Best and worst buys

Sketch notes on two threads on Motley Fool

Best Buys in small caps:

No debt
Cash rich
Cash generative.
Increase in cash balance year on year.
Pays dividends, or has the ability to pay dividends and intend to in the med term.
Good management with a big stake in the company.
Management not over paid.

Worst buys in small caps:

Very plausible and charming Management
Debt or keep coming to market for cash.
Not cash generative but eats money.
No dividend or no sight of dividend in near future.
Management with little shares or only buy when share price falls and not really significant buys.
Not an old established company.
Over paid management.
High interest (lots of posts) on ADVFN with people promising great wealth in the near future.
Great excitement when the company releases an RNS saying the details of when the management emptied their bowels.

A Union Flag flying outside the Corporate Head office and/or an impressive illuminated fish tank in reception.
A recent change (or one planned)in the Company’ auditors.

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About mcturra2000

Computer programmer living in Scotland.
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