Highlights of the Veritas Research report - DLF.

Highlights of the Veritas Research report:

• DLF may need to restructure loans and dilute equity to get out of the hole it finds itself in, adding the company has negative cash flows of Rs936 crore this year.

• Questioned the disclosed book equity and asset base of the company, hinting at irregularities in the DLF and DLF Assets Ltd (DAL) merger.

• Through its dealings with DAL from fiscal 2007 to fiscal 2011, the company inflated sales by at least Rs11,236 crore and its profit before tax by Rs7,233 crore.

• Based on the quality of management alone, the share is not worth a buy. And considering all its ills, the stock is worth no more than Rs100.

• DLF has undertaken questionable related-party transactions to boost the value of DAL prior to its acquisition by DLF, thereby subverting the interest of minority shareholders via a higher purchase price for DAL.

• In the end, DLF will seek assistance from financial institutions to restructure loans. Issuing equity in a secondary offering thereby diluting shareholders, and killing the current dividend are the only reasonable options for the company

• DLF has also failed to deliver on commitments made during its IPO in 2007. Since then, the management has faltered at every step in executing its grandiose vision to be a conglomerate with tentacles spread across hotels, build mega townships, become free cash flow positive by fiscal 2011, build a mega convention center in the NCR region and so on. 

What this means?


The top notch realtors suffering, the sector is probably worse off than what we are seeing on the surface. Another big realtor, HDIL is saddled with a debt of over Rs 4,000 crore and is selling land parcels. But surely today, HDIL will be feeling better knowing that big brother DLF is in a much bigger mess. Unitech's debt as at 31st Dec 2011 stood at Rs 5,190.26 crore. Debt of Parsvnath at the end of Q3FY12 stood at Rs.1300 crore. The total accumulated debt of the top 12 realtors of India at the end of the third quarter stands at a huge Rs.50,000 crore, of which DLF is responsible for 45%. 


Courtesy: https://www.sptulsian.com/article/64843

3D Printing: A New Wave of Innovation.

Don't worry if you've never heard of 3D printing. It's so new it's not on many radar screens yet. 

But soon everyone will know about it. 

Still in its very early stages, 3D printing is destined to have a huge impact on the entire world economy.

These "desktop factories" will one day become a $1 trillion industry-completely changing the traditional factory model forever. 

It's what's known as a "disruptive technology." 
Here's why...

By the end of this decade, everyone from consumers to big businesses to solo inventors will be able to make their own unique products in just a couple of hours.
Need a special tool?... Or a new spare part? 

Soon you will be able to fire up the 3D printer and make one from composite materials.

Indeed, I recently watched a YouTube video of Z Corp. making an adjustable wrench from high-tech compounds. It was a copy made from metal. 

Though it weighed less than the original, the "printed" wrench worked just as well and looked every bit as strong.

And let's not gloss over the medical products that can be created by these revolutionary printers. An 83-year-old woman in Europe recently received a new jaw doctors printed with titanium powder.

Medical team members said they made the implant in just a few hours compared with the several days usually required with existing methods.

That's why I say this technology symbolizes the Era of Radical Change. Now, anyone who knows computer basics can make or invent products on the fly.

3D Printing: A New Wave of Innovation 

Technically, you don't really "print" a new product, though the process is similar. Rather than putting ink on paper, the system creates the product by adding thin layers of special polymers and some metals.

This is literally "cutting edge" high tech that is destined to become big business. 

I believe it is the 21st century equivalent of the laser printer and the dawn of desktop publishing in the 1980s that changed the entire print industry.

But don't take my word for it...

Let's hear from Hewlett-Packard (NYSE: HPQ), the high-tech giant that knows both types of printers extremely well.

The Silicon Valley leader now offers a high-end unit made for professional use. Its DesignJet Color 3D printer reportedly sells for $20,000.

But consider this: 3D printing will soon come to the masses at prices they can afford. 

Today, MakerBot sells its Replicator for $1,749. Its users can download free modeling software such as TinkerCAD or Sketchup from Google Inc. (NASDAQ: GOOG) to print their own products. 

Small-cap leader 3D Systems (NYSE: DDD) also recently launched the Cube, a competing device that lists for $1,299. A related website, Cubify.com, combines the simplicity of a coloring book with robust digital resources.

The firm's CEO, Abraham N. Reichental, told BBC news that 3D Systems already has 1,000 workers -- and nearly as many patents.

Now just think of what will happen when the price of these machines drops to $500....

We're talking mass customization of a wide range of goods, from forks to jewelry to high-tech ski helmets.

When this happens, 3D printing will undoubtedly unleash a whole new wave of innovation.


And for a very simple reason...


Inventors will be able to use a low-cost 3D printer to truly unleash the power of their imaginations. 

When that happens creativity has the potential to increase exponentially. 

There will be no more spending thousands of dollars to have a specialty firm make a mold before you can even build the prototype. 

3D Printing: Endless Possibilities 

Now you know why the top brass at the Smithsonian just gave 3D printing their stamp of approval. 

You see, the world's largest museum boasts more than 137 million objects. But only a few remain on display at any point in time.

With 3D printing, officials can scan originals with special software. Then they can "print" replicas they can loan to other museums.

At the very least, the Smithsonian can afford to make digital 3D images of its vast collection it can then store for later access.

According to a recent story by CNET, the museum already touts a 3D printed-replica of a Thomas Jefferson statue, which they say is the "largest 3D printed museum quality historical replica" on earth. 

Meanwhile, 3D printing has also created other products with a definite "wow" factor.

Take the case of the two British researchers who printed their own spy plane in a week -- it took two days to design on a computer and five days to make.

The small, unmanned plane with a wingspan of about 4.5 feet soared at 100 MPH. You can watch a YouTube video of what's touted as the first flight of its kind here.

The European aerospace giant EADS also uses the technology to make specialty aircraft parts. 

They've started with items like brackets that hold parts in place. But their long-term goal is to print the entire wing of a jetliner.

German supplier EOS says it gets parts orders from car and aerospace firms. And also from... dentists. 

EOS says it can create up to 450 dental crowns in one day. That compares with about a dozen for most firms using conventional systems. 
Not even music is immune to the disruptive impact of 3D printing. Last year, EOS used a specialty compound to make parts for a violin.

A violin maker assembled the parts into a working instrument that was then played by a concert violinist.

Clearly, 3D printing is destined to have a huge impact on the global economy.

I believe it could be worth $1 trillion in as little as a decade. 

How is that, you ask?....

It's a matter of simple math. 

The global economy measures about $60 trillion. Of that, manufacturing accounts for 17%, or $10.2 trillion. 

If 3D printing captures just 10% of the sector that would total just over $1 trillion.
That's why I say we will see lots of opportunities to invest directly in this technology, or in firms using it to improve profit margins.

Either way, it is time to open your eyes to the possibilities of 3D printing. 

Otherwise you'll miss the Next Big Thing that will change the future of manufacturing. 


Courtesy: http://moneymorning.com/2012/03/08/3d-printing-how-desktop-factories-will-create-the-next-1-trillion-industry/

Greek Debt Swap Deal.

Greece has effectively reduced its debt by €100 billion (Rs6.6 lakh crore) and has secured €130 billion of bailout funds from the European Union (EU). It has achieved the debt reduction and secured the bailout funds by swapping existing debt of €206 billion for new debt. The bondholders, including European banks, insurance companies, asset management companies, pension funds and others, have agreed to a 53.5% haircut on the existing debt in return for the new debt, with new terms.We break it up all for you:

Q: What is the debt swap deal?
A: The debt swap deal is an arrangement between private sector Greek bondholders, whose total holdings is €206 billion, and the Greek government. The bondholders surrender their Greek bonds (issued under Greek law and foreign laws) to the government in return for new bonds.

Q: How does the swap affect the bondholders?
A:Bondholders take a loss on their principal investment. In very simple terms, a bondholder holding €100 worth of Greek bonds will surrender the bonds and receive bonds and cash equivalent to €46.5. In bond market terms, the loss to the bondholder will be 70% if calculated at NPV (net present value; or present value of future money) terms, though arithmetically it’s a lesser loss of 53.5%.

Q: How will the swap benefit Greece?
A: This helps Greece write down the value of its debt by around €100 billion and it will secure €130 billion in bailout funds from the EU. Greece will use the €130 billion to pay cash to bond holders participating in the deal, redeem bonds maturing in March, buy back bonds from the European Central Bank and use it for its own economy.

Q: How will it impact markets?
A: Financial markets will now not have to worry about a Greek default on its debt and the country going out of the euro. Markets can focus on liquidity infused by the ECB (over €1 trillion in the last three months through LTRO or Long Term Refinancing Operations). The liquidity will go into speculative buying of risk assets.

Q: What is the impact on India?
A: Indian markets will see more risk appetite from foreign investors, leading to more flows into the country. FIIs have already pumped in over $6 billion into Indian equities in January and February, and will continue to do so given the cheap liquidity generated by the ECB’s moves.

Courtesy: http://www.dnaindia.com/money/report_is-the-debt-swap-all-greek-heres-what-it-means_1660441