1) Track companies which are consistently making new 52 week highs or life time highs.
A small or mid-cap stock which gets into a fresh 52 week high does not stop at that but continues the trend and generally doubles in the next 12 to 18 months …. Once a stock moves into a new high it goes further up
2)Invest in companies with high sales growth: Companies that generate 25-30 per cent sales growth for 5-6 years are unlikely to be loss-making propositions
3)Filter out all companies with ROE less than 15% since they are earning less than their cost of capital. High ROE companies have a robust business model, which generates increased earnings for the company typically.
4)Filter out companies with debt to equity greater than 30%. Companies with low leverage are safer.
5) Filter out all companies with interest coverage ratio of less than 4. Companies with high interest coverage ratio have a highly reduced bankruptcy risk
A small or mid-cap stock which gets into a fresh 52 week high does not stop at that but continues the trend and generally doubles in the next 12 to 18 months …. Once a stock moves into a new high it goes further up
2)Invest in companies with high sales growth: Companies that generate 25-30 per cent sales growth for 5-6 years are unlikely to be loss-making propositions
3)Filter out all companies with ROE less than 15% since they are earning less than their cost of capital. High ROE companies have a robust business model, which generates increased earnings for the company typically.
4)Filter out companies with debt to equity greater than 30%. Companies with low leverage are safer.
5) Filter out all companies with interest coverage ratio of less than 4. Companies with high interest coverage ratio have a highly reduced bankruptcy risk
Which is a good website where one can get all these ratios easily for a stock ?
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