Adding to the cons.
- most of the revenue comes from export to Bangladesh. Recent wage hikes in bangla will have negative impact on the Co.
- Garment manufacturers shifting from Asia to Egypt etc (closer to Eu and US). Co may not be cometitive in supplying to those cos
- Inefficient capital allocation. Management doesn’t want to do buyback even when the share price is close to actual book value (cash, inventory) stating that they don’t want to reduce the float. They could do a split / bonus along with Buyback to sustain the liquidity for trading. Shareholders returns should get first priority but not the float as per me.
Disc : Tracking position
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