Few hacks to identify bad stocks⚠️

• Debt to equity ratio
• Interest coverage ratio
• CFO/PAT
• Promoter Pledging
• Market cap VS Enterprise value

Let’s discuss in detail! ⤵️

1⃣ Debt to Equity ratio

If a company has high debt then it means that the companies debt value is more than its asset value which is not a good sign.

✅ratio < 1 is considered ideal.
2⃣ Interest coverage ratio

This ratio tells us how efficiently the company is paying the interest charged on its debts.

✅ratio > 2 is considered ideal.

#investing #nifty50
3⃣CFO/PAT

If the CFO or cash flow statement is consistently positive every year then it's a good sign.

On the other hand, if the CFO is less than the PAT of the company then it can be a red flag.

✅ratio > 1 is considered ideal.

#Nifty
4⃣Promoter Pledging

A company requires funds for expansion. It can do it by pledging the promoter's stake.

✅value < 30% is considered ideal.

#stocks #StockMarketindia
5⃣Market cap VS Enterprise value

Market cap is calculated by the stock price of the company multiplied by the no. of shares outstanding while enterprise value will tell you the true picture of the debt of the company.

✅ EV < Market Cap is considered ideal.
There are 20+ ways to identify bad stocks through which you can lower your risk in investing.

Find some of them here⤵️
https://t.co/1awsbx4FjL

Add some more below. 👇

More from All

1. Mini Thread on Conflicts of Interest involving the authors of the Nature Toilet Paper:
https://t.co/VUYbsKGncx
Kristian G. Andersen
Andrew Rambaut
Ian Lipkin
Edward C. Holmes
Robert F. Garry

2. Thanks to @newboxer007 for forwarding the link to the research by an Australian in Taiwan (not on

3. K.Andersen didn't mention "competing interests"
Only Garry listed Zalgen Labs, which we will look at later.
In acknowledgements, Michael Farzan, Wellcome Trust, NIH, ERC & ARC are mentioned.
Author affiliations listed as usual.
Note the 328 Citations!
https://t.co/nmOeohM89Q


4. Kristian Andersen (1)
Andersen worked with USAMRIID & Fort Detrick scientists on research, with Robert Garry, Jens Kuhn & Sina Bavari among


5. Kristian Andersen (2)
Works at Scripps Research Institute, which WAS in serious financial trouble, haemorrhaging 20 million $ a year.
But just when the first virus cases were emerging, they received great news.
They issued a press release dated November 27, 2019:

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