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Strategies & Market Trends : Value Investing
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Harshu Vyas
Lance Bredvold
Spekulatius
To: Harshu Vyas who wrote (75661)5/18/2024 11:51:35 AM
From: FIFO_kid23 Recommendations  Read Replies (1) of 78958
 
Harshu I think you are certainly on the right track here with this selection given its cheap and defensive.The growth of the economy should favor many countries in the Asian belt.

Now you have to figure out why it is so cheap. It could be a value trap. Some hurdles to research why did the dividend cease in 2017 and not get reinstated and with family/majority owned businesses will have restrictive control to outside minority investors and negatively impact the real market value of the enterprise. If the family with affiliates own more than 50% of the business would certainly then explain the large valuation discount as they tend to use the business as a personal piggy bank with no pressure to improve the business. Generally you want to see inside ownership between 10-30% but I would research if there are affiliates

I learned the hard way on this one with Aura Minerals it was 47% owned by an individual. The activist group I was associated with had about 14% It was Tim S. (a person I have mentioned before to you) an institution and me that we thought was very undervalued by somewhere between 5-10 fold we made our suggestions he got an affiliate to block us and what irks me is 18 months later he actually did what our group suggested and the stock proceeded to go up 20 fold a year after that move. So you are controlled at the whim of another party. Unfortunately I didn't have the patience here with this situation and took a 10% loss
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