Management Analysis
Are professionally managed companies safer for shareholders?
It is a hard truth that the management of a company stands between the profits of the business and its public shareholders. The management decides how much of the profits it wants to share with the public shareholders. The corporate world has many examples where
Why We cannot always Trust What Management Claims
The management of any company is its best spokesperson. One of the responsibilities of the management is to create an environment conducive for the business of the company. Therefore, the management does its best to create the best possible positive impression about the company in
How Promoters benefit from Related Party Transactions
We believe that an investment in a stock is a faith in the integrity and shareholder-friendliness of the promoters. But many times, related party transactions break this faith. Stock investment is much more than the part-ownership of the company. This is because the person-in-charge of
How to Identify if Management is Misallocating Capital
It is said the primary aim of a company is to maximise the wealth of its shareholders. Therefore, whenever an investor puts money in any company, then she expects that the management of the company will utilize the money to generate significant profits for its
How to know if Promoters are Losing Commitment to the Company
Whenever a fundamental investor buys shares of a company, then she buys it with an expectation that the promoters/managers of the company will grow the business significantly in the future. She places her trust in the promoters of the company that they will value her
How to identify Promoters extracting Money via High Salaries
Promoters, many times, work full-time in their companies like any other employee of the company. It is only natural to think that when they dedicate their entire time to the business, then they would also expect to be rewarded for their hard work like any
How Promoters use Loopholes to Inflate their Shareholding
The level of promoters’ shareholding in a company is a very important parameter in stock analysis. This is especially important in markets like India where most of the businesses are family-owned. This is because many times, the shareholding level acts as an indicator of the
Share Pledge by Promoters: A Complete Guide
The current article highlights different aspects of share pledge by the promoters of any company. The article also guides public shareholders on the interpretation of the pledging of shares done by promoters. Why promoters raise money by pledging of shares? How to know the amount
Stock Warrants to Promoters: How to Analyse
The current article covers different aspects related to the preferential allotment of stock warrants/share warrants to promoters. The article focuses on the significance of warrant issuance from the perspectives of a retail investor and how she should analyse and interpret the issuance of warrants. Warrants
How to do Management Analysis of Companies?
The current article highlights the key steps/tools that investors should use to find out good management and avoid bad management. An investor should read these carefully and inculcate them in her stock analysis process so that she may avoid falling into the trap of unscrupulous
- Buy/sell recommendations for selected stocks with a crisp investment rationale
- We have selected these stocks after an in-depth financial, business, valuation, and management analysis
“Peaceful Investing” is the result of my experience of more than 15 years in stock markets. It aims to find such stocks, where after investing, an investor may sleep peacefully. If later on, the stock prices increase, then the investor is happy as she is now wealthier. If the stock prices decline, even then the investor is happy as she can now buy more quantity of the selected fundamentally good stocks.
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