Your Checklist Strategy Investing

[robertbanking]

Hello you wonderful and kind people, Happy New start to the week. I do hope you have a very successful week.

I please wondered when initially trying to find a stock to further research what your checklist might be. For instance do you use a stock screener and look for stocks that have increasing cash flow, what is your preliminary factors you require before analysing this further please? Do you only look at specific sectors, do you only look at small cap stocks for instance please? If you kindly had time to get back to me on this please, it would be more appreciated than you ever know.

Hope you continue to achieve massive success and i do hope you are happy and healthy. Thank you very much for your time.

 

[InsvestoBoy]

Hello you wonderful and kind people, Happy New start to the week. I do hope you have a very successful week.

I please wondered when initially trying to find a stock to further research what your checklist might be. For instance do you use a stock screener and look for stocks that have increasing cash flow, what is your preliminary factors you require before analysing this further please? Do you only look at specific sectors, do you only look at small cap stocks for instance please? If you kindly had time to get back to me on this please, it would be more appreciated than you ever know.

Hope you continue to achieve massive success and i do hope you are happy and healthy. Thank you very much for your time.

Look for companies with no revenue

 

[divs4ever]

Hello you wonderful and kind people, Happy New start to the week. I do hope you have a very successful week.

I please wondered when initially trying to find a stock to further research what your checklist might be. For instance do you use a stock screener and look for stocks that have increasing cash flow, what is your preliminary factors you require before analysing this further please? Do you only look at specific sectors, do you only look at small cap stocks for instance please? If you kindly had time to get back to me on this please, it would be more appreciated than you ever know.

Hope you continue to achieve massive success and i do hope you are happy and healthy. Thank you very much for your time.

in the earlier times when trying to build a portfolio , i used the Commsec stock screener ( which has changed a fair bit since then ) my main focus back then was small cap ( and low share price ) stocks that paid dividends ( or were very likely to pay dividends in the near future )

but all stocks that came up in the screen were considered for further screening and maybe in-depth research

in the early session of screenings P/E , D/E , div. yield were set ( for example P/E 12 or lower , D/E under 50% the lower the better and a div. yield of more then 6% ) that usually produced a large number of stocks to go into the second round of screenings ( in my early days if you couldn't pay fairly regular divs i wasn't that interested )

since i was using Commsec to screen one factor in the second round was LVR ( despite not having a margin loan facility ) the logic being if Commsec was willing to lend you money on that stock holding , maybe it was a little bit less risky , in the same second round stats noted were payout ratio , PEG ( projected earnings growth ) ( after all they were already paying divs to get this far )

in more recent times i am a little more temperamental after a week of reading ( economic and market ) news , blogs etc etc , i might wake up on a Sunday and decide the market is nervous and cautious so would tilt my research towards ( my concept ) of 'safe havens '

ie companies ' too big to fail ' ( good luck on that, currently ), companies involved in food production ( less so on those that focus on retail sales of food ) companies that focus on addictions ( gambling , alcohol , and ' lender companies like CCV and CCP ) and of course healthcare ( including funeral services and dental )

thus my current targets this week are/were BHP , SGLLV and REP ( REP is a REIT that focuses on shopping strips/malls that have at least one health-care related tenant ie , pathology collection centre , GP clinic , dentist , pharmacist , etc etc )

( Australia is in DEEP trouble if BHP falls over ) , sure i would prefer to be buying it much cheaper , but is your money much safer in the bank ??

if i were to decide the market is very nervous , my first look is to the insurers ( i hold QBE , TWR and SUN ) and see if they are being smashed ( and therefore a reasonable price ) and then onto other stocks the market is dumping , looking for that odd gem ( which maybe is rather illiquid )

if i feel the market is bullish , i will be looking for the orphans left behind ( or even dumped ) as the market races for 'hot stocks ' but also i will double-check the holdings for stocks to take sensible profits on

BTW i still try to keep on eye on the news feeds , sometimes there is a game-changer announcement ( for you )

 

[robertbanking]

Thank you very much for your response divs4ever, as ever i very much appreciate the extremely helpful post you have shared, that is very kind of you. I do hope everything is going well for you.

I appreciate you mentioning in the earlier times you used Commsec stock screener and you reviewed factors such as P/E, D/E, dividend yield. Then stocks that made it into your second round, you then went onto assess different factors including payout ratio, PEG (projected earnings growth) for instance. I also appreciate you listing your safe haven companies, such as companies too big to fail, including companies involved in food production, companies that focus on addictions and healthcare. That was very kind of you, that was a very helpful post and i am forever grateful.

Can i kindly ask lastly what do you feel please was the most important aspect of your learning journey when investing please? Was it a book you read that you could recommend please? Did you take any courses, watch any YouTube videos on investing please? If you please had any thoughts on this it would mean the world to me and i would be forever grateful.

As ever divs4ever i wish you all the very best and continued massive success with your investing. I do also hope you are happy and enjoy the rest of your day. Thanks for being an amazingly valuable member of these forums and for being very kind. I have rating your post Great Content for your wonderful help. Take care.

 

[divs4ever]

Can i kindly ask lastly what do you feel please was the most important aspect of your learning journey when investing please? Was it a book you read that you could recommend please? Did you take any courses, watch any YouTube videos on investing please? If you please had any thoughts on this it would mean the world to me and i would be forever grateful.

pivotal to me was ( surprisingly ) inheriting 2 estates in late 2010 ( including the family home ) , and all looks good ( to most people )

but i was not so young and resisted the temptations of a 'mid-life crisis ' and decided to create a 'retirement income fund ' so i could retire on January 1st 2020 ( that plan hit some big bumps but was still better than buying a fast car and a pretty wife/girl-friend )

so 10 years to create a ( crash-resistant ) retirement fund , but seeing the ravaging my super took , over the previous 10 years , so dumping the money into annuities , or a professionally run fund wasn't an option i could sleep with

so after taking a deep breath ( and deciding to invest ) i had a target ( a retirement fund ) understood inflation ( having lived through '70s as a teenager/young adult ) gambling/risk ( as a misspent youth/young adult ) what i needed was a strategy to get to the target .. but i couldn't afford to blow that nest-egg ( i was unlikely to get that sort of cash again )

so i needed to be aggressive but careful , so i learned ( and looked ) in all sorts of places , i read Warren Buffet wisdoms , some were useful , and some were great if i planned to be investing for 30 years ( but my target was only 10 with some tweaks if needed later )

so i listen , read stock forums , news articles but most importantly think for myself ( can i find that silver lining ) and of course you can't win them all , so accept and learn from your losses and winners .

so i need to invest but hurry ( and learn on the way ) so apart from a few dabbles , i realized for the next 10 years i needed exposure to banks , the big four looked relatively safe , but i couldn't see any sensible paths to growth , so my first big buying adventure ( and only successful prediction so far ) was MQG ( big enough to grow but slippery enough to get out of most jams ) and aggressively averaged down through most of 2011 ( i also bought some MacQuarie hybrids and preference shares , to give me a very nice journey with MQG ( av. share price $26.76 ) , and they divested some SYD shares to bought which i sold at $8 a few years later

but basically i watch the market and take opportunities ( sometimes catching falling knives , with mixed success ) sometimes taking profits on unnatural jumps , and sometimes being kicked to the curb with a handful of cash ( like the OZL take-over will do next month )

now scanning parameters meant learning all that jargon , and playing with the stock screener ( and especially in the early days entering into tipping comps. to test out the less obvious selections , without losing cash on bad choices ) but always trying to improve that nest egg .. especially as it hasn't faced a real crash to test it ( i am assuming in my last years the portfolio will have to survive being almost completely passive , assuming it doesn't get completely smashed in the crash that must come , maybe in my lifetime , maybe not )

another important skill in investing , is to know when you are lucky , and when you have made good choices ( some of my multi-baggers were good solid companies that investors finally started buying like TNE bought @ $1.10 )

lucky was a tiny oil play OTE ( @ 1.4c a new share ) which morphed into ISX and then started expanding into what i thought looked like a neo-bank so i hit the exit ( @ $1 a share ) and the ASX suspended the trading on it about a week later

PS i have been very lucky in oil ( except TEG ) i just have to remember to take some money off the table when the prices are high ( unlike some banks or food retailers where you really need to get into the weeds and regularly )

now don't get me wrong about skipping books , but my logic is plenty of folks have studied the best books and use most of those strategies , which is great for an agile trend trader , but with an unreliable network connection a patient contrarian stance works better for me ( be on the minority end of the trade at a preset price ) of selected shares

 

[robertbanking]

Thank you very much divs4ever for your background to investing, i found it a very enjoyable read. I laughed when you mentioned you decided to create a retirement fund, rather than buying a fast car and a pretty wife/girl-friend. I sincerely hope you can now have both, your retirement fund and the fast car and pretty wife and i do hope things are going well for you.

I particular like that you think for yourself and learn as you go along, i found that very inspiring and insightful. You also read stock forums and news articles, i very much appreciate you mentioning that. I also like you mentioned the big four banks did not have any sensible plans for growth so you looked into MQG. I also found it interesting that you watch the market and take opportunities from falling knives, taking profits on unnatural jumps and sometimes getting a substantial amount of cash with the OZL take-over. Thank you again for a very insightful and wonderful post, possibly the best post on Aussie Stock Forums today, thank you very much for writing such a great post, its more appreciated than you may know.

The good solid company you mentioned the TNE, can you kindly remember how you initially found this, was this through a screener please and what were the parameters you used to find it please? Lastly what further analysis did you do on this company please did you read its annual reports, can you kindly remember how many hours you researched this company for please? If you kindly had time to get back to me on this i would be very thankful, i find your posts amazingly helpful as a new investor and i very much appreciate your time.

I very much hope you are having a wonderful retirement divs4ever and as ever i sincerely wish you all the very best. I will certainly remember and refer to your posts as i progress with my investing. Look after yourself divs4ever and thanks for being an amazing person.

 

[divs4ever]

nope no car , nor girl-friend/wife , however i am moving to a rural setting , with a garden with fresh herbs and fruit trees , ( as opposed to hearing which neighbour got burgled this week )

now TNE ( and other tech stocks i bought into ) were partly based on my computer ( hardware ) hobby ( i know everyone loves cloud storage now , but that will change eventually especially for small projects ) and per chance in the same period , i was doing some freelance services for computer systems , so kept my eyes open in the server rooms/farms , and judge how things were organized and staff morale ( and not the investor guided tour either ) , for some tech businesses you cross paths with their customers , and other service providers and the products used ( for example early on i avoided KOV , but after several server rooms/farms i realized how big their market was in computer rooms , not just stuff like scaffolding and clothes hoists , RFX has proved to be an under-performer but KOV has more than offset those losses )

so the usual ASX data tells you a bit about the business , but working around in the back-rooms tells you stuff you would never ask at a presentation ( like are your server rooms liable to be inundated , by flood waters .. i kid you not , or workplace safety ,)

so the business stats at the time ( of buying ) look solid , no red flags discovered when you cross paths with the business ( unlike my encounters with AGL for example ) , leaves with something that should be solid and reliable , even if probably boring ( the share price jump just means some fund-managers came later and liked the business as well , once you are in the top 200 the ETFs and LICs help keep you there unless you stumble seriously )

i was happy pulling in 5 cents a year in divs ( plus franking ) because i had a low entry cost

TNE

TECHNOLOGY ONE ORDINARY

Change

Balance Date	Dividend Type	Cents per share	Ccy	Franked %	Ex-Dividend Date	Books Close Date	Pay Date
30/09/2022	Final	10.820	AUD	60.00	01/12/2022	02/12/2022	16/12/2022
30/09/2022	Special	2.000	AUD	60.00	01/12/2022	02/12/2022	16/12/2022
31/03/2022	Interim	4.200	AUD	60.00	02/06/2022	03/06/2022	17/06/2022
30/09/2021	Final	10.090	AUD	60.00	02/12/2021	03/12/2021	17/12/2021
31/03/2021	Interim	3.820	AUD	60.00	03/06/2021	04/06/2021	18/06/2021
30/09/2020	Final	9.410	AUD	60.00	03/12/2020	04/12/2020	18/12/2020
31/03/2020	Interim	3.470	AUD	59.00	28/05/2020	29/05/2020	12/06/2020
30/09/2019	Final	8.780	AUD	60.00	28/11/2019	29/11/2019	13/12/2019
31/03/2019	Interim	3.150	AUD	75.00	30/05/2019	31/05/2019	14/06/2019
30/09/2018	Final	6.160	AUD	75.00	29/11/2018	30/11/2018	14/12/2018
30/09/2018	Special	2.000	AUD	75.00	29/11/2018	30/11/2018	14/12/2018
31/03/2018	Interim	2.860	AUD	75.00	31/05/2018	01/06/2018	15/06/2018

i bought TNE back in November 2011 ( BTW i didn't stop with TNE , i also bought into HSN and DTL but with a less startling success but still a nice profit , however the future might be different )

i only look at selected annual reports after i buy in , say if i am thinking of adding or selling or say WES looking for news on what they are going to do with Office-Works , or there is something else interesting happening , BHP and the Vale JV

i am looking at ( multiple years of ) annual reports of new purchases ( and likely candidates for that shopping list )

for novices there is a bitterly funny guide of what to watch for in annual reports by Marcus Padley ( hints that the report has some unpleasant bits tucked away in there ) but it is a few year old ( so may be deeply buried )

things like family picnics and horses pictures leading an ann. for a junior miner , or staff hire diversity for a struggling retailer

 

[robertbanking]

Thank you very much for your response divs4ever, you are always enormously helpful, i cant thank you enough. It sounds wonderful thats the life i want, a rural setting with a garden with fresh herbs and fruit trees. You enjoy yourself as you are an amazing person and hope your fruit trees flourish. Sadly i live among neighbours, so its not very peaceful.

TNE has had a fantastic share price growth since 2011 and has been an excellent performer. I like how you found TNE from your computer hardware hobby and when you was doing freelance services and you kept your eyes open in the server rooms/farms and judged how things were organized and staff morale. I found this very interesting and insightful as you have a real closer look of the inner workings of the business, not just the usual financial information.

Can i kindly please ask when you bought TNE in 2011 what was the financial information that you looked at that you was impressed with please, was there anything that stood out please? Can i kindly please ask what was there path for growth like when you bought in during 2011 please? Lastly how long would you say you researched the company in hours, did you read a few years of annual reports for instance please? If you kindly had time to get back to me on these questions it would be hugely appreciated, i cant thank you enough for your support. It would be helpful for me to try understand your thoughts more in 2011 that led you to buy, as it truly has been a wonderful stock up nearly 1500% since 2011.

Im truly grateful for your answers to my questions divs4ever and your amazing forum posts. I sincerely send you lots of good wishes and hope everything continues to go well for you. I hope one day to have a peaceful life with many fresh herbs and fruit trees like yourself, like you i am not so bothered about the attractive girlfriend. As always i wish you all the very best to you and look after yourself.