You are about to gain access to the website of MaxKapital. It is important that you read this page before proceeding to the “Talking Numbers Data Library (TNDL)”.
All content on this website should be considered, and is subject to, the specific regulatory requirements under which MaxKapital operates. The information available by accessing the website does not constitute an offer or solicitation of any security and may not be treated as an offer or solicitation by anyone including specifically but not limited to:
§ US citizens & residents
§ In any jurisdiction where such an offer or solicitation is against the law.
§ To anyone to whom it is unlawful to make such an offer or solicitation.
§ If the person making the offer or solicitation is not qualified to do so.
Access to the information on this website is made available world-wide for informational purposes only and should not be construed as an offer, solicitation or recommendation of any security in any specific jurisdiction.
For the inquisitive or interested visitor to our site, on the left hand-side, you will find data for the S&P 500, the Sensex and sample data for one U.S. listed company. While we do not include U.S. companies in the TNDL, we publish sample data for one U.S. company so that visitors can get a sense for the kind of data they will find in the TNDL.
The TNDL section of this website is open strictly to members: it includes data for what we see as great companies, together with data which might help identify when they are trading at a fair price. While the data does throw out ratings and rankings based on various algorithms employed, we offer no opinion or recommendation of our own: there is no opinion or recommendation, written or otherwise, and you must do your own due diligence.
Interpreting the data requires a high level of financial literacy. Use by lay persons, and indeed by members, can be damaging. Accordingly, distribution of the data in the public domain by ourselves or members is strictly prohibited. In addition, members eligible to subscribe are limited to institutional investors, investment advisers, portfolio managers, fund managers and similar persons, permitted to subscribe by their regulators.
The TNDL is, if you like, a curated list of companies, with as many as five companies eliminated for each one selected. The list has been created after going through several years of annual reports to eliminate companies which:
a. habitually employ weak capital structures.
b. have promoters who are heavily leveraged as a consequence of a large part of their stake being pledged.
c. carry a high risk of poor governance which may prove harmful to minority shareholders.
d. run less than impeccable business models incapable of delivering superior sustainable growth, operating and financial performance, relative to their peer group, over the course of an economic cycle.
TNDL includes data for 50 Indian entities: for the most part, high quality, well governed companies, with solid balance sheets, sound business models, with a visible performance track record displayed over the past several years, and a product or service capable of delivering superior growth and results over the course of the coming several economic cycles. These are companies well worth owning for the long-term, if purchased at a fair price. From here on, the list will grow with discovery generated through client requests.
Great companies, when trading at a fair price offer a compelling investment opportunity: we include much data, including data which indicates what might constitute a fair price. The TNDL, S&P 500 and Sensex data are updated periodically, typically each week, but occasionally monthly.
This list is by no means an exhaustive list of good companies listed in India. Several companies are excluded because they have not traded long enough to be covered by the quantitative model used. More are excluded because they lack sufficient sustainable liquidity to allow for proper price discovery, which is essential for the model to work effectively. Others are excluded because they have a non-standard accounting year, which makes comparison with the market difficult: for some of these we have included data covering technical and animal spirits. We exclude all public sector undertakings because we believe that they (a) lack a quality incentive structure, (b) are unable to attract and retain quality human capital, (c) have a well-respected promoter (the Government), but one whose actions are unpredictable because they can can be swayed by politics, and such actions are, more often than not, detrimental to minority share-holders. And yet more are excluded simply because we have not got to them yet.
Trash is never part of your core portfolio. But trash can on occasion play an interesting role in a portfolio. When markets fall, trash often collapses. And on the rebound, much to the dismay of value and quality investors, there will come a time when trash outperforms quality, albeit for a short period of time. Since there is a trader inside most investors, we include a small selection of trash and junk in TDNL. This list will also grow with discovery generated through client requests. Data for trash inclusions in TNDL are limited to technical and animal spirits – these are stocks to trade, not to own for the long-term, and so looking at the full data-set makes little sense.
We designate a stock as trash after looking at the capital structure together with the degree of cyclicality in earnings, quality of corporate governance, and the quality of promoters. Weakness in over one of the criteria, or significant weakness in any one of the criteria results in designation as trash.
If a stock has strong governance and promoter quality, and has either a weak capital structure or deeply cyclical earnings, not both, we classify it as “Junk”. All trash is junk, but all junk is not trash: where a stock is junk, but not quite trash, the full data-set is included. Within trash (not junk), there are some well-respected trash stocks, and some pure trash stocks, which are highlighted as “Quality Trash” and “Pure Trash” respectively. Well-respected trash is associated with weak capital structures, coupled with deeply cyclical earnings, but with sound governance and high quality promoters. Pure trash carries a higher degree of risk from quality of governance and promoters.