This cannot be used for individual stocks as this is a diffusion indicator. More appropriate for large diversified index of highly liquid stocks.
Calculate working capital for current year and subtract last year’s working capital to get incremental working capital and see if it less than cash profits. Usually it does.
Working capital = current assets - current liabilities.
I sometimes use
working capital = account receivables + inventories - accounts payable.
Thanks Yogesh for the details.
At times, I feel the like button does not (rather cannot) express the amount and extent of gratitude one feels on coming across such posts !
Thank you so much Yogesh
Agreed, the thought process some of the posts share are work of art. Gratitude and Salute Yogesh Ji for adding to the beauty of life.
You are marvelous not only at creativity but more in sharing with others. A big salute to you.
Truly educative on professional line of thinking. Articulating thoughts is an art. You have mastered it.
Sharing knowledge with people with similar interest but not trained in finance is truly egalitarian approach.
Enjoy reading your notes in virtual world. Hope to meet you some day.
Thank you so much for sharing your thoughts generously.
Thank you Yogesh for your generosity to share your knowledge. For new investors like me, it is really useful.
As the indicator moves lower towards 20, I generally begin to deploy cash
Since you are using the 200 MDA of the Nifty stocks would you deploy your cash in the stocks belonging to the Nifty - or is it just a signal to buy stocks on your watch list, irrespective of whether they belong to the Nifty or Nifty Next 50?
Also - what if the stocks on your watch list are trading above their 200 DMA at the time that your indicator is showing 20?
Trying to understand strategy - since I have only tested one - that of Mr A Basu Mallick - of trailing stop loss.
Thanking you for making me think!
Can you please guide in which thread is basumallick’s portfolio strategy?
Its under “The art of valuation”. Here is the link The ART of Valuation
You have been holding Yes bank for few years.
Many people(Even some popular investors) of are the view that Yes bank is cooking its NPA numbers. Because axis and icici have very high npa and their lending profile is similar to Yes bank.
I believe even you might have heard these arguments. I would just like to know your thought process.
Are you of the view that believe what company reports and ignore what people assume OR you have identified some data points which assures you that yes bank numbers are genuine?
When you use 200 for 200 DMA - does google use work days or calendar days?
My understanding is it simply subtracts 200 days. Will it make sense to adjust 200 to 240-250 days range?
Please have a look at the formula; it obtains values of the past 320 odd days and selects 200 of those.
=average(query(sort(GoogleFinance(“NSE:” & $A3,“close”, H$2-320, H$2),1,0),“select Col2 limit 200”))
Dear Yogesh Ji,
If i want to invest in pharma sector funds now, what could be some indicators to get a good entry point (which might show that pharma is near or has undergone a turn-around).
The SME results are out for Worth peripherals and Shanti Overseas.
I would appreciate if you can throw some light on these results
There is a one time deferred tax liability of approx 5.90 cr in case of worth.
Results look good but this tax has skewed the results.
Can u elaborate on this one?
Even though not related to Indian market, you may find this article useful -
Needed a quick suggestion -
From where can I download for Banks and NBFCs (for free ). Apparently screener does not have lot of relevant metrics (NIM, Cost of Funds, Yield etc.)
Any views on VASA and One Point One Solutions Ltd. Available almost at the IPO offer price.