EV - Enterprise value
EV = Equity + debt - reserves
EBITA = Earning before interest Tax and amortization
A between 1-5 is considered a good number
Sunday, November 22, 2009
Wednesday, November 4, 2009
Relief Rally
A Relief rally occurs after a sharp and swift correction.A Relief rally occurs with little fundamental information to back the movement in price. This rally may continue just long enough for the "suckers" to get on board, after which the market or specific stock falls.
Thursday, October 22, 2009
Stocks without build up positions during correction
The stock will not fall during a general market correction if there is no built up positions already. The fact is somebody must have the stock to sell, if nobody has the stock how can they sell!
Wednesday, September 30, 2009
Operating Profit
Operating Profit is the amount of profit a company makes from its core operation, excluding profits from other investments, interests etc.
This profit is exclusive of Interest and tax. Operation profit is also called EBIT( Earning before Interest and tax).
When the OPM keeps improving QnQ, that shows the companies is getting into better health.It means that the management is concentrating on the core business and its reaping good profits.So when a company turns around and its getting consistent with OPM, it shows that the company is going to make great profits in the future.
This profit is exclusive of Interest and tax. Operation profit is also called EBIT( Earning before Interest and tax).
When the OPM keeps improving QnQ, that shows the companies is getting into better health.It means that the management is concentrating on the core business and its reaping good profits.So when a company turns around and its getting consistent with OPM, it shows that the company is going to make great profits in the future.
Friday, September 25, 2009
Annual Reports
Do you remember a big book delivered to your house every year from a company you invested. It looks like a telephone directory and you seldom open it!
That big chunk of papers hold the key to world of information on what the company is doing and going to do in the next 1 year. It speaks the Managements mind which is a vital information about the company.
Annual reports are for people who can really think long term. The key to Informed investing at a retailer level is amply available in the reports.
That big chunk of papers hold the key to world of information on what the company is doing and going to do in the next 1 year. It speaks the Managements mind which is a vital information about the company.
Annual reports are for people who can really think long term. The key to Informed investing at a retailer level is amply available in the reports.
Tuesday, September 22, 2009
Wealth Creation
Wealth creation does not require much of general knowledge. A person who has acquired huge wealth in life need not scan through all the pages in the library and the news paper everyday. What he needs is specialized knowledge about how to make money in the given field he is in.
If general knowledge and subject knowledge is the key to opening to the door to riches, then University professors, Charted accountants and Bank managers will be the wealthiest people in the world.
A person need not know how many died in World war 2 or what is the distance between Chennai and Bangalore to be wealthy.To acquire wealth one has to posses the ability to use the specialized knowledge he has to acquire wealth.
If general knowledge and subject knowledge is the key to opening to the door to riches, then University professors, Charted accountants and Bank managers will be the wealthiest people in the world.
A person need not know how many died in World war 2 or what is the distance between Chennai and Bangalore to be wealthy.To acquire wealth one has to posses the ability to use the specialized knowledge he has to acquire wealth.
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