TSH Corp

[beau]

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

FY 2014 seems revenue dropped off a lot.

I personally don't feel the need for the existence of dividends when making my investment decisions. If you are the type of investor who needs to be compensated while waiting to realize value or a catalyst, then fine, but it is not a prerequisite for me.

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.

I don't ask for the moon when it comes to ridiculously cheap companies. The fact that they are a classic net net trading at two-thirds of liquidation value, is enough margin of safety for me; even if management could be atrocious. I think if you hold a basket of these, you'll do well in the long run.

Existence of dividend or not, isn't a determining factor for a quality stock, but it plays an important part in valuation of intrinsic value.

The argument is fallacious. The strategy based on net-net or liquidation value is fine, but conditional on assurance of no asset dissipation by atrocious management. This is a general comment, rather than a comment on the current management team. I have no insight on the company

(not vested, and sharing a view on value investing principle)

I agree that burn rate is important. But does one attribute the cause of burn rate solely to the quality of management? Is your definition of good/atrocious management the ability to preserve NAV? Perhaps we are arguing over semantics when it comes to 'management quality'. In the case of TSH Corp, they have been increasing their NCAV over the past 5 years. NCAV was about 30m in 2014, 27m in 2013, 28m in 2012, 25m in 2011, 23m in 2010. If this is how you would judge quality of management, they are doing a good job.