My Stock Market Savvy (1)

這些年在血習中總結的How to Pick a Stock?

Qualitative

1.    Management 
      Focus on CEO.  Use ask.com to find out who CEO is 

2.    Positive Earnings Revision

Analysts follow and upgrade their position

3.    Positive Earnings Surprises

Look at earning history, % of surprise, if you have a positive trend on percentage of surprise, good stock

4.    Increase of Sales Growth

Look at Revenue Estimate, % of earnings increase > % of sale increase, this means the company is more efficient

5.    Operating Margin

Less operating cost, more money flows to bottom line

6.    Strong Cash Flow

Buy back stock is a positive way of spending money.  A company like Microsoft would use its cash on hand and buy back their outstanding common stock

7.    Quick Quarterly Earnings & Sales Growth

8.    Positive Annual Earnings Momentum

Accelerating growth rate

9.    High Return of Equity

Microsoft return on equity (TTM) 47%, this is very high because of monopoly

KO return on equity (TTM) 30%, pretty high too. Great company to buy to reserve capital

10. Management Ownership

Does management team own many shares of its stock?

[七月茉莉花]

回複littlebirds的評論: No Problem. Glad you like it.
Next one will be Quantitative

[littlebirds]

Thank you very much. Waiting for your sequel.