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    Region 2-730-STOCK WIZARDS

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    Varun Matlani
    The document outlines the stock selection and analysis process of the Stock Wizards team. They use a stock funnel approach to test potential investments based on their 4M criteria of meaning, moat, management, and margin of safety. The team also employs the CANSLIM method to evaluate current earnings, annual earnings, new products/services, supply and demand, leadership qualities, institutional funding, and market direction. Their top holdings include Spirit Airlines and Tesla, which they believe meet most of their investment strategy criteria.

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    Region 2-730-STOCK WIZARDS

    Uploaded by

    Varun Matlani
    33 views3 pages
    The document outlines the stock selection and analysis process of the Stock Wizards team. They use a stock funnel approach to test potential investments based on their 4M criteria of meaning, moat, management, and margin of safety. The team also employs the CANSLIM method to evaluate current earnings, annual earnings, new products/services, supply and demand, leadership qualities, institutional funding, and market direction. Their top holdings include Spirit Airlines and Tesla, which they believe meet most of their investment strategy criteria.

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    The document outlines the stock selection and analysis process of the Stock Wizards team. They use a stock funnel approach to test potential investments based on their 4M criteria of meaning, moat, management, and margin of safety. The team also employs the CANSLIM method to evaluate current earnings, annual earnings, new products/services, supply and demand, leadership qualities, institutional funding, and market direction. Their top holdings include Spirit Airlines and Tesla, which they believe meet most of their investment strategy criteria.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views3 pages

    Region 2-730-STOCK WIZARDS

    Uploaded by

    Varun Matlani
    The document outlines the stock selection and analysis process of the Stock Wizards team. They use a stock funnel approach to test potential investments based on their 4M criteria of meaning, moat, management, and margin of safety. The team also employs the CANSLIM method to evaluate current earnings, annual earnings, new products/services, supply and demand, leadership qualities, institutional funding, and market direction. Their top holdings include Spirit Airlines and Tesla, which they believe meet most of their investment strategy criteria.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    STOCK WIZARDS

    OTIS ID – 730
    SCHOOL NAME – NAVRACHANA SCHOOL, SAMA
    TEAM MEMBERS
    1. VARUN MATLANI – TEAM LEADER
    2. AAKASH PATHAK
    3. HARSH MARFATIA
    4. RIDDHI RAMCHANDANI
    5. PAHINI
    6. DEV HEMRAJANI
    7. ANSH SHAH
    SECTION I – INVESTMENT STRATEGY

    STOCK FUNNEL

    Majority of the stocks are selected by the team members and then passed through stock funnel – a
    series of tests for us to know whether the investment would be good or not. Each team member
    does this test, which according to us is a method to test the value & future of the stock in long term.

    Tests on Stock Funnel:

    1. 4M Test
    a. Meaning – What meaning the sector or the stock has to the team, reason being w
    don’t beleve we are buying a stock, but a share of the company and are owners of it.
    For e.g. All of us were interested in buying and being the owners of Tesla and it’s
    one of profit making stocks in our portfolio.
    b. Moat – How has/is brand created it’s entry barrier. For e.g. We have invested in
    Coca Cola & Pepsi, their secret reciepie is their entry barrier. Our investment in Spirit
    Airlines is giving us continuous growth, economic barrier being placed in the
    industry.
    c. Management – Through analytics & official declarations we check how often does
    the management sell or buy its share and in what quantity.
    d. Margin of Safety – Looking at stock history and current profits we analyze even if the
    stock was a wrong pick, could we sell it at a cheaper rate.

    SECTION II – TEAM DECISION MAKING

    CANSLIM METHOD

    Current Earnings: Current Quarter results show how business is running in the short term view, and
    is it a healthy business or not.

    Annual Earnings: It refers to history and earnings of 4 quarters. It shows how a business is in long
    term and shows its ability to generate long term profits consistently.

    New Product/Service/Innovation: Studies show that companies which constantly bring in new
    products or services, their stocks are always profitable in long run, and have a huge investor as well
    as public appeal. For instance, Apple, Google etc.

    Supply & Demand: When quantity of a product (for example iPhones) is high in consumer market, or
    it’s a supplier to high consuming industry then its stability is higher. In stock markets also, the
    demand of the stock by Institutional Investors (MF, Banks) plays a huge role has they have high
    analytical methods.

    Leader: Stock which we choose should either be a leader or have a proposition to be a leader in
    future. For example, TCS is leader in IT Market in India.
    Institutional Funding: Funds invested by the institutions in stocks can be identified through
    Shareholding Pattern. These investments bring in the stability to a stock and builds higher trust and
    lowers its risk.

    Market Direction: 3 out of 4 stocks do go in market direction, it means if market is going up, the
    stock should too follow it’s direction else making money out of it is hard. We researched this by
    comparing graph of market or index or its sector and its growth.

    Entry Point Identification – Mainly through Elliot Wave Pattern (For eg. Monster Beverages)

    SECTION III – TOP STOCK HOLDING

    SAVE – SPIRIT AIRLINES INC.

    Our Research Score

    MEANING MANAGEMENT MOAT MOS


    NO GOOD GOOD GOOD

    Purchase Details

    Bought at: $44.85

    Current: $53.60

    Quantity: 10

    TSLA – TESLA INC

    Our Research Score

    MEANING MANAGEMENT MOAT MOS


    YES GOOD GOOD GOOD

    Purchase Details

    Bought at: $303.53

    Current: $346.41

    Quantity: 10

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