Jeltje (97.07)

My way of picking stocks

May 22, 2008 – Comments (0) | RELATED TICKERS: GOL

I'm not sure what I'm doing in the top 10%... so much for giving more weight to top rated players! I stared playing caps at the same time I picked stocks for the first time for my real portfolio. I'm using the old flowratio, debt to asset ratio, PE ratios generally under 20 and a glance at the gross and net profit margins. Then I use caps to look for gossip on the company, and I look at past performance to find which headlines caused great dips or peaks (for example, GOL dropped because of an airline accident that I doubt had anything to do with the company's management). Yes, I stray from my metrics (more so here than my real PF) and I picked a few of the personalized stock ideas to see what would happen. I added a few fool newsletter recommendations but found that my own picks usually perform better.  [more]