Talking straight, RoE is just a fundamental viewpoint which highlights stocks that are best in their businesses, but selecting a stock at right time and opportunity, depends upon various other aspects like valuation multiples like P/Ex, P/BVx with respect to market valuations, then Cash Generation capabilities, Debt levels, ongoing economic scenarios and many others. Our aim is to look out actively at the really good companies – those that generate lots of capital and allocate the capital for the benefit of their shareholders. One can surely argue that amid talks and implementation of quantitative easing(s) by many nations, is sure to move up equity price levels, but at Muthanna; we are of the opinion that it makes more sense to focus on fundamentals rather than get carried away with liquidity pushed euphoria across the counters.
Shoyeb Ali Vice President, [email protected]
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