Evaluating a Stock - Methodology

AlfredSokol said: "Let's talk about the ways in which we can evaluate a stock. I'm a fan of PEG. It shows fast growers that make big earnings, which is normally a sign of a quality company. What types of things do you look for?"

chahinemm said: "i rarely go into the financials until i see a good or strong business model. i guess that is the reason why i have escaped the negative trades till now. after the business model i look at financial.. and in it i look at the growth rate in the last 5 years, management decisions, EVA(economic value added) shows i think the best use /$ by the management but i have had problems with EVA not easy to do...and always before investing i always look at competition if there is and compare them. sometimes competition does better work /$ and i try to balance my portfolio between them so that i can maximize the growth of my portfolio. chahine"

HappyHarry said: "I agree with Chahine. What's wrong with checking the business model first. And can the company really grow? Are they doing something different? If not, how do they plan on competing with their superiors?"

devanium said: "I swing trade, but leave open the door for holding long term. The key for me is finding undervalued companies that generate a lot of cash, that also exhibit favorable chart patterns. Essentially my philosophy is to let fundamentals determine which stocks to enter, and technical analysis to tell me when to enter them."

thezster said: "I do a lot of coin flipping.... :o"

HappyHarry said: "I cast runes and read the Tarot."