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Retrieve, analyze and recommend stocks Gyan 1. Categorize companies into 6 categories: slow growers, stalwarts, fast growers, cyclicals, turnarounds, asset play 2. Look out for companies will dull names or business, disagreeable or depressing work, spinoff, not owned by institutions and not followed by analysts, no growth industry, niche company, companies manufacturing goods which have to be bought over and over, uses IT, insiders are buying, company is buying back shares 3. Avoid hottest stock, avoid diworseifying companies, whisper stocks, companies with very few customers, companies with exciting names 11. Look at the debt structure, bank debt or commercial paper is bad, funded debt is best. Maybe use a bank debt to toal debt ratio. Consider this for turnaround companies especially 17. Analyze free cash flow. more is better. Get more info on this. 21. Find businesses that can get away with raising prices year after year.. 22. A 20% grower with a PE of 20 is better than a 10% grower with a PE of 10 16. Look for companies holding stocks of other companies. Buying a stock of first company may get you a stock in the other company for cheaper. 15.Search for companies with hidden assets. assets valued a long time back which are worth a lot more now, companies with patents. Trend formulae -----4. under current assets, add cash & cash items to marketable securites to get overall cash, compare it to previous years, increase is better -----5. Compare long-term loans to previous years, decrease is better -----7. Compare number of outstanding shares (adjusted for splits), decrease is better -----12. Look at dividend yield, regular dividend paying companies have less money to piss off and the stock price dos not fall as much in a recession. Helps to stabilize the portfolio -----19. Compare inventory size to previous years, decrease is better. -----13. If buying a share for the dividend, check for a regular dividend paying record even during recessions and bad times. Current Formulae 18. Compare inventory growth rate to sales growth rate. Sales growth rate should be higher. -----20. Compare expense growth rate to sales growth rate, Sales growth rate should be higher -----6. Overall cash - long term loans = net cash, positive is better -----8. Calculate company growth rate, P/E ratio & dividend rate(adjusted to face value of 10), (growth rate + dividend rate) / pe ratio, greater than 2 is good, less than 1 is poor -----10. Calculate debt to equity ratio (Long term debt /(long term debt + Equity Share Capital), greater than 80% is poor, less than 20% is better, Consider this for turnaround companies especially -----14. Calculate debt to assets ratio, anything greater than 50% is bad Sectoral formulae 9. Net cash / no of shares = Net Cash per share (NCS). Subtract LTP - NCS. calculate PE for this. compare for sector 23. Calculate profit before tax margin (PBT/sales) of companies in the same sector. Higher is better. 24. Companies with higher PBT are better during bad times. Good as a long-term stock 25. Companies with lower PBT are better during an upswing. Good in a turnaround.
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Downloads company financial data, analyzes it and recommends stocks based on fundamental analysis
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