Friday, February 13, 2009

Ways to short list the right stock for you.

Here are 7 ways to short list the right stock for you.

1. IS THE COMPANY’S MARKET CAP MORE THAN RS250 CRORE?
2. ARE THE COMPANY’S TRADING VOLUMES HIGH?
3. DOES THE COMPANY MAKE QUALITY DISCLOSURES?
4. DOES THE COMPANY HAVE OPERATING PROFITS?
5. DOES THE COMPANY GENERATE CONSTANT CASH FLOW?
6. IS THE COMPANY’S RETURN TO EQUITY (RTE) CONSTANTLY ABOVE 10% ?
7. IS THE EARNINGS GROWTH CONSTANT OR CYCLICAL? (via)

Whats my take on this -
A person should also not listen to others and invest he should ask questions to himself about the companies performance.
What I would like to add is that one should see the profits of the company (gross and net) later should check the growth potential of the sector (future potential) depending the time frame you want.
Just don't look out for all positive aspects also look out for the risk in the company and also in sector.

Its true that even after doing this you many not get a super gem of a kind but you will surely get a good company of future growth potential.
Investment in long term may only help.
Remember Recession are the best time to pick good stocks , start analysing them right away.

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