TSH Corp

[BlueKelah]

Lack of any div despite good EPS previous years means mg is not opmi friendly.

FY 2014 seems revenue dropped off a lot.

I also don't feel that dividends despite good earnings are indicative of good corporate governance or not. Berkshire never paid a dividend, yet they are probably the most shareholder friendly company in the world. As a small time retail investor, I think it's very difficult to truly assess management quality, so I choose to invest based on more quantitative factors.

not talking about corporate governance or quality with regards to dividend payouts but rather friendliness to OPMI. Withholding Div despite good earnings and no debt repayments is a pretty good way to judge mgt is not OPMI friendly.

Berkshire is one of the special cases and cannot be compared to most companies we look at as it is run by stellar management.

Buffett is also well known for loving to invest in companies that have proven to grow their dividends over a period of time.
Why Warren Buffett Hates Paying Dividends but Loves Dividend-Paying Stocks [Warren Buffett wrote in his 2012 Annual Report that, "We relish the dividends we receive from most of the stocks that Berkshire owns, but pay nothing ourselves."]

So one may need a different approach when looking at small companies with unknown mgt background and intentions.

With regards to Mgt quality, it is not that hard to assess. Just have to look through their annual report and see how the business has been run and how they tackle problems during bad times, like the recent GFC 2008/2009 and if they have made good investments or M&A with excess cash, if they have been growing the business.

Of course this will take both time to analysis and also experience through time.

If you take the mechanical way of graham's 2/3 discount to NCAV approach, it will be hard to get a basket of 20 stocks as such on the SGX.