5 Cannibal (+2 bonus) Stocks you should know!
It's the real structure of compounding with the realistic simple variables in composition.
.
It could inspire an investor on how one shall strategize to achieve or maximize it.
The Absolute Total Compound MoAT Investing Dharma 151:
9 Key Signs of a Compounder
i.
IROIA>ROIIC>IGPOIA>GPA>ROIC>ROA>(4×Headline CPI Inflation Rate)
Note:
IROIA
= Incremental Net Profit ÷ Incremental Total Assets
ROIIC
= Incremental Net Profit ÷ Incremental Invested Capital
IGPOIA
= Incremental Gross Profit ÷ Incremental Total Assets
ii.
Gnp ≥ Ggp ≥ Gic > Gasset > (4×Headline CPI Inflation Rate)
iii.
(1 + Gnp)/(1 + Gic) ≥ 1
iv.
MoAT (ROA) > (4×Headline CPI Inflation Rate)
v.
0.75 ≤ ( Cash & Cash Equivalent ÷ Total Liabilities ) < 1
vi.
( Current Asset ÷ Total Liabilities ) > 1
vii.
Current Asset > Total Equity > Total Liabilities > Current Liabilities > Non-Current Asset
viii.
Receivables Turnover Days
= Average Collection Period
= Trade and other receivables, deposits and prepayments ÷ Revenue
≤ 92 days
ix.
0 ≤ D/E ≤ 0.12
The Big Picture of the 8th Wonder of The World:
2。
Investing is all about “The Absolute Total Compound” :
2.1。
Absolute Total Compound @ nth year (Unit: $) : Dividends are Not Reinvested
=
Number of shares × Stock Entry Price
×
[
Absolute Modal Compound:
( Pexit÷Eexit ) ÷ ( Pentry÷Eentry )
{ ( 1+Gnp ) ÷ ( 1-SBB ) }ⁿ
+
Absolute Accrued Dividend Received Compound:
DYentry × ( 1-Td ) × ( 1+Gd ) ÷ ( 1 - SBB)
( 1 - { ( 1+Gd )÷( 1-SBB )} ⁿ ) ÷ ( 1 - ( 1+Gd )÷( 1 - SBB ) )
]
OR
2.2。
Absolute Total Compound Multi-bagger Multiple @ nth year (Unit: Bagger) : Dividends are Not Reinvested
DYentry × ( 1-Td ) × ( 1+Gd ) ÷ ( 1 - SBB )
( 1 - { ( 1+Gd ) ÷ (1 - SBB) }ⁿ ) ÷ ( 1 - ( 1+Gd ) ÷ ( 1 - SBB ) )
2.3。
If All DIVIDENDS are FULLY REINVESTED & Gd = Gnp.
Absolute Total Compound @ nth year (Unit: Bagger)
{with dividend reinvestment : All Dividends are Fully Reinvested & Gd = Gnp}
( 1 + Gnp ) × ( 1 + DYentry × [1-Td] ) ÷ ( 1-SBB )
]ⁿ
2.4。
If All DIVIDENDS are FULLY REINVESTED and Gd ≠ Gnp.
{with dividend reinvestment : All Dividends are Fully Reinvested & Gd ≠ Gnp}
( 1 + Gnp ) × ( 1 + DYentry × ( 1 + Gd ) ÷ ( 1 + Gni ) × [ 1 - Td ] ) ÷ ( 1 - SBB )
SBB, Gnp, DY, Gd, Td are in ratio format.
SBB = Share Buy Back Ratio
Gnp = Net Profit Growth Ratio
DY = Dividend Yield Ratio
Gd = Dividend Growth Ratio
Td = Tax on Dividend Ratio
Thank you for the comment, but I am not sure what any of these mean. I tend to avoid any complex calculations to value a company or a stock. I think it is absolutely unnecessary to do complex math just because it is available.
It's the real structure of compounding with the realistic simple variables in composition.
.
It could inspire an investor on how one shall strategize to achieve or maximize it.
The Absolute Total Compound MoAT Investing Dharma 151:
9 Key Signs of a Compounder
i.
IROIA>ROIIC>IGPOIA>GPA>ROIC>ROA>(4×Headline CPI Inflation Rate)
Note:
IROIA
= Incremental Net Profit ÷ Incremental Total Assets
ROIIC
= Incremental Net Profit ÷ Incremental Invested Capital
IGPOIA
= Incremental Gross Profit ÷ Incremental Total Assets
ii.
Gnp ≥ Ggp ≥ Gic > Gasset > (4×Headline CPI Inflation Rate)
iii.
(1 + Gnp)/(1 + Gic) ≥ 1
iv.
MoAT (ROA) > (4×Headline CPI Inflation Rate)
v.
0.75 ≤ ( Cash & Cash Equivalent ÷ Total Liabilities ) < 1
vi.
( Current Asset ÷ Total Liabilities ) > 1
vii.
Current Asset > Total Equity > Total Liabilities > Current Liabilities > Non-Current Asset
viii.
Receivables Turnover Days
= Average Collection Period
= Trade and other receivables, deposits and prepayments ÷ Revenue
≤ 92 days
ix.
0 ≤ D/E ≤ 0.12
The Big Picture of the 8th Wonder of The World:
2。
Investing is all about “The Absolute Total Compound” :
2.1。
Absolute Total Compound @ nth year (Unit: $) : Dividends are Not Reinvested
=
Number of shares × Stock Entry Price
×
[
Absolute Modal Compound:
( Pexit÷Eexit ) ÷ ( Pentry÷Eentry )
×
{ ( 1+Gnp ) ÷ ( 1-SBB ) }ⁿ
+
Absolute Accrued Dividend Received Compound:
DYentry × ( 1-Td ) × ( 1+Gd ) ÷ ( 1 - SBB)
×
( 1 - { ( 1+Gd )÷( 1-SBB )} ⁿ ) ÷ ( 1 - ( 1+Gd )÷( 1 - SBB ) )
]
OR
2.2。
Absolute Total Compound Multi-bagger Multiple @ nth year (Unit: Bagger) : Dividends are Not Reinvested
=
[
Absolute Modal Compound:
( Pexit÷Eexit ) ÷ ( Pentry÷Eentry )
×
{ ( 1+Gnp ) ÷ ( 1-SBB ) }ⁿ
+
Absolute Accrued Dividend Received Compound:
DYentry × ( 1-Td ) × ( 1+Gd ) ÷ ( 1 - SBB )
×
( 1 - { ( 1+Gd ) ÷ (1 - SBB) }ⁿ ) ÷ ( 1 - ( 1+Gd ) ÷ ( 1 - SBB ) )
]
2.3。
If All DIVIDENDS are FULLY REINVESTED & Gd = Gnp.
Absolute Total Compound @ nth year (Unit: Bagger)
{with dividend reinvestment : All Dividends are Fully Reinvested & Gd = Gnp}
=
( Pexit÷Eexit ) ÷ ( Pentry÷Eentry )
×
[
( 1 + Gnp ) × ( 1 + DYentry × [1-Td] ) ÷ ( 1-SBB )
]ⁿ
2.4。
If All DIVIDENDS are FULLY REINVESTED and Gd ≠ Gnp.
Absolute Total Compound @ nth year (Unit: Bagger)
{with dividend reinvestment : All Dividends are Fully Reinvested & Gd ≠ Gnp}
=
( Pexit÷Eexit ) ÷ ( Pentry÷Eentry )
×
[
( 1 + Gnp ) × ( 1 + DYentry × ( 1 + Gd ) ÷ ( 1 + Gni ) × [ 1 - Td ] ) ÷ ( 1 - SBB )
]ⁿ
Note:
SBB, Gnp, DY, Gd, Td are in ratio format.
SBB = Share Buy Back Ratio
Gnp = Net Profit Growth Ratio
DY = Dividend Yield Ratio
Gd = Dividend Growth Ratio
Td = Tax on Dividend Ratio
Thank you for the comment, but I am not sure what any of these mean. I tend to avoid any complex calculations to value a company or a stock. I think it is absolutely unnecessary to do complex math just because it is available.