Investment idea generation.


Our thoughts.

EROS Saga Gets Interesting

Don't forget - sign up for our free daily newsletter to stay in the activist investing know. 

Eros has Knight Assets as an activist investor that says fair value is $68 a share. But the calls that Eros is a fraud has pushed the stock down 65% in just a few months.

An anon blog, Alpha Exposure, has called the company worthless, citing accounting fraud. Here’s its post. The key issues is the fact that the company is spending cash way too fast and has a convoluted corporate structure that only entrenches the owning family. The Netflix of India, Eros’ ErosNow product, will not catch on given poor Internet access in India and piracy, according to Alpha Exposure.

In a rebuttal, Financial Fact Finder, put out a post. FFF says there’s no evidence of illegal accounting and that it has a record of making money.

It also has a new activist as of yesterday, Dalton Investment has taken a 6.2% stake in Eros, saying share are undervalued and that the company has a leadership position.

BWIEROS, Knight Assets