Thread View: can.com.misc
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Started by guydiver
Fri, 12 Jan 2001 21:03
Rules to Know
Author: guydiver
Date: Fri, 12 Jan 2001 21:03
Date: Fri, 12 Jan 2001 21:03
30 lines
2373 bytes
2373 bytes
If you are thinking about investing in something, have enough brains to
trust NO ONE but YOURSELF to judge ANY investment opportunity.
Perform some easy to follow rules:
1) the company should be making a net profit ( now, in the past and
estimated into the future)
2) the company should be no more than 50% in debt (the less debt the
better usually)
3) a company paying a steady dividend (is a fair indicator for
stability) if dividends per share < = earnings per share
4) the company's P/E (stock trading price divided by earnings per share)
ratio should be reasonable ( P/E < 25 & P/E > 0 )
5) the company should be growing at a fair rate ( GRTH > 0 )
6) the company's average trading volume should be high enough to make it
a liquid security
(one may have difficulty selling a thinly traded security) AVG
TRD VOL > 40000 shares per day
7) the company should be a reasonable size (100 million market value
(number of shares outstanding times the current market price) is quite
small these days)
By using a little common sense and the help of the net, one should be
able to find stocks that meet your idea of A GREAT OPPORTUNITY not some
Pump & Dump nut.
A few reasonable stock screeners I've found on the net are:
http://www.hoovers.com/search/forms/stockscreener/0,2221,71,00.html
http://screening.nasdaq.com/screening/NASDAQSearch.asp
http://screen.yahoo.com/stocks.html
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