I have just finalized analyzing all stocks on the ASX. I have been Sorting them by value, debt, profits, Assets and so forth. And I have narrowed the list of all stocks i like down to about 20. Which i have bought a little of each of. Of the 20,
YOW appears to be the
6th best value (KRM was number 1 if your curious) And what has struck me about it, is how incredibly boring its price pattern is.
YOW has Low Debt, reliable profits, Decent assets, low price, and no significant recent dilutions or red flags that i have been able to find.
I realize that chocolate is not the most exciting financial space. But the profits have been consistent. And It does not seem outside the realm of possibility for those profits to rise. (There is a whole generation with Yowie nostalgia, that could be tapped into (I am a 90s kid)
Even if the company folded tomorrow and their current assets were distributed to all shareholders, then
all share holders would more than
double their money(Book value is around
10 cents per share)
Its not really clear to me, why one of the bigger boys has not already taken them over, it looks like easy cash to me. Maybe illiquid assets?
Am i missing something important about this company?
Anyway back to the point of this post: Assume for argument sake that this stock is "cheap" (Whatever that means) But if it never goes up in value, then its obviously still a bad investment. (And therefore not cheap)
What factors do "Average people" Look at when choosing investments exactly? And What exactly Defines a "Good stock"? (And please don't give a definition that would require me me to know the future) I am more trying to get insight into the minds of other people. Because it seems clear that they are not on the same wavelength as me.
*I realize that not many people do an objective analysis of all stocks like i have. But honestly its not that hard to do if you have some time on your hands and a subscription to Investsmart/simply wall street. I could not be the only person to have done this.
