Tuesday, September 14, 2010

The Prince D Rule

P: Price Earning Ratio – not more than 15 or the industry average
R: Return on Equity – at least 15 for at least 3-5 years
I: Institutional Buyers – favourite among the fund managers
N: Net tangible assets – share price should not be more than net tangible assets
C: Current environmental scan – scan for any potential threats and opportunities face by the company
E: Earnings per share growth – look for significant EPF growth
D: Dividend yields – at least 5% per year

Source: I Love Stocks – Your Guide to Profitable Tracks (Author: Pauline Yong)

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