FANTASTIC STOCKS - INTRODUCTION BY RESEARCH WINGS

FANTASTIC STOCKS can be a stock which has good public recognition and missed for investing by them on an assumption that they are not fancy. They also have a conviction that the stock has not performed historically and will continue to do so. These stock also tend to deliver consistent return on equity with proper sustainability of the business with maintenance of position in the industry in which the company operates. Such companies also perform their part in social responsibilities. They are not very famous in the beginning of the movement in value of the stock. Once they outperform there past history now public at large realize that they misunderstood the company for a long period of time. Now they start running behind such companies and start talking about the company and read everything in positive way. Later they start framing the opinion in order to favor their investment decisions. This is where the stock takes euphoria and becomes the wealth maximizer of the month than quarter than year than decades.

HOW TO FIND A FANTASTIC STOCK?

Below is the questionnaire and recommended answer:

Q 1 - Do they play vital role in society or nation building?

A 1 - Yes, the company play vital role in the village/city/country it operates.

Q 2 - Do they have high public recognition?

A 2 - Yes, the company is known by public to a great extent.

Q 3 - Do they have competitive advantage?

A 3 - Yes, the company have placed itself competitively. Further you can analyse based on Porter's 5 Forces.

Q 4 - Do they have pricing power?

A 4 - Yes, the company has power to transfer future cost increases to customers.

Q 5 - Do they have loyal/consistent customers?

A 5 - Yes, the company/ company’s product is appreciated and repeat consumed by customers. Customer are loyal towards the company.

Q 6 - Do we find its product in our day to day life?

A 6 - Yes, directly or indirectly the company impact my life.

Q 7 - Do we contribute to its revenue?

A 7 - Yes, directly or indirectly.

Q 8 - Do we dream to own or try its product or service?

A 8 - Yes, we do dream to own or try its product or service.

Q 9 - Do we dream to work for that company?

A 9 - Yes, we do dream to work for that company.

Q 10 - Does the company plan disrupt the existing system/ product?

A 10 - Yes, they are into disrupting the existing system/ product.

Q 11 - Do we plan to continue using their product or service for longer term?

A 11 - Yes, we plan to continue using their product or service for longer term.

Q 12 - Do we see that these company will make difference in our life?

A 12 - Yes, it will make a difference in our life.

Q 13 - Do they have high return on invested capital?

A 13 - Yes, the company return on invested capital is more than 10 percent per annum.

Q 14 - Do they have low price to earnings ratio?

A 14 - Yes, the company’s price to earning ratio is less than 24.

Q 15 - Do they have low price to book value ratio?

A 15 - Yes, the company’s price to book value ratio is less than 2.

Q 16 - Do they have high asset turnover ratio?

A 16 - Yes, the company’s asset turnover ratio is more than 1.

Q 17 - Do they have high other income?

A 17 - No, other income is not more than 50% profit before tax of the company.

Q 18 - Do they have low debt?

A 18 - Yes, the company debt to equity is less than 2.

Comments

  1. Hi
    Can you tell what's your view on MSR limited on fundamental ground with time frame of next 2years

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    Replies
    1. Please ask questions on Quora.com

      What is fundamental and technical analysis on MSR India Limited for long term investing in stock market in India (NSE and BSE)?

      Delete
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  4. Please suggest me best stock.I have Rs:30,000 in my Zerdoha a/c.Please suggest me best stock to invest for period of 2-3 months.

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