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Saturday, July 1, 2017

Smart Investing idea

Smart Investing idea/method:
1. Buy only somethings that you are familiar with the businesses that the companies that you are going to invest.
2. Don't buy base on tips or impulse!
3. The company must be profitable . Giving at least 2% dividend yield. 
Return On Equity (Net income/total no. Of equity)must be above 8 %, and within max 20%. PE not too high( base on industry average PE).
4. * Cash flow level must be in the pink of health. If not the company may not sustain even if the financial result is showing Hugh profit.
5. Look at their debts level. Debts ratio is often referred to equity to debt ratio.This measure refers to company finance its operations vs. its amount of available For example, a business that has accumulated $50 million in debt and has $200 million in assets has $250 million in available capital. The debt ratio in this example will be .20 or 20percent ($50 million divided by $250 million equals .20). 
When a company approaches 1 to 1 things can become very worry some. It depends on which sector//industry . 
Not sure what is the acceptable equity to debt ratio.
6. Good management. Well established company name/brand.
7. Net Profit/Income Margin - preferable above 10% - 20% ( good profit margin).
Few stock counters being selected for smart investing are for example :
QAF - famous for wide range of Gardenia breads, Australia Airport.Dividend of 5 cents, yield 3.913%
Sheng Siong - local super market. yield of 3.8% ( dividend of 3.8 cents) 
Thaibev - F& B , Thai Beer, Tigher Beer etc.dividend 2.4 cents. yield 2.65%.
Netlink IPO - 4.75 - 5.5%..
Dyodd.
(trade base on your own decision)

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