Home
Free Stock Course
Basic Investing Rule
How Stock Works
Buy Penny Stocks
Buy Dividend Stock
How to Select Stock
When to Sell Stock
Long Term Investing
How to Trade Stock
Stock Trading Chart
Pick Stock Brokerage
Online Investing
Mutual Funds Type
The Best Investment
Recommended Book
Investing Articles
Investing Glossary
Easy Stock Tips
Stock Investing Blog
Easy Stock Sitemap
Contact Me

E-mail

Name

Then

Don't worry -- your e-mail address is totally secure.
I promise to use it only to send you Easy Stock Tips.

XML RSS
What is this?
Add to My Yahoo!
Add to My MSN
Add to Google
 

Unlimited Profits From Good Stock Pick

AddThis Social Bookmark Button
Having A Good Stock Pick
Is Your First Step to Make Money in Stock Market

Summarized Overview

In this article you will find information about how to select a good stock quantitatively, why the strategy is so important and the critical key financial ratio.

You will also find information on what is important in corporate annual reports.

Reasons to Have Good Stock Pick Strategy

Basics
  • Annual Reports
  • Liquidity Ratio
  • Efficiency Ratio
  • Leverage Ratio
  • Profitability Ratio
    • Though there are thousands of stocks in stock market nowadays, not many of them are worth investing. In ever changing business environment, it is not easy for companies to remain profitable.

    Worse, hardly any of them have shareholders' interest at heart. That is why, stocks represented by quality companies with effective management team is the key to get a higher investment return.

    My Five Stock Screening Criteria

    How Do You
    Pick Your Stock?
    Insider Tips
    Cheap in Price
    Brokers Advice
    Hottest in Town
    Analyst Reports
    Quality Business
    A good stock pick should've consider effective management as it is everything in sustainable stock investment. Thanks to financial ratios, picking good stock is just a simple math away.

    Above average EPSGR and excellent ROE is my first stock screening criteria to filter rubbish stocks in the stock market. You can choose any figure which you feel comfortable. But, the figure 10 I chose is because:

    • 10 per cent EPSGR shows that the company has reliable high demand products or services.
    • 10 per cent ROE shows that the company are managing shareholders’ fund effectively.
    • 10 consecutive years means the company able to survive the ups and down of the market, business cycles or the ever-increasing competition.
    For example of picking a good stock, click here (open in new window). Past performance doesn't guarantee anything in the future for sure, but it is the best information for good stock pick. Should there be no changes in it's business foundation and it's management, profit will continue to be sustainable. For any circumstances, effective management will find ways to stay ahead of competition.

    On top of that, i did consider:

    • less than 0.6 debt to equity ratio (D/E) so that the company has manageable debt during economic crisis.
    • high profit margin which shows the management really did a great job in reducing operating cost to maximise profits.

    Be Consistent in Your Stock Selelction Criteria

    You have to be choosy and determined in selecting which stocks you'll be investing in.
    If you love speculative stocks, this method is not for you. Rumors and hot tips are just not my taste.

    But if you are serious in investing for long-term, or value investing as what Warren Buffet did, this good stock pick can easily get rid of junk and worthless stocks straight from the beginning.

    Test yourself, and see the result!

    Sign Up to Easy Stock Tips Newsletter
    Download Free eBook Worth $39.95 Now!!!

    Stock Tips eBook

    Entrepreneurial Strategy to Making BIG Money
    Thomas A. Hilton shows you how he picks stocks that make him financially free. His strategy is investing in smartest and richest people.

    Related Reading

    How to Pick Good Stock for Financial Freedom During Retirement
    If you pick good stock, you can become financially free during your retirement. These 3 simple tips will help you to get there.

    Additional Reading

    How to Calculate Intrinsic Value for Stock Valuation
    It is Warren Buffett's secret that you can't afford to lose. Discover step by step on how to calculate intrinsic value right here.

    Guide in Analyzing Company for Stock Investing
    Four guidelines in analyzing company that you are about to invest in. Find how companies difference to each other.

    Warren Buffet: The Greatest Stock Market Investor
    Warren Buffet is undoubtedly the champion of all stock market investors. He is also referred to as the Oracle of Omaha, the town in which he resides in Nebraska.

    Related Book

    How to Pick Stocks Like Warren Buffett: Profiting from the Bargain Hunting Strategies of the World's Greatest Value Investor
    Investment advice based on the strategies used by the most successful stock investor in history, Warren Buffett. Tips include comprehensive value investing information, methods for appraising today's popular technology stocks and insights on how Buffett assesses risk and potential reward.

    Search Here For More Information

     




    Was this information helpful?
    Yes
    No

    Top page of How to Good Stock Pick

    Back to Homepage

    footer for good stock pick page