Invest to Financial Freedom - Questionnaire to choose a stock
Everyday I visit a lot of forum and read a lot of questions that people discuss. One of the hot topics is how to choose a stock?
We all know we must invest but sometimes it is hard for us to start. No wonder guide to choosing a stock is a hot topic for many peoples in forum.
Today, I’m going to share with you in this blog a questionnaire to choose a stock that I found in Richdad.com forum. I don’t know whether is it 100% truth, but I think it is a good list for reference.
Here is the list :
Value Analysis - Why the stock price won’t decrease.
General Company Knowledge
How much earnings have been retained since the previous year?
What is the net worth of the company?
Company Efficiency
Is the return on equity greater than ten?
Is the return on assets greater than five?
Financial Solvency
Is there at least twice as many total assets than total liabilities?
Is there at least twice as many liquid assets than total current liabilities?
Is there three times less total liabilities than net stockholder’s equity?
Market Value Retention
Is the stock price less than five times the revenue per share?
Is the stock price less than thirty times the earnings per share?
Is the stock price less than three times the assets per share?
Is the stock price less than five times the book value per share?
The P/E Multiple
Is the price to earnings low relative to the company?
Is the price to earnings low relative to the industry?
Is the growth rate fifty percent more than the price to earnings ratio?
Peer Review
Has the company outperformed the market?
Has the company outperformed its competitors?
Silver Question
What has pushed this company to become undervalued?Income Analysis - Why the stock won’t flat-line.
Shareholder Responsibility
Does the company offer a dividend or share buyback plan?
Sustainability of the Dividend
Is at least twenty percent of the stock’s value covered by cash?
Has the company not cut the dividend in recent memory?
Has the company not suspended the dividend in recent memory?
Silver Question
Why will the company be able to continue to increase and pay it’s dividend?Growth Analysis - Why the stock price will increase.
In regards to the past five years:
Income Statement Analysis
Did revenue increase every year?
Did gross profit increase every year?
Did net income increase every year?
Was the net income growth healthy?
Was the net income growth sustainable?
What is the one year net income growth rate?
What is the four year net income growth rate?
What is the four year earnings per share growth rate?
What is the four year earnings per share growth rate?
Balance Sheet Analysis
Did the total current assets increase every year?
Did the total assets increase every year?
Was the total assets growth healthy?
Was the total assets growth sustainable?
Did the total current liabilities remain constant or decrease every year?
Did the total liabilities remain constant or decrease every year?
Did the total net stockholders equity increase every year?
Was the total net stockholders equity growth healthy?
Was the total net stockholders equity growth sustainable?
Company-Stock Relations
Does the company have a good track record of setting reasonable earnings expectations?
Silver Question
What will cause the company to earn more in the future?Analyst Analysis-Why the stock will move.
Pressure Analysis
Are there at least seven analysts tracking the company?
Are there no more than fifteen analysts tracking the company?
Direction Analysis
Has an analyst recently upgraded the company?
Has an analyst recently downgraded the company?
Why have the analysts upgraded/downgraded the company?
Project Earnings Analysis
Do the analysts have a good track record of predicting earnings?
Does the company have a good track record of surpassing the projected earnings?
Are the projected earnings positive?
Do the projected earnings show an improving growth rate?Silver Question
Will there be a significant amount of positive pressure to move the stock?Qualitative Analysis - To what extent the company will move.
Management Analysis
Is most of the management over the age of forty?
Does most of the management have at least five years in-company experience?
Does most of the management have at least ten years in-industry experience?
Does most of the management have at least fifteen years business experience?
Does most of the management have at least a bachelor’s degree in business management?
Has most of the management been buying shares in the past year?
Does the management pay themselves less than $999,999.99 per year after salaries, bonuses, and stock options?
Does the company have healthy corporate governance?
Business Model Analysis
Give a brief description of the business.
Describe the business model.
Is it easy for an outsider to understand the industry?
Capital Reinvestment Analysis
Does the company focus on investing time and money into the original brand name?
Does the company have an invaluable brand name?
Does the company have a healthy and innovative product portfolio?
Has the company not tried to diversify its product portfolio?
Does the company have a healthy and innovative product pipeline?
Silver Question
Is the company in a fool proof state, even though qualified people are running it anyway?Technical Analysis - What are mechanics of the stock.
Accessibility Analysis
Does the company have a volume greater than five-hundred thousand?
Does the company have an average daily volume greater than five-hundred thousand?
Risk Analysis
Is the beta of the company less than three?
Trend Analysis
Is the company trading above the twenty, fifty, and one hundred day moving averages?
Has the stock outperformed the Standard and Poor’s five hundred?
Has the stock been heading for a convergence or divergence, relative to the S&P 500?
Silver Question
Will you be able to easily get in and out of the stock and is it hunting with the pack?
GOLDEN QUESTION
WHAT WILL CREATE THE BUYING PRESSURE FOR THE STOCK?
Source : Ricdad.com ForumÂÂ
Business & Income - 4 real Jobs that you can do from home, Part 4
Liz Pulliam Weston from MSN Money wrote another great article for MSN Money and also for us. Her article, “4 Real Jobs that you can do from home†is really a great article to read if you want to start a home base business or building your income from home. Here is the first job that she recommends to us:
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“Mystery shopping and survey-taking
These opportunities have been around for awhile, but the Internet has made finding them easier, Webb said.
“Mystery shoppers” are typically paid $5 to $100 per assignment to pose as average customers and then critique a store or service, Webb said. The range for filling out surveys or participating in focus groups can be even wider, from a few bucks to a few hundred bucks a shot.
As with other work-at-home jobs, applicants need to be prepared to start small and work their way up. Research companies look for reliable, articulate, detail-oriented people and tend to reward the ones who consistently perform well, Webb said.
Both jobs tend to come with freebies as well as cash. Webb said she’s been given everything from free laundry detergent to free diapers in exchange for her opinion on surveys.
Mystery shopping tends to take more time and effort but generally pays more. Webb said she makes about $6,000 a year in cash, plus free goods and services worth $3,000 to $4,000.
“I work it in with our schedule. I look at the week ahead and think, ‘Where do we want to go? What do we want to do?’” she said. “If I need to buy clothes, I’ll look to see if they need a mystery shopper.”
Some Internet-based mystery-shopping services include:
- A Closer Look
- Corporate Research International Mystery Shops
- Mystery Guest Inc.
- Service Intelligence Secret ShopNet
National survey companies with an Internet presence include:
Does Liz Pulliam Weston means pay to survey program? Not really after reading further. I don’t have any experience with what Liz Pulliam Weston said but I think it is not bad to make Mystery shopping and survey-taking as your home based income. $6000 and some free goods and services worth $3000 to $4000, total up $10000 of profit a year! Not bad. Now I also try to click on the link and read through the program, see whether I can join them and start my own home based part time job, J.
Source : MSN Money
Invest To Financial Freedom - Some Cool Technical Analysis Site For Stock Trading
I found some free stock trading technical analysis sites that you must check and add to your bookmarks for reference.
Here is the list :
