At the turn of the century, Mesiniaga delivered double-digits ROE. It was in its heydays with more than 50% dividend payout ratio. Fast forward 20 years and the company is a pale shadow of itself. Its average ROE over the past 3 years was only 5%.
Mesiniaga is an ICT services provider and over the past 20 years the technology landscape had changed. To be fair that company had long ago recognized this and had sought ways to venture into new ICT areas.
Its Annual Reports over the past decade were full about how it is venturing into new tech areas, etc. Unfortunately, while the products and services may be new to the company, whatever it had done was not enough to return it to its glory days.
We all know that the tech industry evolves quickly, and tech companies continuously innovate to stay competitive. But it does not mean that innovation will always turn out to be the killer one. I think this is the fate of Mesiniaga. So while it is financially sound, it would not be a share market darling until and unless it finds the right “new tech product.” https://www.youtube.com/watch?v=lXYlRSwoec8
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
DreamHunter
10,922 posts
Posted by DreamHunter > 2021-05-01 17:48 | Report Abuse
how you know got no hope leh