So what did the great Indian value investors (you know ... Dhando and all that) learn about low valuations last year (besides the fact they need to improve their English):
"Market learning of 2012:
Earlier we had a lot of focus on undervaluation while looking at a stock ideas. Now we have also started giving more weightage to the business quality and the scale of opportunity available. The three of the worst performing ideas were: Piccadily Agro, Faccor Alloys & BNK Capital.
The common thing among all of them was that though they were good on ratios temporarily, but they had a poor business model or management."
How about ... how did MNRK cut its troubled assets so fast? Compare it to TOWN in 2012 and TOWN made modest cuts while MNRK suddenly cut its troubled asset ratio in half in six months (March to Sept.)? How could you aggressively dispose of assets without charging more off? I'm not saying it's impossible, but one would have to wonder.