Sunday, March 5, 2017

Element 1 - What to Buy?


What to Buy?


My simple element in Buying Stock (i am working towards this element to be exact):

(1) Small capitalization company with low PE (PE is lower than 8).

(2) Has growing/expansion plans in the near term (less than 2 years).

(3) No debts/low debts with Net Cash.

(4) Good in generating cash flow-in.

(5) Good management and good management comments' connection from one report to another.

(6) Financial report is written using novice languages and easy to understand/interpret.

(7) Gross profit margin >15% and Net profit margin >5% (preferably).

(8) Management is good in allocating/deployment of retained earnings either in organics, in organics growth or giving as dividend to shareholders.

(9) To avoid commodity, property, finance, B-chips, S-chips, and large cap stocks.



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