How is one to identify such shares?
Look for the companies which have 5 or more of the following attributes:
1. Growth at the TOP and BOTTOM on a consistant basis year after year
2. I & R initiatives (New Products and services)
3. Appropriate R & D expenditure
4. Working Capital management <5% of Revenue Nett
5. Control on Overhead Expenses (Increase < Sales Growth)
6. Sufficient Capital Expenditure per year line with growth of sales
7. Growth of sales > competitors growth and > Market Growth
8. Wider channels / Distribution / Market / Categories
9. Good Spread of products and services (Basket of products)
10. Greater market share of each of the products / services
11. Value BRANDS in the top bracket
12. Companies with HIgh margins can absorb the losses for a longer period.
Simply put, any company that has one or dependant on few products / services which accounts for > 80% of revenue generation is in jeopardy and can be effected by the market forces of demand & supply and prices of raw materials. If they depend more on imports they are more vunerable and cannot absorb such high input costs.
Those also with good distribution net works are better equipped.
So if your are privy to that sort of INFO you can make a better decision!