one up on wall street

One Up On Wall Street: Chapter 12

February 4, 2021 by Laxman Sonale 2 Comments

Hello friends, in today’s article, we see chapter 12 of one up on wall street book. this chapter helps you to know more about the company by asking simple questions. One up on wall street book chapter 12 helps you to find out the best questions you have to ask the company and broker.

Previous Chapter 11

Getting the fact: One up on wall street chapter 12

In this chapter, you get more information about the stock by asking the following questions. if you want to know more about the company ask the following point. (One Up On Wall Street)

1. If you have a full-service broker, ask them some good questions:(One Up On Wall Street)

How you classify this stock as a cyclical, slow grower, fast grower. in this situation most of the time they fast, grower, because they are giving you advice about the stock.(One Up On Wall Street: Chapter 12)
then again ask about Recently growth in earning. What is the P/E ratio from a historical level?
If they tell you to buy now this time, then ask why now buying is good? And this company before buying is why not good? What happens suddenly in the company?
What is the company business and which business comes with maximum profit and how much spending on the growth of the company? (One Up On Wall Street)
How finance the company by doing issuing equity or taking maximum dept?
in this company any insider buying or not and give the analyst report of your analyst, I am study first and then come again ask you some good questions.
You have seen the price and earing report charts report of five years. And also ask the dividends of the company if the company is giving the dividends, then ask how much time pay the regular dividends and any growth in dividends in history to today. (One Up On Wall Street)
In the company is there any institutional ownership or not, if the answer is yes then check how much ownership is there in the company. if the institutional ownership is more then is a good sign for the company.
How many times your analyst follow this stock.

2. Call Investor relations: (One Up On Wall Street)

You can ask some questions directly to the company by using call investor relation. Then ask some question they are as follows
Plan of the company for debt reducing, and what is about that recently launch the drug, if they are a pharmaceutical company or that product. (One Up On Wall Street)
what is the effect on earnings? and how much sales of that recently launched the product in this year?
In this year how much company is opening a new outlet? and also how much percentage the market share increases?
The company is operating at the full capacity of the plant. yes or no.
Properties in the balance sheet that market price value are how much?
If you don’t have any above stuff question, then ask simple two questions 1) What are the positive of the company this year and 2) What is the negative of the company this year. (One Up On Wall Street)

3. Visit the company’s headquarters:(One Up On Wall Street)

Visiting company headquarter ask these questions, they are following
Any fund manager or analyst come in this headquarter. If come in two or three year then, this is a good sign for us, because this company is not followed by any fund manager or analyst.
If the companies headquarter is situated in like that place is not easy to like everyone to go and see.
The good earning and cheap headquarter is a good sign for us.(One Up On Wall Street)
If the company headquarter is used expensive furniture and expensive things in headquarter, then this company is not using the right place of money, so this company loses earnings in the future. So peter Lynch gives some examples is Pepboys and crown cork and shield.

4. Attend annual meetings:(One Up On Wall Street)

you can attend the annual meeting of the company, and talk to executives about the company.
Peter Lynch meets the company executive of XYZ company and ask about that company. Then after that Peter Lynch search the proxy statement of the company and they got the result is that the stock and stock option of the company is about $100 million. (One Up On Wall Street)
And this company’s P/E ratio is high. So if the author wants to increase his income double, then the executives of the company’s net worth also become $200 million.
So becoming this is unrealistic, so peter lynch never buys that stock, and sometime after the stock is going down.
If you think some executives do not become that rich then most of the time you are right.

5. Visit stores, buy and or taste product:

You can visit the store and ask some questions like that.
Ask questions to users of products like, Why you buy this product? and how much time is gone by using this product? and also can you recommend this product to other people. (One Up On Wall Street)
If one or two people give a bad review of that product, then is this no big deal.
So author gives the Apple company example, is that The Apple company is failing in mid-time but this time also in Peter Lynch office order the 7 to 8 macintosh computer and his wife also order macintosh, but the author doesn’t realize this stock and they lose the Apple company. (One Up On Wall Street)
This company can become the turnaround company, and you know the price of Apple Company in today’s day.
And The author also found the Crysler company that also fail for some time but this company become a turnaround by a person name is Lee Iacocca.
Then Peter Lynch calls Lee Iacocca and asks about the plan of the company regarding this situation and they love the plan and they think the plan also is going to execute. then they buy the Crysler company and this company becomes the turnaround. (One Up On Wall Street)

Read more on the previous chapter

Read Annual Report:

Screw the initial colorful pages and come to the annual report, and ask this question about the annual report to you, they are as follows

Cash and marketable securities: you can see how much increase by comparing to the previous year. If increase then this is a good sign.
Long-term debt: In this year and compare with previous year debt. if this debt is minimum than the previous year, if yes then good sign.
(Cash + market securities) > Long term debt: If this is happening then is a good sign by comparing 10 years of the balance sheet.
NOSO: If the Number Of Share Outstanding is decreased then the company does the share buyback, so this is a good sign. That is not mean is that buying buyback any time. you can check for a previous year’s buyback to share.
Net cash per share= [ ( cash + market securities) – long term debt]/NOSO

By asking and seeing the above stuff you get more information about the company.

One Up On Wall Street: Chapter 11

January 28, 2021 by Laxman Sonale 2 Comments

Hello friends, in today’s, article we see chapter 11 of one up on wall street book. In chapter 11 you see what to do after founding a company and that company is good for investment but you have to ask more questions on it. That all are discussed in chapter 11 of one up on wall street book. Let’s begin,

The Two Minute Drill: One Up On Wall Street: Chapter 11

If you find the company and do the analysis of the last annual report and get the good result of the investment, then also you have to ask a question regarding the future plan of the company that Peter Lynch called as Next Step. (One Up On Wall Street: Chapter 11)

Next step:

Building the story: The story is about the activity of the company from the past to the future. In this story, you have to consider each and every problem and also the good news of the company. To build the story of the company.
What the company is doing to bring prosperity: In company analysis, you have to also search for why the company is good and how this maintains the goodness of the company by checking what are a company doing to bring prosperity. If a company doing some plan the brings some value to the company in the form of prosperity. (One Up On Wall Street: Chapter 11)
What has to happen for the company to succeed: See how the company has overcome the problem of the company and how it succeeds in that sector of the company. see also the which are the problem and what is the solution in the past situation. And also see which type of problem has come and how the company is ready to defeat the problem. See the past situation and concluded the what company does to succeed in the past situation. (One Up On Wall Street: Chapter 11)
What pitfalls stand in the company’s path: For this question, you have to see the past annual report and also predict the future regarding the pitfalls that come into the company’s path.

So Peter Lynch gives each and every company category, which includes before, so let’s start step by step each category of the company. So you get the ideas of what to do after describing the company for a good return.

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What to look for in this company category:

Slow growers: So from this name you predict this company is growing slowly, so you are only in this company because you need the dividend return on investment. So you have to look to the growth in the earning as well as the growth in the dividend yield that are increase step by step and maximum from the previous dividend. So for this, you can see the history of dividends and also look in those times when there is the recession time and this time company gives the dividend to the shareholders. If the company you the dividend in worse time then that is the good investment, and you are benefited from that company.(One Up On Wall Street: Chapter 11)
Cyclicals: In the cyclical category you have seen the company is three years in the business recession and recently business sides increases and company minimize the labor cost and also close those plant that is insufficient to work. So this is a good sign for the company in this category.
Asset Plays: In this category, you have to ask yourself is that which value is more of those assets than the book value on the balance sheet and how much they are worth today. To find this and also check the how much dept on the company. If you get the good value of the assets in today’s time then check dept an invest in this company.(One Up On Wall Street: Chapter 11)
Turnarounds: In this category, you have to see what is the company is doing in today’s condition and what is the plan of the company to improve the condition of the company. If the plan seems good then predict this plan is work or not, and the company is restructuring or not before doing diversifications. So asking this and you get a reasonable answer then invest in this company.
Stalwarts: In this category, you have to see the P/E ratio of the company and ask yourself this ratio is reasonable or not, and what is the company doing to increase the growth of the company. so Peter Lynch gives an example of a coca-cola company. Company consumption is increasing or not and also see the how much present increase in other countries like Spain, Japan, India, etc. Then if the growth ratio is increased in other countries then this is a good sign of company to do investment. (One Up On Wall Street: Chapter 11)
Fast growers: In this category, you have to see the company is doing fast growth continuously and which part or branch of the company grow very fast as compare to the other branches, and also see those areas which are not growing fast in the country. So the company is doing some good news to spread company and open the new outlet of company.

So asking this type of company you get the exact situation of the company and get the company’s whole information. so the author gives the above conclusion La Quinta Motels and Bildners in two examples let’s see them.

La Quinta Motels: This company is providing the motel for people, and all in one like holidays motel and this are very much cheap as compared to the holiday motel because they don’t make the reception, wedding hall, conference room and also kitchen and restaurant neglected and they make them only for staying. That way the cost is minimum and construction costs also minimum for the la Quinta motel. (One Up On Wall Street: Chapter 11) The maximum room is 120 in this motel but in the Holiday motel, the maximum room is about 250. So rooms are minimum that’s why the motel room does not take the maximum land, and they are situated like business side, in the district, government office, and hospital near. The best thing is that The insurance company gives the dept to the company and they have a share in their motel. So it’s is a good sign, if La Quinta motel defaults any payment so the insurance company can’t sell the share of the motel and get money. so because they have the share in profit. So the insurance company gives some time to return the debt. (One Up On Wall Street: Chapter 11) La Quinta motel increases its profit by 50% each year and the stock price is double in number and also now has the potential of stock to get a good return. So motel business running good, So that why Peter Lynch stays in this motel and peter lynch impress with his service but one thing is not like peter is that insider sells the share of the company. this thing is a bad sign in peter lynch consideration. After now that that insider is trying to diversify their portfolio, so that why they sell the share, so after this peter Lynch buys this share, and it’s increased 15 baggers in return. So this is a good sign for investors.(One Up On Wall Street: Chapter 11)
Bildners: This company is making the sandwich, the sandwich is very good in test and that why they are very famous in their cities, and also peter lynch go to eat that sandwich and they also like the most of there sandwich. and this company outlet is near to the peter lynch office. So its popularity is maximum than the other sandwich. so this company is thinking to expand its business in other cities by doing equity raise. So peter lynch excited and they like the sandwich also, so they make the investment in the IPO of Builders company. But company fail in 2, 3, and 4 outlets in other cities. (One Up On Wall Street: Chapter 11) So Peter Lynch said there are two reasons to fail builder company is that 1) They thinks builders is next to a famous company like Starbucks and 2) Peter Lynch forget to ask that is a good run in another city also, And they make mistake in the Bildners and they don’t wait for this and they make an investment in IPO’sSo peter lynch says wait for that time company is successful in other location also that time also has the potential in stock to get a good return. So this company is 15 bagger in reverse stock.

So from these two examples, you get the idea of what type of things you need while you doing an investment.

This is all about chapter 11 of One Up On Wall Street book.

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One Up On Wall Street: Chapter 9

January 9, 2021 by Laxman Sonale 1 Comment

hello friends, in today’s article we see chapter 9 of one up on wall street book. In this chapter 9 peter lynch explain the investor have to avoid the stock. so let’s see chapter 9 of one up on wall street book.

Stock to avoid:-One Up On Wall Street: Chapter 9

Peter lynch give some criteria which individual investor have to avoid for the great return form the investment. Let’s talk about it one by one.

Hottest stock in the hottest industry: If any stock comes in a hot industry so many people ready to buy that stock. You know that if the crowd follows any stock that stock price increases more than its intrinsic price. This is one best reasons to avoid the hottest stock in the hottest industry.(One Up On Wall Street: Chapter 9)
Beware of next Microsoft, next IBM, and next Macdonald: If someone telling you this stock is going to the next Microsoft company and next IBM then don’t buy that stock. Because Linux is the computer operating system, and everyone is ready to buy that technology company as saying, it is the next Microsoft. after this craziness then you got the what is the Microsoft and Linux. So don’t buy this type of company which people say it’s going to the next A or B.(One Up On Wall Street: Chapter 9)
Avoid serial Acquirers: Ignore the company which acquires the other company’s business. This type of company does the diversification of the company. If the company buy continuously the other company without giving them time to run the bought company business. So the type of company you don’t buy. The process of diversification is good for some companies because they are waiting for the company successful and they acquire the other company.
Avoid serial Acquirers: If you want to invest in that company. You should in those company which is going to acquire some other company. if this type of news comes in because you get the minimum price stock and after buying you get the maximum price of 30 t0 40%. After diversification, that company becomes the turnaround if they sell the unprofitable subsidiary. (One Up On Wall Street: Chapter 9)
Beware of Whisper stocks: Peter Lynch says, “this type of company is only promising and emotional appealing, but don’t have any record of a company earning. if any company says promising, I am doing that then wait for a year. if they doing they become a good company and you get a fair price for that company. But most of the time this type of company doesn’t do that.”

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Beware of suppliers: This type of company has a minimum number of customers or a couple of customers. if any company has the minimum customer they don’t grow maximum. This company is not growing drastically.
Beware of stock with exciting names: If any company has an exciting name they all crowd follow that stock, for example, Xerox. If this Xerox company name is David Drive Copies, so no one attention to this type of name company. So beware of stock with an exciting name. If you want to buy an exciting name company then you get the overpriced stock. If you really want to buy then develop your own company.

So the above point helps you to get the which stock you have to avoid. So Make an investment carefully and develop the own portfolio smartly. Wish you get the best stock by avoiding the bad stock.

This is all about chapter 9 of One Up On Wall Street Book.

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One Up On Wall Street: Chapter 8

January 1, 2021 by Laxman Sonale 2 Comments

hello friends, in today’s article we see chapter 8 of one up on wall street book. In chapter 8, we get the perfect stock, what a deal. Chapter 8 of one up on wall street book gives the perfect stock criteria. let’s see step by step.

The Perfect Stock, what a deal:-One Up On Wall Street: Chapter 8

In chapter 8 peter lynch give the 13 attributes of perfect stock. These attributes help you to get the perfect stock. if you learn this chapter, you get the simple and common things that very useful in stock picking. so let’s see step by step.

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13 Attributes of a Perfect stock:

Its name sounds dull and even ridiculous: Peter Lynch says, if you any company have a dull name, so maximum people can not be interested in that company. If you invest in any company you need a good company name and also the feel of the owner, with a brand name like coca-cola. So there is the simple psychological thinking in the investor. so for that reason, so many people are not interested in the company that name was dull, whatever the profit of that company or those company is undervalued. So if you find any company whose name is dull then see the balance sheet of that company and then invest in that company. For this understanding, the author gives some examples, Automatic data processing. This type of company name doesn’t feel like a company-type investment, it feels like somethings is processing. so if you find this dull name don’t ignore the company see the company earnings and invest in that.(One Up On Wall Street: Chapter 8)
It does something dull: So many institutional or individual investor wants the invest is clean and profitable and that invested company do something like changing the world. So many people ignore the companies that work is dull. The author gives examples of Crown Cork company, In this company produce the seal of the bottle, Can, etc. So no one interested in this company only because of his work. When the author sees the financial statement he gets the perfect company stock. The author gives another example of Seven ox international. This company sells the coupons to the customer, so these company not doing an interesting job. So if you are investing see the work of the company which has boring work with profitable financial.(One Up On Wall Street: Chapter 8)
It does something disagreeable: Some companies do the disagreeable work. the author gives the example of a safely clean company. This company service is to clean the vehicle parts and Greece on those parts. So these types of companies give the dirty feeling and his work is disagreeable as an investor. So if you want to make money while investing in a company, then adjust with his work, not with the balance sheet.(One Up On Wall Street: Chapter 8)
It is a spinoff: If you get the company that has the above characteristics of the company. and you find the spinoff company as well, then invest in that company. Spinoff company has a strong balance sheet. So invest in a company, which is a spinoff.
Institutions don’t own it, the analysts don’t follow it: If you get the above characteristics company, this type of company doesn’t follow by analysts, and not any institution is interested in that. So you get the company then see the financial statement and also the stakeholder name.(One Up On Wall Street: Chapter 8)
Rumors like involved with the mafia: If you get some rumors about the company, then see which type of rumors is if those rumors with the mafia then another investor is not interested in that company. So see the rumors are correct and invest in that company which people are ignoring.(One Up On Wall Street: Chapter 8)
There is something depressing about it: If some company is looking or doing the depressing work. then find out those companies and invest in that company. If a company is depressing then no one invests in that company. Before that, you have analyzed the company information.(One Up On Wall Street: Chapter 8)
It is a no-growth industry: There are some companies which has a no-growth industry. so the author gives some examples is in that Burial business. In this business, there is no growth, so many people don’t invest in that company. If you invest in these companies, so you get a good return, and this business does not close at all.(One Up On Wall Street: Chapter 8)
It has got a niche: If you want to invest in the company they see, that company has a specific niche. If the company has a specific niche then they do the best work. the author gives some examples of niche companies, Washinton post, Boston globe, etc. this company makes the newspaper niche and very famous in that area.(One Up On Wall Street: Chapter 8)
People have to keep buying it: You have to find out the companies which have the product, that product is people buying it regularly. If these companies always make the benefit by selling the regular product.
It is a user of technology: Company is using the technology for their improvement and increasing the sales earning. the author says don’t buy technology company, buy the company which uses technology.
Insiders are buying: If in your company the insider is buying, then there is only reason is that the stock is undervalued. If you want to invest in a company then check for insider buying.
Company is buying back share: If a company is buying share then, invest in that company. because the price of that company is very low as compare to the market value of that company.

Above mentioned attributes may help to find out the unique and best company.

This is all about chapter 8 of One Up On Wall Street.

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One Up On Wall Street: Chapter 6

December 11, 2020 by Laxman Sonale 1 Comment

Hello friends, I am Laxman, in today’s article we see chapter 6 of one up on wall street. In chapter 6 stalking the ten-bagger, this chapter includes part-2 is picking a winner. Chapter 6 is all about how to find the stock which stays around us.

Stalking the tenbagger:-One Up On Wall Street: Chapter 6

According to peter lynch, how to find the stock. the best way to find the stock is in your home. So in chapter 6, we see different common steps to find stocks.

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Where to look?

The best place to look is your backyard, the nearest shopping mall, and also the neighbor. You can also find the winner stock in your working industry of the company.
So the author gives some examples:

Pep Boys:- This company produces a car service. so all people only goest to this company. And it also produces car parts, maintenance. So this company produce minimum charges and give good service. so everyone knows about this company, but no one invests in this company. This type of company always stays around us but we can think to invest like this company.(One Up On Wall Street: Chapter 6)
Kodak:- This company produces cameras. The cameras see everyone second person have this camera. And this company has a monopoly on the cameras. but know no one invests in these companies.
Orion Pictures: This company produces the movie. So everyone sees movies of Orion’s pictures. and every picture makes a profit, but no one invests in this company. (One Up On Wall Street: Chapter 6)
Automatic Data Processing: This company uses technology to improve its product. This type of company use technology to improve his company, instead of its technology company. The technology company problem is that it is so competitive. In this competition, the last price is down, and the price is down so the earning of the company is very down. (One Up On Wall Street: Chapter 6)
Smith kline Beckman:- This is the pharmaceutical company, which produces the one drug on Ulcer drugs. These drugs are so famous and in these diseases, each and every time you have to take the medicine. So everyone buys these drugs but not no one attending the pharma company. If you want to invest in this company, first find out which disease has the regular treatment of drugs. So the type of cancer has this type of treatment every day. (One Up On Wall Street: Chapter 6)
Glaxo:- This is also the company, which is to produce ulcer drugs. This company replaces the drug of smith kline Beckman. This is all pharma company is produce this drug but no one sees this.
Good year tires: This is a very famous company. Everyone knows about the product of the company, its service. the employee to the company CEO. This company produces a tire. (One Up On Wall Street: Chapter 6)

So the above example, you can see every company is famous and everyone knows about this company. But people don’t learn to invest in that company. Peter Lynch says, ” You know, which is famous, you also know the tire, movie and also the medicinal company.” So funny thing is that those who work in an oil company employee, This employee see the stock in the Pharmaceutical company. And Doctor is seen to invest in the oil company instead of pharma. Because the doctor knows about the company product and also his earning. but they don’t invest in this.

So the doctor has to invest its own industry because those know the business criteria and also the product information is more than the other company. So do research of own industry and invest in that company for the ten-bagger.

Peter Lynch gives his own example, When peter was a mutual fund manager, and also very well know about financial services. But they invest in the oil company and they miss the financial company. Franklin company produce a good return and become the ten-bagger. So the author misses this company and ignores this company and invests in an oil company.

So this type of company has a hidden asset and only knows that person who works in that company. for example, the book value of land in one company. The price of that land is this buying on time. and in the period the price is going high. So invest in the company to see the hidden asset.

So this is all about chapter 6 of One Up one wall street book.

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