Check the cash flow characteristics and sustainability in any company before investing, as various ratios can be an early sign that the business is churning through rather than generating cash.
Tag Archives | NAOS
Company valuations will react differently to market conditions, and a stock priced for rapid growth in earnings may be most vulnerable during a market shock or downturn. Lessons are drawn from Howard Marks.
Companies always boast the synergies and growth prospects of acquisitions, but dig a little deeper with these questions and you might see why most of these deals fail to add value when finally bedded down.
Watching the commitment to buying shares by senior executives and board members can be a powerful pointer to company prospects, but investors need to read the right signs.
The definition of capitalism needs modernising, including how a company treats its personnel and customers. Socially responsible companies significantly outperform the averages in job creation and ROE.
Earnings downgrades are not always bad news. They may present buy-side opportunities if the stock is oversold. It’s best to assess the circumstances via a checklist without panicking.
Plenty of LICs trade at a discount to their NTA value, often for good reasons, but there are opportunities to benefit from a narrowing of the discount if an investor knows what to look for.
A company site visit can reveal far more than an annual report or a presentation in an office, and it’s the hidden insights that are easy to miss that are the most valuable clues.
Value investing is not just about a low P/E or EV/EBITDA. Other metrics need to be considered to prevent falling into a value trap, as well as what challenges are facing the industry and the time frame allowed for success.
Watch the many different forms of corporate activity for clues to the way management is thinking about a company’s future and the ways to finance its growth. This can be especially useful for investing in small cap stocks.
Growth stocks can quickly turn from market darlings to market devils, and last year’s big winners often fail to perform in the following year. Here are four lessons to help avoid mistakes in the high-flyers.
Commodity price falls and China worries overhung the market at the start of 2016, and some miners posted terrible results. But February’s reporting season had some bright spots and room for optimism.
Australian businesses are in a unique position to assist with China’s growing need for healthcare and aged care facilities as the country faces rising chronic illnesses and a rapidly ageing population.