TK Journal 2021-06-16

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:

Regards,

Tony