PF2 is a investment analysis tool for investors in the share market. PF2 aims to provide intelligent investment decisions for value and growth investment purpose.
You’ll be able to access a range of investment decision matrix if you become a PF2 member.PF2 memberships have been divided into five categories for the convenience of the investors.
PF2 Trading:
Trading is short term investment in shares. Trading can sometimes be beneficial given the immediate need of fund of the investors, as well as for the volatility of market and for any mistaken selection of companies.
PF2 has filtered information for traders and encourages basic check up of the traders profile including age, education, financial literacy, psychological mindset.
PF2 Growth:
A company being an entity is doomed to grow provided it is well managed by a set of energetic business people.
PF2 can identify companies with growth potential for your investment purpose.
PF2 Value:
PF2 Value investment is tantamount to being owner of the companies you invest. A right company can be precious. We have estimated that a company operating for last 50 or 60 years can possibly accumulate a vast wealth for its shareholders provided the company operates in the right sector under the management of a group of right people. Value investment warrants long-term mindset of the investors. PF2 can help you select companies for value investment purpose.
PF2 Intelligent:
Intelligent investment means buying companies for both growth and value purpose and to reap benefit of your intelligent investment decision in due time. It’s the most smart ways to operate in share market. PF2 can guide you in this regard.
PF2 Report:
PF2 team is up here to report on specific company and on the areas you have questions.
Please feel free to contact us: + 88 02 55013590
You can also email us at pf2investment@hussainsbd.com
PF2 runs on the following facts and information:
Company
Sector
Lot
Lowest
Highest
% change
LTP
% of lowest
% of highest
Y/E
Listing year
Incorporation year
No of years in operation
FV
PO
Category
Avg Current EPS
Value= Current EPS* (8.5+ twice the expected annual growth rate)
TP on normal growth since inception
Intrinsic value= lower of Value and TP
% of intrinsic value over traded price
Total Shares outstanding
% Sponsors/ Directors
% Govt. % Institute
% Foreign
% Public
P/E
NAV/share & quality of ASSETS
Div. type
Div rate
Record month
Div latest
BV/NW/Paid up capital plus reserves (Tk M)
Market Cap (in m Tk)
Market cap Times of BV TMP
LTP % over TMP
Address
Web-site of the company
Auditors
AGM month
Market signal/ Quarterly Interim performance
Issue manager & Institutional investor
Diversified business?
Management & BOD not sidetracked from base business
Going concern / Physical visit report
Future growth
Recent unpopularity??
NWC (CA-Non-current liabilities- current liabilities) per share
Trade price as % of NWC
Looked through the earnings: does the company have investments <50% non-consolidated in other companies?
Margin of safety price as % of TP on Intrinsic VALUE
DSE30?
Gearing (debt:equity)/OPM addict–high gearing BAD
WC X of ST debt
Customer base (few or many) Local /export or both, if domestic –
Brand name Is there a name of the company in market
R&D do they invest in R&D
Professional resources Presence
EPS
FV 10 factor
Div. pay %
Sales LAST year
Sales CURRENT Year
CoS current estimated
% CoS as a % of sales
GP
GP%
Mkt & selling expenses
% mkt Marketing exp as a % of sales
R&D expenses
% R&D as a % of sales
Other income
% of other income as a % of PBT
Finance expenses
% finance expenses as a % of sales
PF expenses
WPPF expenses
PBT
Dep./amortization
TAX on income
Repairs & maintenance
TOTAL Assets
Addition to PPE
CWIP
Intangible assets
Investment in companies/related parties
Current ASSETS TOTAL
Cash & cash equivalents
ST investments/Advance, deposit & prepayments
Trade receivables
Inventories
Owners’ EQUITY/ NW
Revaluation surplus
NON-Current Liabilities
LOAN liabilities
Current LIABILITIES Total
Loan portion in Current liabilities
ROIC= Owners’ earnings/ Invested capital
CASH ops flow from operating activities
CASH inv flow from investing activities
Vote of PF2 in-house analysts on the Management and owners of the company
DECISION (both based on faith approach, and analysis approach)
Reasons
Buy order
Ideal Buy price on current Sticker
TP on INTRINSIC Value MP (LTP)
PESTEL/ Potential threat
Reliable stream of earnings
Working capital
Current ratio: CA times of CL
Acid test
AR % to Sales
Inventory % to total current assets
Hidden liabilities
Perilous Litigation
Free Cash Flow per share (net cash (A+B)/No. of shares from SoCF)
GC value per share= MP of business to sell now/number of shares= 50% of NAV/share
BUY ORDER-confirmed
Sold @ and OUT
Gain/(loss)
% gain/(loss)
Comment including PHYSICAL visit report
P F f PF2 comment
Industry Size & prospect in Crore Tk
This co’s market share in industry
HOW MUCH? Caveat emptor- buyer’s be aware.
Is current market price/LTP too much high?
Is the business simple and understandable?
Does the business have a consistent operating history?
Does the business have favorable long-term prospect?
Is the management rational?
Is the management candid with its shareholders?
Does management resist the institutional imperative?
What is the return on equity?
What are the company’s owners’ earnings?
What is the profit margin?
Has the company created at least one Taka of market value for every Taka retained?
What is the value of the company?
LTP
% of LTP to IV
Can it be purchased at a significant discount to its value?
GREEN signal over 53 considerable cells %
PF2 DECISION
BDT to USD rate
Bank int. rate
Political stability
Does the company have products or services with sufficient penetration?
Mgt’s determination to continue to develop products or processes?
How effective are the company’s research-and-development?
Does the company have an above-average sales organization?
Does the company have a worthwhile profit margin?
What is the company doing to maintain or improve profit?
Does the company have outstanding labor and personnel relationship?
Does the company have outstanding executive relations?
Does the company have depth to its management?
“Are there other aspects of the business, somewhat peculiar to the industry involved, which will give the investor important clues as to how outstanding the company may be in relation to its competition?
Does the company have a short-range or long-range outlook In the foreseeable future
Will the growth of the company require equity financing or debt to offset current shareholders’ EPS?
Does management talk freely to investors about its affairs when things are bad?
Does the company have a management of unquestionable integrity?
New product launch, new expenses, pat down..
PF2 FINAL DECISION
Promotional company?
OTC but good co?
Ignore q reports and crowd noise
Gather info..then meet mgt
Combined RANK on the basis of Earnings Yield and ROIC
Disclaimer:
Preparation. Discipline. Patience. Decisiveness.
What’s funny is that most big investment organizations don’t think like this. They hire lot’s of people, evaluate big companies and every stock in the market, and think they can beat the market. You can’t do it.
So, the game is to keep learning.
Be satisfied with what you have. [IE – Someone will always be getting richer faster than you.]
Cash is to a business as oxygen is to an individual
And if you can’t predict what tomorrow will bring, you must be prepared for whatever it does.