Rank: Administration
Posts: 248
Thanks: 3 times
Was thanked: 50 time(s) in 44 post(s)
|
The end of 2018 had an unfortunate find for me. I found evidence of termites in my home office. An inspection found they were localized to one wall. So 2019 started with an extermination treatment of that wall and prevention treatment of the rest of the house.
It struck me a bit later that this can be a metaphor for portfolio management. Do you have some stocks that are portfolio termites? These are stocks that have not performed to expectation, insidiously decreasing your returns, but are still in your portfolio. Like real termites these stocks do leave evidence of their presence.
Here are some things that can be evidence of a stock that is a potential portfolio termite:
Decreasing revenue
Decreasing pre-tax profit margins
Decreasing return on equity
Increasing debt.
These items may not indicate a long-term problem. They are signs that more investigation may be needed. Fortunately, the needed information is widely available. It is here on StockCentral, on ICLUBcentral’s Equity Research Service and other services such as Value Line and MorningStar.
So keep a watchful eye for portfolio termites in your portfolio. Do the portfolio inspection and then do the needed maintenance. It will help keep your portfolio strong.
Russell Malley
|
 2 users thanked Pawche for this useful post.
|
|
|
|
|
|
[b][DAILYMOTION][/DAILYMOTION][sheldonjamestarg@@gmail.com/b]{I would like to apply for the terminal issue of this archives to please get my investorline working asap?+{
|
|
|
|
|
|
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.