Comments on: Failing business: Warning signals

By: Nagarajan

Nagarajan — Sat, 18 Aug 2012 15:13:29 +0000

KFA is a classic example of an entreprenuer being successful in one line of business and a complete failure in another. Then again, I guess the business fundamentals should remain the same. Only goes to show 1+1 may not really be equal to 2?

By: MangoMan

MangoMan — Fri, 10 Aug 2012 06:05:51 +0000

Agree with you Subra, pity on being an individual investor, trying to do all this work while buying hundred shares (not even thousand).

At the same time, there have been some positive development in terms of collaborative platforms among value investing folks. Like blogs, discussion forums etc… It’s a very rich and educating (if you find the right one’s). I think people serious about investing can learn more in a month from books and these kind of platforms than what they can learn in a life time from watching business channels

By: Bala

Bala — Thu, 09 Aug 2012 06:28:24 +0000

The same happened with Subex, a Telecom product company in Bangalore. Its boss happens to be the chariman of NASSCOM product conclave or something.

By: krish

krish — Wed, 08 Aug 2012 10:48:31 +0000

I am not sure these warning signals are meant to whom. In most of the cases, am surprised even employees would not be aware what is happening under the carpet until break out. I was speaking to friend who works in one pharma company and he is not aware that company is in red. We can understand the employees scneario of Sathyam, Deccan Chronicle and host of real estate companies.

By: subra

subra — Wed, 08 Aug 2012 09:48:38 +0000

not unless you know somebody in the management, or u have your ears close to the ground. There have been times when as analyst we have picked cues from the union, paanwala outside the factory, banker, internal auditor, ITO, ….and of course competitors, vendors, etc.

the fun is single individuals buying 1000 shares of a company pretending they can do all this

By: MangoMan

MangoMan — Wed, 08 Aug 2012 05:34:34 +0000

Hi Subra,

What’s the way to identify the point no. 1?
Any examples ? I mean not like Kingfisher case, when the whole world knows it.

Regards

By: Santosh Prasad

Santosh Prasad — Wed, 08 Aug 2012 04:54:32 +0000

Subra, Are you pointing towards King Fisher Airlines? All the signs are speaking loudly about KFA.