BC FUNDAMENTAL
Saved by @Manvendraktp

I asked, “What are the first metrics that you look at when evaluating a new stock?”

I received 322 replies

Here are 10 great metrics to look at first (and how to find them):

 1/ Market Capitalization

Why: Shows the current size/scale of the business

Where: @YahooFinance (image), @theTIKR , @KoyfinCharts ...etc
2/ Sales Growth Rate

Why: Shows the business model works & current growth rate

Where: @stockcardhq (image), SEC filings, @theTIKR...etc
3/ Free Cash Flow

Why: Is business generating cash or burning cash?

Where: @YahooFinance (image), SEC Filings, @stockrow1...etc
4/ Returns on capital (ROE, ROIC, ROA)

Why: Shows capital efficiency of business

Where: @stockrow1 (image) , @ycharts , @YahooFinance...etc
5/ Margins

Why: Shows current profit profile of products, spending rates, & potential for operating leverage

Where: @ycharts (image), @theTIKR, @stockrow1...etc
6/ Total Addressable Market

Why: Shows market size & long-term growth potential of business

Where: Investor presentation (images from $FVRR), 10k, @Gartner_inc
7/ Long-term (5-year+) Stock Performance vs. market

Why: Has the stock created or destroyed value so far?

Where: @ycharts (image), @YahooFinance, @stockrow1....etc
8/ Current Valuation (Price to sales / Price to earnings)

Why: How expensive is the stock?

Where: @YahooFinance (image), @stockcardhq, @KoyfinCharts...etc
9/ Mission Statement

Why: Why does this company exist??? What is it trying to do?

Where: Investor Relations Page ( $SHOP image), 10K, Glassdoor, company presentation
10/ Inside Ownership

Why: Do insiders have skin in the game?

Where: SEC Filings (Proxy statement -- form DEF 14A -- search “ownership” -- image shows @elonmusk ownership of $TSLA )
I received a TON of great replies to this thread

but this one by @OphirGottlieb stood out:

https://t.co/RNna2KxaRv
Enjoy this thread?

Follow me @BrianFeroldi

I tweet about money, personal finance, & investing
Want to learn more about how to find & use these metrics?

@brian_stoffel_ and I teach people how to invest on my YouTube Channel

Subscribe here: https://t.co/lWwcb1JdD1
You can read all of the answers to the thread here:

https://t.co/eJLFzsW8UV
Summary:

1: Market Cap
2: Sales Growth
3: FCF
4: Returns on Capital
5: Margins
6: TAM
7: Stock Performance
8: Current Valuation
9: Mission Statement
10: Inside Ownership

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1/ Mission Statements 🧵

I used to think mission statements were just corporate fluff

False words that companies created for HR reasons

I've slowly changed my mind about them

They are THE BEST stakeholder alignment & decision-making tool ever

EVER!

Need convincing? ⬇️⬇️⬇️⬇️

2/ What is a mission statement?

At its core, a mission statement should answer this question:

*****Why does the company exist?*****

A profound question that is easy to overlook!

3/ When used properly

Mission Statements should guide ALL of the actions of the organization

It's like a company's North Star

If an activity doesn’t advance the mission,

it should be discarded!

If an activity does advance the mission,

it should be adopted!

4/ A Mission and a Vision statement are different

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Vision: What the company/world looks like if the company is successful

Both important, but they are NOT interchangeable

5/ The reason I used to think mission statements didn't matter

is because the vast majority of companies/CEOs

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Most companies SUCK at creating & communicating them!

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The data:

Stock / # of bags / purchase year:

$AMZN / 15+ / 2010
$FB / 15+ / 2012
$GOOG / 15+ / 2009
$MELI / 15+ / 2011
$CMG / 20+ / 2012
$NFLX / 60+ / 2010
$TSLA / 60+ / 2012

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$AMZN - Bezos
$CMG - Ells
$FB- Zuck
$GOOG - Page
$MELI- Galperin
$NFLX - Hastings
$TSLA - Musk

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All of these companies attract millions/billions of consumers

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Profit growth is the engine that drives stock appreciation

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1⃣Only looking at the share price

I bought penny stocks at the start

My logic: 100 shares of $1 stock > 1 share of $100 stock

WRONG!

The price of 1 share is meaningless!

What matters is how great the company is!

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WRONG!

The dividend got cut and the share price dropped -- a double-whammy!

A high yield is Wall Street's way of saying "this yield is not sustainable, watch out"


3⃣Selling a great stock early

I bought $DXCM in 2007 for ~$6

I sold it 1 month later after a 15% gain

Current price: $412.58

I was in a rush to take profits, so I missed out on HUGE upside

If the opportunity is huge, hold!


4⃣Not buying a great stock due to valuation

I've made this mistake over and over again

I didn't buy $ZM at $80 because the valuation was "insane"

Current price: $455

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1/n

Moving averages
EMA and SMA
1. Exponential Moving Average (EMA) is similar to Simple Moving Average (SMA), measuring trend direction over a period of time.
2. However, whereas SMA simply calculates an average of price data, EMA applies more weight to data that is more current
2/


21 EMA : SHORT TERM TREND
1. Calculates the Average Price of past 21 days
2. A stock above 21 ema is in strong momentum , which will give pullbacks to 21 ema again and again.
3. Stock above 21 ema should never be shorted so as to stay with the trend
3/n

3. A stock which moves 10-15% above 21 ema will be too extended and hence will generally pullback
Stocks take dynamic support on 21 ema
4. You can Short only if its too extended like 15 to 20% from 21 ema ( Not advised )
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1. Whenever 21 ema is sloping upwards its called uptrend
2. Whenever 21 ema is sloping downwards its called dowtrend
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⏬Sell in downtrend
Examples:
5/n
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