Sure, in-depth agricultural knowledge is a big plus in analysing those MIS stocks.
“The more I look into the financials, the more doubts I am starting to have. … I cant help thinking that the whole show is contingent on so-called investors paying inflated prices for assets for the sole reason of getting a tax deduction, and as long as there is new money coming into these MIS the whole show can operate as a ponzi scheme.”
Yea … this is a real and legitimate worry. As huge amount of investors’ money with sharp percentage increase every year pouring down into the MIS industry, the costs of projects in previous years are actually bearing on those of later years. This is why the revenues of some companies are still increasing dramatically by 30% or 50% p.a. in recent years, but debts are shooting through the roof and e/s are static or even backwards. (Please note again that I am not talking about TIM, but some companies else.) Obviously these companies/projects are not sustainable in long term at all.
“I might have to talk to one of those so-called MIS investors, who has actually tried to get his money out.”
Regrettably, there is no way for those MIS investors to get their money back halfway through the projects without incurring heavy losses, although they might be even worse off if they keep sticking to the projects except a few real good ones.
TIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
