I am glad to review MoneyWorks4me.com which is amongst the very few sites in India that focus wholly on Fundamental Analysis of stocks without much of Jargon :).I found this site among the best for investors who want to create wealth from stocks by staying invested in the right companies.
There are extremes of perceptions on stock investing – those with the view that it is risky and complicated; and claims by books and sites that it is all about common sense. It simplifies stock investing just to the point required - not more; not less. It thus makes stock investing practical for anyone, whether a pro or a beginner.
While it has a whole array of features, let me point out the main features that are the essence of this site
1. 10 YEAR X-RAY: The critical financials of a company and its growth rate for a company over 10 years are made available as a crisp colour table and colour coded as Green, Orange and Red – with Green for very good financial strength and Red for not good. Just this visual presentation made it easy for me to understand the company’s fundamentals, almost as easy as I would understand the traffic signal.
2. PRICE CALCULATOR: The Price Calculator, their flagship feature gives the MRP and Discount Price of the stock. While the MRP is arrived at using several parameters, some of which are EPS growth rate (for manufacturing company), Dividend history etc., the user interface was simple at the front-end. I found the concept of ‘MRP of stock’ very interesting because it conveyed clearly that one should look for the ‘value of a stock’ which is more enduring, rather than at price movements.
3. Company Pulse: The ‘Company Pulse’ is their research report on companies, that focuses very much on fundamentals, in line with their philosophy. I must say that the reports are pretty crisp, to the point and emphasize on the Financial Strength and Future Prospects of the business in question, apart from a section on the valuation of the stock.
4. Stock Shastra: I have rarely come across an educational blog with such so rich and meaningful content, while following a very simple style of writing that de-mystifies stock investing. It has a huge variety of Free content that would be a treat for individuals who which to understand the process of wealth creation from stock investing and actually put it in practice. The Stock Shastras start with a ‘Robust framework’ explained over the first 13 Stock Shastras; and then move on to Behavioural disciplines required in stock investing like ‘Be prepared to change your views if facts demand…Even in the stock market’; followed by a series of shastras on busting myths like ‘Are low PE stocks always great bargains’ and many more… The link to it is http://stockshastra.moneyworks4me.com
Other aspects, I liked a lot
1. Coverage: The number of stocks covered by them is huge. I could check out the 10 YEAR X-RAY of practically every listed stock and MRP/Discount Price is available for over 1000 stocks.
2. Clutter Free interface: Unlike most sites on stock news and research, I found this site easy to navigate and study because of the clutter free interface and simple presentation.
What needs improvement?
1. The speed of the site can be an irritant if you are not on a good broadband connection. This is something they can improve on
2. The site has a good set of Portfolio Managers that also display the MRP and Discount Price of the stock in case you have checked it out and saved it. This is very unique. However, the Managers are not very user friendly for purpose of entering transactions, where I am left to fumble a bit, searching for the relevant buttons.
Overall, it is a one-of-its-kind site that helps retail investors build wealth from stocks, without getting confused and bogged in the process.
Some ways I use it:
1) Filter out High Priced Stocks
For majority of the investors/traders tend to buy a stock and then decide to analyze it J Moneyworks4me helps you chuck out the highly priced stocks. For example I just ran their price calculator on Jubilant Foodworks ( I remain negative on this ) the MRP came to 302 and even on using different growth projections was not able to justify anything beyond 900 rs. Such a screening obviously will clear out doubts about investing in super high P-E stocks as long term investments.
2) Look for deep value stocks
The screener feature allows me to look into a sector and compare stocks on different parameters. Once the comparison is done the price calculator helps to come out with a fair value for the stock. The best part is one can put in eps growth rate and more parameters to keep track of the selected stock idea. For example just scanned through the paints industry and found Berger Paints and Shalimar Paints could be good bets for the future.
I would suggest readers to go through the free demo on www.moneyworks4me.com which will definitely convince you to go ahead and subscribe it.There is a good enough discount too for a few weeks J which may not stay for long as per what I know from the moneyworks4me team.
Also we at Analyse India would be posting a few articles on http://stockshastra.moneyworks4me.com to add a bit of technical insights for readers.