Aarti Drugs

The Company  was formed in 1984 and has established a strong presence in the Anti-diarrhea, Anti-inflammatory therapeutic groups. With its manufacturing facilities at Tarapur and Sarigam, the Company manufactures Vitamins, Anti-arthritis, Anti-fungal, Antibiotics, ACE inhibitors, besides its range in , anti-diabetic, anti-cholinergic, sedatives and anti-depressant drugs.
The manufacturing-units of ADL are GMP certified. The Company is also in the process of acquiring an ISO 9002 compliance for all its units and one of the units has already been approved. The Company aims at becoming the first choice of this expanding market through better products, ensuring quality and timely delivery.



The company is able to deliver constant good results throughout. The QoQ and YoY results have been beating the previous numbers and creating new highs every time. The profits have increased by 35% over the year due to increase in their operating and net profit margins. With huge acquisition of the stock by promoters in recent times, it seems the next quarter results are going to be outstanding. The company has given hefty amount of dividends at regular intervals which indicates the quality of the management. The liquidity ratios are stable but the only concern is the high debt of the company which will be resolved by company as they are making strategies to reduce it. The P/E ratio is 12 and there is a lot of potential left if we compare it to company's P/E and the EPS is also very high. With CMP, it is looking good for a buy and one can enter at dips. 

Simmonds Marshall

SIMMONDS MARSHALL LIMITED was incorporated in 1960 as a Private Limited Company in technical and financial collaboration with Firth Cleveland Fastenings Ltd., U.K. holding 51% of the equity of the company. This shareholding was diluted progressively and the balance of foreign holding was purchased fully by the promoters in 1987. In 1986, the company went public and is now a quoted company on the Stock Exchange.

The company manufactures a range of Specialised Nylon Insert Self Locking Nuts and other Special Fasteners. The company has been augmenting its cold forming capacity and can produce over 500 million nuts per annum in a wide range from M4 to M48 diameter and equivalent imperial sizes. These nuts are manufactured either to American, British, Japanese, ISO or Indian Standards in a variety of thread forms and protective finishes.
The company also has a battery of multi-spindle automatic bar turning centres capable of producing related automotive components as well. The company is fully equipped to supply a wide range of Bolts from our associated companies ranging from M5 to M70.

They usually caters to the Automotive and Industrial sectors and supplies to almost all the major Automobile Manufacturers in India as OE Suppliers. Their client list is very strong. Some of the world's finest companies like General Motors, TATA, Ford, Fiat, Honda, Caterpillar, JCB, Mahindra, Swaraj Mazda, Suzuki, Leyland, Dana, New Holland.

The financials of the company are looking good and there is a lot of scope for the company to grow. The NPM and OPM has increased from previous years which is a good sign and in the recent quarterly result, the NPM increased to very high levels from previous quarters. The quick ratio and current ratio has also improved which reflects the liquidity of the company. The only concern is the increasing debt which is due to expansion activities of the company. The QoQ and YoY results have been constantly good as their client list is also expanding. With a boom expected in Auto industry in India, it has a lot of potential to grow. Please do your own research before investing. I just expressed my views about the stock which may be incorrect also.

Banco Products

Banco Products (I) Ltd (BPIL) is one of the leading auto ancillary companies. It manufactures sealing products (gaskets) and heat exchangers (radiators, intercoolers, oil coolers, etc). The company has strong client-base such as M&M, Maruti, Tata Motors, Indian Railways, Ashok Leyland, etc. Strong ties with original equipment manufacturers OEMs, de-risked business and inexpensive valuations make the stock attractive.

Being a leading manufacturer of automobile radiators in India, particularly in the heavy vehicle & equipment segment, Banco is set to benefit from the sustained automobile growth. Besides benefiting from demand from OEMs, increased penetration in the non-auto space would de-risk revenue concentration in autos. The acquisition of NRF, Holland, would provide Banco better access to the European market.

The financials of the company also looks  good and recently posted good numbers in terms of results. The quarterly results were good and it showed more than 40% growth in net profit. The NPM and OPM also increased which shows the strong hold of the company in its business operations. The stock is undervalued and the P/E ratios is 15 as compared to industry P/E ratios of 47. The debt to equity ratio has decreased which shows that the company is focussed towards decreasing their debts to minimum. The current ratio is 1.73 and quick ratio is 1.56 which is considered very good in terms of liquidity of the company. The gross profit margins, return on asset ratio and return on net worth has also increased significantly over the years. The inventory turnover ratio has also increased which shows that the company is clearing its inventories faster and hence, saving its inventory handling cost. The company has paid dividend at regular intervals. At CMP of 158, it can be bought for long term. Please do your own evaluation before investing.

Control Print

Control Print has developed a philosophy that consists of partnering with the leading global players technologically. They utilise their unsurpassed local manufacturing infrastructure and highly motivated skilled workforce to provide the best engineered and most cost effective products and solutions for the entire range of manufacturing industries which include Automotive, Agro-Chemicals, Metals, FMCG, Pharmaceutical, Food & Beverage, Wire, Cable, & Pipe, Construction Materials, and Commercial Printing.

The company is currently trading at a P/E ratio of 11.83 whereas the industry P/E is 87.88 which shows the amount of undervalueness of the share. The EPS of the company is 16.41 which is looking very good. The debt is almost negligible and the qoq as well as yoy results have been constantly increased. The net profit margin as well as operating profit margin are outstanding as compared to its peer group. The current ratio is considerable but quick ratio is looking little bit risky. But, looking at the business of the company it can be neglected. Overall, the future of the company is looking bright and one can enter in this scrip at dips. Please do your own research before investing in this stock.

Waterbase - Re recommendation for those who missed the opportunity earlier

The Waterbase Limited is an aquaculture unit located at Nellore, Andra Pradesh 170 KM North of Chennai, India. Waterbase is promoted by ‘Thapar Group’, a well known business conglomerates in India. Their mission is to give customers the best value for money with our quality feed and processed Products. It has stood committed to following and disseminating the best aquaculture techniques. Today, they are one of the leading entrepreneurs in India with facilities that comprise a Shrimp feed plant, grow-out farms and a Shrimp processing facility. 

Waterbase has played a key role in dissemination of scientific shrimp farming in India and provided training and support in farming techniques for successful crops. It is equipped with shrimp feed mill which produces world class shrimp feed. Their latest achievement is in the production of organic feed. They export shrimps in different forms to quality conscious markets of Japan, USA and Europe - IQF, Block Frozen and Cooked. They supply value-added shrimps to the customer needs. Their process plant is FDA listed, EU approved and Processing is as per HACCP guidelines.

The stock was recommended around 20 three months back which is now trading at 58. Currently, it has consecutive upper circuits for last three days. One can enter at dips in this stock. The company looks promising and they are performing good. Recently ,their quarterly results were outstanding with net profit increase of 71% and revenue increase of 34%. The company has recently declared a dividend of Rs. 1. With 100% deliverables, uptrend can be seen for few more sessions. A long term investment can be made at corrections. Please do your own analysis before investing. 

Dynemic Products: The name behind colors of modern life

Dynemic Products: Rerecommendation

Dynemic Products Ltd. is an ISO 9001:2000 & HACCP Certified Company. The company is one of the major manufacturer and exporter in India, offering complete range of Food Colors, Lake Colors, Blended Colors, FD&C Colors & Dye Intermediates.

Dynemic believes in continuous development by incorporating the latest technology to achieve better quality. Dynemic's colours are 100 % safe for human consumption and as per international standards. 

Manufacturing facilities include two well equipped plants spread over 50000 Sq Mt of area. Plants are HACCP (Hazardous Analytical Critical Control Point) & ISO 9001:2000, ISO 14001 (Environment Management System) certified.

From inception, The company has laid emphasis on eco-friendly process development for food color and lake colors etc., with high yield and minimum waste & emission levels.

The food colors manufactured by Dynemic Products have variety of Applications such as:

1) Confectionary

2) Beverages

3) Proceed Food

4) Bakery Products

5) Dairy Product

6) Pet Foods

7) Pharmaceuticals

8) Cosmetic & Personal Care Products

The detailed product level application can be found here:

http://www.dynemic.com/application.html

The industry is pollution prone, hence company had installed MEE for treating the effluent generated by both the units as per GPCB norms. This was the major reason, why company saw a decline in net profit last year. But that is past now. They will get benefited going ahead, as there are plenty of companies in their competition, who have not yet installed the same.

At current CMP of 45, it is very attractive to have it in your portfolio. The P/E ratio is 4.9 as compared to industry P/E ratio of 12 which reflects undervalueness. I recommended this stock at 28 and again recommending to buy at dips. The company has been paying dividends regularly and their growth is also superb. The debt is also not that much. The promoters have been accumulating this stock recently which is a very positive sign for the stock. Please do your own research before investing.

Hidden Gems

Granules - a real multibagger (Re-recommendation)

Granules India Limited is a fast growing pharmaceutical company with world-class facilities for APIs, PFIs and Finished Dosages, serving customers in over 60 countries. We are committed to excellence in manufacturing, quality and customer service. We are headquartered in Hyderabad with offices in the U.S., U.K., Colombia and China with manufacturing facilities in India and China.



Products: They have focused on a core portfolio. This specialisation enables us to offer an optimal blend of high quality products at competitive costs. They offer products across the value chain comprising APIs, PFIs and FDs.
Scale: They possess the largest PFI facility in the world with an industry-leading batch size of six tons and one of the largest single-site FD facilities in the world. They also have among the largest API capacities for the regulated markets for our respective products.
Quality: Their facilities cater to the demands of quality-conscious customers. Their facilities meet the requirements of some of the most stringent regulatory agencies in the world including the U.S. FDA, MHRA, EDQM, TGA and others.


I recommended granules at 180 and again recommending it at 550. At CMP, the P/E is 14 against the industry P/E of 26 with an EPS of  around 40 which is expected to increase at higher levels. The company is only struggling with their higher debt which is also taken care of by the company at regular intervals. Recently, company has released a lot of shares through pledge which has helped in minimizing debt to an extent. The future of the company looks very bright and this stock is very good for long term. Please do your own analysis before entering this stock.

Capri Global

Capri Global Capital Limited (CGCL) is a leading Indian Non-Banking Finance Company (NBFC) operating since 1997. The company is registered with Reserve Bank of India (RBI) and listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). At CGCL, we are proud of our lineage and have since inception, achieved significantly commendable milestones as we move towards our objective of strengthening our position as “India’s leading NBFC”.

As part of our business activities, CGCL is predominantly focused into Asset Financing and Lending business. The Wholesale Lending Business segment provides specialized and holistic solutions to Indian corporates helping them build and grow their businesses with initial funding, mezzanine financing, acquisition financing etc. We focus on products in the structured credit space backed by adequate collaterals and cash flows to build a secured and quality wholesale lending portfolio.


Prior to 2012, CGCL offered financial solutions related to Debt Advisory Service and has to its credit transactions close to INR 50,000 crores in debt advisory space during FY2009 to FY2011. In October 2010, CGCL successfully completed a Qualified Institutional Placement (QIP) and raised INR 445 crores thereby foraying into Asset Financing and Lending business. We successfully attracted investments from Wellington Management Company LLP, Morgan Stanley, Fidelity, Goldman Sachs, etc



At CMP of 150, the company is trading at P/E of 7 whereas industry P/E is 23. The EPS is 23 which is exceptionally good, and the company is also debt free. Initially, the company's name was Money matters and after going through a very dull face, the company was acquired by a Canadian company. The way they have comeback is superb and it is expected to go higher than their peak point before the fall. The results have been superb constantly and the dividend is also paid regularly. Please do your own research before investing in it.

Hidden Gems

Basant Agro Tech Ltd.

Renowned philanthropist 130 years old "Bhartia Group" Akola (India) and international business tycoon Mr. C.L. Jhunjhunwala were instrument in the inception of Basant Agro Tech (I) Ltd with its public issue in 1990. From then on, skilled entrepreneurship and advance manufacturing techniques ensured the company growth exponentially. The company has constantly been giving dividend to its shareholders.

Presently, Basant Agro Tech (I) Ltd., has a multi-product portfolio which includes various grades of fertilizer, seeds and agriculture inputs. Not only have we set up manufacturing and processing plants in Kaulkhed and Kanheri (Akola), but also boast of a Research and development centre at Kaulkhed recognized by Govt. of India.

They Manufacture fertilizer & Seeds with plants located at many places with good capacity.

The company is trading at CMP of 7.5 and is looking very good for long term. The P/E ratio is 4.6 as compared to industry P/E ratio of 10 which reflects undervalueness. The promoters are also increasing their stake in every quarter which shows their confidence in the company. The company has paid dividends regularly and has performed consistently well. The government may also favour agri based policies which may boost the stock more. Please do your own research before investing in the stock.

Hindustan Media Ventures Limited

The Company was incorporated on July 9, 1918 under the Indian Companies Act, 1913 as a public limited company under the name 'The Behar Journals Limited' and received the certificate of commencement of business on January 14, 1919. On November 17, 1987 the name of the Company was changed to 'Searchlight Publishing House Limited' to reflect to make the name of the Company more in consonance with its publication, 'Searchlight'. Subsequently, the name of Company was changed to its present name 'Hindustan Media Ventures Ltd.' to reflect the expanded business activities intended to be undertaken by the Company and to be in consonance with the prevailing industry trends and a fresh certificate of incorporation to this effect was issued on November 11, 2008.

At current CMP of 160, the company is trading at P/E of 11 compared to industry P/E of 17. The EPS of the company is 15 which is at higher side and the company is doing really good. Their results have been consistently outstanding and they are trying to expand constantly. Their debt is negligible and their net profit margin is relatively high as compared to its peer companies. Please do your own research before investing.

Hidden gems

Kakatiya Cement Sugar Industries

Kakatiya Cement Sugar & Industries Limited (KCSIL) earlier known as Kakatiya Cements Limited (KCL) was incorporated in the Year 1979 for the manufacture of Ordinary Portland Cement. The Company was promoted by Shri P.Venkateswarlu, a reputed Civil Contractor with equity support from APIDC. The installed capacity of the Cement Division of the Company was increased over the period from the initial 66,000 tpa to 1,98,000 tpa to 2,97,000 tpa at present, whereas that of the Sugar Division is increased from 2500 tcd to 3200 tcd at present.

For over two decades, Kakatiya Cement has met demands of the core sectors of the country with its quality cements. Whether it is concreting Railway Sleepers, cementing Oil Wells or shaping dream houses. Today Kakatiya Cement is a reputed name in cement Industry.

The company has current market cap of 106 cr. and negligible debt of 3 cr. The results have been constantly good and now Modi in power, policies will be focussed on improving infra sector which will be a boost for this share. The P/E ratio is 12 compared to industry P/E of 22 which shows the potential of the share to go up. The company has also paid dividends regularly. At current market price of 124, it is a good buy. Please do your own research before investing in it.


Talbros Auto

Talbros Automotive Components Ltd., the flagship manufacturing company of the Group was established in the year 1956 to manufacture Automotive & Industrial Gaskets in collaboration with Coopers Payen of UK.

Today, after 50 successful years, Talbros stands proud and tall as a mother brand of gaskets, steering & suspension components, stampings, rubber products and forgings.
Talbros Group has strong partnerships formed with global giants. Notable among the joint venture partners are Affinia Group – USA, Sanwa Packaging - Japan and Interface Solutions - USA.

The largest OEMs like Ashok Leyland, Bajaj Auto, Cummins Group, Eicher India, Escorts Group, Force Motors, General Motors, Hero Honda, Honda, Hyundai, John Deere, Mahindra & Mahindra, Maruti Suzuki, Suzuki, TAFE, Tata Motors, Tata Cummins, Simpsons and international corporates like Affinia Automotive are their proud customers.

At current market price of 83, the company is trading at P/E ratio of 7 and industry P/E is 29. The EPS of the company is 12.77 which is good. The promoters are buying the stock in huge volumes. The results have been good constantly with profit increasing each time and the dividends are also paid regularly. The debt is little bit on higher side which is the only negative point of the company. It can be bought at CMP for long term. Please do your own research before investing.

TCPL Packaging

TCPL Packaging Ltd is one of India's largest manufacturers of printed folding cartons.
Today, TCPL Packaging operates at six manufacturing units, three in Silvassa, two in Haridwar, one in Goa. All the plants are ISO 9001: 2008, ISO 22000 : 2005 certified and are also compliant with BRC/IoP Global Standard-Packaging Issue 3, which is suitable for direct food contact. In addition, plants at Silvassa and Haridwar are also FSC certified & SEDEX Compliant.
TCPL is one of the largest exporters of printed cartons from India. It regularly caters to consumers in countries like UK, The Netherlands, UAE, Bangladesh etc.
Exports constitute about 22% of TCPL's annual revenues.

TCPL manufactures following range of products:
Printed blanks & outers, Folding cartons, Litho Lamination, Plastic cartons, Blister paper, Shelf ready packaging.

Industries Served:
-- Liquor
-- Food & Beverages
-- FMCG
-- Pharma

The company is trading at CMP of 120, with EPS of 14.37 which looks very good. The P/E ratio is 8 v/s Industyr P/E of 21 which means it ie very undervalued. The results have been constantly good and dividends are paid regularly. The company has high debt, but its acceptable as it is a part of business model. It may follow Manjushree Technopack and may go to new heights. Please do your own research before investing.

Hidden Gems

Manjushree Technopack: Re-recommendation for those who have not purchased it

Founded in 1977 by Vimal Kedia, Manjushree started as a small umbrella manufacturing unit in Guwahati, Assam and thereafter in 1984 forayed into manufacturing of flexible plastic packaging. Manjushree came up with its first IPO in 1995 in order to raise funds for establishing its PET bottle manufacturing unit in Bangalore.  Today, Manjushree is the largest converter of PET and Preforms in India with an installed capacity of 80,000 MTPA and caters to the packaging needs of a large section of the FMCG fraternity. Besides PET, Manjushree also manufactures Oxygen Barrier Retortable Multilayer and Stretch Blow Moulded bottles - both of which were brought into India for the first time by Manjushree.

Industries Served By Manjushree Technopack:
- Tea & Coffee - Pharmaceuticals - Confectionery - Fruit juices - Aerated Beverages
- Liquor - Sauces & Ketchups - Household cleaners - Pickles - Health Supplements
- Mineral water - Promotional items - Spices

At current market price of 280, it is still undervalued as company's P/E ratio is 14 whereas industry P/E is 23. The EPS of the company is 19.48 which is very good. The company has paid dividend regularly. Recently, the chairman and MD of the company acquired the stock in very huge volumes which is a good sign. Please do your own research before entering this gem :)

Ganesh Ecosphere

Ganesha Ecosphere Ltd. is a widely held Company listed at BSE, engaged in the recycling of post consumer PET bottle waste into Recycled Poyester Staple Fibre (RPSF).
Incorporated in 1987, with an initial installed capacity of 391 TPA and 360 TPA, respectively to produce Dyed & Doubled Yarn, it diversified into the business of PET Recycling in 1995. GESL today, is the largest player in the RPSF industry, with a total installed capacity of 66600 TPA.
The Company has two units located at Kanpur (U.P.) and Rudrapur (Uttarakhand), which consist of latest technology.
As a reflection of our International Quality Standards, GESL holds ISO 9001:2008 certification for the manufacture and supply of RPSF.

Their vision is to become a Global Corporate citizen committed to recycle every PET bottle which is thrown into waste with world class recycling facilities and to create wealth for our stakeholders through conducting business around social and environmental concerns.

At CMP of 75, the stock is really undervalued. The P/E ratio of the company is 5.01 whereas industry P/E is 15 which reflects the undervalueness of the stock. The EPS of the stock is 16 which is at a higher side. They have paid dividend regularly and have performed consistently. Please do your own research before entering this stock.

Texmo Pipes & Products Ltd.

Texmo Pipes And Products Limited a public limited company incorporated on 3rd July 2008 by conversion of Shree Mohit Indutries which was a fast emerging and spearheading industry an associate of Shree Balaji Industries established since 1988 at Burhanpur (Madhya Pradesh). The Company is equipped with professionally managed team of skilled operators, efficient technocrats and dynamic marketing personnel's. The Company image has been developed in the market due to its high quality products through process excellence by promoting efficiencies, productivity and professionalism with the result our brand TEXMO has spread in the heart of millions of widespread clientele, Govt., Semi Govt. organizations and private sectors with in the country and abroad.



The company has recently started CPVC pipes and fittings. It will add to their net profit in coming quarters. The company is trading at P/E ratio of 17 and industry P/E is 40 which implies the undervalueness of the company. It showed net profit of 1.82 cr whereas in 2013 it was 1.23 cr, with CPVC in action, the numbers may boost from now on. Please do your analysis before investing and be patient with the stock to get good returns. With current market price of 11, it can be bought for long term.

Sutlej Textiles - a real multibagger

Sutlej Textiles and Industries Ltd. (Sutlej Textiles was incorporated on 22.06.2005 and was created out of a corporate restructuring exercise in which the Textiles Division of Sutlej Industries Ltd. (SIL) and DamanGanga Processors Ltd. Were demerged w.e.f. July 1,2005 and it is one of the flagship unit of the multi-product conglomerate K K Birla Group. The Group has its dominant presence in Fertilizer, Engineering, Textiles, Sugar, Tea, Coffee, Food, Products, media , information Technology , Biotechnology and Shipping.

Sutlej Textiles excels in all stages of textiles productions. Its versatile production facilities are vertically integrated, From spinning and weaving to dying and finishing to making apparel.

International presence:
Argentina, Bangladesh, Belarus, Belgium, Brazil, Cyprus, Canada, Chile, China, Columbia, Egypt, England, France, Germany, Greece, Hong Kong, Indonesia, Italy, Iran, Israel, Japan, Jordon, Korea, Kuwait, Malaysia, Mauritius, Mexico, Morocco, Pakistan, Panama, the Philippines, Poland, Portugal, Romania, Russia, Saudi-Arabia, Spain, Singapore, Syria, SriLanka, Switzerland, South Africa, South Korea, Taiwan, Tanzania, Tunisia, Turkey, Thailand, the United States of America, the United Arab Emirates(UAE) and Vietnam, among others."

Certifications:
Status of trading house certificate(conferred by the Government of India) with ISO-9001 quality certification.

The company is trading at PE ratio of 4.76 and EPS of 80.19. The stock is very undervalued and may go a very long way as industrial PE is 11. The company has constantly delivered good results both QoQ and YoY. The company is paying a dividend of Rs. 8 as compared to previous year of Rs. 5 which is a good sign. The promoters are holding 64% of the stocks. I believe the stock has a long way to go and will turn out to be a real multibagger. The current price of stock is Rs 350 which is already appreciated but fresh entry can be made at this price also, may test your patience.

List of stocks to buy at current price

Hello friends!!

I am starting this blog very late. I should have created it earlier. I was recommending stocks on moneycontrol forum till now,  but from now onwards I will be regular here also. I am updating y whole list, earlier I updated few stocks only.

Earlier Recommendations:-
1) Granules - recommended at 200.....reenter at 540
2) Waterbase - recommended at 18....reenter at 30
3) IRB Infratech - recommended at 110....reenter at 210
4) VST Tillers - recommended at 700
5) Ambika Cotton Mills - recommended at 310
6) Camlin Fine Science - recommended at 32
7) Marksans pharma - recommended at 13
8) Kaveri Seed - recommended at 456
9) Manjushree technopack - recommended at 160..reenter at 400
10) Plastiblends - recommended at 112
11) Suven Life science - recommended at 69
12) Munjal Auto - recommended at 57....reenter at 72
13) Banco Products - recommended at 86...reenter at 90
14) Dynemic Products - recommended at 30.....reenter at 38
15) Cera Sanitaryware - recommended at 595....reenter below 1300
16) Wonderla - recommended for ipo....reenter at 200
17) Dhanuka Agritech - recommended at 170...reenter around 400
18) Rama pulp and papers - recommended at 4.95....reenter around 6-7
19) RS Software - recommended at 210....reenter at 350
20) La Opala - recommended at 682....sell call given at 1250
21) Arrow coated Products - recommended at 68....sell call given at 132...
22) Kitex Garments - recommended at 138....sell call given at 256

I will keep posting more stocks.

How to Explore Most Undervalued Stocks?

Every value investor is in search for a stock which is cheap, have consistently grown earnings and built shareholder value while minimizing overhead costs and excessive debt.

We limit our search to the following criteria:

• Any dividend yield – When we search for stocks, we tend to be lenient on dividend yields because smaller companies reinvest their dividends into the company instead of paying them out like larger, more established firms.

• Low P/E Ratio – We are looking for cheap stocks, so a low P/E ratio is always a good start. P/E ratios are simply a company’s stock price over its trailing 12 months earnings, which is a good indicator of whether a firm’s stock is cheap or a bit overvalued.

• Low Trading Volume – Stocks with high trading values have already been discovered by Dalal Street and institutional investors. Once trading volume increases, stocks tend to float more towards their fair valuation.

• High Net Profit Margin – An indicator of strong management is high net profit margins, the percentage of net profit earned from revenue.

• Low 12 month relative strength – Stocks that have underperformed in the last year are some of the best buying opportunities available. Often when stocks rally and increase in price, we’ve missed the buying window and lost the chance to make any gains.

• Low Debt to Equity Ratio – Invest in companies that create cash, not debt. Excessive debt is a warning sign to investors of a company struggling to pay its bills. If sales turn flat, how will the company pay off its creditors and still make a profit?

• High Revenue growth year over year – Year over Year growth rates are better metrics to use than simply quarter over quarter rates because they show hints of long-term trends. We only want companies that increase earnings consistently each and every year.