One most imp thing every investor should know about is company's management.Good management generally always deliver what they say and are investor friendly in long term. But generally what happen when a bull market starts,every thing is going up no body cares what co,s management is doing is right or wrong.The best example is HFCL,DsQ Soft(list is long),IN ICE bull Run prices of these comapnies has gone to 100 times. Now what happen we all knows well. HFCL(non promotor holding is 97%)Has made a prefe. allot. at 1200-1300 to kerry packer, where the money has gone no body knows,except management can tell you. On the other hand Infosys  management has always delivered what they say & always rewarded its shareholders.Now Prices are near to its all time high again at reasonable valuation on huge base  Agnst crazy valutaion what we have seen earlier.

Edited by basant - 30/Jan/2009 at 5:15pm

Its like this, Mr. Anand, understanding management quality is also an skill in itself. There are many silent management in the universe of listed companies we have, but we rarely take note of them. I beleive the skill is to observe the subtle qualities of a management, whuch require very skilled eyes.There are management which though, dont divest their holding a bit, but are very defensive. Practically, all the MNCs fall in that category.Its not all about management policies and their adherence to that.You need to focus on their objectives, their growth-orientation.

You are so very correct. You will come across many MNCs divesting or transferring theor undertakings to their private companies. But then, they do it for a fair consideration. I have come across at least 3 cases of such a thing.Actually, my take is on their financials and their concentration on their core activities.A case in point, will be ciba specialty, which has divested its Textile Effects business to Huntsman Inc.You will find that the sale consireation is coming close to Rs. 100 per share.of which a major chunk will be profit on transfer/sale.This company has negligible debt on its balance Sheet, abides by IFRS as far as its Accounting policies and dividend policies go.Although, it will be losing a major chunk of its turnover, yet I see it picking up from there through some take-overs. It has a beautiful subsidiary in the form of Diamond Dye-Chem, which is also very profitable.

Bubblevision: From your past experince does a chart show a) whether a stock is being manipulated b) The Management is bad something that is subjective and cannot be easily known by Fundamental Analysis.

Edited by basant - 14/Nov/2006 at 7:25pm