A Personal Finance Blog for Malaysian: Looking for companies meeting the "Investment Grade" criteria set by the expert.

Monday, November 15, 2010

Looking for companies meeting the "Investment Grade" criteria set by the expert.

As per earlier posts, labeled 冷眼 and Stock-Pick: Consumer/ MLM.


建议选股标准

1.股价合理(本益比10倍以下)

2.盈利有增长(来年盈利可望比往年高)

3.债低,若债高则必须现金流平稳。

4.周息率高於银行定存利息。

5.行业景气走上坡







Five criteria must be met for a company to be considered as Investment Grade and worth to keep, I have found this counter on hand, Zhulian, below were information based on yesterday closing price of RM1.81.



Criteria # 1 - Low PE - ok, below 10 based on latest rolling 4-quarters results.
Criteria # 2 - Prospect earnings - ok, based on latest rolling 4-quarters results and company growth story
Criteria # 3 - Low debt - ok, the company is debt free and holding large sum of cash
Criteria # 4 - Dividend Yield higher than FD -  ok, more than double of current FD
Criteria # 5 - Industry prospect - ok, consumer and MLM business model is defensive stock.


Zhulian - all criteria met
Amway meets all other criteria except the PE is already over 17X.
Hai-O - uncertainty over its diversification plan and latest discouraging quarter results.