Would be good if you could pick a random stock and do a quick analysis using the criteria you just explained.

[quote author=adebrain post=39301352]Picking the right stocks in the market to invest in is not an easy task, and your success in picking the right ones is not always guaranteed.

Be that as it may, these eight signs can help you determine if a stock is getting set to crash.

1. If the company has a negative cash flow.

Cash flow is a company’s lifeline. When a company’s cash payments are bigger than its receipts, it means the company has a negative cash flow that can eventually lead to insolvency.

2. High Debt to Equity Ratio

A debt-to-equity ratio measures a company’s bankruptcy risk by comparing its long- and short-term debts to its shareholders’ equity. A high ratio usually means the company has been aggressive in financing its growth with debt. Eventually, this debt can become too much to handle.

3. Interest coverage ratio

The interest coverage ratio reveals if a company is having difficulty paying its debt. If a company’s ratio is below 1, can’t meet its debt what is stock all about?

This is informative

adebrain:

6. Watch out for stock market activity of the company owners, directors or executives

Companies must divulge insider trading, as in the purchase and sales of shares owned by substantial shareholders or directors. They have the most current intel, so heavy selling or buying can be a sign.

Where can one get such info on Nigerian stocks?

adebrain:
Picking the right stocks in the market to invest in is not an easy task, and your success in picking the right ones is not always guaranteed.

Be that as it may, these eight signs can help you determine if a stock is getting set to crash.

1. If the company has a negative cash flow.

Cash flow is a company’s lifeline. When a company’s cash payments are bigger than its receipts, it means the company has a negative cash flow that can eventually lead to insolvency.

2. High Debt to Equity Ratio

A debt-to-equity ratio measures a company’s bankruptcy risk by comparing its long- and short-term debts to its shareholders’ equity. A high ratio usually means the company has been aggressive in financing its growth with debt. Eventually, this debt can become too much to handle.

3. Interest coverage ratio

The interest coverage ratio reveals if a company is having difficulty paying its debt. If a company’s ratio is below 1, it can’t meet its debt obligations with the period’s earnings before interest and tax.

4. The usual share price decline

The fourth sign is a decline in share prices. A sustained decline almost always precedes a corporate collapse. As an example set in the US, Enron’s stock started falling 16 months before it went bust. But also, a declining stock can signal a buying opportunity. Consider the next four signs to distinguish between a collapse and an opportunity.

5. Listen to profit warnings

Profit warnings should be taken very seriously. Growing evidence suggests markets under-react to bad news. Don’t forget to always listen to analyst calls, as you can glean very useful information from the questions being asked by analysts who cover the stock.

6. Watch out for stock market activity of the company owners, directors or executives

Companies must divulge insider trading, as in the purchase and sales of shares owned by substantial shareholders or directors. They have the most current intel, so heavy selling or buying can be a sign.

7. Sudden exit of key staff of the company

The sudden resignation of key executives or directors can also be a bad sign. Companies may sack a key executive as a sign that the company has had a terrible misstep and is making management changes as atonement, or as a sign of realization that management has been under-performing.

8. Investigations by regulatory bodies

Finally, formal investigations by regulators such as SEC, frequently precedes a collapse. Companies may dabble into wrongdoing in order to stay afloat when they get into financial distress. When the company is being investigated, it is very likely that they have been caught in the process, and will pay for their crimes. And the shareholders will ultimately suffer for it.

Source: http://www.ebtsconsults.com/2015/10/these-8-signs-can-tell-you-if-stock-is.html

Nice one... Thanks Op!
Will make use of this.

/
Stocks are no longer what they used to be. With algos running the game, Dark pools and HFT are in control. You have to simulate their algos to come out ahead.

/

Thanks OP, shame I don't have the money to build a portfolio here in the UK...

CountDracula:
Just have a question, what is stock?

dont mind him...this is happening all over the world,not only in nigeria....he is just looking for ways to blame buhari........

[quote author=cao post=39308328]Thanks OP, shame I don't have the money to build a portfolio here in the UK... [/quote

Dear, u don't need all d money in d world to build a portfolio u knw...

Wit N50k, u can open an online account in Nigeria & trade on d floor of the Nigerian stocks exchange from anywhere in d world.
Wen u hav sufficient knowledge of investing in d mkt, u may decide to gradually increase ur stakes.

Cheers.

eduxerxes:
...If Cecilia Ibru is the Group MD.

If u're looking for advice on stock, holla me! I'm a Broker...I may give you some tips.

I doubt your competency as a stock broker if d comment above is all you can contribute to an educative thread like dis.

OakPearl:
Dear, u don't need all d money in d world to build a portfolio u knw...

Wit N50k, u can open an online account in Nigeria & trade on d floor of the Nigerian stocks exchange from anywhere in d world.
Wen u hav sufficient knowledge of investing in d mkt, u may decide to gradually increase ur stakes.

Cheers.

I actually already have a very decent portfolio in Nigeria, the advantages of having an accountant as a mother. While, kids were spending the money their relatives gave them on sweets, my mother always invested ours. I meant trying to start with the London Stock Exchange, every time I tried to check, they usually advice you to start with £10,000.

oluemmakay:


I doubt your competency as a stock broker if d comment above is all you can contribute to an educative thread like dis.

I wish we can meet in person. I've got a very appealing sense of humour! If u're the rigid type, I'm sorry.







Proudly an Actuary!!!

ephi123:
Would be good if you could pick a random stock and do a quick analysis using the criteria you just explained.

Would do just that in a bit.

adebrain:

Would do just that in a bit.

Okay, thanks!

Jerekre:



Where can one get such info on Nigerian stocks?

Quite a few sites. check through the links below
http://www.nse.com.ng/
http://www.bloomberg.com/topics/nigeria/
http://wwww.easykobo.com/
http://www.proshareng.com/
http://www.ebtsconsults.com/

Note: ProshareNg has a sister website called TheAnalyst though you would need to subscribe to get full access. However an easy way out is to follow them on twitter.

Follow the following handles on Twitter
@TheEconomist
@StockmanNigeria
@TheAnalystNG
@ade9ynoni

if you have Dstv or Gotv, watch the following stations
CNBC Africa(410 on dstv)
Bloomberg(411 on dstv)

Nairalanders should please help out with the station numbers with respect to GOTV

I do hope this would go a long way.

Dynamitechick:
Don't really know much about this looking to invest in stocks soon op might need your help

Would be willing to help. However, for a start you can check out the investment section of Nairaland, there are quite some intuitive, informative and educative stock threads.

@ihedioramma:The interest coverage ratio reveals if a company is having difficulty paying its debt. If a company’s ratio is below 1, can’t meet its debt what is stock all about?

The stock is doomed(loss of investor confidence which would lead to massive sell off).

just like the "PUMP and DUMP"phenomenon

ednut1:
Buy stocks at ur peril

I prefer stocks anyday to any Fixed income assets..

The Thrill, The Analysis, The tension and The returns...

adebrain:
@ihedioramma:The interest coverage ratio reveals if a company is having difficulty paying its debt. If a company’s ratio is below 1, can’t meet its debt what is stock all about?

The stock is doomed(loss of investor confidence which would lead to massive sell off).

Go back and read the books you have about stock and read the books about the people that make money from stock well and understand how they make there money with this oando news. but is it must to have oando? why do you people keep on saying it ? there are more than ten good stocks to buy now with good news. please live oando for me and my brother's and sister's in the LORD that will like this post please focus .

adebrain:


Quite a few sites. check through the links below
http://www.nse.com.ng/
http://www.bloomberg.com/topics/nigeria/
http://wwww.easykobo.com/
http://www.proshareng.com/
http://www.ebtsconsults.com/

Note: ProshareNg has a sister website called TheAnalyst though you would need to subscribe to get full access. However an easy way out is to follow them on twitter.

Follow the following handles on Twitter
@TheEconomist
@StockmanNigeria
@TheAnalystNG
@ade9ynoni

if you have Dstv or Gotv, watch the following stations
CNBC Africa(410 on dstv)
Bloomberg(411 on dstv)

Nairalanders should please help out with the station numbers with respect to GOTV

I do hope this would go a long way.

Thanks a lot.

eduxerxes:
I wish we can meet in person. I've got a very appealing sense of humour! If u're the rigid type, I'm sorry.







Proudly an Actuary!!!

Accept my apology too... I only expected that you educate us more....

cao:


I actually already have a very decent portfolio in Nigeria, the advantages of having an accountant as a mother. While, kids were spending the money their relatives gave them on sweets, my mother always invested ours. I meant trying to start with the London Stock Exchange, every time I tried to check, they usually advice you to start with £10,000.

Oh, fantastic then.
And most importantly, uv imbibed d wealth creation habit by even attempting to start over in d LSE.
All I can say is uv got d #1 ingredient : Desire/Passion.
It's only a matter of time b4 d money shows up somehow.
Just keep d faith.
Cheers.

[quote author=cao post=39312945]

I actually already have a very decent portfolio in Nigeria, the advantages of having an accountant as a mother. While, kids were spending the money their relatives gave them on sweets, my mother always invested ours. I meant trying to start with the London Stock Exchange, every time I tried to check, they usually advice you to start with £10,000.

You don't need that much to open a trading account with s stock broker google AJBell and register with.I open my trading account with £500.or email me to give more details.