My Five Stock Screening Criteria | - Blog Hanz -
Breaking News

My Five Stock Screening Criteria

A good stock pick should've consider effective management as it is everything in sustainable stock investment. Thanks to financial ratios, picking good stock is just a simple math away.Above average EPSGR and excellent ROE is my first stock screening criteria to filter rubbish stocks in the stock market. You can choose any figure which you feel comfortable. But, the figure 10 I chose is because:
  • 10 per cent EPSGR shows that the company has reliable high demand products or services.
  • 10 per cent ROE shows that the company are managing shareholders’ fund effectively.
  • 10 consecutive years means the company able to survive the ups and down of the market, business cycles or the ever-increasing competition.
performance doesn't guarantee anything in the future for sure, but it is the best information for good stock pick. Should there be no changes in it's business foundation and it's management, profit will continue to be sustainable. For any circumstances, effective management will find ways to stay ahead of competition.

On top of that, i did consider:

  • less than 0.6 debt to equity ratio (D/E) so that the company has manageable debt during economic crisis.
  • high profit margin which shows the management really did a great job in reducing operating cost to maximise profits.

Be Consistent in Your Stock Selelction Criteria

You have to be choosy and determined in selecting which stocks you'll be investing in
If you love speculative stocks, this method is not for you. Rumors and hot tips are just not my taste.
But if you are serious in investing for long-term, or value investing as what Warren Buffet did, this good stock pick can easily get rid of junk and worthless stocks straight from the beginning.

Test yourself, and see the result!


1 comment:

  1. When I initially commented I seem to have clicked the -Notify me when new comments are added- checkbox and now each
    time a comment is added I receive 4 emails with the same comment.
    There has to be a means you can remove me from that service?

    Many thanks!

    My web site Read More About The Face Fitness Formula Here



Powered by Blogger.