The Basics of Stock Selection Edition
27 September 2012
Following Up on EBIX
Since there was a lot of discussion on EBIX here on StockCentral back in 2010, I thought a followup might be in order two years later.
EBIX is a supplier of software for the insurance industry. Though it's a small company, it has offices worldwide and is making strategic acquisitions as well as generating organic growth.
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Examining a Company’s Return on Equity Using Toolkit 6
Although the traditional formula used to calculate ROE is Net Income ÷ Shareholder's Equity, the SSG and Toolkit 6 use Earnings per Share ÷ Book Value per Share, which are the rough equivalents of the values used in the original formula.
Look for companies with stable or growing annual ROE in Section 2 of the Stock Study form, and compare their five-year averages to the companies' industry groups and peers to see whether these businesses are leaders or laggards.
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Doug Gerlach Presents Basics of Stock Selection at Online Conference
At the next virtual Retail Investor Conference on Thursday, Oct. 4, 2012, StockCentral’s Doug Gerlach will be among the presenters at this daylong free event. Doug’s topic will be Profiting from Fundamental Stock Analysis. Doug explained the concept behind the class to this reporter as follows: "While the mechanisms (and machinations) of the markets have changed mightily since Benjamin Graham first came up with a practical method for analyzing stocks, or even when Peter Lynch racked up big wins picking equities for Fidelity's Magellan Fund, at least this one thing remains true: Companies that deliver constant profits for shareholders will see their share prices increase accordingly over the long term."
Doug continues: "But what are the keys to successful fundamental stock selection? Using methods honed over 60 years and incorporating the wisdom of the market's greatest minds, I believe that true stock-pickers can still outperform the market with a buy-and-hold strategy."
In this session, Doug will present the structured approach to stock analysis used by the Investor Advisory Service analysts, Toolkit 6 users, BetterInvesting members, and StockCentral subscribers, focusing on the handful of key factors that reveal a company's true underlying growth and quality, as well as how to determine a realistic valuation model for its stock.
Don’t miss Doug’s presentation! Register today.