FANTASTIC STOCKS - INTRODUCTION BY RESEARCH WINGS
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.