 100% return and far more yesterday! You either are ignorant of or ignored one of the primary rules of speculation, follow the money. So while you continue to overthink and probably continue to be wrong, we bag holders as you called us will be spending our profits and that's 160% in my case.