Domain: tiger-web1.srvr.media3.us Due Diligence - What to look for? | Page 2 | Money Talk
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re: Due Diligence - What to look for?

Posted on 2/7/21 at 9:59 am to
Posted by Masterag
'Round Dallas
Member since Sep 2014
20151 posts
Posted on 2/7/21 at 9:59 am to
Thanks CG. Solid stuff.

Do you take the same approach across all caps?
Posted by cgrand
HAMMOND
Member since Oct 2009
47400 posts
Posted on 2/7/21 at 10:19 am to
yes sir
Posted by supadave3
Houston, TX
Member since Dec 2005
32021 posts
Posted on 2/7/21 at 2:51 pm to
quote:

Investing is so much easier when you aren’t worried about losing money you may need. Once you get ahead by a decent margin it gives you more freedom.


I bet it is. I deposit some in my account every paycheck and do everything I can to not pull any out. So while I don't really live paycheck to paycheck, I make myself feel like it.

I simply can't afford to drop $1000 into a stock because AT says it'll be a good one. I can drop $50 though, and add $50 increments to it or the next one he brings to our attention. (It's usually more that $50, but I'm not trying to get into a money bragging contest. I'd surely lose.)

It's better than nothing and it's the best I can do to prep for the future. I have to admit, I myself am surprised with how quickly it's added up and grown. I know these aren't normal times and I remind myself daily that 'a rising tide lifts all boats' and that I'm not a super investor and these good times definitely will end. Hopefully I've got a decent amount of money stowed away at that time.
This post was edited on 2/7/21 at 2:54 pm
Posted by HailToTheChiz
Back in Auburn
Member since Aug 2010
54254 posts
Posted on 2/7/21 at 3:46 pm to
Only two pages and this is a great thread already
Posted by RedlandsTiger
Greenwell Springs, LA
Member since Jan 2008
3152 posts
Posted on 2/7/21 at 4:05 pm to
I like Cramer's Rule of 40. If the Operating Margin plus the 3 Year Avg. Growth equals 40 or greater it's a buy.

LINK

And I really like it if it's a 'Wide Moat' stock per Moringstar.
Posted by Masterag
'Round Dallas
Member since Sep 2014
20151 posts
Posted on 2/8/21 at 7:02 am to
Thank you, sir. Please keep them coming, gents.

I totally understand if you aren’t willing to divulge your “secret sauce,” but I and others would be grateful for anything that you’d be comfortable sharing so we can begin to develop our own.

Posted by cgrand
HAMMOND
Member since Oct 2009
47400 posts
Posted on 2/9/21 at 4:51 pm to
Posted by AUCE05
Member since Dec 2009
45221 posts
Posted on 2/9/21 at 5:07 pm to
Financial ratios vs peers
Past news
Past prices
Knowledge of their industry
Read their 10k
Posted by slackster
Houston
Member since Mar 2009
91484 posts
Posted on 2/9/21 at 5:30 pm to
quote:

For you sages out there


How many of these people really exist? Peter Lynch and AT?

Seriously, people who do this for a living are typically woefully average at it over long periods of time. My advice if you go it alone for DD and individual stocks is to set a realistic expectation - if you can match the benchmark and enjoy your time doing it, I’d call it a win.
Posted by StreamsOfWhiskey
The Woodlands, TX
Member since Jun 2013
859 posts
Posted on 2/9/21 at 6:10 pm to
First place I look is the Cash Flow statement. Does the business kick a lot of cash? What does their free cash flow look like? Does cash from ops more than cover their capex? If not, are they taking on debt or are they issuing shares to fund operations?

If a business is young they may have to issue shares or take on debt, but if that’s the case, I want to see significant revenue growth year-over-year. I also want to see that they’re keeping it to manageable levels.

Lastly, I need to feel comfortable about the business’s prospects to hold for at least three to five years.
This post was edited on 2/9/21 at 6:14 pm
Posted by facelessman07
Member since Jan 2019
235 posts
Posted on 2/11/21 at 9:58 pm to
Done.

I see where they also offer a trade machine, do you have experience with that and if so, would you recommend it?
Posted by wizard1183
Lafayette
Member since Jan 2021
348 posts
Posted on 2/11/21 at 11:00 pm to
THats the million $ question. For every penny stock that goes to the moon? There's 1000 of them that go belly up. To find the diamond in the rough I wish I knew?

IPO listed stocks? Fairly easy to hit the winners.
Posted by cgrand
HAMMOND
Member since Oct 2009
47400 posts
Posted on 2/12/21 at 11:12 am to
quote:

I see where they also offer a trade machine, do you have experience with that and if so, would you recommend it?

if you have a FIRM grasp of fundamentals and technical analysis the trade machine is a cheat code. note that it is for options and swing trades
Posted by Weagle25
THE Football State.
Member since Oct 2011
47645 posts
Posted on 2/12/21 at 11:18 am to
How much do you think you have to have invested for it to be worth it?

I’ve always thought about it but never thought I had enough skin in the game to justify $47 a month ($500ish a year).

Now I’m starting to have enough income to throw more in the market

I guess what I’d be looking at is returns with this versus returns without this. Kinda hard to estimate the % return increase with it though.

I guess I can just try it out for a few months and see what kind of value I think it has.
Posted by cgrand
HAMMOND
Member since Oct 2009
47400 posts
Posted on 2/12/21 at 11:21 am to
my rough estimate on the returns i've gotten compared to the subscription fees is about 800:1
Posted by Weagle25
THE Football State.
Member since Oct 2011
47645 posts
Posted on 2/12/21 at 12:30 pm to
quote:

my rough estimate on the returns i've gotten compared to the subscription fees is about 800:1

I guess I’ll give it a look then
Posted by facelessman07
Member since Jan 2019
235 posts
Posted on 2/12/21 at 9:40 pm to
I'm always using tech analysis on my tradingview account and have been profitably swing trading options lately.

Sounds like you recommend it and that I should get it.
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