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.







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.