Find stock priced not over 10 baht with basic factors
When talk about the stock priced lower than 10 baht. It is understood that the stock is cheap, small company and low market Cap. It is the investment field of small budget individual investors because each transaction is not very much money. For this reason, low price stocks are traded in short term or speculative.
So you can see that this type of stock is active in trading. Because investors are ready sell to make profit and then find other low-priced stocks to invest again. At the same time, some stocks are usually only interested in some period. Especially during the news flow, making the trading bustling at that time. For that reason, most trading requires technical analysis to make investment decisions.
The target of low-cost stock investors is profit from the difference in price (Capital gain) by buying cheap and wait for the sale when the price increase.When the rate of increase is very high.
Buy ABC stock at 2 baht Next week, the stock price rises to 3 baht. If sell it will get 1 baht profit. Or it will yield a profit of 50%
However, there are many stocks that are priced below 10 baht with strong fundamentals. Have a tendency for bright business growth. It has the ability to make good profits, meaning that investors can invest in the long run.
Cannot deny that the stock price will increase it must have strong fundamentals.And most importantly, Net Profit should continue to grow. Core earnings should not come from Mergers & Acquisition (M & A) or from asset sales.When profit grows Net Profit Margin should also increase continuously.
By measures the financial ratios of net profits and sales, can tell the profitability, the performance and ability of the management team.
Net profit margin = Net profit / Sales x 100
The way to see net profit margins is to compare with competitors in the same business. If the net profit margin is high. It demonstrates the high quality of operations and products. If it is low, this indicates that the company may have operational problems such as uncontrolled production costs, high competition then cannot increase the selling price.
In the year 2560, XYZ had sales of 250,000 baht, net profit of 50,000 baht, and net profit margin of 20%
Net profit margin XYZ Company = 50,000/250,000 x 100
It means that every 100 baht invested in XYZ will earn 20 baht.
Next, compare the ratio with competitors in the same business. To see which companies are more effective in doing business.
ROE is the return on assets. To help tell the investor what the company is a money machine. It is simple to calculate from 1 baht of shareholders. Which company use that money to do business and make more profit. It has the ability to allocate investment to generate better returns for shareholders.
ROE = Net Profit/ Shareholders' Equity
In the year 2560, ABC company had a net profit of 150,000 baht, total assets of 300,000 baht, and total liabilities of 20,000 baht.
Shareholders' Equity = Total Assets - Total Debt to be 300,000 - 20,000 = 280,000 Baht ROE = 150,000 / 280,000 = 0.54
ROE = 150,000/280,000 = 0.54
Means that the investment of 1 baht ABC company can make a profit of 0.53 baht
The ROE increased steadily. This means that the company has the ability to manage and make good profit from shareholders' equity. However, if the ROE decreases, it may reflect the decrease in the efficiency of investment management.
Investors should also look at the Dividend Yield, which is based on historical returns.
This is a way to look at stocks that are priced below 10 baht at quality, growth, price and return. If investment in the quality stocks lie this, portfolio will be "profit"