Tips On Finding Good Stocks

Moneybags — Mon, 29 Mar 2010 09:26:39 +0000

Every investor wants to know; what are the good stocks to buy now. After all if you are going to invest your money, you might as well get the best bang for your buck. It is important to remember that no matter how much investing experience you have or how long you research a stock; there is never an absolute guarantee in the stock market. You are investing your money and your confidence in a particular company or set of companies and therefore you should be fairly confident in what you are doing. The first thing that beginning investors often like to look at is the price per share of a companies stock. I would strongly advise against this. The price per share of a particular stock is really not as important as it seems; more important are factors such as price to earnings, cash per share, debt levels, and beta. The price to earnings is a comparison of how much the stock costs compared to how much it earns per year. Typical P/E ratios for well known companies typically reside in the 12-17 range but that can differ wildly from stock to stock. The world known Pepsico (PEP) has a P/E ratio of 17.48 currently at it’s price per share of $65.90. This is probably a good stock to buy now. Cash per share is the ratio of how much cash the company has per share of stock. High cash per share is a good sign. A company such as Terra Industries (TRA) which is loaded with cash is probably a good buy. Apple Inc. (AAPL) is a decent stock to take a look at considering the fact that it has no debt on it’s books, and can therefore plow it’s earnings in research and development. Beta is the measure of volatility, and stocks with beta levels around 1 are worth a look. Domino’s Pizza (DPZ) has a beta of 1.07. Remember the stocks mentioned have different pro’s and con’s but they all show at least one fundamental characteristic that makes for good stocks.

Create Wealth | How To Make Money » Stocks

Tips On Finding Good Stocks