FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» Japanese Gratitude to Sri Lanka (日本の感謝)
by God Father Today at 12:13 am

» Maharaja Foods PLC (MFL) - IPO Analysis
by ChooBoy Mon Jul 22, 2024 12:27 am

» කොළඹ කොටස් වෙළඳපොල විශ්ලේෂණය - 2024
by ChooBoy Fri Jul 19, 2024 11:53 am

» Winds of Change: Sri Lanka's Banking Crisis is Stalling Renewable Energy Ambitions of Local Stalwarts of Wind & Solar Power
by God Father Wed Jul 17, 2024 10:11 pm

» Banking Sector Analysis
by God Father Sat Jul 13, 2024 7:57 am

» Impact of Elections on Colombo Stock Market Sentiment
by Quibit Tue Jul 09, 2024 9:01 am

» LankaBIZ Unveils AI-Driven On-Demand Financial Research and Analysis Service
by Quibit Thu Jul 04, 2024 12:49 pm

» CDB Non voting
by Nandun Sun Jun 30, 2024 9:45 pm

» The Parsi Power Play: How a Small Community of Iranian Parsis are Controling Sri Lanka's US $ 85 billion Economy & 22 Million Population & Politics driving away FDIs
by MalakaDesmond Sun Jun 30, 2024 10:19 am

» Richard Pieris Group: Mismanaged?
by Walbaba Sat Jun 29, 2024 7:04 pm

» සොෆ්ට්ලොජික් හෝල්ඩිංග්ස් පීඑල්සී: අඳුරු අපේක්ෂාවන් සහිත ඉහළ අවදානම් ආයෝජනයක්
by D.G.Dayaratne Tue Jun 25, 2024 5:45 am

» සොෆ්ට්ලොජික් ප්‍රාග්ධනයට වන්දි ගෙවන Share BuyBack නිසා Softlogic ජීවිත රක්‍ෂණය බංකොලොත් වීමේ අවදානමක
by MalakaDesmond Tue Jun 25, 2024 1:49 am

» Softlogic Life insurance face Danger of Bankruptcy due to Share BuyBack that compensate Softlogic Capital
by MalakaDesmond Tue Jun 25, 2024 1:33 am

» Softlogic Holdings PLC: A High-Risk Investment with Bleak Prospects
by MalakaDesmond Tue Jun 25, 2024 12:52 am

» FINANCE AND LEASING SECTOR
by SL-INVESTOR Sat Jun 22, 2024 12:48 am

» HSENID BUSINESS SOLUTIONS PLC (HBS.N0000)
by ErangaDS Wed Jun 19, 2024 9:21 pm

» How will proposed Tax Reforms affect Sri Lankans in 2025
by Quibit Wed Jun 19, 2024 9:27 am

» Falsified accounts and financial misrepresentation at Arpico Insurance PLC (AINS)
by ChooBoy Tue Jun 18, 2024 11:31 pm

» Impact of IMF reforms to Sri Lanka Economy
by D.G.Dayaratne Mon Jun 17, 2024 6:36 pm

» Richard Pieris Finance Ltd continue to endanger the Depositors with negative performance
by ddindika Mon Jun 17, 2024 3:17 pm

» Richard Pieris Exports reports 97% decline in Net Profits
by Biggy Sat Jun 15, 2024 11:26 am

» Do your own Stock Market Research using AI Tools
by Quibit Fri Jun 14, 2024 10:50 am

» What will happen tomorrow?
by cheetah Thu Jun 13, 2024 12:07 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube


You are not connected. Please login or register

The Bargain Hunter's Checklist

Go down  Message [Page 1 of 1]

sriranga

sriranga
Co-Admin

The Bargain Hunter's Checklist Invest11

10 things to check before you press the buy button.

Here is the 10-point checklist of things to reassure yourself about before you make that snap judgement. Think of it like the AA's used car checklist.
1. Check the P/E and share price history
It's probably a low P/E that makes it look a bargain share. But compare the latest and forecast P/Es with their historical levels. If it's always been cheap, then it's not cheap now. Have a look at the share price graph over 5 years as well as shorter periods.

2. Check dividend cover and track record
Alternatively it might be the dividend that attracts you. But don't rely on a juicy dividend yield if it is not well covered. If you are buying for the yield, then you'll want to see a decent track record too.

3. Are revenues and operating profit rising?
Check the latest financials. At minimum check if revenues and operating profit increased in the latest period. If performance is declining at this level then the company may have serious problems.

4. Does the company generate cash?
Compare cash flow from operations with the operating profit. If it's a much lower figure then the company may have difficulty generating cash. Also look if net cash increased or decreased. If there was a large decrease then it needs further investigation.

5. Check debt
Look at net gearing and also interest cover, which is harder to window-dress. In the current environment companies with high debt are vulnerable to economic downturns, credit crunches and (eventually) interest rate rises.

6. Check net asset cover
Compare the tangible net asset per share with the share price. Tangible assets may provide a bit of a safety net.

7. Do you know how the company makes money?
This is a two part question: a) What does the company do? And b) How does it make money from that? Ideally it includes looking at the geographic and segmental analysis of revenues and profit, which you need to get from the company's latest report.

8. Look at the latest news
Check recent regulatory news and press articles for any important items.

9. Check directors' dealings
Recent purchases or sales of shares by directors may be significant, as well as directors total holdings. What price did the directors buy at?

10. Check brokers' recommendations
I'm not suggesting slavishly following brokers' recommendations, but a decision to buy a share if, say, five out of five brokers rate it a sell is different from buying when five out of five rate it a buy. It's a test of your conviction.
You can get all of this information from a financial website and the company's own website. Apart from the geographic and segmental analysis, it shouldn't even require looking at the company's reports. It should take about half an hour, though maybe longer if you don't have much idea what the company does.

Ideal
Of course it is much better to thoroughly research and analyse a company. The ideal opportunity arises when you have previously researched a share and liked the investment case, but thought it was too expensive. Even better if you have already decided what your maximum entry price would be. Then on a dip you can act swiftly, with just a quick review of recent news to make sure nothing has fundamentally changed.
But things are rarely ideal, and people are rarely as thorough as they mean to be. It's better to spend half an hour than five minutes. Having a checklist such as this provides a discipline to ensure you "kick the tyres" every time. I plan to cut out and keep it myself.

Extract from Investing

http://sharemarket-srilanka.blogspot.co.uk/
Share this post on: reddit

investor1984

Post Tue Sep 13, 2011 6:56 pm by investor1984

sriranga wrote:10 things to check before you press the buy button.

Here is the 10-point checklist of things to reassure yourself about before you make that snap judgement. Think of it like the AA's used car checklist.
1. Check the P/E and share price history
It's probably a low P/E that makes it look a bargain share. But compare the latest and forecast P/Es with their historical levels. If it's always been cheap, then it's not cheap now. Have a look at the share price graph over 5 years as well as shorter periods.

2. Check dividend cover and track record
Alternatively it might be the dividend that attracts you. But don't rely on a juicy dividend yield if it is not well covered. If you are buying for the yield, then you'll want to see a decent track record too.

3. Are revenues and operating profit rising?
Check the latest financials. At minimum check if revenues and operating profit increased in the latest period. If performance is declining at this level then the company may have serious problems.

4. Does the company generate cash?
Compare cash flow from operations with the operating profit. If it's a much lower figure then the company may have difficulty generating cash. Also look if net cash increased or decreased. If there was a large decrease then it needs further investigation.

5. Check debt
Look at net gearing and also interest cover, which is harder to window-dress. In the current environment companies with high debt are vulnerable to economic downturns, credit crunches and (eventually) interest rate rises.

6. Check net asset cover
Compare the tangible net asset per share with the share price. Tangible assets may provide a bit of a safety net.

7. Do you know how the company makes money?
This is a two part question: a) What does the company do? And b) How does it make money from that? Ideally it includes looking at the geographic and segmental analysis of revenues and profit, which you need to get from the company's latest report.

8. Look at the latest news
Check recent regulatory news and press articles for any important items.

9. Check directors' dealings
Recent purchases or sales of shares by directors may be significant, as well as directors total holdings. What price did the directors buy at?

10. Check brokers' recommendations
I'm not suggesting slavishly following brokers' recommendations, but a decision to buy a share if, say, five out of five brokers rate it a sell is different from buying when five out of five rate it a buy. It's a test of your conviction.
You can get all of this information from a financial website and the company's own website. Apart from the geographic and segmental analysis, it shouldn't even require looking at the company's reports. It should take about half an hour, though maybe longer if you don't have much idea what the company does.

Ideal
Of course it is much better to thoroughly research and analyse a company. The ideal opportunity arises when you have previously researched a share and liked the investment case, but thought it was too expensive. Even better if you have already decided what your maximum entry price would be. Then on a dip you can act swiftly, with just a quick review of recent news to make sure nothing has fundamentally changed.
But things are rarely ideal, and people are rarely as thorough as they mean to be. It's better to spend half an hour than five minutes. Having a checklist such as this provides a discipline to ensure you "kick the tyres" every time. I plan to cut out and keep it myself.

Extract from Investing

Most importantly check whether its manipulated or not .. coz this is CSE ... Nimal Perera's Temple

avatar

Post Tue Sep 13, 2011 7:14 pm by tata

@sriranga,

A good , comprehensive check list!
thanks for sharing in the forum.

hunter

Post Tue Sep 13, 2011 10:26 pm by hunter

Good and important one.
Thanks for posting!

sas

Post Wed Sep 14, 2011 7:42 am by sas

@sriranga,
you owe some + reps buddy. thanks

avatar

Post Wed Sep 14, 2011 9:09 pm by madeinsrilanka

Very useful one.
Thanks for posting!

amilaela

Post Thu Dec 22, 2011 7:09 pm by amilaela

thnaks

Kithsiri

Post Thu Dec 22, 2011 7:35 pm by Kithsiri

Good one again as usual. Thanks Sriranga.

avatar

Post Thu Dec 22, 2011 8:35 pm by duke

Excellent. These are what you should look before you buy in real stock markets. But,

I think this check list does not work in CSE because if you do follow this check list then you don't have anything to buy. Smile That's why foreign funds are exiting. You can't do value investing in the current market. Even if they have dropped from the their highs these stocks are not cheap.

How many stocks in the CSE will pass the check list at least a few checks? I guess may be one hand is enough to count the number with ones which pass may be 80% of the points and even they're fairly valued if not over valued.

If you check broker reports you have these 10 - 15 PER. But really how much of those numbers got distorted from the asset sales, asset revaluations, negative goodwill, tax reductions, blah, blah.
Does the company make money consistently? Profits go up and down and sometimes they're like some random number written by the accountants. Some say it's the seasonal effect. But that seasonal effect comes in only one quarter for the life time of the company if you check reports in the past. After the war all these numbers are so distorted.
Cash flow? Debt? Most of the business are full of big numbers in parentheses for so many quarters and years. Even after they selling out assets or even having an IPO and collecting mountains of money to cover the debt, still reports are full of negative numbers.
Dividends? What dividends? Smile
Broker recommendations? Smile
Director dealings? We only know when everything is over.

cseguide

Post Fri Dec 23, 2011 4:15 pm by cseguide

good article to think

K.Haputantri

Post Fri Dec 23, 2011 5:10 pm by K.Haputantri

Thanks Sriranga for sharing very valuable acadamic points with us. Invester & Duke also pointed out the real life situation at the CSE. They too deserve our attention. Let us continue this type of dialiogs so that all will be benefitted. Thanks every body who contributed.

avatar

Post Fri Dec 23, 2011 5:46 pm by lokuayya

There is a story of a peasant from rural village in monaragala who came to the town to sell a gunny bag full of Tamarind . (MR reminded this story in the parliament recently)

the mudalali weighed the gunny bag and started reducing the weight of the bag ,seed etc,etc .. to get the net weight , ..ultimately ended up calculating the net as zero kilograms..

Bewildered peasant asked from the Mudalai, ''Mudalali ,Me goniye Siyabala aththema nedda"?


Aththatama CSE goniye siyambala aththema nedda?

Kumar

Post Tue Feb 14, 2012 3:50 am by Kumar

Again one of the best post you shared with us.
Thanks a lot.
Wishing you, to do more search and post more valuable articles.

LateTackle

Post Tue Feb 14, 2012 7:23 am by LateTackle

Thanks excellent post at the correct time

avatar

Post Tue Feb 14, 2012 7:43 am by Gaja

Very good discussion, thanks for all to share your views

avatar

Post Tue Feb 14, 2012 7:56 am by Quibit

Excellent post sriranga!! This is a perfect check list for genuine stock market investors. This list may vary from that of market manipulators.

Manipulators list may include:
-How small the issued share capital of the comapny.
-How many shares are available with the public.
-What is the free float
-Previous highest and lowest price
-Inside information relating to splits, rights and profits.
-Cost of other shareholders shareholdings.
-Information from brokers with regard to forced selling decisions.
-What company article or research report that will be published in the future etc..

(This post is published purely for education purpose and not to encourage any market manipulations)

sriranga

Post Tue Feb 14, 2012 3:48 pm by sriranga

Quibit wrote:Excellent post sriranga!! This is a perfect check list for genuine stock market investors. This list may vary from that of market manipulators.

Manipulators list may include:
-How small the issued share capital of the comapny.
-How many shares are available with the public.
-What is the free float
-Previous highest and lowest price
-Inside information relating to splits, rights and profits.
-Cost of other shareholders shareholdings.
-Information from brokers with regard to forced selling decisions.
-What company article or research report that will be published in the future etc..

(This post is published purely for education purpose and not to encourage any market manipulations)


Thanks Quibit for your comment and your post.
Really appreciate.
This post was posted in the month of September 2011 when the down trend started.
Thanks everyone for your valuable feed back.

avatar

Post Tue Feb 14, 2012 5:32 pm by kvnnn

Thnx for the list. and where can we get those details and ratios,

cseguide

Post Tue Feb 14, 2012 8:48 pm by cseguide

good one

madman

Post Tue Feb 14, 2012 9:56 pm by madman

cseguide wrote:good article to think

Better for market of this type

cseguide

Post Tue Feb 14, 2012 10:53 pm by cseguide

madman wrote:
cseguide wrote:good article to think

Better for market of this type
1st post
welcome to the forum madman

avatar

Post Sun Nov 22, 2020 2:00 pm by Quibit

Restart to the Topic

avatar

Post Sun Nov 22, 2020 2:43 pm by jaya

One is LFIN Floating  4.5%

Post  by Sponsored content

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum