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Reverse arthritis

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Written by amitdipsite

June 16, 2018 at 3:59 am

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My bluster on investment

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Written by amitdipsite

June 12, 2018 at 5:29 am

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Myanmar – New Frontier

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Though the new Myanmar Companies Law is less than three months away from being officially enforced, interest to list on the Yangon Stock Exchange (YSX) has not picked up as substantially as expected, said U Thet Tun Oo, senior executive manager of the YSX. 
The Myanmar Companies Law, which was enacted December 6, 2017, will come into force on August 1 2018. According to that law, foreign investors will be permitted to take stakes of up to 35 percent in Myanmar companies, including in firms listed on the YSX. 
More here: https://www.mmtimes.com/news/listing-interest-lackluster-despite-upcoming-law.html

Written by amitdipsite

June 12, 2018 at 12:16 am

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Moderately decent books

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https://www.goodreads.com/book/show/905.The_Inner_Game_of_Tennis

https://www.goodreads.com/book/show/18753256-the-art-of-mental-training—a-guide-to-performance-excellence

There are couple of useful lessons in the above books for people who are prone to lose temper, control mental climate, are fearful of losing, involved in competition, intense activities etc.

Written by amitdipsite

June 11, 2018 at 10:36 pm

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Where the opportunity is

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I do not give a $hit whether the management of the business that I am owning is publicity seeking, needing media attention, promoting their shares, brothel visiting, married 5 times, had sex change operations and are LGBT. Ditto for my friends and fellow colleagues. In management and business of microcaps where I invest the thing I care about is:

A/ Genuine and NOT fraud numbers reported to exchanges.

B/ Business momentum stronger than the competition.

C/ Disinterest in issuing more shares and dilution.

D/ Skin in the game.

E/ Hard work being put in by management to grow the business.

It would be nice if the management was readymade imported from heaven though but you don’t get to choose.

I have been researching all the nano caps in India and I have only found two companies that may fail on one of the above counts. That is where the opportunity is in India and a lot of NBFCs at this time imo.

https://lifeandequities.wordpress.com/2018/05/31/mid-cap-🧢-to-nano-cap/

Akme Star Housing and SecUR are two of my nano cap holdings that are not as strict about equity dilution as I would like them to be and they will, as per my guess be potentially willing to issue more shares in the medium term.

With MRSS I found that the employee expense did not grow linearly as per revenues as most of the work is outsourced.

Tejnaksh is fairly priced.

Written by amitdipsite

June 11, 2018 at 8:13 pm

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Boring business, dazzling performance

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I wrote about the Supply Network (ASX:SNL) four months back, which I held in only few accounts because of low growth of 10%-12% here: https://lifeandequities.wordpress.com/2018/02/10/when-bad-operating-metrics-are-a-good-thing/

The weakness of the company is the strength of its business model. The weakness is the vast variety of trucks operating in ANZ and the business is to sell after market parts, consequently the company has to hold on to a large number of spare parts. Inventories are more than the companies entire equity + reserves. ROE is smashing 25%.

The company differentiates by holding high quality components and keeps the parts readily available locally, rather than ordering just in time, this investment in the parts/inventories are the bane of the competition. Quarter million dollar truck earning several thousand dollars a day, in need of a 1000$ part is unlikely to compromise on quality or an extra day of wait.

The industry for spare parts is multi billion AUD in Australia/NZ, SNL has only a fragment of this share, ~100 million AUD revenues but focuses only on quality parts for all models of trucks/buses. Somehow this combination of centralised procurement and decentralised management and decision making and all the variety of parts imported from 100s of locations available readily locally on site has worked out for SNL. Hard to find a more boring, humdrum and invisible business than this. The chart says, otherwise, 20X in 10 years.

http://www.supplynetwork.com.au/

snl

Written by amitdipsite

June 11, 2018 at 10:26 am

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Hippies of 1970s

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Who would invest today if the cover photo of Senior Management looked like below?

Like I said 150 years back equivalent to todays   billion dollar company did not a have 10 page prospectus and today a 5 million dollar IPO has a 500 page prospectus, the art of pulling wool has been mastered, fine tuned and polished. 

Written by amitdipsite

June 10, 2018 at 7:28 am

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