Very good observation. I dont have a scientific reason behind reclassifying Control Print as a cyclical in late May 2022. I notice that there was a 20% price drop around that time, maybe that influenced my thinking. In general, I tend to be less critical when prices are going up, and overcritical when prices are going down.
Majority of Control Print customers are industrial facing (likes of cement, pipe, etc.) which are more cyclical in nature. Thats why I continue to keep in the cyclical basket. I am generally more strict about entry and exits in cyclicals.
Another company in my list of stocks which I have a hard time classifying as a core compounder is Shri Jagdamba. Their core end market is US residential housing, which is cyclical. However, they have never had a single year of decline in profits. It seems FY23 will be the first year where profits will reduce. So, when I created a position in the company last year, I classified it as a core compounder as there was a never a profit decline year, but now I am thinking that I should classify it as a cyclical. These are conflicts which happen quite often. Do you have any advise on it?
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