Dinesh Sairam's Portfolio: Requesting Feedback

Hi Dinesh

I understand from your posts that you have a process and you tend to stick to that process. I completely agree that having a margin of safety is the cornerstone of a good investment. Having said that arent you concerned that in cos like GoodYear - the growth in topline and bottomline is relatively poor. I understand that having a very liquid balance sheet as is the case with goodyear is a good thing but unless there is a trigger or a declared intent by management the margin of safety given by the cash balance remains theoretical.

Take the case of JB chemicals, which again has a liquid balance sheet and through a repurchase program has unlocked the inherent intrinsic value of the co. While goodyear does that in the parent not sure why no such program in india ( It has a good repurchase program internationally). Goodyear India in the past has tried to delist but has not received shareholder approval and remains listed.

Rajeev Anand who is the current MD and has been there for a while is already looking for a career transition.

An excerpt from his linked in page

“Over the next several months, I plan to transition from my current career and leadership role to the next phase of life. I would like to be proactive and pre-emptive about this phase of transition. I believe in a 100 YEAR LIFE (Reference - Book by Lynda Gratton) and would like to have several more years of active professional contribution without being constrained by misleading cut-offs such as retirement age”

Lastly, have you looked at the stock price chart of the parent i.e Goodyear tire and rubber co? Even for those who dont believe in technical analysis - looking at the chart gives you a discomforting sense that something is not right with the co.

Just my two cents.

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