Review

Rating: Unrated

“I would recommend looking thru the 100 latest companies to go public on NASDAQ. Any company that is too big I would throw out. Find a company with a built in barrier to entry in its market, solid management and a reasonable business plan. Or conversely, look for old economey companies with solid track records of growing dividents and low value ratios and be patient” - pp128

* Crestmont Research - http://crestmontresearch.com/

* Decision Point - http://decisionpoint.com/

What are core earnings and core P/E. Look at S&P Site. can we find an equivalent for BSE or NSE

Book - The birth of plenty - Bill Bernstein

Very interesting

* Any index like S&P or DJIA is a broad index of economy. In a way they are MF. Over a period of time they keep adding the growth companies and kicking the dogs out. This is against the buy and hold strategy

* If you take away inflation and dividents from Stock growth over a period there is very little left out as a growth. In other words 10-11% that is portrayed as a growth over period of time is due to inflation as well as dividents. For more info check

“What Risk Premium is Normal” - Robert D Arnott and Peter Bernstein in Financial Analyst Journal 03/04 2002 pp68
R(rate of growth) = Dy(Div Yield) + G(Growth in Yield) + ΔP/D(Change in Valuation)

James Boric editor of CXS Penny Stock [1] formula for picking value stocks (pp 263)

1. Must trade on a major exchange (.25 point)
2. Mast have a market cap of $100 mil (.25 point)
3. Must have an average trading vol of at least 100,000 shares daily (.25 point)
4. Price <= $10 (.25 point)
5. P/E <= 25 (2 point)
6. P/S <= 1.5 (1 point)
7. P/B <= 1.5 (1 point)
8. Sales must have increased in the recent quarter (2 point)
9. Net income must have increased from the most recent quarter (2 point)
10. Insider buying is greater than insider selling

Piotroski’s Simple Accounting screen for value stocks - http://www.psfortunes.com/

http://moneycentral.msn.com/content/Investing/Simplestrategies/P124493.asp http://www.winninginvesting.com/best_busted_stocks.htm