Avoid Wrong Companies in Stock Market _ Red Flags Every Investor Must Know_#marketlosers #shorts

KD Investor

Are you worried about investing in the wrong company? 🚫 In this video, we reveal the key red flags and warning signs that every smart investor must know before choosing a stock or company. Learn how to identify bad companies, avoid investment traps, and protect your hard-earned money.  Whether you are a beginner in the stock market or an experienced trader, these tips will help you recognize weak fundamentals, poor management, and risky signals. Make smarter investment decisions and build long-term wealth by avoiding the wrong companies.  📌 Watch till the end to understand:  How to spot a bad company before investing  Key technical & fundamental red flags  Smart ways to avoid investment mistakes  Strategies to secure safe and profitable investments   If you want to succeed in the stock market, this video is a must-watch! 🚀  👉 Don’t forget to Like, Share & Follow for more stock market tips and investment strategies.

Transcript

00:00So avoid, how to do it? This is a formula. Basically, we need to compare cash flow from operations and profit.

00:06How can we do it? I have a simple formula. CFO divided by EBITDA.

00:10Cash flow from operations divided by EBITDA. EBITDA is basically a measure of operating profit.

00:16How much profit is in cash flow? This ratio is 65 to 70 percent. This should depend on company to company.

00:24But as a thumb rule, it should be 65 to 70 percent ratio.

00:28It should depend on company's profit. But the company's profit is not from other sources.

00:37So this is a red flag. Company's operations are not correct.

00:40So some of the things that we need to do is take care of.

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