- SPY High level indicator
2. Citrix forecast based on industries
3. High level Risk Scenario – Coronavirus
Percentage allocation
3. Revenue and net profit estimate for Onconova
- Upside and Downside Forecast for Abiomed
- Metrics for Investment in Ribbon Communications
Article published in SeekingAlpha
Most investors when considering investing in a stock tend to focus on revenues and earnings. However, these have their shortcomings. Here, at Keylogin Investment services, we have developed a methodology based on the 6-metrics Investment methodology ( above figure).
Margins Growth. Increasing revenues are good but a company could be making millions in sales, but if those sales do not produce consistent profit, long term prospects are not guaranteed. Now, as for earnings, these can also be affected by a change in accounting policy and can become distorted when the company conducts a share buy back ( during a buy-back the company reduces the number of shares and therefore automatically increases the EPS).
There are 2 margins : Gross profit margin (gross margins) and operating profit margin (net margins) and these can actually rise despite falling revenues and earnings.
Management effectiveness. Already well known metrics for evaluating a company’s ability for performing a turn-around, maximizing profit or revenues.
Competitors. Studying the competition, its product strategy and its ability to increase to increase market share or vulnerability to lose market share is important.
Product Strength. Without a strong product portfolio which is complementary and responds flexibly to customer demands, revenue streams are not guaranteed.
Diversification strategy. Market concentration or product revenue concentration represent a serious risk in case of economic downturn or during rapid technological change.
Discounted valuation. Never invest in a company for fear of missing an opportunity. Be patient and wait for the right time when it is undervalued ( stock available at a discount)
4. Metrics for Investing in Orange
We have considered the following metrics for evaluating our position on Orange group, a diversified France based Telco. In addition to geographical diversification in Europe, the group is also present in Africa and the Middle East.
Moreover, the group is also diversified in Enterprise IT and Cloud through its subsidiary, OBS and into online banking through its subsidiary, Orange Bank. Out of the 7 metrics, we believe that Orange as a diversified Telco has the strongest growth potential in the Cloud sector through OBS.
4. Risks Assessment – Koegh LNG
Used to assess the risks in Koegh LNG
4. Risk-Reward Indicator – Koegh LNG
The positives are in green and the negatives are in red and the greens beat the reds and therefore, its a BUY.
