这些年在血习中总结的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?
