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Has the market gone off growth?
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Shetland
Posted: 30 July 2024 07:29:48(UTC)
#35

Joined: 13/03/2015(UTC)
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Johan De Silva;313545 wrote:

I also have a value stock that has done +262.94% and sits on a P/E of 6. I will always hold a large holding in growth but I do think value is where the growth is.


Care to share what that stock is ?
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John Bran
Posted: 01 August 2024 17:43:05(UTC)
#47

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I think my suggestion that "the market has gone of growth" was correct?
Obviously I covered my back in a mister snide way with the question mark!!
Throwing in a bit of honesty the market always goes to far in both direction so this could be just correction.....towards reality.
Personally I think Microsoft Amazon apple maybe the new "quality companies" once share price falls a bit further!
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Big boy on 02/08/2024(UTC)
Dian
Posted: 01 August 2024 22:02:26(UTC)
#48

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John Bran;314070 wrote:
I think my suggestion that "the market has gone of growth" was correct?
Obviously I covered my back in a mister snide way with the question mark!!
Throwing in a bit of honesty the market always goes to far in both direction so this could be just correction.....towards reality.
Personally I think Microsoft Amazon apple maybe the new "quality companies" once share price falls a bit further!

I took a cautious approach lately. My concentrated portfolio filled with high quality cash rich value firms with strong balance sheets.
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3 users thanked Dian for this post.
Thrugelmir on 01/08/2024(UTC), Raj K on 01/08/2024(UTC), Johan De Silva on 01/08/2024(UTC)
Thrugelmir
Posted: 01 August 2024 22:08:40(UTC)
#49

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Dian;314106 wrote:
John Bran;314070 wrote:
I think my suggestion that "the market has gone of growth" was correct?
Obviously I covered my back in a mister snide way with the question mark!!
Throwing in a bit of honesty the market always goes to far in both direction so this could be just correction.....towards reality.
Personally I think Microsoft Amazon apple maybe the new "quality companies" once share price falls a bit further!

I took a cautious approach lately. My concentrated portfolio filled with high quality cash rich value firms with strong balance sheets.


Revenue is vanity, profit is sanity, but cash will always remain King.

Cashflow first. Balance Sheet second. Profit and Loss third.

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Johan De Silva on 01/08/2024(UTC), Dian on 02/08/2024(UTC)
Johan De Silva
Posted: 01 August 2024 22:29:20(UTC)
#36

Joined: 22/07/2019(UTC)
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Shetland;313701 wrote:
Johan De Silva;313545 wrote:

I also have a value stock that has done +262.94% and sits on a P/E of 6. I will always hold a large holding in growth but I do think value is where the growth is.


Care to share what that stock is ?

This stock is AXL my largest holding. There are and had been many small-cap value stocks and the key metric is the ability to compound safe revenue at very high rates to its size be it EV or MC. AET, CKN are great case studies.

But it is also about when you buy as mentioned by active investors here. Currently my favourite at today's prices are MGNS and I am up on ALPH, both have a stronger balance sheet, P/E around 11 (though operationally much higher for ALPH it is actually on a low P/E DYOR). Others I am looking at but don't hold include COST.

these a long term holds though. Stay diversified as recession fears are likely to creep in and there is probably just as good value if not better risk-adjusted returns in Infrasture and REITs where you can have a much larger allocation at today's prices.

Thrugelmir;314107 wrote:

Cashflow first.

Can you expand? Cash flow is a measurement of the amount of cash that comes into and out of your business in a particular period of time. So what are you looking for here, margin, revenue growth?
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Newbie on 02/08/2024(UTC)
John Bran
Posted: 02 August 2024 15:08:30(UTC)
#50

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Another bad day for the NASDAQ....and every other index BUT the NASDAQ is definitely falling further than anything else...other than Japan.
More than just a rotation but overdone until we see more evidence of an actual recession.
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Thrugelmir
Posted: 02 August 2024 15:39:32(UTC)
#37

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Johan De Silva;314109 wrote:


Can you expand? Cash flow is a measurement of the amount of cash that comes into and out of your business in a particular period of time. So what are you looking for here, margin, revenue growth?


Tells you much about the real financial health of a business. There's no hiding or distortion with the presentation of reported figures, eg enhancng the EPS.

Freecash flow provides an indication as to the ability or even sustainability of paying dividends.
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Newbie
Posted: 02 August 2024 16:05:16(UTC)
#38

Joined: 31/01/2012(UTC)
Posts: 3,816
Thrugelmir;314230 wrote:
Johan De Silva;314109 wrote:


Can you expand? Cash flow is a measurement of the amount of cash that comes into and out of your business in a particular period of time. So what are you looking for here, margin, revenue growth?


Tells you much about the real financial health of a business. There's no hiding or distortion with the presentation of reported figures, eg enhancng the EPS.

Freecash flow provides an indication as to the ability or even sustainability of paying dividends.

surely things likes inflationary and rising costs get a bite out of the cashflow/or free cashflow before dividends. How do you account for that.
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Big boy
Posted: 02 August 2024 16:10:27(UTC)
#52

Joined: 20/01/2015(UTC)
Posts: 6,676
"Has the market gone off growth"

Does it matter if we are in the right stocks at the right time....let's not try and overcomplicate our lives...
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Thrugelmir
Posted: 02 August 2024 16:18:43(UTC)
#39

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Newbie;314238 wrote:
Thrugelmir;314230 wrote:
Johan De Silva;314109 wrote:


Can you expand? Cash flow is a measurement of the amount of cash that comes into and out of your business in a particular period of time. So what are you looking for here, margin, revenue growth?


Tells you much about the real financial health of a business. There's no hiding or distortion with the presentation of reported figures, eg enhancng the EPS.

Freecash flow provides an indication as to the ability or even sustainability of paying dividends.

surely things likes inflationary and rising costs get a bite out of the cashflow/or free cashflow before dividends. How do you account for that.


That's why financial analysts are paid good money by the investment banks. Digging into the numbers requires a trained eye. Knowing what to look for and restating where neccessary. Been a few years since I last drafted statutory accounts. Reporting requirements get ever more onerous. But the games continue.
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