belflan's fun day mentals

[belflan]

ok this is my first paper portfolio bases on an FA screen only.

market cap = around $150M

high earning per share growth

high insider ownership..

20stocks to diversify risk.

i'm think this is a good time to be opening a long portfolio of small high growth companies

this will be a very long term strat compared to any of my others at the mo.. Months.. Years..

I would expect some of the companies in the 20 picked to crash and burn. and others to growth very well.. we'll see...

i will up date this on a monthly bases..

will post position sizes etc.. in a mo.... (once i get symbols into TS2k)

belflan

 

[dcraig1]

Belflan,

If you are looking at so called "growth" stocks, it is probably well worth reading Jim Slater - "Beyond the Zulu Principle". It includes a receipe list of fundamental factors he deems significant as well as a strong emphasis on relative strength.

He suggests mandatory factors are

PEG < 1.0
PER < 20
Strong cash dlow
Low gearing
high relative strength
competative advantage
directors dealings

But best to get the book.

 

[belflan]

Belflan,

If you are looking at so called "growth" stocks, it is probably well worth reading Jim Slater - "Beyond the Zulu Principle". It includes a receipe list of fundamental factors he deems significant as well as a strong emphasis on relative strength.

He suggests mandatory factors are

PEG < 1.0
PER < 20
Strong cash dlow
Low gearing
high relative strength
competative advantage
directors dealings

But best to get the book.

hi dc,

just ordered a copy online (thanks very much for this.)

do you use this approach yourself.. what your thoughs on it..


belflan

 

[dcraig1]

hi dc,

just ordered a copy online (thanks very much for this.)

do you use this approach yourself.. what your thoughs on it..


belflan

No I don't. It's something I do want to look into more closely, but I'm really tied up with other stuff. I've had the book for years. Some of it is a bit dated - in particular the choice of growth sectors - but it should provide a decent insight into how to go about fundamental analysis of stocks (as distinct from the broad market).

Given the increasingly competative nature of the markets, and the gazillion hedge funds etc, I do wonder whether the edge in some of this stuff has disappeared. The only way to find out is to do the hard work oneself.

 

[belflan]

I do wonder whether the edge in some of this stuff has disappeared.

do you mean the edge in FA or TA (or both) Long time frames or short time frames (or both)?

belflan

 

[belflan]

Belflan,

If you are looking at so called "growth" stocks, it is probably well worth reading Jim Slater - "Beyond the Zulu Principle". It includes a receipe list of fundamental factors he deems significant as well as a strong emphasis on relative strength.

He suggests mandatory factors are

PEG < 1.0
PER < 20
Strong cash dlow
Low gearing
high relative strength
competative advantage
directors dealings

But best to get the book.

book arrived dc,

this could be my best valuation call so far.. says £19.99 on the cover..

I paid £3.58 (hard back) lol.

cheers
belflan