Saturday, February 11, 2006

Are you looking at that "careers" page

Nope, im not looking for a job. Just something that my colleague Sonal pointed out - "always look for the 'Jobs available' column ... in the company website, or Ascent, or Business India etc." If a company is looking for a CEO or any top management personnel, then .... there are two possibilities -
a) The company profitability can take a hit if it is on shaky ground, or
b) There is a good probability that the price of the company stock may fall

This happens all the time, esp. when directors resign. There is often a vacuum and company performance goes bad. If the company is not a professionally managed one, then it will mean doom for a number of investor. An exact opposite of this notion is in an Accenture print ad .... link also attached !!!


















Look out for these instances. Marginal changes in conditions often create strong value buy opportunities. The relevance of this point comes in when we link this to Warren Buffet's style of investment where he puts a higher focus on management. You might want to check the previous blog on "Teledatamatics" where Jagadish has commented on the "bad management" of the organization and on that basis (and some shoddy book-keeping) has recommended a NO BUY on the stock.

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