Strategies

here's a blast from the past (got to be 10 years old) that i kept when i thought i could analyse a company. may be of use to some-one. i cannot claim it as mine, it is a cut and paste from a far more intelligent form of life than my good self.

hope it helps

1) A recurring revenue stream (that a customer base is constant).

2) Organic growth of revenues from that existing base.

3) Potential to acquire revenue streams from acquisition of new customers.

4) A product that is easily differentiated, with strong brand and pricing power.

5) A cost base that is constant or lagging revenues on a marginal base. The best base is one that is fixed.

6) Exists in a market that is expanding, and the position of the company is improving within that market, ie. Increasing market share.

7) High return on equity.

8) High operating cashflows (you can fudge profit but you can’t fudge operating cashflow).

Avoid Companies that fail point #1.

sorry folks, but since joining this forum for a bit of enjoyment mixed in with the information sharing, i've discovered a few gems. how's this for a bit of sage advice. don't know who's work this is either!

"When the market runs over you it not only reverses over you a few times, it gets out, tap dances on your head and then drives off. Only to repeat the process all over again in case you didnt get the message to get out of the way the first time......you are the only one stopping yourself from getting run over. In the market no one else will help you."

hmmmmmmmmmmm

Would ARB fit that bill then or the sydney aquarium??