Hi Donald,
Thanks to you and all other members for sharing candid views…
First, it seems imperative for me to share certain facts which I have refrained from doing so anytime earlier on any of the forums as my goal has always been that maximum people benefit out of my skill, knowledge and work…
(1) When I research on a company I try to research it from every angle possible…for doing so, I spend a lot of my personal resources as also take lots and lots of pain to research on a particular company…It takes months to research a company and not all researches are successful and the things I publish are only those which pass from me and become successful…
(2) Reading past 10 years’ (and in some cases 15 years) Annual Reports, collecting transcripts, listening audio transcripts again and again to check whether anything is missing or not, dwelling deep into all the news of past 10-20 years across all sources of media like purchasing/collecting past magazine issues in which even some minor info has appeared rgdg. a company, subscribing to company related online medias, assessing peers, pitching various parameters of peers against company under research, interacting with management and where management is closed or is not directly reachable by my sources and resources, searching clarifications on various issues with alternative sources available, etc. are part of my research works…
(3) You must be remembering Donald when you started covering PI and approached me for its past 10 years ARs, I was immediately able to provide the same as also audio of trascripts because of these intitial works that I do on my researched companies…
(4) When my research work gets complete, I translate my entire thought and my logic on a company into words and present it as simplistically and as detailed as possible so that reader can cross-check varied datas and correct me whereever I am wrong…In such translation I include all the things that I consider authentic and reliable while filtering out certain airy info that I receive…The basic reason of publishing such detailed info as also replying in detail to every query dates back to my history when I started in the financial markets…At that time I found that such detailed info on any company is privy to certain Institutional research guys as also certain knowledgable HNIs because of the resources they can spend to acquire all these info…In my initial years I had to effort a lot to acquire my desired info on any company and most of my efforts failed when I tried to acquire info that I am presenting right now because of lack of resources I had at that time…This is the reason when I was able to acquire such infos on my own, I decided it to publish it and let benefit as many knowledgable guys as possible who are desiring such info on any company…I started many years back with Poly Medicure then came Simran Farms then Riddhi Siddhi then PI Ind. then AVT then Solar then Jubilant Ind. then LGB and then Relaxo…
(5) In these many years of doing deep research as also publishing it publicly, I even learnt a lot…As much varied views I get on a company I was able to keep myself on the right track…and for these I am thankful to all readers like you, Donald and others…
(6) All have seen such detailed works and the detailed many lines replies that I give to each and every query but only I know how much pain it takes to extract these much info and still remain on right track…Yes, I agree that I almost promptly answer almost each and every query and present my research in much detailed way, but, is it my skill…NO…its because of the initial works that I have done on any company and the conviction I have built on my research idea…Many queries that I come across have already been replied by me to myself during my research and such replies to myself are backed by the datas and infos I extract and thats the reason why in my replies I am many times prompt and detailed…
(7) Its the huge info repository that i build for any company which makes me reply in detail…another reason is that i want to make it clear to the reader what i mean exactly in my saying…Few words that can be interpreted in many ways is not the right approach to any reply thats what i feel…
(8) When I actively track any company and post my initial detailed research on that company in any forum, i feel it my duty to communicate any info, whether small or big, positive or negative, that i receive or come across to promptly post it in the respective forum as otherwise i feel it will be a kind of injustice done to reader of that forum…This is the reason for my constant and frequent updation…
(9) Just there is one simple question I am asking myself today “What am I gaining by publishing such detailed works and replying to each and every query in the best possible way i can ??”…Are the people thinking that I am publishing it to publicise the company I am tracking ?? Or Are people thinking that I am fool enough to believe that doing such thing will rerate the company i am tracking ??? I am a firm believer that every company finds its deserved valuations sooner or later…It doesn’t require anyone to publish the research work nor it requires anyone to participate…Lets’ again take here the example of my published researches so far : Poly Medicure, Riddhi Siddhi, PI Ind, AVT Natural, Solar Ind, Jub. Ind., LGB and Relaxo…Except Riddhi Siddhi and Jub.Ind. where there were management issues have all other companies attained their deserved valuations…The answer is simple YES…Except LGB and Relaxo which I have done research on very recently, all other companies includng Poly Medicure, PI Ind., AVT and Solar have reached their desired valuations irrespective of members’ participation…
Was there any participation in PI till it appreciated by 30 % from initiating my research --NO…Was there any participation in AVT till it appreciated significantly — NO…was there any participation in Solar untill it appreciated 30 % —NO
Does lack of participation signal that companies are not good enough and their appreciation is not proper ----again a clear NO ----PI Ind. we all know how competent it is…AVT is one of the best companies we have and is recently named by Forbes as best 200 under a bn. $ company…Solar was a solid play on rising coal demand…Each company was deserving enough for appreciation and thats why it appreciated whether any one participated or not…
So, even when there was no participation in PI Ind. for so long and AVT then Solar and then Relaxo also then why I was updating continuously…because as an active member of the forum I feel it my duty to particpate actively…
I am ashamed at writing this 9th point as its a kind of boasting thing which I simply hate and I apologise for that…
(10) Unless I know a company and its business completely I never comment on it and thats my reason of lack of participation in any other company…
I was watching Relaxo when it was discussed last year and at that time i felt valuepickr members conclusion was right of it being a cyclical play…But the company was interesting and so I kept it in my radar and closely monitored it…It is when I felt that things are changing I started deep research on it and started updating the forum on it…
(11) Just to cite an example, when Relaxo was discussed last year in this forum, except in Stock Story as also one member’s posting, EVA price monitoring was completely missing and everyone was talking of Rubber prices influencing Relaxo’s financials more even when EVA formed more than 30 % of RM cost and this cost was more than double than that of Rubber and SR combine…EVA is almost entirely imported and its very difficult to keep tab of its price movements …I spent a lot of time and energy to collate the info on EVA and when I found the correct source then only went ahead with my research on Relaxo…
Similarly to gain info on Relaxo’s branding moves, it takes a lot of effort on ground to collect the info and its when I can do that only I proceed with my research…
I know there are many who respect and admire the detailed work I do…However, if such detailed work is acting as a turn-of for active participation, I am really surprised…Why its acting as a turn-of – is it because I am replying in detail to each and every query and countering the counter arguments thats what making boarders insecure…It should not happen as our main purpose is to evaluate a company properly rather than scoring a point…Or is it that such detailed work is unable to get digested…Again this should not be the case as many knowledgable guys like Donald, Hitesh, Ayush and others do more detailed work then me…Remember Donald our detailed PI discussion where you shot questions after questions and that too detaild ones and I replied in equal detail…At that time there was no turn-of…
As much detailed works we will do on our researched companies the better will be for all of us…Afteral equity investment is not a child’s play and it requires focussed approach only then one can succeed…
This is an uncalled for controversy and I think we require to focus our energies more on our research rather then discussing such unfruitful things…The thing that hurt was the posting came from Admin and it was phrased such that it was singularly directed at me…Admin should have avoided this thing and could have instead stated ‘Vauepickr Team’s’ views on Relaxo or "Admin’s Views on Relaxo…If this posting would have been from any member then I can understand but Admin of a forum has a great sense of responsibility…Its like Prime Minister stating certain thing which is bound to get noticed by everyone and when Admin points out at someone its not proper unless that someone has committed any big mistake or has violated any rules…
Lastly, again I am saying that we need to look at Relaxo afresh and it will be in benefit of all members…Active participation will be welcome the benefit ofwhich I can point out in Admin’s post only rgdg. its point no. 5 which today made me collate data on Bata when its scale was 867 cr. in FY07 and I found that if we ignore outsourced component and place it on par with Relaxo’s outsourced component then asset turnover is similar in both the cases…This is the benefit of active participation as we can cross-check ourselves and thats what I like the most…
Its nice to see that for this controversy many participated actively and expressed their views in much detail than they usually do…If we do same for our researched companies this forum will itself become info repository…
I end this controversy from my side and hope this thing is put to rest in interest of the forum…Will try in future to remain as passive as possible by only updating major events (although I think this is not atall proper) in absence of any directive from Donald or Admin…Will continue to reply to any queries members have on my researched companies…
Apologise if this posting or for that matter any of the posting has hurt anyone.
Rgds.