TCFC Finance is engaged in share trading – primarily in
secondary companies.
The company reported just over 60cr in stock-in-trade as at
30th September, 2011.
Management haven’t provided details of their trading
strategy and hence, we’re unable to judge its viability. It does not appear to be stable since they
seem to be willing to change course depending on their assessment of economic
conditions. They also appear to be
engaged in the ‘hedging’ of equity shares and mutual fund units, which could
expose the company to unlimited losses in a sustained bull market.
The company reported a drop in net worth in 08/09 as a
result of the financial market downturn and also reported losses of about 4cr in
the nine months ended in December 2011 as a result of market weakness. The performance is erratic, as expected, and
appears to depend largely on the performance of the markets – with no special
ability to withstand market downturns.
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