CHCL

Rajesh Sharma

One of my old posts regarding Chilime, may be useful to re-post in the context of falling Chilime profit. However, I still believe that the company would surmount current difficulties and take route to higher profit. Hence, there is no need of panicking. Energy Minister Radha Gyawali has been nearing political bankruptcy and that is good for any hydro-power company including Chilime. If KP Oli will try to protect her now or in future, he will be at great political loss. I do not see he will carry a political corpse on his shoulder. With this brief background, let me put below my note of 9 August 2012 posted on nepalsharemarket forum.

"Chilime is the "Flavor of the Month" now. However, over this company the ordinary shareholders have least control. Primarily, this is a government company. The ownership pattern is: 51% NEA (A GON Undertaking), 25% NEA/CHILIME employees, 10% locals and 14% general public. As the promoter is the governmental agency, no one could predict its future. One fine morning when the political thugs discover that there is plenty of money, they may start a "Lucknow Loot.” In my opinion, this is a good company for trading as it is shinning now, but risky for long-term investment. The small investors should be more informed as their primary defense against any risks are not money, rumors or trend, but information and education."
http://www.nepalsharemarket.com/jambforum/Default.aspx…