What I see before entry
1, like last 5 or 3 years average profit growth is 40% and stock CAGR is 80%(if profit growth and stock CAGR is equal than I deepdrive into)it’s overvalued I can’t buy cause it’s future earning are already discounted.
2, is stock name are famous than the company if it was true I ignored.
3, is the business is B2B or commodity and trading 30+ PE than I caution.(if the company is small cap u can ignore PE some time)
4,than I read the business if business can sustain over 10 years than I see the balance sheet if it’s not sustainable I ignored.
5,go to screener and see number ofshare holder for last 5 years double it’s ok if 5x or 10x it was indicates that juice is out.
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