I have started investing based on value investment principles and on that basis I have invested in a couple of brokerage stocks. I read a lot that one should try and attend AGM as that will give one chance to hear and meet other investors, see management reaction to difficult questions from shareholders. Recently I have attended a AGM for a small cap brokerage company. Other than statutory agenda of getting the resolutions passed there was nothing else. Some shareholders were fighting for gifts and bonus shares and some for ESOPs :). The only benefit which I found was I was able to catch the CFO over snacks and get my answer to few questions. Now it is quite possible that I was not prepared enough to take maximum benfit of it or may be there is no point in attending AGMs of small caps. I am sure that some of the people on the forum must be attending AGM for quite a while and would request them to share some tips and how to get maximum benefit from attending AGM. S
I am trying to find out about earning conference call importance in selecting stock. If company does earning conf call than it seems there is better understanding what is happening inside company.
If there is no earning conf call than choices seems like Annual report/results and any declaration that comes from company.
I have listened to some earning conf call and it seems that it gives a lot of confidence in stock.
I was reading about Avanti Feeds annual report and it seems everything is good(except promoter pledging that seems not required for current debt). But i am not able to make decision as there is no earning calls after result.
Could other members please share there thoughts on this?
Yes, concalls have become a very important source of information and they help in building a track record of what the mgmt is saying and what they are delivering. But this is a new thing and more common with bigger cos (above 500 Cr M Cap).
In Avanti Feeds, I think the mgmt is good & honest as they have been paying dividend despite bad times and transparent in their annual reports even during bad times. The biggest confidence comes from the stake of 25% held by Thai Union (the biggest seafood co). Last year the co raised dividend from 10% to 65% on good results. Plus they have low debt now and there is strong cash flow.
Will try to check on the pledging (though not major as of now).
Don’t take lack of concall as a negative its common with small caps.
The best way to benefit from an AGM is to ask intelligent and relevant questions. For that you will need lots of preparation.
Like the final question you asked GRP management last August “Is there anything else that you think I should have asked?”
I have never been to AGM , Would like to know if i am interested do i have to carry any proof of being shareholder to attend the AGM ?
and Can one just show in any AGM of a company ?
Just want to know how it works.