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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (14772)	8/13/2001 8:47:15 AM
From: PMG	Respond to of 52237

No, financing does matter. Debt adds leverage and thus the expected return on equity and the risk of equity.

To: Mark Adams who wrote (14772)	8/13/2001 9:40:50 AM
From: Berney	Read Replies (3) \| Respond to of 52237

Mark, I never found that capital structure particularly mattered with the Big Boyz. I will agree that it may be critical with the puppies. The 15 evaluation points are: 1. Is PE greater than one year revenue growth rate? 2. Is PE greater than three year revenue growth rate? 3. Is PE greater than one year eps growth rate? 4. Is PE greater than three year eps growth rate? 5. Is PE greater than 5 year ROE? 6. Is PE greater than 1 year ROE? 7. Is ROE growing - prior year as compared to the immediately preceeding year? 8. Were 8 of the top 10 mutual fund owners of the stock, adding to their position? 9. Is the PE at a 5 year historic high (negative score)? 10. Looking at the last 5 and current year stock performance, a stock scores if it gets a "4" or higher (1 if it beat SnP, 0 if positive but didn't beat Index, and "-1" if negative and did not beat Index). 11. Is PE greater than 5 year forward projected growth rate? 12. Is current ratio greater than SnP average of 1.2? 13. Is cash flow positive (score minus 2 if negative)? 14. Did total revenue double in last 5 years? 15. Was there a sequential annual increase in eps over the last 5 years? As you can imagine, it takes a little time. Berney