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VXUS, AVUV, DFCF, and perhaps some EDD
You pay for that 3% cash back too. The credit card company doesn't just give it to you for free. It's to incentivize people to use credit cards and (hopefully) get into debt. The debt companies just market it like they're doing you a favor but they know no one would have use for their cards if they didn't offer it. What card do you have? I have never heard of cash back being made available immediately after a payment is made. Yes, they give you the points immediately but the actual redemptions isn't until the billing cycle closes, in case you owe them money. DFCF stands for Discounted Free Cash Flow. I mistyped and didn't add the F.
Yeah, WIRE was so solid lol. It was my favorite copper play. Yeah with $WWD, I don't personally do like DFCF analysis, but I see a company that has a PEG of 1.4 and forward PE of like 28. Feels like the PE seems high, but the EPS growth makes up for it. EPS growth this year was 42%. Question becomes if they can keep up that growth, but doesn't seem like it's terribly expensive at at. Still a solid name to pick up on any pullsbacks. Still stoked that Druckenmiller bought them and FLEX.
Financial Performance In 2023, Tritium DCFC's revenue was $184.54 million, an increase of 115.03% compared to the previous year's $85.82 million. Losses were -$121.37 million, -5.86% less than in 2022. As we can see and read from the news artciles. DFCF will be profitable in 2024. Its a high volatile stock, be carefull. No financial advice off course.
I did DFCF last night. In order to keep a $215 price right now they’d have to have 30% FCF for the next 10 years. This company is R&D and CapEX dependent. That ain’t happening Love what they’re doing, don’t like the price. Also… P/E of 58 with 3.5% revenue growth YoY 🤣
So are you using PE? DFCF? Shiller PE? Average dividend yield? Buffet indicator? Several different valuation methods for determining if something is cheap or not, which is something you need to do before buying in one lump sum. DCA over 40 years will make you rich. You can buy individual stocks in an account outside of your Roth IRA as well, but definitely make sure to do the research before.
Read the 10K and 10Q reports. Listen to the quarterly earnings calls. Evaluate if you understand the business, which can usually be done with the most recent 10K report. Be critical about what is/isn't in your wheelhouse. Don't put your money there, unless you are simply speculating. For example, pharmaceuticals are a no go for me. I get lost in the 10k reports I've tried to read. I personally like to look at ROIC, Debt to Earnings and Equity numbers, Revenue growth, and earnings growth. This comes after learning how they make money and how they are spending money. If all is falling in ranges I like, I do a very basic DFCF, and an EPS multiplier model. I have to keep reminding myself the valuation methods rely on a lot of assumptions, and we are really bad at guessing the future. So, I add a large margin of safety multiplier to whatever I calculated. 40-50% because I'm still really new to all this.
DFCF is flying!! I know I should have been less greedy with my second buy lot.
Here's a little starter list of questions that might help: 1. Is the business understandable to you? 2. Do you know how the money is made? 3. Is there a consistent operating history? 4. Are there favourable long term prospects? 5. Is there a big moat around the business? 6. Have you researched their main competitors? 7. Does management have a high degree of integrity? 8. Is management candid with shareholders (evidence in the past of open disclosure to the shareholders when there have been problems)? 9. Is the return on equity adequate? 10. Is the company debt level manageable? 11. Has the company had a track record of earnings growth? 12. Are the profit margins stable or growing? 13. Has the company created at least one dollar of market value for every dollar of earnings retained? 14. Positive Free Cash Flow? 15. Is DFCF, plus a Margin of Safety, indicating the company is "on sale"?