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@setan,
To set the record straight - I do not have an accounting background. Every accounting knowledge I have learnt thus far, is a result of what ksir described - forced to learn when your investment drops! VBs here had been more than gracious to spend their precious time to explain it to me, over the years - allowing me to "get a little better everyday".
I looked at Avarga's FY23 results - There is no company (ie. holding company) cashflow statement and hence we are not able to directly "see" Taiga dividends paid to Avarga. Nonetheless, as ksir mentioned, Taiga has declared a dividend and if you want to directly "see" it, you can go to check out Taiga's cashflow statement, which isn't a hard thing to do since Taiga is listed. An alternative would to back calculate it as I mentioned - Since the FY23 cashflow shows 6,978k paid out to non Avarga minorities (28%), Taiga would have paid (6978k/0.28) - 6978k =18mil to Avarga.
@donmihaihai,
My comment is more towards those who are looking at 2 similar assets (Asset A vs Asset B, and Asset B has some of Asset A) for some arbitrage opportunities. Generally, some of us try to look at it from liquidation standpoint (well at least, that's how I look at it). For your case of private wholly owned subsidiaries, I agree it is not applicable. As for those with NCI, as long as the NCI has a "history of profits", very good chance it is already undervalued on the BS - regardless of any discount the holding company may have. Of course, undervaluation and value realization are different things.
@ksir,
There is "return on equity" and "return on brain damage". Ideally, we want the former but in reality, we have to accept the latter in the ordinary course of events as an OPMI. And keep the faith that the latter sets the stage for the former.
To set the record straight - I do not have an accounting background. Every accounting knowledge I have learnt thus far, is a result of what ksir described - forced to learn when your investment drops! VBs here had been more than gracious to spend their precious time to explain it to me, over the years - allowing me to "get a little better everyday".
I looked at Avarga's FY23 results - There is no company (ie. holding company) cashflow statement and hence we are not able to directly "see" Taiga dividends paid to Avarga. Nonetheless, as ksir mentioned, Taiga has declared a dividend and if you want to directly "see" it, you can go to check out Taiga's cashflow statement, which isn't a hard thing to do since Taiga is listed. An alternative would to back calculate it as I mentioned - Since the FY23 cashflow shows 6,978k paid out to non Avarga minorities (28%), Taiga would have paid (6978k/0.28) - 6978k =18mil to Avarga.
@donmihaihai,
My comment is more towards those who are looking at 2 similar assets (Asset A vs Asset B, and Asset B has some of Asset A) for some arbitrage opportunities. Generally, some of us try to look at it from liquidation standpoint (well at least, that's how I look at it). For your case of private wholly owned subsidiaries, I agree it is not applicable. As for those with NCI, as long as the NCI has a "history of profits", very good chance it is already undervalued on the BS - regardless of any discount the holding company may have. Of course, undervaluation and value realization are different things.
@ksir,
There is "return on equity" and "return on brain damage". Ideally, we want the former but in reality, we have to accept the latter in the ordinary course of events as an OPMI. And keep the faith that the latter sets the stage for the former.