Most stock prices have declined of late. Such an obvious statement hides some extraordinary business performance. The most vocal executives are not necessarily highly skilled. Many self-effacing and low-profile ones produce better cash flows than their celebrity cousins.
It is true that nearly all macro-economic indicators are depressing. However, our concerns are with individual stocks, unless someone is a Head of State. That is why we can continue to garner wealth in the midst of a hostile environment. Steering clear of vagueness and irrelevance is the need of the hour. Focus on numbers rather than on qualitative assertions about what others should do. Here are my five favorite quantitative indicators to top stock picks during the week starting today:
1. The Forward Price to Earnings Ratio, backed by a consistent track record of meeting guidance,
2. Improvements in valid customer satisfaction survey findings.
3. Unequivocal guarantees about working capital valuations.
4. Gross Margins that nudge ever upwards.
5. Restructured operating costs, with deep cuts in the fixed ones.
Do not accept excuses about these inputs not being in the public domain. Insist on verified answers to these five questions. Take your cash away from people who hide crucial facts under mounds of jargon. I am available to help with your stock picks and business development as well.
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