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Thursday, April 25, 2024

Invest to win with Cash Cow Shares

Because investors need to be more careful in investing. In addition to investment options in “Dividend Stock” considered to be a safe investment in stocks and is a safe haven for investors. “Mr. Pharuay” had been mentioned before. There is another type of stock that is equally interesting.

that is “A stock with a lot of cash on hand” or Cash Cow Company is another type of stock that is suitable for investment to cope well with the volatility of economic numbers.

website setinvestnow by the Stock Exchange of Thailand Explain the meaning of Cash Cow Company that is a business with cash left in the business. and can be produced continuously with low or almost nonexistent maintenance costs

It is comparable to “a cow that can produce milk consistently”.

Now, investors like us How do I know which stocks are in this category? It requires reading the statement of cash flows (Statement of Cash Flows) 3 types, which are

1. Statement of cash flows from operations Cash flows of activities that generate income and expenses If income is greater than expenses This statement will be positive. This means that the business is liquid. Can be used to pay dividends, expand the business, and in times of economic crisis, it is an indication that this business can still go on.

2. Statement of cash flows from investments Cash flows arising from the acquisition or sale of long-term assets such as land and other investments that do not affect operations If this budget is negative, the better. Because the acquisition of assets means that the business is expanding.

and 3. Statement of cash flows from procurement Cash flow from fundraising or debt or dividend payments This figure shows the strength of the financial statements and the suitability of financing. It’s positive when it comes to fundraising. and negative when the money is used to pay off debts or dividends.

Now, when investors understand that The numbers of each type of cash flow statement Shows the level of interest in investing in that stock, then can use the stock market screening tool SETSMART to help scan for stocks. Just set the parameters in the search conditions. Just like this, the list of CASH COW stocks will be displayed for us to choose for shopping and investing.

Until now, many investors probably want to try and choose stocks for themselves. find the right opportunitystock marketSETSMART is now open for a 15-day free trial. Just apply for a SET Member membership. If interested, click apply by following this link. https://www.setsmart.com/ssm/login

SETSMART Multi-Asset Class Data Analysis Investment Tool www.setsmart.com

Don’t miss the opportunity to sharpen your investment skills. and develop yourself to be a quality investor Be prepared to deal with any situation!!

Mrs. Pharuay

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