I have been asked to provide my ways and means to stock picking by many IHUBers in PMs. Therefore, this old man with cobwebs shall provide the following.
Company:
Profit/Sales X Sales/Net Worth = Profit/Net Worth.
Profit Margin is the return on sales.
My Position:
Profit/Trades X Trades/Net Worth = Profit/Net Worth.
Profit Margin is the Return on Investment.
I believe that the sales volume, gross profit, percentage return on sales, percentage return on investment, percentage return on total assets, improvement of performance, share of the market, quality of performance, personnel is consistent, and continuity of operations is the very core to essential due diligence. Furthermore, the general economy, the sector, the company's position in the sector, and timing are essential to defining the stock's potential.
Respectfully,
HT
I'm going to make my world a better place.
