"DanielleOM" <
danie...@reply.to.group.com> wrote in message
news:jpid5c$d3j$1...@dont-email.me...
I'm going to tell you how to make money in stocks you never considered.
Go to the library and open up the latest S&P Stock Guide. Look for stocks
that are rated A- or better. Then go across the page and look at the
capitalization. Look at the company's cash position, assets, liabilities,
long term debt and annual earnings per share. Then use the following flow
chart:
Are assets > long term debt?
No: go on to the next company
Yes:
Is cash > long term debt X .75 ?
No: go on to the next company
Yes:
Do you see a progression of increasing earnings per share (it's OK if
earnings went down just one year over the past five years)?
No: Go on to the next company
Yes:
Is the company in an industry you understand?
No: Do further research to see if you can understand the industry
Yes:
Consider buying
If cash > long term debt, definitely buy.