Sunday, April 29, 2007

Young & Energetic companies

Like human beings, companies born, enjoy their young days and matured with their special qualities, get reorganization for their expertise and become old over a period of time, vanish all the celebrity.
Try to invest in young companies whose capacities to rule the future is unrealized but their enthusiasm to excel is highly exhibited. These qualities reflect and can be understood by the balance sheet. The initial times is rosy and fairly reward their investors. These young companies become matured over a period of time but many a times survive with depleting energies. As the time passes, they even become old companies and drag their life in their respective category of industry as destitute. Their performance grossly depends on the industry fortune and nothing special about them. These companies hardly enrich the new investors.
Invest for long term in those companies whose experience has the multi dimensional reach to grab the existing opportunities and place their hands on the emerging opportunities. Their sustained energy always reflected as incremental increase in their market capitalization. The company management has to be respected even in case of bad cyclical weather that lives for short term. The matured companies live with energetic mood to expand, perform and enrich their investors.
Now the special case arouses. The matured companies fail to with stand the vagaries of down turn fortunes, may lead to a stage like ‘coma’ for some period of time. The new investors/ management come to the rescue, infuse fresh energy into the team that could change the face the company. Most of the times, these companies reward their trusted investors and become “Multi- baggers”.

In the universe of nearly 1100 traded companies in NSE, find out the category in which your beloved company falls and it’s energy level.

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