jbl's point re character of CEO's is not just valid.... it applies to numerous companies. When i look through my trading over the past few years, i find: 1) A correlation between amount of research and results of trade. i.e. less research=less likely to make a profit (i.e. more likely to make a loss). it's hardly a surprise this correlation exists. Yet despite everything i made several impulsive buys over past 2 years!! sigh. 2) A very strong correlation between a SP crashing and later (sometimes sevral years) CEO being forced out, being convicted tec. Again that's to be expected. But what I finding is that I am being being too trusting. e.g. when CEO's presentation forecasts contracts are 'highly likely' to be won, or CR suddenly being announced despite sound looking reports.... well the list goes on.
I was under impression that ASX was far cleaner than pre-1987 and very diffucult for management to hide stuff. Yet one repeadedly sees companies crash and revelation that management were delusional re their abilities. It's startling how often someone gets the top job yet (in hindsight) is clearly unsuitable. many managers are ego-driven, arrogant, think they know it all, etc. Firms that spring to mind include: NMS, VMG, CSV, AJL.
There are also many cases where criminal behaviour has occurred by those in charge. My question is: If one can't fully trust the company's reports, where do we go to get the truth? Seems to be little shame is extracting huge salary and bonuses whilst driving company into the ground. I sell/avoid a company if i red ceo has huge luxury yacht, mansion in Bahamas etc. These personality types care little for shareholders. Point is one often discovers this stuff after investing. Others are intelligent/ethical but simply unsuited e.g. John Fletcher running Coles.
CSV Price at posting:
64.0¢ Sentiment: None Disclosure: Not Held
