Its been a very strange learning for me in some MNC controlled stocks. I am writing down random thoughts before evaluating the learning structurally.
I had invested, albiet in small percentage of approx 2% each in Agro tech foods and Johnson Hitachi AC. Why? Excellent parentage. Con Agra, Johnson controls and Hitachi all 3 are leaders in respective space. Relatively small caps in India, huge runway of growth and comparable valuations of sector.
What failed so far – Johnson Hitachi had been a great stock a decade prior to my entering. Business was riding positive waves. Then covid happened and it never recovered. Now probably I know why when someone posted a news in its thread that Johnson Controls want to sell their stake.
Same for Agro tech – Con agra was never serious about India business it seems and sold out and that too at significant discount.
How to catch such Promoter and management intent so that you do not hold future losers inspite of all good initial checks.
This is a case of gradual/silent loss of company vision from growing its parentage in country to lookout of exit. They do not even want to exit at peak of their business performance to get maximum exit returns. They are ok with whatever they get…thats the sad part…
Secondly, how to judge if new buyer will trigger a turnaround…if business is good…
referring my Max India/Healthcare’s frustrated exit only to see stock 15x with new promoters in next few years…
Disc. Invested biased. Not eligible for any advice. Post only for learning. Can be wrong in all my assessments.
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