Re: CRES Cresud
Publicado: Mié Mar 08, 2017 4:40 pm
Estaria lindo responderle a este comentario en SA. Claramente hay desconfianza todavia con respecto al management alla afuera:
Hi BienVista,
It looks like yu have put long hours on researching this group of companies:
Just a word of caution. You can´t blame Argentina for not delivering the goods. Truth is that management responsibility is to do that. And the fact is that the management does not have a good track record in delivering great returns for the minority shareholders.
Do not take my word for it. Just check their past track record and you will find plenty of evidence of not taking care of their minority shareholders
A few hints in that regard:
From the land "reserve" in Salta about half of the land of the group, check who was did they buy it from.
Back in 2001, CRESY and IRS were not related except from management. check why did CRESY bought IRS while it was loaded in cash.
Check the dismal return on equity of the group and that will explain why the share price went nowhere during the last 20 years and not the political turmoil in Argentina. In the same period you will find a handful of Argentine stocks that did so much better than CRESY and IRS
Check the opacity in related party transactions and management fee schemes that dent significantly the return on the minority shareholders.
Cheers
Hi BienVista,
It looks like yu have put long hours on researching this group of companies:
Just a word of caution. You can´t blame Argentina for not delivering the goods. Truth is that management responsibility is to do that. And the fact is that the management does not have a good track record in delivering great returns for the minority shareholders.
Do not take my word for it. Just check their past track record and you will find plenty of evidence of not taking care of their minority shareholders
A few hints in that regard:
From the land "reserve" in Salta about half of the land of the group, check who was did they buy it from.
Back in 2001, CRESY and IRS were not related except from management. check why did CRESY bought IRS while it was loaded in cash.
Check the dismal return on equity of the group and that will explain why the share price went nowhere during the last 20 years and not the political turmoil in Argentina. In the same period you will find a handful of Argentine stocks that did so much better than CRESY and IRS
Check the opacity in related party transactions and management fee schemes that dent significantly the return on the minority shareholders.
Cheers
