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Home > Investment School > What else to look for

What else to look for
  • Risk profile of the investor


  • Risk reward ratio. Survival in this market is the key


  • Cost of Capital for leveraged players In a rising interest market it does not make sense to invest in equities. Diversification concerns.


  • The best time to buy is during a catastrophe, collapse or a free fall 9/11, May 17 th are great examples of such occasions. See how markets react temporarily to political news but permanently to fundamental news.


  • Are the company's sales likely to grow compounded over a period of 3 to 4 years? If so better to buy low PE companies because they may be re rated upwards.


  • Is the product pipeline strong enough to take care of falling or stagnating sales of existing products?


  • Is the Company's profit margin better then its peers within the Industry?


  • Is the operating margin expanding or diminishing ?If so what is the reason for this. Normally profits should grow at a rate faster then the sales since a large portion of the fixed costs salaries, computers, rents gets spread over a larger number of units?


  • Is the company in a regular habit of entering the capital markets with a new issue of equity ?


  • Is the Management heir archy deep and decentralized ? Is it forthcoming? Does the company's website give enough information with regard to the company's plan of action.




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