Resignation of CFO/ Company secy is a non-issue. Any one going through Exchange filings will see related posting almost everyday, may be multiples. It has become a standard for Company Secys to change companies at the drop of a hat for few rupees of extra benefits. It is just like attrition rates in IT cos. I know many green horns, working as Company secretary, changing jobs for extra 5000 pm. And SME companies recruit them for doing some routine jobs, like statutory filing, exchange disclosures, MCA filings etc. Generally they don’t much contribute to business or finance. Except some quality and senior professionals who are Key persons, resignation of CFO/ Company Secy should be taken as a negative in my opinion.
I am not a qualified professionals and you must not allow my opinion to affect your investment decision. It will be fair to presume that I may have vested interest here. I may be interested to buy this stock on any weakness.
Posts tagged Value Pickr
Vaidya Sane Ayurved Laboratories Ltd (Madhav baug) (19-05-2024)
Lt foods (daawat) (19-05-2024)
Thanks. I have heard Ashwani Arora couple of times and he seems a genuine guy. He may not come across as flamboyant or smooth but demonstrates a clear focus. He is clearly on a mission to transform LT Foods from a rice company into a FMCG brand and the company under his leadership so far has had more than decent success on that.
Akshay’s portfolio (19-05-2024)
Gilt exposure mostly through mutual funds and partly through floating rate bonds directly held
Deepak’s portfolio requesting feed back (19-05-2024)
40+ Stocks is simply way too much. You can’t outperform Nifty at the Portfolio level.
Deepak’s portfolio requesting feed back (19-05-2024)
Just realized that the top 5 companies by the amount i invested are in red lol
Vaidya Sane Ayurved Laboratories Ltd (Madhav baug) (19-05-2024)
In last 2 months, CFO and Company Secretary have resigned. For such a small company, it could mean something is wrong. It may be these guys don’t see any growth for themselves hence they are leaving company for greener pastures. As an investor, should we be concerned? @amangoklani. @mantis1 your comments please.
Resignation of CFO on 27th March 24
Resignation of CS on 17 May 24
Disclosure : invested for last 3 months, transactions in last 2 weeks.
Sahil’s Portfolio (19-05-2024)
This was helpful not.
Now I wonder what someone will make of that.
Akshay’s portfolio (19-05-2024)
How do you buy gilt otherwise looks well diversified as well as concentrated
Low Volatility Stocks (19-05-2024)
Finance textbooks use Standard Deviation (SD) as a measure of volatility, a practice which has been carried forward by industry as well. SD uses Closing Price to measure volatility. Average True Range (ATR) uses more inputs as it also considers High and Low price for the period, besides Close. This makes ATR a conceptually better metric than SD. ATR is an absolute measure of volatility, but it can be easily converted into percentage by dividing the True Range (TR) by previous closing price.
For example, look at the following calculation of Maruti Suzuki, which had a TR of Rs.343.60 on 17-May-2024. This can be easily converted into a percentage by dividing it by the previous closing price of Rs.12,497.65 (i.e. 343.60 / 12,497.65 = 2.75%)
On the other hand, see the same for Motherson Sumi Wiring (an auto ancillary which caters to most of India’s top car manufacturers with Maruti as its largest customer):
On 17-May-2024, it had a TR of Rs.2.65 which is 3.81 % of the previous closing price of Rs.69.50. Conversion of absolute values into percentages this way makes volatility of the two stocks with widely differing absolute values comparable.
One can calculate TR & ATR anytime just by downloading the stock price history from NSE website and copy paste it onto an excel, once the basic formulas are input into the excel.
Technical analysis textbooks take 14-day average to calculate ATR, but this is at our discretion. One can choose what one wants. As a long-term measure, I sometimes look at 1 year average or 1-year median TR (instead of just the 14-day average which is more short-term). However, this is just for added insight into the stock I am looking at, not as a selection criterion for reasons explained earlier.
The stock picks you? (19-05-2024)
I have not much experience with these situations, but I think experiences may differ here, as different arguments can be made.
If market is giving a low multiple, there must have been some reasons for that, so going for a low hanging fruit, so to speak, we are essentially taking a chance. This chance may very well turn out to be a success, if rerating happens. There have been such success stories like these here in VP.
Also, if it does not work, then we are stuck with a non-performing stock, which can still go down some more. We may lose patience, we may even revisit our thesis, may be even think we made a mistake and exit.
Perhaps, sometimes, when companies with stable sales, strong cash flows, dividends too, go down with the broader markets, so maybe then we can act then.
I have a position in Coal India, bought more than 2 years ago. I did not buy it for growth at the time, I bought it for the dividends, the price appreciation was unexpected. I bought after reading an article which explained about the business, and concluded why the market price at that time is a good price to buy. I bought and added to my position as it went up.
I was interested in buying Mirza a few years ago, purely from valuation perspective, compared with Bata or even Relaxo. I don’t remember all the details, I must have bought and sold quickly.
Even investors with deep understanding of the business may be proven as wrong sometimes, but then again, bargains also can be profitable.
So I think, each such case is different, and maybe a bit of luck is also involved.