Wednesday, December 2, 2009

Corporate Valuation led to negative EV!!

After having successfully completed the Dubai marathon of Gimba…our folks quite eagerly, like the curiosity of a 10 year old reached Singapore. Quickly, we got through the immigration at the airport and out we were, to have a first look at one of the Asian Tiger economies!! Sitting in the college van to reach the hostel, we all gazed through the windows to leaning towers all around the city state and its gleaming highways network. One thing that struck to everyone who came to Singapore for the time, including me, was the greenery around (I am talking about the green trees and gardens all around the city)!! Some of us were so enamoured at the greenery that they even declared that post MBA, we would look to work in Singapore only!! No one knew what was in stored for us in 2009.

Upon reaching the hostel, we quickly got our respective rooms and then moved in to relax a little as our dry eyes needed some rest after a round of ornithology (bird watching) in the greens!!;) Having rested for a few hours, we all got together to head towards the most famous Indian location. They say, all the Indians, even before coming to Singapore, know about this place, its location and how to reach it from different parts of the city!! The same thing happened to us, our very own globetrotters took us to Mustafa Center and Little India  Few hours well spent in the midst of the “desi” Singaporeans, we rushed to the hostel, as we had to get ready for the next day, as the classes start!!

The next day, we quite eagerly reached the classrooms, expecting something great to happen – we were starting one of the most interesting subjects in Finance – Corporate Valuation. And as luck would have it, it did become one of the most interesting subjects ever!! The professor was always ready to teach in his own inimitable manner, always ready to self praise himself at the drop of the hat!! It grew to a level that students started to have quarrels with him and one incident take an ugly turn that the professor got it right on his face and he eventually gotten so angry that he left the class in between the lecture!! OMG, the whole class is stunned!! Complete silence!!

Quickly, some students went to the batch co-ordinator to discuss the issue and let the college authorities know of what was going on in the class and how the student felt of him. Though this did go in our favour, in the sense, that no disciplinary action was taken against any one of us!! The professor came back to the class, the next day, teaching us more disinterestedly and yet again giving us that gyaan about “I can earn millions, if I get into a job with an investment house…” Oh man, cut the crap!! And get over this!! The subject got over, we shouted a lot with the college authorities to help us with this subject and assign a new teacher so that the subject can be covered again!! Nothing ever happened, though we had some “refresher” sessions on the topic!! But, in the whole game, we lost ground in the most important and interesting subjects in finance!! Some of us, lost so much, that we shouted “after learning Corp Val from him, for every company I value, EV comes negative!! (courtesy all the wrongs things and ways thought to us ;))
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