LOW FREE FLOAT SalesProfitGrowthCashFlow&Safety
2nd Up - 25Sep2020
📌#LowFreeFloat is Now a days #Moat for some good Quality Companies. Here is #stocks to chose from !
#investment
Read Criteria & Details in below #THREAD👇
@ms89_meet
@AdityaD_Shah
1/8
2nd Up - 25Sep2020
📌#LowFreeFloat is Now a days #Moat for some good Quality Companies. Here is #stocks to chose from !
#investment
Read Criteria & Details in below #THREAD👇
@ms89_meet
@AdityaD_Shah
1/8
📌Free Float = Public Float(DII+FII+ MF+ Corporate+HNI+Retail)
So,
No. of Shares publicly traded which we buy/sell from exchange in everyday life.
📌For simplicity I assumed non-promoters shares though custodians & locked in shares should also be excluded.
2/8
So,
No. of Shares publicly traded which we buy/sell from exchange in everyday life.
📌For simplicity I assumed non-promoters shares though custodians & locked in shares should also be excluded.
2/8
📌High Free-Float = Good Governance(In general). Promoters less influence & other shareholders can exercise their rights.
📌Low Free-Float = More Promoter influence can easily manipulate stock price for their gain.
3/8
📌Low Free-Float = More Promoter influence can easily manipulate stock price for their gain.
3/8
📌LOW FREE-FLOAT stocks with LOW INSTITUTION holding - GOOD for us (RETAIL)
Why ?
If Institutions holding 80-90% of Free Float, valuations will be High (low supply, stock price rise high). If they sell Price will drop drastically.
Smaller the Float Higher the Volatility.
4/8
Why ?
If Institutions holding 80-90% of Free Float, valuations will be High (low supply, stock price rise high). If they sell Price will drop drastically.
Smaller the Float Higher the Volatility.
4/8
Low free-float prices move higher quickly even if it gains attention of few investors.
Prime Candidate for de-listing.
Criteria for filter -
Low-free float is considered < 2 Cr
5/8
Prime Candidate for de-listing.
Criteria for filter -
Low-free float is considered < 2 Cr
5/8
📌Quality Checks for-
ROE, ROCE, ROA, Sales Growth, Profit Growth, Liquidity Ratio, Asset Turnover Ratio
Excluded Too much Fluctuating Sales+Profit Growth
Declining Debtor Days
+ive Operating & Free Cash Flow
Great Cash from Operations (latest) Vs Equity Capital
6/8
ROE, ROCE, ROA, Sales Growth, Profit Growth, Liquidity Ratio, Asset Turnover Ratio
Excluded Too much Fluctuating Sales+Profit Growth
Declining Debtor Days
+ive Operating & Free Cash Flow
Great Cash from Operations (latest) Vs Equity Capital
6/8
Stable Promoter Holding.
Manageable Debt determined by Interest Coverage Ratio, Debt+Contingent Liabilities & Debt Capacity.
Manageable Inventory Turnover Ratio.
7/8
Manageable Debt determined by Interest Coverage Ratio, Debt+Contingent Liabilities & Debt Capacity.
Manageable Inventory Turnover Ratio.
7/8
Previous Update Link for the #screener
8/8
https://twitter.com/Coolfundoo/status/1269169378697904129?s=20
8/8
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