For Whom the Market Tolls

Buy, Hold or Sell

The qualitative factors that determine the stock price fluctuation can be grossly determined include the following factors:

  1. Economical
  2. Financial
  3. Social
  4. Political
  5. Educational
  6. Technical
  7. Environmental
  8. Logical
  9. Other attributes
  10. Market Sentiment

In order to ascertain the stock price value fluctuation, we have the following financial factors:

  1.  Debt Load
  2. Margin
  3. Price Multiplier
  4. Book Value
  5. Cash Flow
  6. P/B Ratio
  7. P/E Ratio

The economic condition of the company can be determined by:

  1. Is the company revenue growing?
  2. Is the company making a profit?
  3. Is it in a strong position to beat competitors?
  4. What is the global and country index rank in the industry?
  5. Is it able to repay long-term and short-term debts?
  6. Is the management trying to add or subtract something in the books?
  7.  How is the overall economy of the country?
  8. How is the industry going?
  9. Quantitative factors of the company?
  10. Quantitative factors of the industry?

 

Now quantitative factors of the company are:

  1. Business model
  2. Competitive Landscape
  3. Management
  4. Corporate Governance

Quantitative factors of the industry are:

  1. Customer
  2. Market Share
  3. Industry Growth
  4. Competition
  5. Regulation

Other Factors are:

  1. Management Discussion and Analysis
  2. The Auditors Report
  3. The notes to financial statements
  4. Accounting Methods
  5. Disclosure

These are some of the gross figures that determine the stock price fluctuation.

A sample of the work, which I did with my room mates in Carnegie Mellon, that gives a detailed analysis of a portfolio after stock fluctuations is given here: SAAM Securities. (With Courstesy to : Manik Patil, Arun Neelakantan, and Srivatsan Pichai)

2 Comments

  1. Great .. Wish there was mention of credit in the SAAM Securities.. If that is the sort and analysis that you can deliver , you are indeed a premium .. Best wishes.. We will talk soon

  2. @Dhanvada Sir: Thank you for your appreciation. Look forward to work with the same pace.

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