Monday, 8 February 2016

What is multibagger stock

    Multibagger stock as by name itself reveals its identity. A stock which gives multi fold return of your invested money in short term or long term is called multibagger. There are some ways to identify multibagger stocks. Each individual has its own way to identify multibagger stocks. Here are few ways below:-

1) know about the  company - Is it's products have it's demand in market or not .What is view in the  future. Is it basically or fundamentally sound company or not. Is its products consumption theory can rule the market in future or not.

2) Debt theory.- Is the company has some debt or not, if it is then at what level. Is its debt manageable or not. It will be better if it has no debt or negligible debt, means debt free company.

3) View of future- +-Is the company has view to identify the nerves and taste of market and can it will launch new plan or product accordingly in future so that can grow its market share. what is its order book, is it sound or not.

4) Performance of  Quarterly results- Is the company doing well or not, is the company cash rich or not. Study its quarterly results in well manner. what is his balance sheet and what is its operating margin or profit margin, study it well.

5 ) Book Value-   what is its book value and on what rate is it currently trading. is it below its book value or not. it's really matter.

6) EPS - What is earning per share, study it well. it may be low or may be high. Study it carefully.

7) Dividend -Is the company declaring  its dividend regularly or not. If it declaring then at what percentage it may be matter.

8) Chart- On chart is it strong or not. What is its resistance level at upper side or supporting level at downward side. it may be matter.

* A  stock will  become good buy, only when it has been picked at good level.
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