Finding Stocks

1
Finding Stocks

• Meeting II 2005-2006
• EM-Trade

2
Stock Market Game

• To be eligible for the 100 prize you must add
  your name and login name to the post "SMG Login
  Names" on the Stock Market Game sub-conference
  (it's an editable document).
• www.marketocracy.com

3
Stock Market Game Leaders

• As of 12/04/05
• Matthew Perrigino
• Pear MBP12.37

4
Stock Market Game Leaders

• As of 12/04/05
• Michael Kushner
• dakush23MDK10.80

5
Stock Market Game Leaders

• As of 12/04/05
• John MacLellan
• jmacdizzleJGM10.61

6
Places to Find Screeners

• www.cnbc.com
• finance.yahoo.com
• Finance search
• Stock Screener
• Broker screeners
• www.Marketwatch.com
• Investor tools
• Tool bar on the left

7
Types of Stocks

• Growth Stocks
• A company whose earnings are expected to grow at
  an above average rate relative to the market
• A growth stock usually does not pay a dividend,
  as the company would prefer to reinvest retained
  earnings in capital projects. Most technology
  companies are growth stocks
• Value Stock
• A stock that tends to trade at a lower price
  relative to it's fundamentals (i.e. dividends,
  earnings, sales, etc.) and thus considered
  undervalued by a value investor. Common
  characteristics of such stocks include a high
  dividend yield, low price-to-book ratio and/or
  low price-to-earnings ratio

• Growth Stocks
• ???
• Value Stock
• ???

8
Market Capitalization

• Defined A measure of a public company's size.
  Market capitalization is the total dollar value
  of all outstanding shares.
• Calculated Multiply the number of shares by the
  current market price.
• Small cap
• Refers to stocks with a relatively small market
  capitalization. The definition of small cap can
  vary among brokerages, but generally it is a
  company with a market capitalization of between
  300 million and 2 billion
• Mid cap
• Companies having a market capitalization between
  2 billion and 10 billion
• Large cap
• Companies having a market capitalization between
  10 billion and 200 billion

9
Basic Parameters

• Industry group
• Market Cap
• Index Membership
• Dividend yield
• Price/Earnings Ratio
• Volume
• Debt/Equity Ratio
• Revenue growth
• Earnings growth

10
Screen Values Growth Stocks

• Tech stocks
• Varying market caps
• No dividend yield
• High P/E
• Varying volume
• High debt/equity
• Revenue and Earnings?

11
Screen Values Value Stocks

• No specific industry
• Mid to Large market caps
• Fallen member of Dow or SP
• Low or midrange P/E
• Varying volume
• Low or medium debt/equity
• Good revenue and earnings growth