2006-07-20 14:12:00 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
You only need to look at two things :
1) P/E - Price/Earnings. Most stocks are priced way over earnings per share. Some of these stocks have a P/E of 50 or even 100. That's insanity to pay that kind of money. The lower the P/E, the better.
2) Dividends. Buy stocks that pay dividends. Dividends and low P/E. Otherwise the only possibility you have to make a gain is that someone will come along at some later date and pay you more than you paid. Merck (MRK) is a good example of a solid stock. The P/E is 17, and the dividend is $1.52/share. Not a bad place to start.
Hope this helps
2006-07-20 14:44:31 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Some of the things I look at are Balance sheet..Company Debt, Cash, Shares Outstanding and Share buybacks.
2006-07-20 23:25:18 · answer #2 · answered by Grandpa Shark 7 · 0⤊ 0⤋
Return on equity>10%;price/sales<1;price >$5;recomendation=strong buy This is the starting point for "stockstalker.com"
2006-07-20 22:26:20 · answer #3 · answered by paulofhouston 6 · 0⤊ 0⤋
P/E ratio is probably the best indicator if you are looking for value.
For example:
Microsoft is 18.57
Exxon is 11.03
I think about 15 is average, lower the better.
2006-07-20 21:41:59 · answer #4 · answered by anonymous 2 · 0⤊ 0⤋