Quarterly Results: Important things to look out for in stocks ..!

The listed companies publish its performance as a financial position report on a quarterly basis. It is important that those who have invested in the company and those who plan to invest pay close attention to this financial position statement. Here are the important things to look for when selecting yours ..! Poor performance, stock price rise ..! A company's net sales and net profit decreased significantly during that particular quarter. However, the share price has started to rise after the release of the financial position report. It remains to be seen what the reason for this is in this case. There are many reasons for the share price to rise as the company performs poorly. The market expects worse financial conditions, the company has received new orders, plans to significantly reduce the company's debt in the coming quarters, and plans to expand. Similarly, if the company's share price goes down after the quarterly results are released, you need to know the reason for it and act accordingly. Long-term investors should not fail to buy and add shares in addition to the downturn, as the future of the company looks good. At the same time, it would be profitable for short-, medium- and long-term investors to withdraw from the stock if the company's future is critical. Also, keep a quarterly conclusion and do not come to any conclusion. We need to explore whether to continue investing in that stock as the company’s share price continues to fall for 3 or 4 quarters. Stock related issues ..! When it comes to equity, one should also look at equity return (EPS), book value, increase / decrease in share capital, founders, foreign financial institutions, domestic financial institutions (mutual funds, insurance companies, etc.) investing / selling. In line with these changes, the company's share price will fluctuate as the quarterly financial position report is released. Among the things said here, rise is seen as positive and decrease as negative. Shares mortgage Has the share capital of its founders in the company decreased at the end of the particular quarter? Notice if there is an increase. It is important to be cautious if it continues to decline. This is how the problem arose in Satyam Computer. Next the founders should also look at the extent to which the shares are mortgaged. It is important to be vigilant as stock mortgages continue to rise. Those who belong to the company during the particular quarter, it is necessary to know the reason for buying or selling more shares and act accordingly. Founders and company owners are viewed positively if they buy shares. That alone is seen as a disadvantage if sold. Warak loan of banks Banks should avoid investing in such banking and financial institution stocks if their net worth is consistently high in financial institutions. It is better to get out of it if you have already invested. It's okay to lose through this. At the same time, the decision to buy or sell a company share should not be based solely on quarterly results. Investment and sales decisions should be based on the business environment of the company, its future plans, the fundamentals of the company, sales growth, debt consolidation and cost reduction measures.

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R K G Capital Gains

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