Posted by: donmihaihai | February 19, 2011

The company should know

I do not have a standard method of looking for new company to look into. But after doing it again and again, I realized that there is only one thing that will stop me for looking into a particular company which is turn me off. And it does not need to involve any financial number. The company should know what its want.

I was thinking of looking into this particular company call Etika International Holding Limited. A Google search leads me to their website. I was turned off instantly. Why? Because that website is for investor. I don’t know whether operating subsidiaries have their own websites for their products or not but I stopped right there. If Etika International aim is to reach out to investor then bye or next time.

Google is about online search. The only thing I noticed when at their website is —- search. It is listed and it took me some time to find their investor relations. I love it.

Singapore Airline is about premium flying. The home page of their website is what I would expect if I am flying with Singapore Airline. Information on flight. I like it and love it better when it took me some time to locate their investor relations.

Micro Mechanics sells consumer parts to industries and their home page is just what I want to see. Simple layout with information on their products. Micro Mechanics is not attracting consumer and it does not need the latest annual report right at the centre of their home page like Tat Hong.

I don’t mind taking a few minutes trying to locate the annual reports page. I instantly start downloading Good Pack Holdings annual reports and IPO prospectus at sgx after can’t find anything at their corporate website. I just don’t like the Olam International using corporate website reaching out to investor.

The company should know what they want. To serve customer or investor and I like company that serve customer. Another thing that turned me off is knowing small listed companies start replying email or call from any tom dick or Harry just because these TDH start thinking they are investor or shareholder.

The company should also know how to create competitive advantage or better compete against competitor.

Any ship owner knows that charter rate swing around. Their revenues depend on smart contracts, ship specs, route, demand and supply and utilisation. Many listed shipping companies know that and they are so keen to announce stuffs like contracts and acquisition of new vessel. But it is the unglamorous sides of the equation that make create the bottom line. It is the cost. Their customer does not care whether this vessel cost Courage Marine or Ezra 100 or 50 millions because the charter rate is still the same. Having cheaper cost breakeven at lower charter rate. The one with no commitment on long term leasing contract or financing has more options of say don’t need to go into any unfavorable charter at the down cycle.

You cannot control what you can’t control. You control what you can. Asia Enterprise generally can’t control selling price of their steel. While Asia Enterprise is trying, it is hard for them to control the buying price as well. That is the general picture. What they can control is all other expenses and another important thing is warehouse or the cost of warehouse and Asia Enterprise is good it this.

Companies who know how to get the extra mile last longer and usually out complete competitor.

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Responses

  1. Hi,

    There is a product page if you google Etika Dairies. But like you mention, there is no mention of its operating subsidiaries on that website either.


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