What
|
Where
|
Why
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Action
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One-year
Price chart with 50-day moving average
|
Nasdaq
www.nasdaq.com
> ticker
symbol
>
Basic Chart
Select:1y (year) for time
frame, 50-day Simple Moving Average (Indicator > (SMA, 50 day)
sample
|
Buying
a stock while it’s in a downtrend is dangerous, as it will likely move
lower. A stock is in a downtrend if its price is below its
moving average (MA), and in an
uptrend if above. Use the 50-day Simple Moving
Average (SMA).
|
O.K.
to buy if stock price is above its 50-day moving average.
|
Price/Sales
ratio (P/S)
|
MarketWatch
www.marketwatch.com
>
ticker symbol
Profile > Valuation
sample
|
Valuation
check. A stock with a P/S above 10 is momentum priced.
Buying
momentum priced stocks is only recommended in a strong market.
|
O.K.
to buy if P/S is less than 10.
P/S ratios between 3 and 5
are best for growth stocks.
Ratios below 2 reflect
value priced stocks.
|
Cash
Flow
|
MarketWatch
>
ticker symbol
Profile > Valuation
sample
|
Companies
with positive operating cash flow are safer investments than cash
burners (negative cash flow).
|
O.K.
to buy if Cash Flow is a positive number.
|
Average
Daily Volume (shares)
|
MarketWatch
>
ticker symbol
Overview
sample |
Institutional
buying is an important catalyst for share price growth.
Institutions
buy hundreds of thousands of shares and prefer stocks with large daily
trading volumes so they can easily move in and out of positions.
|
O.K.
to buy if Average Daily Volume is 150,000 shares or higher,
and above one million shares is best.
|
Fundamental
Health Grade
|
Navellier Portfolio Grader
Investorplace.com
|
Invest,
don’t gamble! Stick with companies with solid
fundamentals.
|
O.K.
to buy if Fundamental Grade = A, B or C
|
Got Growth?
|
ZACKS
www.zacks.com
ticker symbol > Quote Overview > scroll down to and
click Financial Overview
> scroll down to price chart and select "Revenue (Quarterly YoY
Growth)
sample
|
Consistent
strong sales growth over extended periods translates to long-term stock
price appreciation.
|
O.K.
to buy if recent quarterly growth numbers are 8% min.
(higher is better). Best case is when year-over-year (YoY) growth is
accelerating.
|
Institutional
Ownership
|
Yahoo!
Finance
> ticker
symbol
Key Statistics
Share Statistics Section
(% held by institutions)
sample
|
Lack
of institutional ownership means mutual funds, pension plans and other
institutional buyers don’t think they will make money owning the
stock. Why would you want to own it?
|
O.K.
to buy if percent held by institutions
is at least 30% of shares outstanding.
|
Number
of Analysts Making Buy/Hold/Sell Recs. |
MarketWatch
www.marketwatch.com
>
ticker symbol
> Analyst Estimates
> Analyst Recommend
sample
|
A
company’s performance will go unrewarded if nobody knows about it.
Sufficient
analyst coverage is essential to create investor interest, especially
from institutions.
|
O.K.
to buy if a total of at least four analysts are listed as currently
making strong buy, buy, hold, underperform, or sell recommendations.
Look
only at the total number of analysts making recommendations, not whether
there are more buys than holds, etc.
|