【Thursday Special】How to pick quality companies when it is in the dip?

MillionaireTiger
2023-05-25

Welcome to this week's Thursday Special!

After the Japanese stock broke through the record high this week, well-known investment banks are still bullish on the future of the market, this potential stock to "one of the best"?

Soaring more than 500 billion Warren Buffett's bullish Japanese stocks are really going to turn the tide?

The REAL Reason Buffett Is Buying Japanese Stocks In 2023 - Should You? - YouTube

So, today’s topic is “How to pick quality companies when it is in the dip?”

You may find some clues from

- Growth

- ROC

- Margins above industry

- Cash conversion

- Interest coverage

- FCF yield > Risk-Free Rate

- Low dilution

...

Please share your opinions with evidence in the comments.

Tips:

Everyone who shares specific experiences or strategies will be rewarded.
No coins for the exact same one.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Shyon
·2023-05-26
TOP
Buying the dip is a common strategy but not easy indeed Generally, my strategy is to monitor closely especially when the market has undergone a sharp and sufficient correction.

Once the market has squeezed out the bubble and digested high valuations, it's time to look for quality companies that are worth investing in.

Stable and growing earnings, high return on equity (ROE), high dividend yield, and positive cash flows are common indicators of a company’s financial success, indicating that the company could be a good investment.

Hope this helps!
@koolgal @rL @Aqa @GoodLife99 @Universe宇宙 @LMSunshine @melson
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- ShyonReplying tomizzle:
  Yeah agree that the effect wont be obvious but in a long run, you will still buy at a low point for those good companies. Just like the semiconductor share now, many seem to be on a midterm downtrend but some catalyst will send most of them to space. Many are approaching new high already.
  2023-05-27
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- mizzle:
  When the turmoil in the U.S. banking sector initially erupted in early March, there were some signs that investors were trying to "buy the dip" for quick profits. "The strategy is anachronistic. These regional bank stocks failed to rebound as expected, making investors hesitant to try buying again.
  2023-05-26
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Tigress02
·2023-05-26
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Pick undervalue stocks because their prices will eventually return to their intrinsic value And when that happens the investors can gain from the variations between the cost price and current market price
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- Tigress02Replying toriffy:
  No Idea I’m a newbie Just starting out like you Try ask Google ❤️
  2023-05-29
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- Tigress02Replying toriffy:
  Or try and ask ChatGPT, re type your question here: https://openai.com/blog/chatgpt
  2023-05-27
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- Tigress02Replying toriffy:
  Try and ask Google (www.google.com) Type that question again in Google ❤️
  2023-05-27
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MHh
·2023-05-25
TOP
P/B ratio can be an option to first evaluate if it is even ‘value for money’ to buy because even if it is a dip, it may still be expensive
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- MHhReplying tohappygo:
  I wouldn’t
  2023-05-27
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- dimpy:
  How do I know if the stock I want to buy is really worth the money based on its P/B ratio?
  2023-05-25
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- happygo:
  💸 Should I buy a stock just because it's on sale, even if its P/B ratio is still high?
  2023-05-25
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LMSunshine
·2023-05-27
I use the 52W High-Low to calculate the average and try to enter popular tech stocks (i.e. MAANG,NVDA,AMD) and leveraged bull ETFs when it dips below that value and I keep averaging down if it continues to drop😉 THX Loads @MillionaireTiger for this Helpful Investimg Event❣️Friends share a different comment from others for coins❣️@BillionaireN @aiyoh79 @Moolele @mster @intheloop @drandy @eeth @Zack44 @Cyberguard @kaite @BlueDragon @Tonyoh @AlfonsoDex @InvisibleTig @AlanTiger @kwk @InvisibleP @miaomiao007 @TigerHulk @HappyRat @Zacv @Alconies @justforcoins @cubinvestor @我i168 @ZeroG @JennyChiang @MGOH
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- LMSunshineReplying tojingli:
  Agree❣️
  2023-05-28
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- jingli:
  For now, Nvda is dominating the market. Amd is chasing but depands on if its upcoming HI300 can compete with Nvda's Grace Hopper chips later?
  2023-05-28
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- ColinThorndike:
  A decline in price is coming. No stock grows to the sky without rain
  2023-05-28
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icycrystal
·2023-05-26
TOP
Japan used to be an expensive place to live based on their standard of living. over the years things have changed. things seem to be cheaper and more affordable now as compared to last time. some of their brands no longer dominate globally (eg.Sony). however, I do believe Japan will be able to "get back in the game" if they administer the right strategy to gain back market shares. they are after all innovative people. [smile] [smile] [smile]
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- wimpy:
  How has the decrease in cost of living in Japan affected their economy and job market?
  2023-05-27
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- mizzmo:
  What are some of the strategies Japan can use to regain its global dominance in technology?
  2023-05-27
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airui
·2023-05-26
TOP
i will only consider mega caps when they are oversold on both daily and weekly charts. if not i will sell some put options.
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- Twelve_E:
  I like your strategy，thanks！
  2023-05-29
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- wubbie:
  How do you manage risk when selling put options in a volatile market?
  2023-05-27
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- wimpy:
  What are the indicators you look for to determine oversold conditions in mega caps?
  2023-05-27
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nerdbull1669
·2023-05-26
TOP
I look at their free cash flow and intrinsic value, when these stocks is below it's intrinsic value and have a good or strong cash flow, it is time to buy them for mid or long term.
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- nerdbull1669Replying tomizzmo:
  I develop a program to calculate the intrinsic value because I find that some other calculation given tend to be on the higher side which make it rather not so accurate.
  2023-05-28
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- nerdbull1669Replying tosnappyz:
  u can look at their cash flow used for operating and investing during their quarterly reporting, you do your assessment whether this company is investing and getting returns to pump back to their cash flow.
  2023-05-28
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- mizzmo:
  How do you determine the intrinsic value of a stock and is it always reliable?
  2023-05-27
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Aqa
·2023-05-27
TOP
Buy the dip when the macro trend looks picking up. Is japanese stocks going up with a push by Warrem buffett? Choose the established market leader. Check out The growth of the company. Its a good sign if the company is growing . ROC is also a good sign. The margin above industry is also a considerstion for me. I’ll DCA if all criteria are positive. Thank s @MillionaireTiger
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- GoodLife99Replying toAqa:
  sorry for late reply, I didn't study for Intel, but from the graph itself, it seems a good opportunity as it's has yet to surge for so much.
  2023-05-29
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- Aqa:
  @GoodLife99 are u eyeing any tech stock to buy? How do u think Intel?
  2023-05-27
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- ShyonReplying toAqa:
  Haha thanks! Sorry that the tag didn't work
  2023-05-27
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Bons
·2023-05-26
TOP
I'll pick 🇯🇵 companies which have already built its international networking, such as having branches in multiple countries. after that, I'll looking into their financial statements whether they still generate a sizable profit or logical income.
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- BonsReplying tofizzzi:
  well, to begin with, a Google would help in revealing whether it has multiple branch/ representative offices in many countries/regions.
  2023-06-03
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- BonsReplying tosnappyz:
  a lot of. actually I'm not too good since many articles in here have reporting that many factors needed to search for the company profitability, such as: market share, historical data, market penetration, customers growth, ROE, ROA, and so on.
  2023-06-03
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- snappyz:
  What factors should I consider when analyzing a company's financial statements to determine its profitability?
  2023-05-27
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Cory2
·2023-05-26
TOP
As far as I know Japan is bringing home many of it’s offshore (manufacturing) companies. For this reason I would be doing some research on this, and looking at companies with a longstanding reputation for quality and good profits. Japan is looking to increase it’s exporting power globally, and though this may take some years, the potential for growth is there now as Japanese companies start building and shaking hands on deals…
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- jazzyco:
  What kind of deals are Japanese companies making in order to increase their global presence?
  2023-05-27
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- wubbie:
  What is the potential for growth in Japan's exporting power, and how long will it take to see results?
  2023-05-27
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0QH
·2023-05-26
TOP
in sg, I look for monopolistic stocks like $NETLINK NBN TRUST(CJLU.SI)$ . They are a better alternative with fixed deposit interest and tbills yield dropping
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- glitzy:
  With fixed deposit interest and tbills yield dropping, what other investment options should I consider besides stocks?
  2023-05-27
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- jazzyco:
  What other monopolistic stocks should I look for in SG?
  2023-05-27
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tradelaggard
·2023-05-27
TOP
go back to dcf. without a dcf. you won't know how cheap is cheap. cheap can get cheaper. dcf will let you know if cheap is undervalued.
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- glowzi:
  What are the key factors to consider when evaluating a company's financial health?
  2023-05-27
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- dimpy:
  How do I calculate the fair value of a stock?
  2023-05-27
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fxaw
·2023-05-26
TOP
The easiest is buying the good ETF in the dip.... or just buy what the Buffet had or accumulated....
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- happygo:
  Is it really a good strategy to blindly follow what Buffet is buying?
  2023-05-27
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- glowzi:
  How do I know which ETF is a good buy during a dip?
  2023-05-27
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LMSunshine
·2023-05-27
I use the 52W High-Low to calculate the average and try to enter popular tech stocks (i.e. MAANG,NVDA,AMD) and leveraged bull ETFs when it dips below that value and I keep averaging down if it continues to drop😉 Share a different comment from others for coins❣️@alylady @moliya @maricel @Sonoma @LuckyPiggie @Doge2theMoon @equitygenius @StayHome @SGboy @Sandyboy @Stayclose @DMTrader @BettyT @Bunta @tigjun21 @JohnL @jace0777 @DoreamonGo @TTrade @VonCat @boonk @Trevelyan @jgaldon @Kok @Agxm @Dodonan @BubTigger @Decromer @OddEyeCircle @StarAce @zerolih @WuDi @Asphen @MasterStonker @MoneyCub @MiniAce @StayCalm @ee244c @Huangyulee @tarotsgirl @Lord_Kuberan @ShengSoon @jllwang @Shiella @cristine @Gunawanh @WLing @Zash @Snoopymint @GrumpyDino @YTGIRL @VivianChua @MSJYJ @YJ13 @bernardtayet @Kindryl @angyenyen @KBWSG @JazzyTizzy @Alupigus @tigernoob @MojoStellar
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Alubin
·2023-05-26
TOP
still have to check for good fundamentals. for example P/B ratio, recent news, history. then dca into good potential
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- gleezy:
  How much should I be investing when I dca into a company with good potential? Is there a certain percentage of my portfolio I should be allocating?
  2023-05-27
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- cutzi:
  How do I determine if a company has good fundamentals? What metrics should I be looking at?
  2023-05-27
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Bunifa Latif
·2023-05-26
TOP
I willl find based on the dividend yield and its past performance and see what others have to say
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- fizzzi:
  How has the company's stock performed in the past year compared to its competitors?
  2023-05-27
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- happygo:
  What is the company's dividend history and payout ratio?
  2023-05-27
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Papa Bear
·2023-05-26
TOP
I like to look at cashflow primarily. However the business itself must have a moat otherwise it is not a long term investment for me.
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- twiddly:
  What do you consider to be a "moat"? How do you assess a company's competitive advantage?
  2023-05-27
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- gleezy:
  How do you evaluate a company's cashflow? What metrics do you look for?
  2023-05-27
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LMSunshine
·2023-05-27
I use the 52W High-Low to calculate the average and try to enter popular tech stocks (i.e. MAANG,NVDA,AMD) and leveraged bull ETFs when it dips below that value and I keep averaging down if it continues to drop😉 Share a different comment from others for coins❣️@SR050321 @CYKuan @HelenJanet @rL @Universe宇宙 @Jadenkho @melson @Mrzorro @GoodLife99 @SPOT_ON @Kaixiang @BenjiFuji @RDPD富爸穷爸 @SirBahamut @b1uesky @PJoo @Pepermintpat @RiciaYang @jat @Omega88 @爱上投资学 @Zeniv @Elon2 @Yonhuat @Joker_Smile @grizzlylee @FrankieRed @spkek @snoopy123 @psk @pekss @amroui @Ericdao @StickyRice @StarLuck @Success88 @kungpao @CL Wong @Derrick 1234 @MeowKitty @Thonyaunn @紫南 @Zarkness @Ah_Meng @Ratt @Viv22 @aunteenat @Cris0 @Brocco @AhGong @deal2deal @nickname168 @Ccl2 @Lcc73 @HLPA @WanEH @markele @pipiso @hlw8888 @Huiz84 @Kingcat @Jo_Tan @RedpillBluep @Furore @breAkdaWn @boardy @Soyabean89 @ngph @KYHBKO @Lionel8383 @Downton @SanWangtikup @Setia100 @th0mastan @LesterTan @IAS @HSTew @Kerrisdale @PhilipChow
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第N次大变革大分流
·2023-05-26
TOP
看ROE值，看现金流，看盈利前景，看护城河，最重要的还是护城河，护城河强的企业即便在熊市之后依然能够迅速崛起。把对手甩得更远。熊市是检验护城河的重要途径
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StickyRice
·2023-05-30
I will pick based on momentum. Usually I will try to see if the stock over bought or oversold first
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