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Re: Investment decision checklist
Posted by: stockticker (IP Logged)
Date: November 23, 2010 04:18PM

spam information, been deleted

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Re: Investment decision checklist
Posted by: augustabound (IP Logged)
Date: February 20, 2011 06:12AM

Read something interesting a couple of weeks ago. It's about making, for lack of a better term, a blackball list for CEO's and BOD that make potentially value destroying decisions.

A prime example that I've noted is Chesapeake Energy. Last year the BOD agreed to buy the CEO's (coincidentally also the Chairman of the Board) antique map collection for $12 million.

So for me, the CEO (and Chairman) go on a blacklist and the other board members get kind of a yellow flag on my list.

A great place to find these types of things is They year end "worst footnote" contest is usually pretty entertaining, unless you're a shareholder in one of the noted companies.

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Re: Investment decision checklist
Posted by: haoafu (IP Logged)
Date: July 31, 2011 05:53PM

Mine is work in progress as well. I'll skip the financial metrics part as most people have their own sets.

1)Am I familiar with the background of the industry and product/service provided by the company? Better yet, am I an expert or have a lot of interest/connection in the industry/company? Have I followed it for at least a year or two?

2)Have I read through most/all the available articles/data/annual reports/quarterly reports about the company? How about the major competitors within industry and other competing industries?

3)Do I understand how the company generates cash/profit and how the competitive advantage/landscape evolved in the past and will evolve in the future?

4)Do I have or could find a way to have first hand information about the company, supplier, sales, marketing ,customers...

5)Is the stock price a no brainer? Preferably I only want to pay cheap price for a great business, or a ridiculous low price for a normal business. I'll never touch a bad business no matter what the price is.

6)Is the management stockholder friendly? Are they acting like an owner rather than somebody hired by the owners?

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Re: Investment decision checklist
Posted by: ged gould (IP Logged)
Date: February 15, 2012 11:32AM

1) net earnings % in excess of 10% and ideally 20% and above
2) gross margins of at least 40%
3) gearing less than 50% (if financial stock less than 150%)
4) aggregate capex over past 10 years less than 50% of net earnings over past 10 years and ideally less than 25%
5) net eps every year for past 10 years
6)continuous dividend payments for at least 10 years
7) consistent growth in eps and dps over the past 10 years (average eps growth over past 10 years of at least 7% per annum)
8) shareholder friendly by consistent record of buying back shares
8) wide moat

Favourite US pick would be Microsoft and in Europe standard chartered bank (uk listed) which is remarkably similar to wells Fargo but operating in more attractive asian growth markets

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Re: Investment decision checklist
Posted by: [email protected] (IP Logged)
Date: April 13, 2017 11:29AM

We have all seen them but lets not forget the 15 questions of Phillip Fisher´s scuttlebutt method:

1) Does the company have products or services with sufficient market potential to make possible a sizeable increase in sales for at least several years?

2) Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have been exploited?

3) How effective are the company’s research and development efforts in relation to its size?

4) Does the company have an above-average sales organization?

5) Does the Company have a worthwhile profit margin?

6) What is the company doing to maintain or improve profit margins?

7) Does the company have outstanding labor and personnel relations?

8) Does the company have outstanding executive relations?

9) Does the company have depth to its management?

10) How good are the company’s cost analysis and accounting controls?

11) Are there other aspects of the business, somewhat peculiar to the industry involved, which will give the investor important clues as to how outstanding the company may be in relation to its competitors?

12) Does the company have a short-range or long-range outlook to profits?

13) In the foreseeable future will the growth of the company require sufficient equity financing so that the large number of shares that are outstanding will largely cancel the existing stockholder’ benefit from this anticipated growth? How does the company view buybacks versus dilution? What is the attractiveness of the borrowing capabilities of the company?

14) Does the management talk freely to investors about its affairs when things are going well but “clam up” when troubles or disappointments occur?

15) Does the company have a management of unquestionable integrity?.

Taken from: []

Remember Fisher recommends a very hands on approach to investigation, mostly focusing on finding insiders, knowledgeable people and all information sources who will provide hints that may help you fully answer these 15 questions (please remember the mosaic theory, so as to not break the law).

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