Investing Basics - Feel free to ask the most basic questions

Stock Analysis & Valuation
1113

Hello all can you suggest any websites where I can see historical price to book values and historical Dividend yield for at least 5 to 10 years

1114

ratestar.in shows P/B graph.

2 Likes
1115

Reinvestments would mean directing free cash flows into capex for same products, putting more into R&D or expanding product lines. So to assume that the clear answer lies just in balance sheet numbers would be wrong in my opinion.

A consistent compounder franchise would essentially find a way to do more of what its good at and find ways to trigger next phase of growth when they think a certain product category is topping out.

1116

If not balance sheet, how would they know these numbers for each of their universe of companies to come up with their list of consistent compounders?

1117

WHere to look for new spin offs,restructurings etc?

1118

According to me the prerequisite for long term compounders is high consistent ROCE.As long as this number is consistently high,the company is making a good return for the capital it has deployed.

1 Like
1119

Just throwing another question into the mix, I have observed over last few weeks experts saying that the next bull run will be driven by new leaders in new sectors. Is there anyone here who could throw some more light on how does one hunt for these new opportunities and how do you start thinking in that non linear fashion.

1120

I personally don’t believe in sectoral investing but if you want to try then I have a method you can use.

  1. Go to valueresearchonline.com
  2. Go to stock selector section
  3. Select bse500 index
  4. Select 3months return more than 20%
  5. Sort in decreasing 3months return
  6. Check sector and count which sector is giving maximum stocks with high returns. Currently it is healthcare and chemical.
  7. You can either buy 5 to 10 top performers in the sector, buy a sectoral smallcase or buy a sectoral fund.
  8. Be prepared to move out when the sector starts showing weakness.
4 Likes
1122

What re the key ratios and numbers to look for when selecting a fundamentally strong stock?

1123

Hi people,
Thanks for this thread. I want to know where I can get a primer on a sector or company quickly. Do you know any sources? It would be really helpful if you could share so that I can understand multiple industries quickly.

1 Like
1124

Go to www.ibef.org and you will find overview material on a lot of sectors.

6 Likes
1126

Could senior members help us understand this article?
How is spike in delivery based trade linked to potential recession?
Thank you.

1127

Thank you :slight_smile:

1129

Hi everyone,

Apart from screener.in, does anybody know any other places we could get financials of companies? Also want to get a sense about how you track investee companies and how it is working for you. Do you prepare sophisticated company models the way sell-side equity research firms do for your own portfolio? Also, do you read deeply about the sector and the company that you’re invested in or just read the financials and updates to them and then take buy/sell calls accordingly?

1130

Hi All,

Have a very basic question on cash flow statement.
If the Cash flow from operations (CFO) is positive and the overall Free cash flow (FCF) is negative, should we consider this as a bad sign in terms of the financial health of the company or does CFO positive suffice the health of a company.

Please enlighten.

1131

Finology ticker has a great UI

1132

I’ll check. Thanks…

1 Like
1133

As being shareholder of the company can we have rights to receive hard copy of the annual report of the subsidiary company also?

1134

Erstwhile, Fidelity MF in India had a style of investing. Their investment comprised of;

  1. Researchers : People experienced in core field i.e. Subject Matter Expert. Eg: Pharmacist analyzing a Pharma company.
  2. Analyst : Technical / Fundamental Analyst giving buying price and selling price while giving a recommendation.
  3. Traders : Executing the trades based on recommendation.

I came to know about this when I had attended Fidelity MF seminar in Mumbai, may be 10-12 years back.

Why I mention is I found Fidelity’s style of investing very sound.

Being a novice, I would like to know whether any another investment firm follows this or this is the standard practice.

1135

Can anyone review the below screener query ? I am looking for long term investments. Thanks.

PEG Ratio < 4
Price to Earning >Industry PE AND
OPM > 15 AND
Return on capital employed >20 AND
Average return on capital employed 3Years >15 AND
Dividend yield > 1.5 AND
Debt to equity < 2 AND
Price to book value < 5 AND
Free cash flow 3years >10