SKS Microfinance Ltd IPO Message Board (Page 5)

@ kk

you are absolutely rite even i dont believe in short term and day trading on aregular basis for people like us......coz that is pure gambling and studies have shown worldwide that 99 percent people ultimately loose their money in day trading and speculation in short term....only percent are succesful and they are the expert legendary technical guys whi trade in huge volumes...

Well you can go to ernakulum your neighbouring statee kerela they have an office there........and they also lend to shgs or self help groups....you are/rite that bankss do not lend to them if they are not trustworthy,...in fact self helf groups do not suggest bad clients to banks coz if they do that all of them willl be blaklisted. Thats why npas are low in mfi........

Anyways leave this never ending debate and focus on making money

regards

setu

By the by I live in Tamil Nadu where I have not heard of SKS microfinance before it came up with the public issue. To my knowledge there are no branches here. There are self help groups here with women as members and some of them manage to get bank loans. I have also heard from some groups that banks don't give them loans if they are not satisfied fully with the functioning of the groups.

Dear SJ,
Thanks a lot for the time spent to explain me everything. These are all the feelings of a mind that is not steady, that wobbles. Let us leave it and proceed with the market and the process of making money!

Dear Srinivas,
I was referring to making money in intraday trade or short term trade. We sell. Somebody buys. If the price goes down that somebody loses what I have earned. But we can't remain in the market if we have such feelings. I understand and I compromise.

Dear K K Natarajan,
Like millions of Indians you have wrongly understood equity market. By applying IPO or buying from secondary market, you are only acquiring ownership rights of any legitimate business.It is nor immoral, unethical or illegal.
Market helps minority share holders to enter and exit the business effortlessly.Market helps businessmen to raise capital, expand his business.
Immagine if doing business is a sin, then we would not have any clothes to wear, any food to eat.
If you had a piece of land, you cannot sell at the rate you had bought. you have to sell at the prevailing rate only which may be more than your cost or less than your cost.
Doing charity is always good. But do not do it with guilt feeling. you do not get fruits of charity if the same is on account of ill gotten money.

Dear KK

First of all your premise that MFIs......are unethical is wrong

My brother who gave me idea of SKS since 2007 who works in PE firm in Mumbai has personally researched this company and its branches and its variou location

There are always some bad apples in every business..that doesnt mean the entire businees is unethical

In fact if you are so guilty go and close your bank account tomorow....coz as per your premise even they are unethical coz there was some cases where their recovery agents harrased guys to the extent that they had to suicide....but thoose were one off case.

Now some who read that in newspapers and media who always sensationalise small things should have thought that banks are unethical and hence should close their bank accounts....lol.

In fact these newspapers and media try to create this hype by publisihing undersresearched stories so that people like you and me read it and beleive it. Otherwise who will read them.

I will give you example of SKS itself.

Economic times came with huge front page articles of how microfinance is unethical and how their NGO promoters like Unitas selling stake.

Later they themselves came out with an interview of Unitus manager after IPO was succesful who justified why it was misconception.

So there is no mai baap of these newspaper and media. They just sensationalise things. True journalism has vanished long back when our grandfathers were alive. This is just papparazi and notjournalism or media.

Why dont you personally go to some branches of these MFIs like SKS in villages and check out for yourself how many women have been pressured to pay laons by taking to prostitution. Instead of reading some stupid newspapers and media reports and basing your opinion ?

Some recovery agents employess were bad doesnt mean that entire lot is bad.

Still if you think it is unethical thats OK with me...I completely respect your side of story and i am not demeaning you.

Forgive me for being so blunt. I am just putting my point through.

Regards and No offence intended

Setu

Dear SJ,
If I make money in the secondary market there is a feeling at times that I am enjoying somebody else's money. This itself is unethical, I used to feel. Regarding SKS, I thought of not applying in the beginning but the hard feeling I had after losing so badly in Shree Ganesh made me apply as I was quite sure of earning profits after following your posts about the issue. Just to ease my guilty feeling I gave a portion of the money earned to charity. I know it is like praying God for excuse after doing something bad. But people do it isn't it?

@ jkg

becuase everyone is thinking market will correct

it will rise tommorow

Market fell coz some FIIs who form majority of market thought that US GDP estimates will be lower at 1.2 percent

But it came at 1.6 and us markets rallied

Dow closed up 140 points plus

May be in future 6 months they may corrct.

But india will not correct below 12000-13000 as in 2008. coz many FIIs will be waiting to park their funds at that level coz they have seen India correcting to 8000 and bouncing back to 18000. They dont want to miss oppurtunity this time around.

I am not a short term trader.

Untill and unless there is major liquidity crisis i do not expect SKS to correct below 1125-1130. It is forming a base at these levels and only move higher after October results are published and people are confident that they can maintain their previous performance.

Coz at that price most of the Institiutions have bought shares from secondary market

Check block deals

Institutions are cornering these shares and retail guys like you are selling.

You can take tomorow's example....

Market was down 227 points still sks closed up 1% to 1165.80

Who will sell this boss.....nobody has shares left. all with institiutions who are long only guys.

If in case of liquidity crisis some FIIS sell because of redemption pressure and market corrects 40% in india

I will buy more at lower prices instead of selling in panic.....like retail people do.

Coz this is a long term story

Regards

Setu

sj markets going to correct better you sell your shares of sks

yes you guys are right

money lenders sucking the blood of poor people by charging 60 percent interest rate is ethical

private sector and public sector banks not serving poor enough that is ethical.

A n.g.o giving micro loans upto 100 crores at subsidised rates to few people instead of 45000 crores lent by mfis that is ethical.

And on top of that first applying to ipo of sks earning profits keeping half for yourself and giving other half to charity......keeping these double standards is ethical..

Wow what ethical....logic...!!

Dear Sreedhar,
That's why I said in the beginning that microfinance companies (if they really serve for the poor instead of exploiting the poor to earn wealth) and stock markets (where people try to make fool of others to earn money) are poles apart and a microfinance company coming out with an IPO is strange!

@ Shreedhar

Can you post the percentage of such cases of atrocities..?

It may be just few bad recovery agents doesnt mean the entire industry is bad...!!

Even private banks used to employ recovery agents some of them led to some public sucides due to harrasment.

That problem was fixed by ICICI at that time. That doesnt mean the entire banking industry is corrupt.

If you have made up your mind that it is unethical for MFIs to cheat poor..and this is unethical. I have no problem with you.

In fact i respect your principle.

But just being baised through that angle and extrapolating it to support your argument neither does justce to the level of intellect you have nor you should pursue.

And what are the regulations that RBI are coming out to curb MFIs can you highlight please...?

The pending regulation with RBI is to allow NBFCs to accept public deposits. If that happens their interest costs will come down significantly.

Regards

Setu

Dear Natarajan,
Front page banner headlines today in Sakshi ,APs No. 1 vernacular daily.It gives in detail the atrocities being committed by Micro finance companies.The agents of One company which is going to come with its IPO soon has even suggested one of the loan takers to pay the instalment at any cost even if it meant to resorting to flesh trade.These news are becoming frequent & now have started attracting media attention.Already RBI has stated its intention to curb the Micro finance companies & now with media Joining the bandwagon,the balloon will be pricked in near future.

WHO ARE FULL INTELLECT - NOT SUBCRIBE TO SKS ;

WHO ARE HALF INTELLECT - WHO CAN IMMEDIATELY SELL BEFORE ???

OTHERS ARE IN THIRD CATEGORY !!!!

dear silent one

well if that rumor is true then it will go down further coz some of the revenues that have been contributing its topline like power and business loans will vanish. But that will not make a difference at all to the comapny in long term coz it will focus only on the booming microfinance sector

yes it is possible that m&a happen in this sector for big companies like sks acquiring smaller companies like se.....
See if you notice sks and other big mfis are mistlyy concentrated in the southern market and want to meet huge unmet demand in northen demand in places like west bengal orrisa rajasthan up and bihar .......so se investments that caters to northen region can be a good takeover candidate coz it is takes time for mfis to build network in other territories and it is better ffor them to acquire someone who already has established business network

no i am nit adding se in thousands but only 1000 for every one rupee fall tl 46..

I will sell if ut goes 100 next year coz then i will get 20 times return on my investment

@SJ: Do you think in the immediate future you can expect cosolidation in the microfinance space...like players like SE merging with SKS?

@SJ: anyway i know it makes no diff for you as you are buying thousands of shares for the long term....

@SJ: The rumour goes something like this.... With the name change of SE invest to SE Microfin it may demerge some businesses and streamline only into microfinance so you can expect some mergers and demerger Announcements at the agm on sept 13th

@ silent one

What is the rumor you are talking about..?

Haven't got my money refunded till now...ny suggestions!