Finding shares to invest in

Below is a list of questions that NT suggests asking when evaluating any share – my plan being to use the below as a template for my research…

  1. What’s the company worth (Market Cap)?
    ADVFN quote page – Share price x number of shares
    Looking for £50m to £950m
  2. What are the full year pre-tax profits?
    Full year, preliminary, interim results
    Look to see if the market cap is 15x this at most.
  3. What is the net debt?
    Should not exceed 3x full year pre-tax profits
  4. Big spread?
    Anything more than 5% = bad
  5. Is the share price rising?
    ADVFN yearly charts
  6. Profits rising?
    Full year, preliminary, interim results
    Yes = good; no = bad
  7. Dividends rising?
    Full year, preliminary, interim results
    Yes = good; no = bad
  8. Is the outlook positive?
    Full year, preliminary, interim results
    Yes = good; no = bad
  9. Anything negative happening?
  10. Are markets improving or getting worse?
  11. What dividend does it pay and when?
  12. Sector?
  13. Next statement due on?
  14. Company website good?
  15. Any recent director share dealings?

 

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