Mukesh, I am becoming a bigger fan of your analysis day by day. You are a very active blogger unlike many others who are passive. Thanks for sharing your knowledge.
I was doing analysis on Magna electro cast and was wondering why you didn't pick Nelcast or MM forging and liked Magna instead. Was it price? Management or any other factors?
Magna electro casting was recommended purely based upon the valuation I remain bullish on the same.Nelcast and M.M forging probably did not offer that kind of valuation then Both are good companies for investment .They are on my radar However M.M forging has now come to attractive levels for investment and one can invest at current levels of 420+.
Thanks Mukesh, I reviewed MM forgings to understand why it's corrected since last one year. Apart from profit booking and the Mr Market phenomenon I don't see any other reason for correction, what are your thoughts on reason for correction
I added Magna Electro today. For some reason i tend to have a natural alignment with your value investing thought process:) Looking at Nelcase it seems like its customers and products are towards auto industry whereas MMF and Magna are non-auto generic casting products. Thoughts?
Hello, My question on Asahi Songwon is that, If the Shareholders(DIC,Clariant) are the customers, then whether they can pressure management to provide chemical for lower rate due to their big holding in the company.. So, my question is on the pricing power of the company as the company derive majority revenue from this clients which are shareholders.
Dear Smit, DIC and Clariant are not major share holder they probably have strategic stake looking at strong business model of Asahi Colors,with a minor stake in company they can't dictate terms but can be assured of consisitent supply of required products
Mukesh, I am becoming a bigger fan of your analysis day by day. You are a very active blogger unlike many others who are passive. Thanks for sharing your knowledge.
ReplyDeleteI was doing analysis on Magna electro cast and was wondering why you didn't pick Nelcast or MM forging and liked Magna instead. Was it price? Management or any other factors?
Thanks Sandesh for the appreciation,
DeleteMagna electro casting was recommended purely based upon the valuation I remain bullish on the same.Nelcast and M.M forging probably did not offer that kind of valuation then Both are good companies for investment .They are on my radar However M.M forging has now come to attractive levels for investment and one can invest at current levels of 420+.
Regards
Thanks Mukesh, I reviewed MM forgings to understand why it's corrected since last one year. Apart from profit booking and the Mr Market phenomenon I don't see any other reason for correction, what are your thoughts on reason for correction
DeleteI added Magna Electro today. For some reason i tend to have a natural alignment with your value investing thought process:) Looking at Nelcase it seems like its customers and products are towards auto industry whereas MMF and Magna are non-auto generic casting products. Thoughts?
ReplyDeleteHello, My question on Asahi Songwon is that, If the Shareholders(DIC,Clariant) are the customers, then whether they can pressure management to provide chemical for lower rate due to their big holding in the company.. So, my question is on the pricing power of the company as the company derive majority revenue from this clients which are shareholders.
ReplyDeleteDear Smit,
ReplyDeleteDIC and Clariant are not major share holder they probably have strategic stake looking at strong business model of Asahi Colors,with a minor stake in company they can't dictate terms but can be assured of consisitent supply of required products
yes it may be..Thanks Mukesh...
ReplyDeleteasahi or aksharchem better to enter now for long term
ReplyDeleteDear Madhu, Both are good companies Asahi is availaible at cheaper valuation in comparision to Aksharchem .
Delete