Wednesday, December 19, 2012

readings from common stocks and uncommon profits

Different from Warren, looking for that growth stock, stock that has a propensity to grow.

15 points to look at:

1) Earning visibility for next 2-3 years. 2 years at least

2) Earning visibility for the long term. (Track records, not just the numbers, but the timing of execution, etc)

3) Research and development of new products (Property, does it matter? High end and lower end)

4) Sales team and executive competence, how fast is sales moving, (inventory t/o, receivables t/o), how honest is the executives in recognizing the profits. 

5) Profits margin (Is it stable, it is losing as compared to its peers)

6) any niche or "moats"

7) Short term or long terms outlook? How to tell???

8) Financial strength, for both expansion and collapse

9)Integrity, cannot tell

 

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