DrVijayMalik_ValueGuru_Checklist
Ist Upd - 05Jul2020

#Thread

A small tribute to @drvijaymalik on the occasion of Guru Purnima🙏

#valueinvesting #stocks
#SalesGrowth #OPM #npm
#CurrentRatio #DebtToEquity
#SSGR #MarginOfSafety #MaxPEtoPay #EarningsYield
#FII
#MaithanAlloy

1n

@drvijaymalik The Final Checklist for Buying Stocks !

Financial Checklist !

Taking Maithan Alloys as Sample Stock !

Tax Payout Shown in 1n (above).

2n
Valuation Checklist !

Earnings Yield > 10Yr G-Sec Yield. Higher the difference better it is.

Max PE to Pay calculated on the basis of Prevailing Current Interest Rate in the Economy (10Yr G-Sec Yield)

3n
Business & Industry Checklist !

10yr Cumulative PAT vs CFO. Ideally both should be similar or CFO may be little higher (Maithan Alloy Example)

Creation of Value for shareholders -
10Yr Increase in Market Cap > 10yr Increase in Retained Earnings (Maithan Alloy Example)

4n
Management Checklist & Other Business Parameters !

Most of this needs to be done manually. Take it as homework🙂

Maithan Alloy FII (1.87%) & Promoter Shareholding(74.99%).

Less FII better it is.

Check Change in Promoter Holding in last 3yrs (insider Buying) in 1n (above)

5n
Margin of Safety !

EY Vs 10yr G-Sec

SSGR > Current & Over a Period Sales Growth. Higher SSGR better it is.

Maithan Alloy SSGR Calculation @drvijaymalik

FCF vs CFO ratio over 7 to 10yrs. Higher the ratio better it is.

MaxPEtoPay - 3n (above)

6n
Please refer below thread from Dr Vijay Malik for details -

https://t.co/P5uR2wc6vD

7n
Missed to post one point in Financial Checklist (2n) above.

If CFO meets outflows of CFI & CFF it would be great.

For Maithan Alloys in FY 2019 CFO is 15 Cr short of meeting the outflow of CFI & CFF.

8n
Credit Rating Checklist !

Credit rating should be min BBB- . It should be improving over the years.

Maithan Alloys is a Net Cash Company667 Cr in Mar 2019

Credit Rating: CARE AA CRISIL AA CARE/CRISIL A1+

9n

More from Screening Stocks Enjoy 'My StressBusters'

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Great article from @AsheSchow. I lived thru the 'Satanic Panic' of the 1980's/early 1990's asking myself "Has eveyrbody lost their GODDAMN MINDS?!"


The 3 big things that made the 1980's/early 1990's surreal for me.

1) Satanic Panic - satanism in the day cares ahhhh!

2) "Repressed memory" syndrome

3) Facilitated Communication [FC]

All 3 led to massive abuse.

"Therapists" -and I use the term to describe these quacks loosely - would hypnotize people & convince they they were 'reliving' past memories of Mom & Dad killing babies in Satanic rituals in the basement while they were growing up.

Other 'therapists' would badger kids until they invented stories about watching alligators eat babies dropped into a lake from a hot air balloon. Kids would deny anything happened for hours until the therapist 'broke through' and 'found' the 'truth'.

FC was a movement that started with the claim severely handicapped individuals were able to 'type' legible sentences & communicate if a 'helper' guided their hands over a keyboard.