VishalK Stock Screener

How to Screen for Stock Ideas Checklist – 1. Is the business simple to understand and run? (Complex businesses often face complexities difficult for their managers to get over) 2. Has the company grown its sales and EPS consistently over the past 5-10 years? (Consistency is more important than speed of growth) 3. Will the company be around and profitably better in 10 years? (Suggests continuity in demand for the company’s products/services) 4. Does the company have a sustainable competitive moat? (Pricing power, gross margins, lead over competitors, entry barriers for new players) 5. How good is the management given the hand it has been dealt? (Capital allocation, return on equity, corporate governance, performance against competition) 6. Does the company require consistent capex and working capital expenditure to grow its business? (Companies that must spend continuously on such areas are like running on treadmills, which is not a good situation to have) 7. Does the company generate more cash than it consumes? (Cash generators have a higher probability of surviving and prospering during bad economic situations)

by Sandeep May