I Just Bought These 3 Israeli Stocks

[@MMinvest123]

May you lose all your money

[@MechanicalMarkets]

Very Interesting

[@MechanicalMarkets]

just subscribed

[@jonathankrupitsky8979]

Interesting video to watch as an israeli

[@VictorRInvest]

Thanks!

[@a.v4612]

Your analysis is always interesting, keep posting new videos your channel will grow !

[@mahmutmereyem4582]

Your background doesn’t look like you’re successfully investing

[@VictorRInvest]

So, simply ignore the investment ideas I share on my channel. Come back only after they've already gone up.

[@mahmutmereyem4582]

@ bro u use chart analysis Already tells me you have no knowledge

[@VictorRInvest]

Chart analysis? You must not have seen my video, because it's entirely about financials.

[@jonathankrupitsky8979]

What stock broker do you use?

[@VictorRInvest]

I use Interactive Brokers. The link is on the video's description

[@ElBlancoFinance]

You lost a lot of credibility when you started talking about P/S. it’s not a credible metric

[@VictorRInvest]

If you use common sense, you can absolutely make a quick estimation of a company’s value using its revenue. Sure, revenue isn’t reliable in the sense that it’s not what’s left at the end-it’s not free cash flow, ultimately. But you can use your judgment and sensitivity intelligently. For example, is it reasonable or common for a company with a highly scalable business model, growing revenues, no debt, and a cash margin (OCF margin) of around 20% to trade at 0.5 P/S? No, right? So, you apply higher and more usual multiples to value this type of company. The historical range of the multiple can also help. Personally, I always project at the lower end of the historical range. Similarly, it would be strange to see a company loaded with debt, not growing, located in a politically unstable country, with a cash margin of 0.5%, and in a capital-intensive business, trading at 20 times revenue, right? So, you just use common sense and apply projections of multiples more suitable to that type of business. My point is: revenue can be used to estimate a company’s value. However, it’s not the only metric, nor the safest. A valuation using the DCF method, for example, is preferable. At the end of the day, any metric can be used. You can use net income, EBITDA, operating income, OCF-any of these will work. What matters is the analyst’s judgment.

[@ElBlancoFinance]

@@VictorRInvest I appreciate you. There is some nuance to your points which I appreciate. You understand that cash flows are important. The fundamental principle of investing (not speculating) is to achieve returns based on what can be returned to shareholders (cash flows). There is no point in giving your cash to a company if it will never be "repaid" right ? While revenue is a necessary starting point, it is insufficient. The core flaw is that P/S ignores the cost side of the equation. The only valid reason to buy a stock is the expectation of future cash flows, either reinvested to compound the business or distributed as dividends. I think investing in unprofitable companies is okay, as long as the investment is predicated on a clear thesis for how and when the company will generate cash flows. Revenue without profit is meaningless. Here is an extreme scenario: a company generates $1 trillion in revenue but incurs $2 trillion in costs, with projections of increasing profitability but never achieving it. Even if it was trading at a seemingly absurdly low P/S ratio of 0.0005, it is still a poor investment. Revenue alone is insufficient. It provides no insight into the efficiency or viability of the underlying business. What drives shareholder returns in the long term is not revenue but profits - that the company can reinvest to grow or distribute back to shareholders. A high-revenue business operating with slim or negative margins is far less valuable than a smaller, profitable business with sustainable cash flow. Absent a framework for understanding future profitability, investing based on revenue or P/S is speculation, not analysis. Without profits, revenue is a hollow number, and P/S is a hollow metric. Cheers!