tag:blogger.com,1999:blog-5160674059772417323.post3989008833131327486..comments2024-03-03T17:26:46.979+05:30Comments on Calculated Wagers: Notes from the AGM- Cera Sanitaryware LimitedAnkur Jainhttp://www.blogger.com/profile/01368912969506438596noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5160674059772417323.post-48686058599211594622014-09-13T00:30:33.340+05:302014-09-13T00:30:33.340+05:30Thanks for posting
how severe is the slowdown in R...Thanks for posting<br />how severe is the slowdown in RE n how can cos lije Cera Astral escape from it?<br />Which other stocks u hv in your PF??Vivek Gautamhttps://www.blogger.com/profile/18345598468732335256noreply@blogger.comtag:blogger.com,1999:blog-5160674059772417323.post-51751568369590383312014-09-02T10:16:35.886+05:302014-09-02T10:16:35.886+05:30Hi Nitin,
Thanks for your questions. Question 1 i...Hi Nitin,<br /><br />Thanks for your questions. Question 1 is a perplexing question. It's quite easy to determine whether an investment is a buy but extremely difficult to figure out if it's a sell. I read up on the Chapter "When to Sell" from Philip Fischer's book to take some cues.<br /><br />First, the business is excellent. The competitive advantage of Cera is better than the year before. The business is growing nicely and the tailwinds are strong. The balance sheet remains conservative and the management remains focused on the business. The management has shown extreme poise in facing the adversity of the demise of their son. On the valuations, I believe that the company is selling close to its conservatively calculated intrinsic value. It's a superior business selling at a fair price, not an expensive price.<br /><br />On attending AGMs, it's difficult to agree or deny if there is any value in attending AGMs of companies, whether they conduct quarterly concals or not. Some AGMs have been a complete waste of time for me while some others turned out to be goldmine for gaining understanding about the business/ management. It's complete serendipity.<br /><br />Regards<br /><br />Ankur<br /><br /><br />Ankur Jainhttps://www.blogger.com/profile/01368912969506438596noreply@blogger.comtag:blogger.com,1999:blog-5160674059772417323.post-45689941251193991812014-09-02T09:53:03.367+05:302014-09-02T09:53:03.367+05:30Hi ZeeNut,
Shareholders should be more concerned ...Hi ZeeNut,<br /><br />Shareholders should be more concerned about issues of capital mis-allocations, if any. In my view, shareholders have lost more wealth by shoddy capital allocation decisions than by poor dividend payouts. <br /><br />Poor dividend payout is a relative term. If the management is ethical and competent to deploy capital at healthy rates of return, than even a "poor dividend" will leave shareholders richer over long periods of time. If the management is corrupt in its thinking and actions than even though it might provide a generous dividend handout once in a while, it will for sure leave shareholders poorer than before.<br /><br /><br /><br />Regards<br />Ankur<br /><br />Ankur Jainhttps://www.blogger.com/profile/01368912969506438596noreply@blogger.comtag:blogger.com,1999:blog-5160674059772417323.post-70702454571159050322014-09-02T01:15:45.507+05:302014-09-02T01:15:45.507+05:30Hi Ankur,
Thanks for the AGM update. I have two q...Hi Ankur,<br /><br />Thanks for the AGM update. I have two question & would appreciate your reply to these-<br /><br />1) Cera Stock has run quite well & is looking costly on trailing PE. How do you view Cera at current price? <br /><br />2) Is there any value to attend AGMs of companies which conduct quarterly concalls? From concalls we can know what management is thinking, so AGMs won't give much info. No?(Asking in general; & not related to Cera)<br /><br />Regards,<br />Nitin<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5160674059772417323.post-44845323988688299062014-09-01T21:36:47.370+05:302014-09-01T21:36:47.370+05:30In the case of Cera, where the valuation has not s...In the case of Cera, where the valuation has not suffered on account of lower dividend payout your point is valid, however it often takes a decent dividend payout to convince the market that a management is shareholder friendly. Companies which have an unfriendly attitude towards dividend payouts (do not pay / pay only a token dividend) many a times get a low valuation too. In such cases, shareholders should indeed raise this issue.ZeeNuthttps://www.blogger.com/profile/11660259419927404331noreply@blogger.com