04-01-2014, 12:24 AM
(04-01-2014, 12:08 AM)smallcaps Wrote: [ -> ]Ok neat. How about earnings...have you considered using normalized earnings instead of trailing?I could not interpret trailing earnings. They dont give me anything insightful.
Just 2 days ago, I added a worse case PE calculator.
I ask myself this question: In the past 5 years, what's their worse 4 quarter earnings performance?
I calculate that PE based on price today. This allows me to look at the type of PE I will be facing assuming the company's business slumped back to square 1.
(04-01-2014, 12:08 AM)smallcaps Wrote: [ -> ]I guess another important question before determining the methodology might be to decide the amount of return that one expect from spending so much time on selecting stocks for investment? Like 8%,12%,15%,20%,25%, etc...quantitative analysis is really easy because you can use the computer like SAS or simple microsoft excel to compute the data.
I spend 5 mins analyzing 1 company because computer do all the hard work for me very fast.
(04-01-2014, 12:08 AM)smallcaps Wrote: [ -> ]Presumably the amount of return could also influence the method(s) to use. There r LOTS of ways of choosing stocks for investment. Maybe you might want to go through all of them and find one or more that you think might be suitable, and experiment with it and if comfortable with it, take it up and then start to tweak it.Been tweaking it day in and out.
(04-01-2014, 12:08 AM)smallcaps Wrote: [ -> ]Can understand this problem u r having as I personally have tried various approaches/combinations for around 13 years, like GARP, net net, asset play, high ROE, low P/B, high net cash, low PE, turnaround, change in business mix, etc.
nice! which is the most consistent method?