FRAUD ALLERT !!
For Retail Investors It is very tough to find out fraud in a company ,I will tell you simple and easy to use techniques to find out frauds with Examples....
plz Retweet for maximum reach...
@Vivek_Investor
@niteen_india
For Retail Investors It is very tough to find out fraud in a company ,I will tell you simple and easy to use techniques to find out frauds with Examples....
plz Retweet for maximum reach...
@Vivek_Investor
@niteen_india
Check CFO(cash flow from operation) of a company...If it is -ve consistently then company might be in trouble or a fraud can be there .Compare CFO/PAT ratio, it should be near to 1. Compare last 5 year data.
@soicfinance @itsTarH @nid_rockz
@soicfinance @itsTarH @nid_rockz
e.g. Ricoh India... a 30X story
MNC growing sales and profits continuously
Share Price became 30X in just 28 months
Sales and profits growing very fast
@PrasadWakchaure
@Shubham_TLI
MNC growing sales and profits continuously
Share Price became 30X in just 28 months
Sales and profits growing very fast
@PrasadWakchaure
@Shubham_TLI
But the Cash was Missing .Cash is the king. CFO -ve consistently.
3rd Company is Kwality Ltd
Sales and profits were moving up
Sales and profits were moving up
Kwality Ltd
Continuous equity dilution with high debt
Continuous equity dilution with high debt
Kwality ltd
Very poor cash flow from operations
Very poor cash flow from operations
And the Result is same
Company 4
Manpasand Bevverages ltd
Equity Dilution without any substantial reason....
Manpasand Bevverages ltd
Equity Dilution without any substantial reason....
Just see the employee salary🙃...such a big company and growing so fast but salary of top management is low
Relatives (Friends) in the same business....But no one gave attention to these basic Information...
If one wants to read the whole case study then link is given below
2point2capital.com/blog/index.php…
@Arunstockguru @amitmantri
If one wants to read the whole case study then link is given below
2point2capital.com/blog/index.php…
@Arunstockguru @amitmantri
If one thinks it happens in India only now let me give you International example
Company 5 Transactions System Ltd
Company changes its revenue policy to record the entire value of five years upfront as compared to previous approach of spreading the revenue over five years
Company 5 Transactions System Ltd
Company changes its revenue policy to record the entire value of five years upfront as compared to previous approach of spreading the revenue over five years
COMPANY-TRANSACTIONS SYSTEM ARCHITECT
A simple analysis of CFO /PAT would have saved many investors from loosing their money
@Arunstockguru @Vivek_Investor @oldschoolinvest @suchetadalal
A simple analysis of CFO /PAT would have saved many investors from loosing their money
@Arunstockguru @Vivek_Investor @oldschoolinvest @suchetadalal
@Vivek_Investor @niteen_india Company 6 -WORLD COM
From 2000to2002,company classified its line cost expenses from P&L to Balance sheet.
It understated its expenses and inflated its earnings.
Company started capitalizing its cost .Some Indian companies have been doing it (Comment below if you know)
FCF 🫡
From 2000to2002,company classified its line cost expenses from P&L to Balance sheet.
It understated its expenses and inflated its earnings.
Company started capitalizing its cost .Some Indian companies have been doing it (Comment below if you know)
FCF 🫡
• • •
Missing some Tweet in this thread? You can try to
force a refresh
