Lesson 03 — Monitoring and Tracking

Once you have a watchlist — then what?

A watchlist is useless if you don't track it. Here's what to monitor:

Quarterly monitoring checklist

Every quarter, when results are announced:

1. Revenue growth — still on track? (compare YoY)
2. Margin trend — expanding or contracting?
3. Profit growth — in line with revenue growth?
4. CFO — still converting profits to cash?
5. Any exceptional items? — strip them out for real performance
6. Promoter holding changes — any buying or selling?
7. Management commentary — any change in outlook?

Annual deep-dive checklist

Once a year when the annual report comes out:

1. ROE and ROCE — still above your thresholds?
2. Debt levels — increasing or decreasing?
3. FCF trend — still positive?
4. Annual report notes — any new risks?
5. Auditor report — clean?
6. Red flag check — run the Week 09 checklist

When to remove from your watchlist

• 2+ red flags appear
• Fundamental deterioration: margins falling, ROE declining for 3+ years
• Management credibility loss (broken promises, fraud)
• You find a better company in the same sector

Key takeaway

Building a watchlist is step 1. Maintaining it with quarterly discipline is what makes you a real analyst.