Christine: I use eclectic methods depending on where I categorize stock - value, growth, etc.
For value I like PSR in conjunction with p/e, price/book, ROE and ROA, debt/eq, price/cash flow (when I can figure out what the c.f. is -g-). This is your standard, traditional stuff. (or maybe it's not so standard and traditional anymore)
For growth I like sales growth, business model (not quantifiable), low price relative to avg. past price. (GARP = growth at a reasonable price)
For etc. I like relative dividend yield and/or dividend growth. Also anything recommended by Jeff Maresh -g-.
What I NEVER (well, almost never) use are PEG figures (the Fools can have it IMO) or ANY estimates of future earnings, or ANY stock analyst recommendations (eg. Zacks consensus) (Christine, your background shows 2 years stock experience. You probably already know analysts are wrong a lot - I figure 40%. My logic is why would anybody invest their money based on somebody's - a person whom they do not know -ideas when those ideas easily and often turn out to be wrong.) That said, I will, however, follow recommendations of some mutual fund managers - Price,Davis bros., etc. - and I'm learning to trust some of the recommendations of others on Value Investing thread)
I maintain a portfolio (many stocks); I'm in the game for the long haul (not trying to make my fortune from one or two or stocks or in 2-3 years.)
good investing, Paul Senior |
