How to Get Venture Capital Funding
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How to Get Venture Capital Funding document sample
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TSK&CO
INTRODUCTION
TSK&Co, an existing profit making registered Partnership Company operating for the past four years
in Chennai, India, is engaged in trading in about hundred blue chip stocks using Elliott wave theory
and Fibonacci theory.
Having identified excellent growth potential in the above field, this partnership company is planning
to transform itself into a closely held public limited company by expanding the shareholder’s base
and seeking additional investment in the form of venture capital from prospective investors for
business expansion & better returns to all stake holders
It is proposed to raise Rs32 lakhs capital with the following terms
Maximum 10 investors as share holders each investing about 3 lakhs… The investment is
treated as venture capital with min 10% annual dividend and 10%-20% annual premium for
buyback is offered
Entire shares of Rs 32 lakhs investments will be bought back by company/promoter with
in five years
Investor who stays 5 years will get min 100% tax free return for his money in the form of
dividend and buyback premium
TSK&CO past performance
year 06-07 07-08 08-09 09-10
Sales 36.18 116.75 40.28 26.00
&stocks
Purch& 33.89 113.71 39.63 25.25
Oprtg exp
PBDT 2.29 3.04 0.65 0.75
ASSETS AND LIABILITIES OF TSK&CO AS ON mar- 2010
LIABILITIES ASSETS
EQUITY CAPITAL 12.00 LAND- BLDG& OTHER ASSETS 28.50
BUILDING LOAN 10.50
STOCKS &CURRENT ASSETS 03.50
BUSINESS LOANS 09.50
Total 32.0 Total 32.0
All fig. in lakhs
Sales &profitability projections
DETAILS 2010-11 2011-12 2012-13 2013-14 2014-15
SALES 450 500 600 720 900
GROSS 22.50 25.00 30.00 35.00 45.00
INCOME
OPRTG 08.00 09.00 10.00 11.00 12.00
EXPENSE
PBDT 14.50 16.00 20.00 24.00 33.00
ALLOCATION 10.00 12.00 14.00 16.00 22.00
FOR DVD &
BUYBACK
Technicals of stock trading
INTRODUCTION
Venkatasubbarrao, the founder partner of TSK&Co, an honours graduate in Production
Engineering, with Management qualification in finance and years of research in share trading is
analysing briefly how share trading using ‘wave theory’ technique successfully manages all business
risks and ensures profit.
STOCK TRADING AS A BUSINESS
Investments in Stocks are generally viewed as a risky & unpredictable business. The rise and fall of
stock prices are believed to be not predictable by any technique…which, of course is not true!!
All actively traded stocks throughout the world are governed by two forces – buying & selling
forces, the resultant of which is the stock price at a particular time, which fluctuates continuously.
Human beings charged with greed (buyers) and panic (sellers) of varying grades participate in the
trading show… Obviously it is a mass psychology business!!
Ralph Nelson Elliott, an Italian investment genius, in 1930s discovered that the rallies and corrections
of stock prices contained a set of five distinct wave components, which Elliott named as ‘Wave Cycle’.
This pattern is available in all actively traded stocks globally. It is very interesting that this wave cycle
repeats its pattern on an hourly, daily, weekly, monthly, yearly time period, governed by Fibonacci
ratio (1.618) and its derivatives. Thus prices of stocks always change within a fixed pattern which gives
us a reliable technique to predict the future prices fairly accurately based on past price pattern.
The Bombay stock exchange comprises of more than nine thousand listed stocks, of which we have
carefully chosen about one hundred actively traded companies, covering all sections of the economy
Banking-Auto-Metals-technology-etc), for our portfolio. Using Elliott wave theory we track the daily
volatility of these stocks for buying, selling and profit booking. The direction of volatility is
monitored for buying low and selling high. The daily volatility of any stock varies between 2-5%
within the trading time which is known as daily highs and daily lows. We track these highs and lows
on a daily basis to book profitable trades of 5-7% margin periodically. Conservatively it is possible to
rotate the investment twice a month for profitable trades (thus an investment of twenty lakhs will
result in a sale of forty lakhs per month with about seven percent profit margin).
WE DIFFER FROM MUTUAL FUNDS SUBTLY…
We differ from mutual funds subtly… mutual funds choose stocks for investment (based on quality of
management, product strength, past performance and future trends of economy), and remain
invested for years for registering capital gain. They hardly exploit daily volatility. While we remain
invested like mutual funds, we enter and exit during corrections and rallies on a routine basis. Our
investments move along the market in the opposite direction. In rallies we book profits in staggered
manner and during corrections we buy in a staggered manner.
This strategy supported by Elliott wave theory and Fibonacci ratio (1.618), fine-tunes our
profit in an impressive manner. Bear markets which are unavoidable in any investment cycle
are excellent opportunities for value buying when the market bottom is known… Elliott wave
theory coupled with Fibonacci ratio analysis helps us predict the peaks and valleys (highs and
lows) of stock prices for any span of time based on the past price pattern.
FAQ on share trading
1.Share trading is almost gambling…no systematic procedure
is there….
Ans The past 5 -10 years price volume chart of any stock when analysed a trading technique
emerges between all time high and low prices
The stunning investment logic with which the prices move
with in these Boundaries is unbelievable …yet true!!
2. Nobody can predict when a stock will rally or fall..
Ans..Persons with basic knowledge about elliott’s impulse & corrective waves will smilingly
refute this charge..
3.when to buy when to sell any rule is there..?
Ans. keep the buying programme in a staggered manner as the prices fall .. When the current
price is about half of all time high./52 week low. .. start buying ..
initiate selling when price approaches double the value
initiate selling when price approaches double the value
You will not regret about your decision..
4. what is the undercurrent logic in price movement..?
Ans Fibonacci numbers (1.618,2,3,5, 8,13, 21,34,55,89,144…)
Fibonacci ratios 1.618-1.382-1.236-1.146 both multiplication and divisions govern the price
logic
5. can you brief with an example….
Let us take state bank of india stock with past 10 years price chart..
All time low---- 139.85(very close to std fib.no 144) sep2001
All time high 2540 (very close to std fib.no 2584) jan2008
Low 894 (got reduced to 1/3) mar2009
High 2500 (oct2009)
8 years (std fib.no) of continuous rally from 144 zone to 2584 zone
Got corrected to one third zone (894)
If any body purchased as per our recom. In the price zone of half to one third (1300To 894 zone
)and retained till all time high zone what a great return he would have got it in oct 2009!!
6. How will you explain great crash of stock market in 2008-2009?
Ans A good stock when doubles or triples in a year should undergo about
50% price Correction for future price stability/growth..
In our example state bank of india from 144 zone 18 times continuously
appreciated to 2584 zone.. for 8 years with practically no correction.
Hence turned extremely vulnerable for pent up-over due correction..
thus instead of 50% correction it corrected 66% to end at 894
Similarly sensex rallied from2.618k zone to 21k zone (both are std fib .no.
in thousands) to 8 times with negligible correction ended up correcting
down to 8k zone
While the favourable economic conditions fuelled unbridled rally.. global
weakness corrected the excess and brought the price stability
Company information
Name and address TSK&CO,
21,second cross street
Venkateswara nagar, thirumullaivoyal,
Chennai-600062, INDIA
Ph- + 91 44 26376632 ;
mobile 9884240600
Email tsk500@gmail.com
Bankers Axis bank ltd ambattur,Chennai-600053
Promoters Managing partner TSK venkatasubbarrao BE,MBA
Partner VS padmavvathi, Mcom ,BEd
High lights on venture capital investment
# The proposed Rs 32lakhs investment will be completed and share certificates
of unlisted plc will be issued with in 60 days of receipt of investment from
investors
# With annual dividend of min 10% and buyback premium of 10-20% for Every
year of holding, investors can get more than 100% tax free return for their
money in five years period
# The future plan of the company to enter educational service& agricultural
products will be Taken up after three years
#The sales and profitability projections clearly indicate the viability and feasibility
of this venture capital funding
# Subject to availability the new company will be named as tsk ventures ltd
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