Road To Financial Freedom Step 4

Every investor may make some mistake for the stock they pick even what so call fund manager.
Thus, after some exercise of Investing , we may realise sometime things just not work in our ways. We  have to find the root cause and learn where the mistake come from and manage it. Over the time, the  dollar and cents result will be the final judgment.

Step 4	Fact Finding
DY  must  higher than FD, More importance is consistency pay out
Div must have, But more importance is DPS can not be higher than EPS.
PE best is below 5, But more importance is EPS must increase gradually.
Sales revenue  increase, But more importance is credit days outstanding must be lower than similar market
DE must be lower than 1 ,But more importance is Business prospect must be promising.
Share buy back is good, But not for Director gain only
Having Good Fundamental, But more importance is must have daily volume to support
Everything look fine, most importance is management care for shareholder interest

Road To Financial Freedom Step 3

Step 3 - Reinvest To Compound Growth Stock.

Once you have list out your watch list ,after further analysis on the stock , then just ACT.
Remember you get to do like a Doctor. To have a check list with you in able to understand your stock must be in Healthy condition. If you are too busy. What you need is only  a monthly check list will do.
If you find out some stock is sick, Dispose it and change to much healthy stock. In other words, reinvest what you have dispose to compound growth stock.

Example of Check List.

1	Dividend Pay Out Ratio>30%
2	Dividend Yield > 5%
3	Return on Equity (ROE) > 15% for 3 years
4	Net Profit over total revenue ROR > 10%
5	Return on Asset (ROTA) > 10% for 3 years
6	PE less than 8
7	Share buy back
8	Share/NTA < 1 ( under valued stock )
9	Current Ratio
10	Acid Test
11	DE ratio
12	Credit day Outstanding< 60 days
13	Bonus issue
14	Key Shareholder enquiry / dispose ?
	Share holding
	Average total cost
	Market Px
	P & L
	P & L By %
	% of allocation of fund
				2013	Nov
	Total Investment			XXXXXXXX
	Total ROI			YYYYYY	18.89%
	ROI from Dividend			ZZZ	5.1%
	ROI from capital			CC	13.81%