Comments on: 15 Points to Look for in a Common Stock http://www.oldschoolvalue.com/blog/investing-strategy/15-points-to-look-for-in-a-common-stock/?source=rss Perform Stock Valuation Automatically Sat, 11 Feb 2012 19:05:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jae Jun http://www.oldschoolvalue.com/blog/investing-strategy/15-points-to-look-for-in-a-common-stock/comment-page-1/#comment-56 Jae Jun Wed, 18 Jun 2008 14:58:02 +0000 http://oldschoolvalue.x10hosting.com/2008/03/15-points-to-look-for-in-a-common-stock/#comment-56 Missed the #7 bit.. With Wal-Mart, it depends on the time you analysed it. If you were looking at Wal-Mart when it was a just beginning to grow, you would have noticed a superb growth stock. Now, I can't say for sure because I haven't bothered to look at it. But just because 1 point doesn't fit, it doesn't disqualify it as an investment candidate. Even with the 15 points, there are obviously more important points that others. Missed the #7 bit..
With Wal-Mart, it depends on the time you analysed it. If you were looking at Wal-Mart when it was a just beginning to grow, you would have noticed a superb growth stock. Now, I can’t say for sure because I haven’t bothered to look at it.
But just because 1 point doesn’t fit, it doesn’t disqualify it as an investment candidate. Even with the 15 points, there are obviously more important points that others.

]]> By: Jae Jun http://www.oldschoolvalue.com/blog/investing-strategy/15-points-to-look-for-in-a-common-stock/comment-page-1/#comment-55 Jae Jun Wed, 18 Jun 2008 14:52:51 +0000 http://oldschoolvalue.x10hosting.com/2008/03/15-points-to-look-for-in-a-common-stock/#comment-55 My mind wasn't opened much earlier either. Rather than give you my opinion, I got the book out again and read the section on pt 13 again. I'll try to summarise. In the short term, the company may require a certain amount of debt in order to expand its business due to demand and growth, and if the company is good enough, they should be able to get the financing whether it be from banks or ventures. So it's asking whether the company can use its cash and borrowings to take care of the capital needed to exploit the prospects of the next several years. However, if the borrowing is not sufficient and equity financing becomes necessary, will it come to a point where the dilution of shares affect the common stockholder to a large degree. If dilution of shares are too great, there will be little increase in per share earnings. My mind wasn’t opened much earlier either.
Rather than give you my opinion, I got the book out again and read the section on pt 13 again. I’ll try to summarise.
In the short term, the company may require a certain amount of debt in order to expand its business due to demand and growth, and if the company is good enough, they should be able to get the financing whether it be from banks or ventures.
So it’s asking whether the company can use its cash and borrowings to take care of the capital needed to exploit the prospects of the next several years.
However, if the borrowing is not sufficient and equity financing becomes necessary, will it come to a point where the dilution of shares affect the common stockholder to a large degree. If dilution of shares are too great, there will be little increase in per share earnings.

]]> By: Amit. D http://www.oldschoolvalue.com/blog/investing-strategy/15-points-to-look-for-in-a-common-stock/comment-page-1/#comment-54 Amit. D Tue, 17 Jun 2008 23:29:00 +0000 http://oldschoolvalue.x10hosting.com/2008/03/15-points-to-look-for-in-a-common-stock/#comment-54 You just opened my mind. I would be interested in getting clarification of your opinion on number 13. I dont quite understand EXACTLY what you mean (its better to grow on debt then equity? is what I understand from it). Also, linking pt #7 to wal-mart. Wouldn't you have passed on a great opportunity? We cannot deny that their earnings are somewhat protected through low wage pays. Thanks alot for your post, take care color: #d9f9ff;">

You just opened my mind. I would be interested in getting clarification of your opinion on number 13. I dont quite understand EXACTLY what you mean (its better to grow on debt then equity? is what I understand from it).
Also, linking pt #7 to wal-mart. Wouldn’t you have passed on a great opportunity? We cannot deny that their earnings are somewhat protected through low wage pays.
Thanks alot for your post, take care

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