India: The Ground Realities

First Mining, etc.

If I need to get plumbing work done in India, I do the job myself, despite that the cost of a plumber is a mere couple of dollars. In Canada, where a similar work might cost fifty times more, I might get someone to do the job. Why? Because the plumber in India will do a horrible job and will create five new problems. I started and ran Indian subsidiaries of two European companies. The so-called cost advantages of India always stayed an illusion. Anyone who thinks that India can ever compete with China or even continue to grow without constant technological help from the West has no understanding of the ground realities in India. Here is a conversation I recently had with Jay Taylor:

Indian government exists for the sole purpose of collecting bribes. Indian bureaucrats are lazy, incompetent, and sadistic, a case study on which I wrote here a few days back. But what one must remember is that India’s most fundamental problem is its tribal and unskilled populace.

On Investments…

Charlotte McLeod and I met in London to talk about a few companies:

I have followed First Mining (FF; C$0.215) since the time it acquired Gold Canyon (on whose board I was a Director). They have significantly increased the size of the Springpole deposit in Ontario. Also, the recoveries are much better now. In my view, just Spingpole more than justifies the current market capitalization of FF. Goldlund project, on which a deal must someday get done with Treasury Metals, offers an upside to the share price. My concern with FF is their very high corporate expenses, and hence their constant need to dilute their share structure. FF is currently raising money.

Warm regards,

Jayant Bhandari

Associate: Rajni Bala

Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendation. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.