Book profits. I bought at 64 and sold at 230. I exited this stock, although it can go up more, since it has a lot of debt. Fundamentals are a bit out of place. Management is looking for a strategic investor. And it is this news that drove this stock up from 60 to 130 (prior to elections).
Two people prayed to god. They pleaded with god to grant them wealth. Then god appeared and asked both of them to proceed towards a mountain one by one. The 1st man went along the path. He saw rough stones scattered all along the pathway. He cursed the person who placed the stones. He reached the mountain. But did not get wealth. So he cursed god also.
The 2nd man started to procced along the same path taken by the 1st man. He saw the same rogh stones. He stooped down collected the stone and examined them. The rough stones were actually rough diamonds. He collected rough stones as much as he could and he praised god for havig showered him with wealth.
MORAL OF THE STORY:- Superior returns can be made by investing in shares when they are in the raw diamond stage. UB Holdings is in the raw diamond stage.
Guys, the debt UBH has taken on is basically in respect of KFA. With the FDI being allowed in airlines, its the least sensitive politically, KFA will sell a major stake and bring down the debt. This will do wonders for both UBH and KFA.
India is the fastest growing liquor market in the world and UB Group is having a 70% share. Vijay Mallaya controls his group through UB Holdings.
India is also the only rapidly growing economy wherein air travel is very negligible. Only 4% of travellers travel by air. In malaysia 51% of travellers travel by air. So a huge scope for massive growth in aviation sector. The best full service airliner is Kingfisher Airlines and UB Holdings is having the major shares in it.
So UBH is having a stanghold over the liquor industry in India and a brand name and fame in the Aviation sector. FDI in aviation and other reforms will propel the aviation sector.
UB Holdings is the major share holder of Mangalore Fertilizers which is the only fertlizer company in entire Karnataka. Gas from reliance will enhance the profitability of fertilizer companies.
There is a huge difference in valuations between the worlds no.1 liquor company and worlds no.2 liquor company (USL). This cannot last for long. So USL valuations will catch up with world no.1. This will in turn propel the valuations of its parent UB Holdings.
So all in all UB Holdings is quotating at only a minor fraction (my opinion is 5%) of its real valuations. So thats why I call it rough diamonds.
Dont forget the large land bank that UBH has from its bangalore properties. The valuations of UB is a fraction of Diaego where margins are better in UB so huge potential for UB provided Mr. mallya is less flamboyant with his lifestyle. It is onl a matter of time before Dieago will buy into Uspirits (His son siddharth works for them in UK as Management trainee) so the synergies are live. Happy investing in UB spirits
Dear friend , you have given a very good example.I too hope that this share will give fantastic Returns in long term.Once this share was quoted around Rs.1300/ or so.Due to global meltdown only this came to the level of Rs.65.oo.So we can pick up these shares on every dip. In the long term we can hope liberal bonus,Rights issues, good dividends and even splits can be possible.Once I read in Economic times that UB group had given 7000%Returns in short term.So let us forget the fluctuations on daily basis and accummulate and enjoy this wealth creation.Mcdowell holdings too can be accumulated on this same model.
YOU ARE RIGHT,mcdowellholding and ubholding has bottomedout now they will shootup from today onwards,mcdowell and ubholding both will get upper circuits from today onwards,at least 12 non stop upper circuits as unied spirits and kinfisher airlines deals can be announced today or latest by tomorrow,all the best,and make wealth,health and happiness by buying mcdowelholding and ubholding
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