The Market Cap is down to just Rs 100 crs at 20% lower circuit today at Rs 23.85
It’s Fall commenced in 2015 uprooting Shareholders Wealth dramatically from Highs of Rs 550 in Feb 2015 when Market Cap was over Rs 2300 crs ! ~ it’s a wipe-off of over 95% in Wealth!!! like you’re left with just Rs 5 from your original Rs 100 !!!
I had blogged extensively on this debacle over a year ago on November 27, 2015 with specifics on how there appeared to be cloudy money payments & accounting jugglery in the accounts.My Training Sessions cover Tree House when discussing Corporate Governance & Interpretation of Financial Statements when assessing Value vs Price
Did not the FPIs, Private Equity Funds & Venture Funds question this when investing Hundreds of Crs in the Company…. and how did Independent Directors & Auditors allow all of this…. & how did all such risk miss the eyes of many a Fundamental Analyst when recommending this for Investment !!!
Message Boards of Stock Portals went ballistic on Tree House last two years with many supporting a turnaround at Rs 150 & Rs 200 levels that it had dropped to end 2015 from Rs 550+ levels.Either they were paid stooges or simply living in Hope in the Squeeze of a Boa Constrictor.2016 actually tightened the squeeze leaving shareholders gasping for breath,dropping from Rs 175 levels beginning of the year to now just Rs 24 & falling.There’s a cloud on the merger too with Zee
And just look at this ironic Shareholder data !
March 2015 ~ 5300 Shareholders at Peak Highs of over Rs 500
December 2015 ~ 13552 Shareholders at Turnaround Hope @ Rs 175
September 2016 ~ 20577 Shareholders last notification count
Clearly Many Investors love standing in front of a Speeding Train ! ~ The Faster the Speed of the Fall the More Join in to commit suicide ! ~ Living in Hope only to Die in Despair ! ~ Sadly most of them could be Retail,sucked in by Positive Views on MessageBoards & by Experts on Stock Portals & Channels
Earlier in 2013 I had lamented & even loudly warned on the blog (Checkout Category Kingfisher Airlines~ Machiacellian Mallyas) ,in my Forum Speeches & Training Sessions that over 240000 shareholders of Kingfisher Airlines should critically revisit their Investment before it was too late as to me it was simply an Airline that never really took off ! ~ Shareholders remain Holed up in a suspended scrip (last restricted trade was just Rs 1 in June 2015 when it was finally fully suspended even from restricted Trading after initial suspension from December 1,2014 ) while the Promoter Mallya is holed up in London ~ Tagline of my Blog “In India,Companies may Fall Sick but Promoters rarely do!”
TreeHouse & Kingfisher Airlines ~ Both Initially Hard Hypes with a Hard Crash landing ~ there are many like this ~ Reliance Power for one ! ~ BAM ! is the Acronym of the Promoters of such !
It’s not just the Children who love playing :
‘Ring-a-ring o’ roses,
A pocket full of posies,
We all fall down”
Update on Monday, December 19, 2016
Whoa! Treehouse & it’s Promoters now accuse the Zee Group of committing a fraud on it with the conspiracy to kill Treehouse as a business.
They have stated this in their clarification notification to the BSE,NSE & MCX
Zee has called off it’s proposed merger with Treehouse
What’s it with this letter ‘T’!? ~ Tata Group is in an unprecedented controversy to remove it’s Chairman with hostile aggression & a lot of muck flows to & fro ~ Now’s it’s Treehouse being uprooted ! ~ Which is the next T ! ~ there you go ! reaching out for all the Listed ‘T’ Companies !
Feel really sad for the minority shareholders of Treehouse ~ they’re trapped with Treehouse at 20% lower circuit even today at Rs 19 ! ~ some have invested life savings in it,as I just learnt !
Will it revive,rather be allowed to,as promoters claim fraud on it ? ~ The overseas controversial Valeant Pharma comes to mind and how it got decimated inside a year too & is fighting to revive despite Warren Buffett thrashing it & Charlie Munger even going harsher calling it a sewer !