Safe Dividend Investing
Safe Dividend Investing
Podcast 210 - WILL YAHOO FINANCE MAKE CHOOSING YOUR STOCKS EASIER?
Welcome to this week's Safe Dividend Investing's podcast. You may want to go to the printed transcript, provided with this podcast, where you will find Chapter 4 from my books. It explains in easily understood language how my IDM stock scoring system manually scores stocks. The IDM stock scoring software provided to book purchasers is derived from this chapter.
The first 190 Safe Dividend Investing podcasts answered hundreds of questions from my podcast listeners and readers of my publications. Since then the weekly podcasts have usually dealt with identifying the week's 10 dividend stocks whose recent exceptional share price growth on the New York and Toronto stock exchanges may have made them worth considering as possible portfolio acquisitions. It also is my opportunity to bring to the listeners attention information that I think may assist them in creating and managing their self-directed stock portfolio.
Visit www.informus.ca for information and reviews on my six investment guide books and stock scoring software.
IAN
imacd@informus.ca
Ian Duncan MacDonald
Author, Artist, Commercial Risk Consultant,
President of Informus Inc
2 Vista Humber Drive
Toronto, Ontario
Canada, M9P 3R7
Toronto Telephone - 416-245-4994
New York Telephone - 929-800-2397
imacd@informus.ca
PODCAST 210 – 1 MARCH 2025
SAFE DIVIDEND INVESTING
WILL YAHOO FINANCE MAKE CHOOSING YOUR STOCKS EASIER?
Greetings to listeners all around the world. Welcome to Safe Dividend Investing’s Podcast # 210, on March first of 2025. My name is Ian Duncan MacDonald.
In the first 190 Podcasts of Safe Dividend Investing, you can find answers to hundreds of investment questions. Starting with Podcast 191 the podcast format was changed to bring to your attention the five U.S. and the five Canadian high dividend stocks whose share prices increased the most in the last week.
The new format also allows me to bring to your attention whatever I think may make managing your self-directed portfolio easier and more profitable.
Today I will read an email I have written to Yahoo Finance which I hope you can assist me with. It requests that Yahoo make it easier for self-directed investors to determine the strength of all stocks. However, mine is only one voice, Yahoo needs to see that to that this is an enhancement that benefits thousands of investors. Therefore, I am urging you to cut and paste it and e-mail it to katrina.chan@. Yahooinc.com or any other contact you may have at Yahoo, with a note that you support this initiative to make managing and creating your investment portfolio easier.
( NOTE: The weekly identity of the 10 high-dividend stocks with the greatest share price this week will appear after my email.)
March 1,2025
Attention: Katrina Chan, Product Manager, Yahoo Finance
Self-directed investing is becoming more and more prevalent as on-line aids make it easier for new investors to self-build their own strong portfolios. Several large financial institutions are now encouraging this ever-growing trend
In my opinion, Yahoo Finance is the best source of the factual investment information that I need to judge the strength of a stock. However, the hundreds of facts Yahoo provides for each stock discourages inexperienced investors from accessing Yahoo Finance’s data. It is confusing and intimidating for them to find the few key facts they need to determine if a stock is financially strong enough to be included in their portfolio. They are not professional analysts. They need an easier solution.
Ten years ago, I designed stock scoring software, for myself, to help me build a portfolio of 20 financially strong stocks paying high dividends. This scoring system helped me build a 7-digit value portfolio that provides me with a reliable 6-digit dividend income. When friends asked me for help in building a reliable retirement portfolio, I gave them the stock scoring program and showed them how to use it. Many had the same success I did. This got me into writing investment books about investing in stocks that are traded on the New York Stock Exchange and the Toronto Stock Exchange.
I was able to build the stock scoring matrix because I had spent decades building successful commercial risk scoring systems for banks, insurance companies, manufacturers and wholesalers. To me, I saw investing in stocks as just another form of commercial risk.
I use the Yahoo Finance database to gather the following facts that I need to build a reliable risk score. These facts are all available at Yahoo but require too much searching:
(1) Current share Price
(2) The historical share price 48 months ago.
(3) The book value of the stock
(4) The number of buy recommendations by analysts.
(5) The number of strong buy recommendations by analysts.
(6) The dividend yield percent.
(7) The operating margin of the company.
(8) The Price-to-Earnings Ratio of the company.
(9) The daily average volume of shares traded of the stock.
The software also compares and scores the historical share price to the current share price plus the book value to the current price.
Perfect sub scores from these items would add up to a maximum grand score of 100. The highest score for the thousands I have calculated has been an 86 and the lowest was a 3.
In the six investment guidebooks I have written, I have devoted a chapter that describes in detail why these facts were chosen and how the scoring matrix works. You can gain further insights into why the IDM stock scoring software is being used by investors around the world by visiting my website www.informus.ca.
I want to assist Yahoo Finance, plus help my readers and my listeners build strong, safe stock portfolios. It would not be difficult to build my stock scoring software into your system. If the IDM score automatically appeared each time a stock was accessed, then my readers would not have to search for the items and manually key the data into the PC software I supply to calculate the score.
Additional scoring benefits and features could be considered, such as:
(1) Averaging and sorting the scores for all stocks in a portfolio.
(2) Weekly historical record of scores could be kept.
(3) A Warning system when a stock’s score fell before a preset limit.
Scoring availability would give Yahoo Finance a distinct advantage over its data competitors.
If you are interested in pursuing this opportunity. Please contact:
Ian Duncan MacDonald, President, Informus Inc.
imacd@informus.ca or telephone 1-929-800-2397
www.informus.ca or www.saferbetterdividendinvesting.com
THIS WEEK’S 10 OUTSTANDING STOCKS
The Selectors used to select this week’s dividend stock with highest share price gain were:
(1) Trading volume exceeding 1.04 million in US shares and 125.5 thousand in Canadian shares.
(2) US dividend yields exceeding 4% and Canadian yields exceeding 5%
(3) A weekly share price gain exceeding 5 % in the US stocks and 1% in Canadian stocks.
(4) US operating margins exceeding 20% and 18% in Canadian stocks
(5) A share price exceeding $25.54 for US stocks and $23.17 for Canadian stocks.
The 5 US common stocks identified using these 5 selectors were:
1 . EPR Properties (EPR )
2 . Kilroy Realty Corp (KRC)
3 . Pembina Pipeline Corp (PBA )
4. Alexandria Real Estate (ARE )
5. Nexstar Media Corp (NXST )
The 5 Canadian common stocks identified using these 5 selectors were:
- Pembina Pipeline Corp (PPL)
- Enbridge Inc (ENB )
- TC Energy Corp (TRP )
- Westshore Terminals (WTE )
- IGM Financial Inc (IGM)
Although I did score EPR (it had a score of 64) and PPL (it had a score of 71), I am encouraging you to manually score all 10 stocks and familiarize yourself with the scoring system. It is not difficult.
To help you do this you will find in the transcript of this podcast Chapter 4 from my last two books “New York Stock Exchange’s 105 Best High Dividend Stocks” and “Canadian High Dividend Investing”. Chapter 4 describes in detail how you can manually score stocks. The stock scoring software I supply to book buyers just makes it easier and faster.
.
Please visit my website www.informus.cawhere you can learn more about my system of safe investing. All my investment guidebooks with their reviews are available at Amazon.com. They are available in print and immediately available in an e-book format.
For those who don’t read books that website will give you a further understanding of my approach to carefully selecting safe stocks with generous dividends.
My scoring system has helped many investors quickly measure, compare, and choose the best financially strong stocks for their portfolios.
Until next week’s podcast this is Ian Duncan MacDonald encouraging you to become a successful self-directed investor.
END
CHAPTER 4
HOW STOCKS ARE SCORED(1ch4)
The IDM stock scoring system I developed is based on the premise that if the ideal investment stock(2ch4) existed, it would have the following characteristics.
(1) The stock price would be greater than $100.
(2) It had a stock price that was greater than $100 four years ago.
(3) The stock price now is 99.50% greater than it was 4 years ago.
(4) It would have a book value greater than $100.
(5) The current stock price would be greater than 49.50% of the book value.
(6) Five or more analysts are rating the stock a "buy".
(7) Five or more analysts are rating the stock a "strong buy".
(8) It would have a dividend yield percent between 7.50% and 10.49%.
(9) The operating margin would be greater than 79.50%.
(10) The average daily volume of shares traded would be greater than 2,000,000.
(11) The stock’s price-to-earnings ratio would be between 0.1x to 5.49x.
Unfortunately, the prefect dividend stock that would score 100 out of 100 does not exist. The highest score, out of the thousands that I have calculated has been a 78. There are few stocks scoring over 70. Thus, in choosing the 20 stocks for your portfolio, you will be making compromises between dividend yield percentage, potential for share price growth and financial strength. There are 11 facts that are scored. Together the eleven sub scores make up the total grand score for a stock.
You are advised to always re-score a stock just before purchasing it to confirm that no significant changes have occurred that could have altered the score since it was last scored.
You can use the eleven-item written matrix, that follows, to manually calculate a score. However, it is much faster to use the software that is supplied, on request without charge, to those who buy my investment books. Send your request for the stock scoring software by email to imacd@informus.ca. Sometimes an email can get lost, if you do not receive a return email with the software attached within 24 hours phone 1-929-800-2397 or 416-245-4994.
Following is a photograph (ONLY AVAILABLE IN THE BOOK FORMAT) of the data entry screen for the IDM stock scoring software(3ch4). Let us start with the first item, at the top of the stock scoring software’s entry screen:
(1) “CURRENT PRICE OF STOCK” (4ch4).You will notice on the screen that there is an “O” beside this listing. This indicates where to find this data to be entered. The “O” stands for the Overview page that was reviewed in the previous Chapter Three.
The A, B, and C in the chart, show where the data for input can be found.
(A = This figure, does not exist, it is automatically calculated by the IDM software)
(B = These two numbers are extracted from Analysts Recommendation Charts
(C) This figure is extracted from the Historical Chart showing historical Share Prices and Dividend Payouts).
We also reviewed all these sources in the previous chapter. Although there are eleven calculations of sub scores to arrive at the “OVERALL RATING SCORE” (5ch4), you only need to enter nine data items. The software automatically calculates two of the sub-scores, #3 and #5.
1
CURRENT PRICE OF STOCK
Supply and demand determine the price that speculators bid on a stock. The stock market is an auction vehicle that each day processes the bids from millions of stock buyers and sellers. A high price for a stock reflects the desire of thousands of optimistic investors to own that specific stock. Thus, the higher the price, the higher the score. The scoring software applies the following numerical values to a stock based on its trading price the day the score was calculated:
1. 0 to 99 cents scores = 1
2. $1 t0 $1.99 scores = 2
3. $2 to $4.99 scores = 3
4. 5 to $9,99 scores = 4
5. $10 to $14.99 scores = 5
6. $15 to $19.99 scores = 6
7. $20 to $29.99 scores = 7
8. $30 to $49.99 scores = 8
9. $50 to $99.99 scores = 9
10. Over $100 scores = 10
2
HISTORICAL PRICE(6ch4)
A stock that increases over time can be an indication that the stock will continue to grow. Since the score only considers the stock at the price it was at 4 years ago, as you are retrieving this price from the chart on the Overview page. When your retrieve this figure, take a few seconds to run your cursor back over twenty years of share prices. You will feel much more confident with the stock if you see steady gains in the share price year-after-year for a decade or more. Every investor should do a quick historical review, but few do. To make it easier to do this I have now added to each stock’s data page in this book the share prices (and dividend payouts) going back for 24 years.
In 1991 I created a large computerized commercial risk data base of 2,200,000 risk-scored businesses. This task proved to me that companies develop a set “character” just like humans. It allowed me to develop very predictive risk scoring software to help banks, insurance companies, wholesalers and manufacturers make safe sales. I used a similar methodology when I built the IDM stock scoring software, for my personal use in 2017. I was not surprised to see the reliable scores for public companies traded on a stock exchange.
I have recognized that managers of strong public companies are obsessed with seeing their share prices go up each year. From experience I have seen that 95% of these financially strong companies will not deviate from their characteristic successful path. The managers of such companies are the kind you can have confidence in. I have rarely need to make changes in my portfolio because strong companies with consistent high scores rarely deviated from their traditional paths.
If you see a stock price that was climbing for many years and that has then shrunk back to a lower value, it may just be a passing aberration and the stock may again continue its climb. Especially if the other 10 factors in the score are strong. When you see a constant erratic pace of one year the price is up and next year it is down or a downward spiral that goes on for years, you may want to look for a stock with a more positive pattern.
The historical price factor only measures the dollar amount of the stock four years ago. The next factor compares the current price with that price four years ago.
1.$0 to 99 cents scores = 1
2.$1 to $1.99 scores… = 2
3.$2 to $4.99 scores… = 3
4.$5 to $9.99 scores …= 4
5. $10 to $14.99 scores = 5
6. $15 to $19.99 scores = 6
7. $20 to $29.99 scores = 7
8. $30 to $49.99 scores = 8
9. $50 to $99.99 scores = 9
10. over $100 scores …= 10
3
PRICE TREND(7ch4)
When a stock is much higher than it was four years ago, it may give you confidence that the share price may continue to grow. If it is less than what the stock was four years ago you might have some concerns about its potential for growth. With this scoring factor nothing needs to be entered. The program automatically compares the two years of stock pricing and calculates the score. If the share price is less than the current one the stock earns a zero. It goes up from there.
In each stock’s unique data page further on in this book, you can see the share price of the stock for each of the last 24 years going back to 1999. This gives you more insight into where the share price may be heading. The stock market crash years of 2000, 2008 and 2020 are highlighted in the page for each stock so you can see what happened to share prices in those years and how long it took for the share price to recover and reach new highs, which they often did.
1.The Stock has been sold for less than 4 years = 0
2. The Current Price is less than the price 4 years ago, by more than 50.50% = 1
3. The Current Price is less than the price 4 years ago, by 11.50% to 50.49% = 2
4. The Current Price is less than the price 4 years by .50% to 10.49% = 5
5. Current Price is within .51% to 1.49% of the price it was at 4 years ago = 6
6. Current Price is 1.50% to 10.49% more than the price 4 years ago ... = 7
7. Current Price is 10.50% to 99.4% more than the price 4 years ago = 9
8. Current Price is more than 99.50% greater than the price of 4 years ago = 10
4
BOOK VALUE(8ch4)
The Book Value of a stock is calculated by the company’s accountants who total the assets of the company then subtract depreciation and liabilities. That calculated figure is then divided by the number of shares outstanding.
If the “Book Value” is higher than the current share price, (which is a rare occurrence) then the stock is often considered to be a bargain. It is like being able to buy a Mercedes for the price of a Honda. This does not mean that a book’s value is the same as the market value. It isn’t until a company is put up for sale that you get a more realistic view of its market value. That value could be much higher or lower in such a sale. Something is only worth what someone will pay for it at any given time. Few co
Value is usually all about supply and demand. You should be concerned when you see a company whose Book Value is a minus figure, some examples of this appear among 215 stocks listed in this book. You will also find that certain industries traditionally have high or low average book values. To get an understanding of a stock’s low book value, compare it with the book value of several competitive compares.
The following shows that the score is only measuring dollar amount of the book value. In the next factor it compares the book value to the current share price.
1.$0 to 99 cents scores = 1
2.$1 to $1.99 scores = 2
3. $2 to $4.99 scores = 3
4.$5 to $9.99 scores = 4
5.$10 to $14.99 scores = 5
6.$15 to $19.99 scores = 6
7.$20 to $29.99 scores = 7
8. $30 to $49.99 scores = 8
9. $50 to $99.99 scores = 9
10. over $100 scores = 10
5
BOOK VALUE TO PRICE(9ch4)
This comparison between book value and current share price is another calculation automatically done by the stock scoring software. A book value close to or higher than the current stock price is a positive sign that the share price has the potential to rise.
1. Current Price is less than the Book Value by more than 49.49% = 10
2. Current Price is less than the Book Value by 10.50% to 49.50% = 8
3. Current Price is less than the Book Value by 0.50% to 10.49% = 6
4. Current Price is between 0.51% and 1.49% of the Book Value = 4
5. Current Price is 1.50% to 9.49% greater than the Book Value = 2
6. Current Price is 9.50% to 49.49% greater than the Book Value = 1
7. Current Price is 49.50% greater than the Book Value = 0
6
ANALYST BUY RATINGS(10ch4)
A few stocks will capture the attention of analysts from the major banks and brokerage companies. They will usually be the larger more actively traded speculative stocks. For these stocks they will make projections as to where they think a share price is headed. They will summarize their projections with one of the following four tags: BUY, STRONG BUY, HOLD and SELL. No one, including analysts, can accurately predict future share prices. These recommendations are calculated guesses. Some databases keep track of how accurate they are. It seems they are about 50% accurate in their projected share prices. Their recommendations can be enough to influence some investors to buy a stock.
What the IDM score is tracking is how much influence an analyst’s recommendations might have on the share price. Most of the sub scores are measured out of ten however the BUY sub score is only measured out of five. This lower limit is partly out of my concern about rumors that some analysts could be manipulated by their employers to rate a company a buy, if it is in the bank’s best interest that a customer’s stock increase in price. If shares were being used as collateral by the bank, would it ever be possible for a bank’s analyst to make a buy recommendation instead of a sell recommendation? I have never seen detailed written explanations supporting analysts ratings. It seems you are just supposed to blindly accept them.
I have also noticed that while buy recommendations are not uncommon, you rarely see an analyst give a company a “sell” recommendation. It appears the company must almost be bankrupt before the stock gets a sell recommendation. “Sell” and “Hold” recommendations were ignored in building the score matrix because they have no more influence on buying a stock than the absence of a “buy” recommendation. Most stocks are not analyzed and have no analyst recommendations.
1. 0 analyst = 0
2. 1 analyst = 2
3. 2 to 3 analysts = 3
4. 4 to 5 analysts . = 4
5. 5 or more analysts = 5
7
STRONG BUY RATINGS(11ch4)
I had to come up with the definition of what a strong buy recommendation is when the TD Bank stopped reporting “strong buys” and only reported “buys”. TD is my primary stock data research source. Prior to this I accepted their analyst’s classification of a “strong buy”.
Now, I define a “strong buy” as being when an analyst applies a buy rating to a share whose future price, they predict, will be at least 50% higher than the current share price. Strong buy recommendations are rare, but they do occur. Their ratings do encourage some investors to buy a stock and cannot be ignored. Like the “buy” ratings, the most points a “strong buy” rating can register is 5.
Any analyst going out on a limb by predicting a 50% share price increase has his credibility on the line. This is worth considering in your scoring for the few extra points the stock may earn. Fewer strong buys recommendations are required to increase a score.
This “Strong Buy” definition does require that you look at all the buy recommendations and add up how many are 50% higher than the current share price. Since few stocks have buy recommendations, this is not a burden.
1. 0 analysts = 0
2. 1 analyst = 3
3. 2 to 4 analysts = 4
4. 5 or more analysts = 5
8
DIVIDEND YIELD PERCENT(12ch4)
What a company pays out in dividends has nothing to do with its share price. The two are only remotely connected. Share prices are determined by speculators bidding on stocks. Dividends are derived from profits which are not controlled by speculators. Dividends are controlled by the skilled, experienced managers of a company making revenue and expense decisions that result in the profit from which dividends are paid.
You will see a $50 stock that was paying a dividend of $2.50 (or 5%) drop down to $20 a share. The $2.50 dividend does not automatically decline in unison with this decline in share price. The only thing that changes is the dividend yield percent. The $2.50 dividend’s yield percent would now mathematically increase to 12.5% on the new $20 share price.
Such a drop in share price is the result of pessimistic speculators selling their shares below a market price. The pessimists sold because they feared that if they did not sell that they the shares would lose even more value. Interestingly to sell the stock they must lower the share price enough to attract optimistic speculators who think the stock is going to increase in value. Due to this constant interplay between pessimists and optimists, no one can ever accurately predict what price in the future a share price will be.
When a company pays a dividend, it is an indication that it has the surplus funds to weather a downturn in the economy. However, the dividend is just one factor in determining a company’s IDM score.
You will see in the charts in this book several companies paying dividends of 20% or more who score poorly. When you investigate these companies closely, you may find that the high dividend yield percent was a one-time thing. It may have been a way for the major shareholders to get their money out of a company teetering on the edge of insolvency. In such cases check to see if the operating margins and book values of the companies are close to zero.
When you see dividends that appear to be too high you must also consider if the management see little benefit in reinvesting any of their profits back into the company. Thus, be wary of a too high a dividend combined with low operating margins, low book values and other weaknesses. Be especially wary if you detect that the company with a low operating margin is borrowing money to maintain their dividend payouts. Some companies do this to stop pessimistic speculators from easily detecting their problems and reducing their share price bids.
The sweet spot in “high” dividend investing seems to be a stock consistently paying a dividend yield between 6% and 9%.
I have found it interesting the comments I get from investors in blue chip stocks. They claim that a company cannot possibly be financially strong and pay a 6% dividend. The blue-chip stocks they invest in often have share prices exceeding $100 and often pay a dividend no higher than 1.5%. By necessity this turns blue-chip investors into buy low/sell high speculators. They cannot weather a recession by living off the income of a 1.5% dividend when inflation has averaged 3.5% annually over the last 100 years.
As you will see in the data pages for the 215 stocks in this book there are many financially strong, stocks paying a dividend yield of 6% or more.
You will notice in this matrix that once the stock exceeds a 10.50% dividend it only receives a score of 2. This reflects the potential risk of stocks with very high dividend yield percents.
1. No Dividend Paid = 0
2. 0.001% to 1.49% Dividend = 1
3. 1.50% to 2.49% Dividend = 4
4. 2.50% to 4.49% Dividend = 6
5. 4.50% to 7.49% Dividend = 8
6. 7.50% to 10.49% Dividend = 10
7. Over 10.50% Dividend = 2
9
OPERATING MARGIN(13ch4)
When all the expenses that were used to achieve corporate revenues are subtracted from the corporation’s revenue figure, whatever is left is your operating margin. The chief executive can then request the company’s board of directors to approve investing this remaining money in new equipment or acquisitions to make the corporation more profitable. It could also be kept in reserve to protect the company from any downturns in the economy. The other option is to pay a portion of it in dividends to the company’s shareholders. Many financially strong companies consistently pay out about 40% of their operating margins in dividends. They do this to reward those who have supported the company by investing in it. The remaining 60% usually is invested back into the company growth.
Several REITS (Real Estate Investment Trusts) and other companies set up to collect royalties can often have operating margins of more than 80%. They often have the highest dividends available to dividend investors. Their only drawback is that their share prices do not normally rise significantly from one year to the next. However, since our objective is both income and capital gain, it pays to have some high, steady dividend producers in your portfolio. There are exceptions where the share prices of some REITS can increase rapidly by several multiples.
You will also run across companies who have negative operating margins. They are not making a profit. They are not generating enough revenue to cover what was spent to generate the revenue.
A company exists to make profits. One that cannot make profits may have a limited future as it depletes its assets in a bid to survive.
I like to own companies with an operating margin of at least 20% while recognizing that in some industries few companies have an operating margin above 10%. There are some industries I hesitate to invest in, especially those in natural resources. Their fortunes rise and fall on the whims of world markets. The availability of their product seems to range between a shortage of supply driving prices up for a short time or an oversupply that drives prices down for extended periods. This decline weeds out the weak companies, causes a shortage of supply which then causes prices to rise again. There is nothing perceived unique about a commodity that protects it from price competition. I like strong stocks in stable industries that develop unique products.
1. A margin less than 1.49% = 0
2. 1.50% to 4.49% = 1
3. 4.50% to 9.49% = 2
4. 9.50% to 14.49% = 3
5. 14.50% to 19.49% = 4
6. 19.50% to 29.49% = 5
7. 29.50% to 49.49% = 6
8. 49.50% to 69.49% = 8
9. 69.50% to 79.49% = 9
10
TRADING VOLUMES(14ch4)
It can be difficult to both buy and sell a stock that trades only a few thousand shares a day. Such stocks are ignored by analysts because few investors are interested in them. Investors see little potential for their share prices to increase in such stocks. Often the few interested in buying low volume traded shares must keep increasing their bid prices to get the price offer high enough for those few holding the stocks to sell them.
Some stocks can have zero trades in a day or only a few hundred. Preferred shares were excluded from this book because most preferred shares trade at such low volumes.
After scoring hundreds of preferred shares, I found that one in one hundred might show a small share price gain.Almost all preferred shares are well below the $25 price they were issued at. While you may make some money on their higher dividend, you can lose more on their declining share value. They are stocks in name only. Like bonds, preferred shares are a form of loan. Since they do not have financial statements, the ones I reviewed lacked operating margins, analyst recommendations and other data that can be used in calculating a meaningful score.
Stocks that trade in millions of shares in a day rarely show dramatic price fluctuations. They are established, high profile companies who are considered to have potential for much higher share prices or they would not have been bid up to their present level.
1. Fewer than 10,000 shares….. = 0
2. 10,001 to 30,000 shares……. = 1
3. 30,001 to 50,000 shares……. = 2
4. 50,001 to 100,000 shares…... = 3
5. 100,001 to 250,000 shares…. = 4
6. 250,001 to 500,000 shares.... = 5
7. 500,001 to 750,000 shares….. =6
8. 750,001 to 1,000,000 shares. = 8
9. 1,000,001 to 2,000,000 shares. =9
10.Over 2,000,001 shares …… = 10
11
PRICE-TO-EARNINGS(15ch4)
To me the price-to-earnings ratio indicates how many years it would take to recover from a company’s earnings the price that I paid for their stock. The lower the price-to-earning’s number, the less time it would take to recover my investment.
Of course, the company must have profitable earnings otherwise it would have an unattractive zero price-to-earnings ratio or a minus ratio figure. As such, they are not the financially strong stocks you would normally want in a portfolio.
Usually a price-to-earnings ratio below 20x is considered “good”. However, it is not unusual to see a “hot” in demand speculative stock with a price-to-earnings ratios in the hundreds, even thousands. In such cases the concern is that these prices cannot be maintained. The frenzy that drove the stock price up so high could reverse and bring the share price crashing down the first time its potential looks questionable. Such very high ratios are difficult to maintain and are usually the result of speculators who irrationally think the gravy train is going to chug on forever.
1. 0 or a minus figure = 0
2. 01x to 5.49x = 10
3. 5.50x to 15.49x = 9
4. 15.50x to 20.49x = 8
5. 20.50x to 25.49x = 7
6. 25.50x to 30.49x = 6
7. 30.50x to 35.49x = 5
8. 35.50x to 40.49x = 4
9. 40.50x to 99.99x = 2
10. 100x or more =1