source: [Stock Market - Experience Sharing]
Investment Check List
For those who want to know more about Investment Basic, I strongly recommended the below web site by Malaysia Education Department of SIDC:
http://www.min.com.my/
.Go through articles for "Newbies" and later "Seasoned Investors", this may take you some time, but it's worth to learn from others experience.
.
You may want to read this as well: A Tutorial For Beginner Investors
.
The fact, investment is not something can be studied from books or articles. Try to find out what are the common mistake made by others, study the story from people who perform well in stock market, learn from them then take action to start. Similar to swimming, points and theory are just other people's experience, investors need to feel and experience it before really know the concept.
Below are some of check list for Seasoned Investor:
1. Is the company having ROE and ROA of more than 15? (earning growth?)
2. Is the company distribute dividend of at least more than two times of FD rate?
3. Is the management honest?
4. Is the company's financial position healthy, do they borrow a lot of money?
5. Is the company need a lot of capital expenses periodically?
6. Do you have margin of safety, buy at low PE?
7. Do you plan to buy more if the share price of the company going down?
-------------------------------------------------------------------
Shareholder’s Equity = Assets – Liabilities
EPS Earning per Share = Net Profit after Tax/Total No. of Shares
NTA Net Tangible Asset = Net Tangible Asset/No. of Shares
ROE Return on Equity = EPS/NTA or Net Income/Shareholder’s Equity
PE Price Earning Ratio = Market Price/EPS
DY Dividend Yield = Annual Dividend per share/Market Price
http://www.min.com.my/
.Go through articles for "Newbies" and later "Seasoned Investors", this may take you some time, but it's worth to learn from others experience.
.
You may want to read this as well: A Tutorial For Beginner Investors
.
The fact, investment is not something can be studied from books or articles. Try to find out what are the common mistake made by others, study the story from people who perform well in stock market, learn from them then take action to start. Similar to swimming, points and theory are just other people's experience, investors need to feel and experience it before really know the concept.
Below are some of check list for Seasoned Investor:1. Is the company having ROE and ROA of more than 15? (earning growth?)
2. Is the company distribute dividend of at least more than two times of FD rate?
3. Is the management honest?
4. Is the company's financial position healthy, do they borrow a lot of money?
5. Is the company need a lot of capital expenses periodically?
6. Do you have margin of safety, buy at low PE?
7. Do you plan to buy more if the share price of the company going down?
-------------------------------------------------------------------
Shareholder’s Equity = Assets – Liabilities
EPS Earning per Share = Net Profit after Tax/Total No. of Shares
NTA Net Tangible Asset = Net Tangible Asset/No. of Shares
ROE Return on Equity = EPS/NTA or Net Income/Shareholder’s Equity
PE Price Earning Ratio = Market Price/EPS
DY Dividend Yield = Annual Dividend per share/Market Price
No comments:
Post a Comment