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RealDutch

11/26/18 2:47 AM

#150480 RE: ValueInvestor01 #150477

But how did convert it to numbers?



That's a bit hard to explain. The absolute value is rather meaningless. But when I apply the same method to all stocks and remain objective, at least I can compare stocks.

For growth, a 7 is almost no growth, and 10 is super fast growth.

China stocks usually don't get a score higher than 8 for "risk" except a few. Below 7 I simply remove them from my list.

In general you can say that an overall score higher than 7.5 qualifies as a buy. Below 8.3-ish in the China space I'm not even interested. That's based on experience and how many opportunities there are in general.

This model is just a bit of fun but it has helped me in the past to better evaluate stocks. For instance, I have avoided many "overvalued" stocks on Nasdaq that resulted in a 90% loss.

One other thing... I definitely knew that SIAF was overvalued at $17. Relative to the sector..... Whereas most people can only guess.