Sponsors

Sunday, September 10, 2006

What I look for when investing

Just thought I would post quickly what I am looking for when investing in a share.

1. A good history of earnings increases
2. A company that is making a profit
3. A company that can cover all its debts easily ( debt to equity ratio)
4. A company that has growth opportunities
5. A company that has a low P/E value
6. A company that has a good P/B value
7. A company that does not have too many risks for major collapse
8. A company that is either reinvesting strategically or providing good dividend
9. A company that has dividend growth

This is generally what I am looking for. If you know any shares which meet most of the available criteria above let me know.

They aren't easy to find but there are a few out there ... just look at how Mortgage Choice (MOC) and Alpha Technologies (ASU) have done in the last 6 months. You can also see good growth in MCW from dividends. BRZ and FUN are starting to bounce back especially now that FUN is getting some major investment from funds. BRZ could be getting an offer from a private equity fund soon I believe (pure speculation on my part) and this should shoot the price up.

Just remember I could be wrong :)

Good Luck

No comments: