Hi folks,
I have made the changes to the Master Checklist in line with Alice’s query about not catering for blanks in columns BW and CA.
These columns refer to the manually entered scores for lowest of the last 6 P/E’s and Consistently Increasing Equity.
In the past versions of the checklist, these columns were scoring blanks as zeroes. In essence, the scorecard was saying if you don’t have a P/E or at least 2 equity results then the company is marked down.
As a broad brush approach to scoring this was fine, however, there are some nuanced situations that were being brushed over.
From now on, the rules around these scores wil need to change to cater for the following:
Where the current P/E is N/A in Stock Doctor, enter a Zero in the Manually Entered Data sheet. In other words, I am deliberately marking a company down for not making a profit. Examples of this are ATL and ATS.
Where the current P/E ratio is the first and only P/E ratio in the last 6 halves, then leave the score as blank. In other words, we can’t score this company on this metric. Examples are C6C and 8IH.
The same applies to recently launched companies that only have 1 entry recorded in SD for their balance sheet. In this case, again leave the score as blank for Increasing Equity. An example of this type of company is DSK.
The Bible will be updated to reflect these changes.
Andrew Flitman is going to make some amendments to his version of the checklist to reflect these changes, too.
A copy of the amended Master checklist is in our Dropbox folder. It’s called ‘TK QAV Master Spreadsheet 2021-06-16’.
I have also made a few housekeeping changes such as:
  • Adding a disclaimer page
  • Removing the analysis on the performance of stocks with a new positive operating cashflow. BTW, this looks promising, but I will continue to track this separately for another half at least before adding this metric to the scorecard.
  • Clearing the columns that relate to Share Analysis. Note that these columns have been cleared but not deleted as deletion through out the VLookup tables.