Saturday, December 15, 2012

Financial Analysis- Altman Z-score

 

Definition of 'Altman Z-Score'

The output of a credit-strength test that gauges a publicly traded manufacturing company's likelihood of bankruptcy. The Altman Z-score, is based on five financial ratios that can be calculated from data found on a company's annual 10K report. The Altman Z-score is calculated as follows:

Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

Where:

A = Working Capital/Total Assets
B = Retained Earnings/Total Assets
C = Earnings Before Interest & Tax/Total Assets
D = Market Value of Equity/Total Liabilities
E = Sales/Total Assets

A score below 1.8 means the company is probably headed for bankruptcy, while companies with scores above 3.0 are not likely to go bankrupt. The lower/higher the score, the lower/higher the likelihood of bankruptcy.

Read more: http://www.investopedia.com/terms/a/altman.asp#ixzz2F8YoekGd





for more detailed info http://en.wikipedia.org/wiki/Altman_Z-score

Yoga By Equinox-


Year of investing dangerously - The National


Year of investing dangerously - The National

Friday, December 14, 2012

Book Review- The Four Hour Work Week (Timothy Ferriss)

Started reading this PDF today. Learnt a new phrase.


Deferred Life Plan- (SLAVE-SAVE-RETIRE)

Monday, December 10, 2012

OPTO Circuits Board Meeting 20th Dec 2012

Opto Circuits (India) Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on December 20, 2012, inter alia, to consider to issue of 20,00,000 convertible warrants to Mr. Vinod Ramnani at Rs. 145/- per warrant or the six month average price as on the relevant date, whichever is higher.Source : BSE

Saturday, December 8, 2012

barclays skyscraper economic index


Value Investing Basics

Found this image while surfing the net. I have edited it to suit my investing principles.

do you due diligence. research the scrip at length and depth
must have a competitive product, service or vision
always buy at intristic value
always believe in the scrip and its story. be passionate about why you bought the company
this is my own. as i try to come in term with long term investing, i try and remember, "can i gift this shares to grand children?