I get emails and sometimes comments asking for my opinion on stocks. I am thinking of doing, twice a month post, analysing all such stocks sent to me via emails or comments.
Please feel free to leave the stock names through either an email to my id – email@example.com or via a comment. I will consolidate the names over 2 weeks and post a quick analysis on each one of them.
However you have to keep in mind the following filter criteria I use to analyse stocks. Stocks which don’t meet these criteria are generally rejected by me without spending too much time on them.
- Debt/ equity ratio <= 1
- ROE over a 3-5 year period of more than 12%
- No losses for more than 1 year in the last 5-7 years
- Mcap of more than 20-30 Crs (can be relaxed)
- No obvious fraud by the management in the past
- PE not more than 40
If the fundamentals are poor, or valuations too high I tend to move on and not spent too much time on it. If like me, you need 10-15 stocks in the portfolio, there is no need to spend time in figuring out a difficult idea when there are easier ones available.
A lot of times stocks may have good fundamentals and may be slightly undervalued. In such cases I tend to put the stock on a watch list and would follow it till it becomes undervalued (50% of intrinsic value). Some of the stocks you may mention may land in such a bucket. It does’nt mean that I don’t find value in the stock, just that it is not cheap enough for me.
So please leave names of stocks you want me to look at. If I get sufficient response, I will try to make it a regular effort on the blog.