Picking stocks with Piotroski F score

24 July 2018|

The Piotroski score is a discrete score between 0-9 which reflects nine criteria used to determine the strength of a firm's financial position. It is used to determine the best value stocks, nine being the best. The score was named after Chicago Accounting Professor, Joseph Piotroski who devised the scale according to specific criteria found in the financial statements. [...]

Sloan Ratio – Analyzing Accruals to Pick Winners

8 March 2017|

Under generally accepted accounting principles (GAAP), the definition of earnings is the change in owner equity plus dividends (if any). Earnings are shown on the company’s income statement, which is nothing more than a measurement of the change between balance sheet items. As legendary value investor Ben Graham wrote in his equally-legendary investment book Security [...]

Sloan Ratio – Why investors should care about accruals & earnings quality

13 February 2017|

Not All Earnings are Created Equal Earnings is the main word that holds the greatest importance on stock market. Ironically, earnings is not real money. $1 in earnings does not equal $1 in cash a company has to spend. Earnings contain a lot of non cash earnings which is called accruals. The non cash part of [...]

This can help you make better investment decisions – Piotroski F-Score

21 September 2016|

An unknown research paper In a research paper, written in 2000, an unknown accounting professor from the University of Chicago developed and successfully tested a ranking system where, with the use of a few simple accounting based ratios he convincingly proved that it can help you make better investment decisions. Remarkable is that this information [...]

Some of the undervalue share listed in KLSE…

20 August 2016|

On this wonderful weekend I have run some screener and did analysis with TRV Stock Analyzer to list down some of the possibly undervalued share listed in Bursa based on several criteria: 1. EV/EBIT Enterprise value to earnings before interest and tax (EV/EBIT) is a way of deciding whether a share is cheap (a low [...]