Reliance Industries announced last Friday sale of 4% equity in Reliance Petroleum Ltd. at an average price of Rs.223 per share.
These sales were made between November 10 and November 23,2007.
Interestingly just one week prior to RIL (owned by Mukesh Ambani) selling the shares, an unknown group of people bet their shirts on a fall in Reliance Petroleum’s share price, in a magnitude never seen before in Indian stock markets.
Between November 1 and November 6, 2007, this group made short sales of 10crore shares of Reliance Petroleum in the futures segment of National Stock Exchange.
These short sales were made at prices between Rs.275 and Rs. 295 per share.
These numbers are based on official data published by NSE.
The value of these short sales is an unprecedented Rs.3,000 crores approximately.
This group of persons has made a cool profit of approx. Rs 1,000 crores in less than a month, because the Reliance Petroleum shares have now crashed from Rs.295 to Rs 195 per share!. These guys have made Rs.100 per share.
Who are these super smart traders? Are they smarter than even the smartest businessman in India, Mukesh Ambani??His company, RIL, sold the shares at Rs.223 per share but these guys sold at Rs.275 to Rs.295 per share.
2 comments:
The direct employees of RIL's Petro-marketing division are being forced to resign by the management by various inhuman and cheap tactics like blocking salary/ deactivating access card/ abuse and threats by a bunch of higher ups inside closed room/denial of office amenities and internet. About 700 employees have been made to resign forcefully from Petroleum retail division using such methods between April08 and October08. Two of the forced to resign employees have commited suicide in the same evening of forced resignation. It is surprising that it didnt get the attention of statutory bodies/ media till date. - A recent forced to resign employee ( Also view comments on the following link - www.invest-n-trade.blogspot.com/2008/10/reliance-retail-lay-off-job-cut-jet.html
One fine day a wise man makes a sudden appearance in a village with an offer to buy monkeys for 10 bucks apiece. Since there are many monkeys around, the villagers start catching them from the nearby forest.
The wise man buys thousands of monkeys at 10 bucks each as promised. Since the monkeys have dwindled considerably by now, the villagers stop catching them. The wise man doubles his offer and pretty soon the villagers are chasing after the remaining monkeys. Soon monkeys are so rare that the villagers go back to their farms.
The wise man buys the next batch of monkeys in hundreds for the 20 bucks as promised and makes a new offer of 25 bucks per monkey but free monkeys have become almost extinct in those parts by now. Still he manages to buy a dozen or so monkeys at 25.
Now the wise man raises his offer to 50 ! The villagers try really hard but monkeys are nowhere to be found. Since he has to travel to the city to attend to an urgent business, the wise man authorizes a deputy to buy the monkeys on his behalf.
In his absence, the deputy shows the villagers the huge cages holding all the monkeys that have been caught and bought till date.
"Dear villagers, these are the monkeys that my boss has collected. I will give them to you at 35 apiece. By the time my boss returns, each monkey would be at least worth 70 bucks a piece; you can sell them back to my boss at a profit and double your money !"
The villagers cough up all their hard earned money down to the last penny and buy back all the monkeys at 35.
Then the deputy vanishes without a trace; the wise man is never heard of again in these parts. The villagers are poorer than ever but the nearby forests are rich with monkeys again !
After many years...
Another wise man makes a sudden appearance in the same village with an offer to buy monkeys for 10 bucks apeice. The impoverished villagers having forgotten the bitter past by now, rush into the nearby forest to catch monkeys...
Welcome to the Stock Market !
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