Focused Compounding

Checklist   Read most recent 10k and take notes   find 5 peers   Get longest term stock chart possible, record the number of years and use money chimp CAGR calculator to get the long-term return. We’re doing this because we want to make sure the stock works geometrically overtime   Get longest term stock chart possible for the closest peers and repeat step one. Often, we won’t have the longest chart for a company because of spinoffs. Compare these CAGR’s to the overall market. We want to see if these could work geometrically relative to the market   Calculate EV/Sales, EV- EBITDA, Debt-EBITDA, and CAGR, do min, max, median, mean, SD, CV for all of them   Do a Credit Check, Net Debt-EBITDA, Consecutive years with a profit, EBIT Margin and CV on Margin, Check Z-score and F-score    If the company has a history, get a history of the past financials from EDGAR or OTC markets under disclosures, or from the co’s IR. from past 10k’s for the longest term possible, always want Sales and EBIT for the comp