To: GROUND ZERO™ who wrote (4378 ) 12/26/1997 12:03:00 AM From: Chris Respond to of 42787
good stuff: Subject: The Rational Analyst | Previous | Next | Respond | To: milesofstyles (34 ) From: dave horne Monday, Dec 15 1997 11:23PM EST Reply # of 108 [Rainier's 14]Miles'o: Certainly. It is post #5395 on the "Charts for Quick Cash $$$" thread, reprinted below: To: +Ray Cunningham (5385 ) From: +Rainier Trinidad Sunday, Dec 14 1997 11:17PM EST Reply # of 5410 [ Fundamentals ] Ray, I'm rubbing my hands with glee since this category falls along my strongest territory. Characteristics I look for in longer term holdings, regardless of what market I am in: 1. Debt/equity ratio of less than 0.10 2. Current ratio >= 2.0 3. Price/sales ratio of <= 2.0 4. Price/book ratio of <= 2.5-ish 5. Met or exceeded analyst estimates in the past 7 quarters 6. Price/(Earnings Growth) of 0.5, ideally 7. Outstanding shares of 3.0 million or more 8. Short Interest: the higher the better, for the short squeeze 9. Beta: inconsequential 10. Institutional Holding: the lower the better, though the existence of some is preferable to the non-existence--we want to know it's already partially discovered. 11. Earnings growth: steadily growing; inconsistent growth is undesirable. 12. Preferable to have a stock buyback program(but I know you can't scan for that) 13. Not in a weak/declining/troubled industry 14. Non-declining TA characteristics. There's obviously things you can't scan for in the above criteria, but if anything pops out, I'd be interested. Only about 1 stock like this comes out a month out of the plenty I look for. And these usually are in the fallen angels category, with correspondingly weak TA. The desirables of course are the good FA/TA stocks. Ask me some more. Regards, Rainier