This is a simple way to begin a stock analysis. At the start, try to answer these quick questions to determine whether a stock is worth further analysis.
1. What is the Investment Thesis?
2. It is Cheap?
3. It is a Good Business, Good Franchise?
4. How’s the Management?
5. Does it have Strong Financials?
6. Geographical and Industry Exposure?
8. Risks and Mitigators?
9. 2nd Level Thinking Angle?
10. Can I Sleep Well at night holding this?
There are also always a few key stats not covered in the financials and valuations above but are usually important for investors to know:
i) Market share (if applicable)
ii) Growth rate, both for segments and overall
iii) Major shareholders and their stake
iv) Share price range (esp historical low)
v) Company's history
Here are the stocks discussed so far:
Investment Thesis: Global leader in oral care with the best brand, product innovation and strong distribution. High exposure to emerging markets, especially Latam.
Fraser and Neave
Investment Thesis: Regional giant in alcoholic and non-alcoholic beverages. Currently going through a break-up of its businesses.
Investment Thesis: Theme on global water shortage. But the only post so far is just a quick and dirty analysis on the pref shares that it issued.
Investment Thesis: Global integrated manufacturer of watches and movements with a strong portfolio of brands and exposure to growing markets in Asia and China.
Investment Thesis: 3M is a global industrial conglomerate founded on principles of science, imagination and innovation. It is a global niche leader in fields that it conducts its businesses and its products resonate quality assurance. 3M is a story about branding, innovation and shareholder return.