Sunday, July 16, 2017

INVESTMENT TECHNIQUE

I am a layman , i wanna invest in Stock Market;

But Fed up from MaineBolaTha.com (Who post Analysis without Any Rationale/Logics)
 types analysts,

Now m confused How to Select stocks for investment purpose!!
What should i do??

-So here we go
Sharing One more investement Technique based on Piotroski Score Methodology :

What is it??
Basically Piotroski Score is defined set of rules to do value investing or to Find Financial Health of a Company  based on following Factors:
(Each Factor contains few points & each point consist 1 Score)

1:Profitability:
* Positive ROA in the current year (1 Score).
* Positive Operating CF in the C/Y(1 Score ).
* Higher ROA in the C/Y compared to the ROA in the P/Y (1 Score).
* Cash flow from operations are greater than ROA (1 Score )

2:Leverage, Liquidity and Source of Funds:
* Lower ratio of long term debt to equity in the C/Y compared value in the P/Y(1 Score ).
* Higher current ratio in C/Y compared to the P/Y (1 Score ).
* No new shares were issued in the last year (1 Score).

3:Operating Efficiency:
* A higher gross margin compared to the previous year (1 Score).
* A higher asset turnover ratio compared to the previous year (1 Score).

*(Above Data in respect of 3 Factors gathered from Investopedia)


I have analysed the above technique on various stocks month back  & Found that this Technique is very Awesome & Useful and hence added to my list of  Fundamental Analysis tools;

Now Qns is How to use Piotroski Score: -

Ans: U can use above Technique in following manner:
Just Add up the score if ur stock is qualifying the point !!
Stock scoring Score 7 is the Level which decide wether to invest or not !!

Alternatively, Open Screener.in
Use its Filter options<and Analysis part (Very simple)

Now If Score >7  then ucan look up to invest in that Stock/Share.

Few Examples of above Technique are: 
-Vedanta
-Weizman
-Vidhi Speciality
-Vamshi rubber
-Titan Securities Etc.

Disclaimer: This is just one of the tool, to be used prima facie prior investing,
Plz do a in-depth research prior investing !!

Feel free to ask queries on same @ https://twitter.com/princu_23
will come up with more analysis & Techniques again;

Till then;
#Stay_Raw 🤞🏻
#Think_Hatke ✍️


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