Great stuff Nambo,
Just chiming in from my limited experience:
@JohnDeere99 as a FA newbie here something thats really helped getting started generating ideas is a very simple yet effective question I ask myself "Would I pay the EV for this company"
- Calculate EV (MC - cash/debt/other assets)
- Ask yourself would you genuinely pay up the cash to buy the companies business expecting to make a return
- If so, investigate further.
Looking at polar ends, you have RAP. By no means would I pay up 1/4 of a billion for the App hence I wouldnt buy it on any FA basis. Perhaps a technical trade. Or BRN when it was 62.5c.
Then you have other end stuff like RDG which was brought up on the STT a month or so ago.
ARM which was brought up around April (Had a negative EV so "no brainer" you pretty much get paid money to acquire the company at the price it was trading at then).
And JCS (which I know off the top of my head), I personally would pay ~$4.6m of my own money to have the business in my hands. $10m revenue, $0.5m NPAT, little growing company signed up to a big player so I guess I see potential in it.
I then dig deep further - Peer comparison, Management, growth etc.
Also ask "Is someone willing to pay a higher price than I am in the future" - Cause you're going to eventually have to sell higher.
