One of the biggest issue I have with these content creators is how they themselves don’t have more knowledge of things. They look at basic ratios like P/E and say “this stock is undervalued as it has single digit P/E ratio… blah blah” without taking into account if that company is operating into cyclical industry, how is the receivables situation or if the P/E is low due to some super normal margins due to one off event. Also, I have seen how they recommend tech stocks as if everything is going to become next FAANG without looking at tons of duds in US market. No focus on equity dilution, no cashflow analysis, no mention of industry structure or in case of financials, no mention of book value, provisions or NPAs…No mention of dividend yield and its impact in total returns. All these key elements are always missing but titles are always provocative like “Is this the next Multibagger?”
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