Gary Halbert · whole document (49)
zhlk promote website
If you are at all active in the stock market, you are already
aware of the success of a small group of stock market experts (they really
are) who have an informative website and write books on a how a "Motley
Fool" should invest in stocks. I recommend their material since it's very
informative. Here's an eight item checklist they use to select stocks worthy
of further examination:
1.
Sales of 200 million... or
less!'
2.
Daily dollar volume of trading three million dollars... or
less!
3.
Low share price between
$5.00 to $20.00. They maintain stocks priced at less than $5.00 are "junk." I disagree.
4.
Net profit margin of 10%
or more.
5.
Relative Strength (study
Investor's Business Daily to
learn what this means) of 90 or higher.
6.
Earnings or sales growth
must be 25% or greater this year than it was for the same quarter last
year.
7.
Insider holdings must be
at least 15%.
8.
Cash-flow from
operations must be a positive number.
All in all, this is a good checklist. My criteria are a bit
different but, not too much. However, there's something I consider much
more important than all of this put together. Namely:
I Want
The Companies I
Invest In To Be "Newsworthy"!
As I wrote in last month's issue of my newsletter it is...
NOT... some good or bad development which makes a stock price go up or down?
As I said, "It is the NEWS of some
development, not the development itself, that affects stock prices?"