Element 3 & Element 4 - What Price to buy? & How to Buy?

What Price to buy?

Same as item (1) & (2).


How to Buy?

Using cash & Buy Online.

Element 2 - When to Buy?

When to Buy?


(1) Immediately once i got a company meets the above point no (1) criteria.

(2) To add more into my current holding with 2 CONDITIONS:
      1. When the companies reported outstanding result in increasing of revenue & profit above my expectation.
      2. When Mr Market offers a good bargain, like 30% below my initial purchase price.

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.