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+4
serene
Leon
Sriranga
nihal123
8 posters
The ‘magic’ formula for stock selection
nihal123- Top contributor
- Posts : 6327
Join date : 2014-02-24
Age : 58
Location : Waga
Sriranga- Veteran
- Posts : 3226
Join date : 2014-02-23
Location : Colombo
Thanks a lot.
Leon- Top contributor
- Posts : 1264
Join date : 2014-03-11
Thanks.
serene- Top contributor
- Posts : 4850
Join date : 2014-02-26
Thanks Nihal.
Downloaded wanna read now.
Downloaded wanna read now.
කිත්සිරි ද සිල්වා- Top contributor
- Posts : 9679
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Age : 66
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I was wondering whether if any expert can use this formula and post something here soon (Like HUNTER's efforts).
Thanks Nihal.
Thanks Nihal.
nihal123- Top contributor
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Join date : 2014-02-24
Age : 58
Location : Waga
කිත්සිරි ද සිල්වා wrote:I was wondering whether if any expert can use this formula and post something here soon (Like HUNTER's efforts).
Thanks Nihal.
Yes Kith any expert can do this for us
Hybrid- Posts : 745
Join date : 2015-02-03
Location : Colombo
One cannot go very wrong in using the ROC + P/E formulas as an index based on a factor. However, everyone knows that despite very high ROC and extrelmely high P/E ratios there is the unknown factor that one has to be alert for and study the current market.
For example take Nestlé. It has a high ROC and very high P/E ratio and now there is a nose dive in the share price suddenly due to the current disaster on quality issues its facing.
Yes, the future earnings potential and rate of RIG is a factor to be closely considered in addition to the said formulas!
For example take Nestlé. It has a high ROC and very high P/E ratio and now there is a nose dive in the share price suddenly due to the current disaster on quality issues its facing.
Yes, the future earnings potential and rate of RIG is a factor to be closely considered in addition to the said formulas!
serene- Top contributor
- Posts : 4850
Join date : 2014-02-26
nihal123 wrote:කිත්සිරි ද සිල්වා wrote:I was wondering whether if any expert can use this formula and post something here soon (Like HUNTER's efforts).
Thanks Nihal.
Yes Kith any expert can do this for us
Or may Be youth like Chooty
HUNTER- Top contributor
- Posts : 1935
Join date : 2014-07-14
Good one !
Thanks Nihal.
Had I found this couple of years ago, I wouldn't have spent time on reinventing the 'wheel'.
The idea explained is very similar to the one I have adopted.
I also agree the method sounds very simple and very effective; however, in reality, we need to be a little careful of 'extreme' cases to reduce the risk. (for example TWOD).
Combining this with some technical analysis, I am sure, will generate 'super' results in any market.
Thanks Nihal.
Had I found this couple of years ago, I wouldn't have spent time on reinventing the 'wheel'.
The idea explained is very similar to the one I have adopted.
I also agree the method sounds very simple and very effective; however, in reality, we need to be a little careful of 'extreme' cases to reduce the risk. (for example TWOD).
Combining this with some technical analysis, I am sure, will generate 'super' results in any market.
First Guy- Posts : 2599
Join date : 2014-02-22
Any formula is good to identify neglected value stocks that would at least continue on the same trajectory of performance or growth.
They wouldn't help identify stocks that are fairly valued on past performance but are poised to show growth in the near future.
They might also give a wrong picture to show a stock that is in a downtrend as one with an upside. Therefore, a formula should only be a starting point but more research needs to be done.
Similar to technical trading, it's rather a lagging indicator.
They wouldn't help identify stocks that are fairly valued on past performance but are poised to show growth in the near future.
They might also give a wrong picture to show a stock that is in a downtrend as one with an upside. Therefore, a formula should only be a starting point but more research needs to be done.
Similar to technical trading, it's rather a lagging indicator.
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