Jenni's strategy on picking great stocks: beta greater than 1 is risky (good for under 45 years old) Look for growth stocks (if you're under 45) eps=1.50 or higher Small cap - 5% of portfolio or so. Look for $7/share or greater, 25% growth in sales and earnings, net profit margin >7% Net income/shares=earnings per share (EPS) Share price/Eps= Price equity ratio low Pe= good by (or could mean bad news is looming ahead) Stock screen: p/e less than 30 PE/EPS expected growth % 1 yr= PEG <1=good buy 1=1 fair >1=overpriced -use to evaluate growth stocks PE/EPS expected growth 5 year=YPEG <1=good buy 1=1 fair >1=overpriced -use to evaluate regular stocks REVENUE value: Price Sales Ratio = PSR (Shares outstanding * share price + debt)/revenues over past 4 quarters= PSR -the lower the psr the better Shareholder equity/# shares outstanding = book value -the closer you can buy to or lower than book value, the better Sh
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