Stock Research

How we analyze stocks

Ants Beach Club  

investments

Each line has three possible entries: 1, 0, and N/A. There are no partial scores.

 

 - 1 if the line item has a positive trend (as in cash flow, A/R, Inventory etc.), or is beating the industry (in the ratios), or just has positive information.

 

 - 0 if line item does not warrant a 1.

 

 - N/A if the item is not relevant to the stock, such as inventory to a financial company, or dividends if there are no dividends and we are not looking for dividend return on the stock being analyzed.

 

As you’re scoring the lines, put relevant/supporting information to the right of the score to use in presenting the stock at the meeting (e.g. the actual price/sales for the company and industry).

 

Then you add up the 1’s and divide but the relevant lines (1’s and 0’s, excluding the N/A’s) to get a % score.

 

After that, you quantify the score – 50 not so good, 75 maybe (if there are positive scores on strong reasons to invest in this stock), 90 buy now!