InvestorsHub Logo
Followers 290
Posts 85375
Boards Moderated 64
Alias Born 02/06/2005

Re: Shengli post# 2343

Tuesday, 11/23/2010 7:09:06 PM

Tuesday, November 23, 2010 7:09:06 PM

Post# of 9317
That is my personal rating system on china stocks. I only did It on China Stocks up until this point. I haven't disclosed it too be honest, although some of my personal feeling on china stocks have come out when I talk about an individual stock. I Follow about 45-50 china stocks at the moment, whether my opinions are right, who knows I could be completely wrong on my feelings for all I know.

My Personal Criteria For Ratings (A-D Rating Scale.)

1) Cash/Cash Flow From Operations And A/R. If you don't do well on this test your almost guaranteed to be a C or D in my system.

2) Growth, How is it? It doesn't have to be top notch to get a good grade, But NI and Revs need to be growing at least 10-15% if you don't that is a good way to get a C or D.

3) If you have missed or lowered Guidence generally you go to a c or a d.

4) If you are an OTC you can only be rated a B at Best.

To Me and A should Trade at 8-10 PE
To Me and B should Trade at 7 PE
To Me and C should Trade at 5 PE
To Me and D should Trade at 2-3 PE

Obviously the goal is to find a stock trading at C or D valuation that you feel is a A or B Rated Stock, because that in theory is how you should make money. Is my rating system somewhat subjective, absolutely, and I will say again it is not for everyone, but that is how I choose to invest through my DD. Whether I will be proven right or wrong Time will tell. As investing in any microcap stock is very risky. All is just my opinion, and I could always be wrong though.

---All above is just my humble opinion.
And I could always be wrong.
And as always do your own DD.---
http://www.investorshub.com/boards/board.asp?board_id=5316

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.