2007-05-23 16:05:21 · 6 answers · asked by dunhate235 5 in Business & Finance ➔ Investing
Sector
Is the stock in the top third of the industry sectors?
Fundamentals
All the CANSLIM stuff that IBD talks about.
Plus PEG for this year and next needs to be less than 1.1
Sales growth
Revenu growth
EPS growth
Low debt/equity
Technicals
not overbought
MACD-Stochastics good
50d and 100d channels are not extended.
Moneystream, TSV and Relative Strenght charts good (Telechart)
It's been tough lately finding stocks that meet my criteria. The markets pretty much overbought at this time.
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2007-05-23 18:56:00 · answer #1 · answered by SWH 6 · 0⤊ 0⤋
Never buy a stock because someone told you to buy it - Always do your own research. One easy way is to buy stocks of companies that you relate to. For example all the things you do from the time you wake up till you go to sleep, figure out all the products you use. Find out who makes them. Find the trends with your friends etc. You will find that those companies will stay in business for a very long time - those are the ones owned by Berkshire Hathaway aka Warren Buffet. If you are a novice investor, my suggestion is to first study the company very carefully their stock chart over the last year and all the events. I use www.iminers.com - eChart for that. Then I use E*Trade or Fidelity to dig deeper. Then there is Yahoo Finance and Google Finance for more research. Do not invest even $1 in to any stock until you have done your research. Don't take the approach that many take - let me buy a few shares and see what happens! That is classic gambling!
Good luck.
2007-05-24 02:09:21 · answer #2 · answered by JP 1 · 0⤊ 0⤋
Does it fit my asset allocation?
Is there adequate trading volume?
How is the sector behaving (and why)?
What is the PE?
Technically looks good, my evaluation (charting).
Fundamentals also "look good" (I use Morningstar for stocks and Mutual Funds).
Other "technical view" (I also use MarketEdge).
Risk/reward Ratio. Must be at least 2-1, prefer 3-1.
I'll be looking at several candidates and pick the best of 3 - 5 stocks.
Before I buy; I have an exact "exit" strategy. My Money Management skills are more important than my "stock picking skills"......................................
2007-05-23 23:27:59 · answer #3 · answered by Common Sense 7 · 2⤊ 0⤋
There really are two things that are very important. First, the company needs to have a sustainable long term competitive advantage. Second their must be a margin of safety.
2007-05-24 09:42:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋
the industry. then, the financials. the EBITA. go to investors business daily and sign up for an account and news letter. they grade the stocks for you.
2007-05-23 23:13:38 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Value and something I want to own
2007-05-23 23:12:54 · answer #6 · answered by Godsmack Hockey 2 · 0⤊ 0⤋