1. Market timing. Is it a good time to enter the market or exit? If you believe in correction, it is time to exit. If you believe super inflation is coming, it is time to move cash to stock.
2. Sector timing and sector rotation.
3. Insider buying. No one knows the company better than those running it.
4.What market is behaving currently? To me, the market is behaving not too rationally. My usually trustworthy indicators do not perform well as before. To me, it seems the market condition behaves like it is in the bottom phase of the market cycle.
5. The value of the market in general like the average P/E. P/B... Should use expected earning and P/E compares to the average in its industry. Book values for some older companies have no meaning.
6. Cash flow. Harder to cheat this value.
7. TA if you trade the stocks in and out frequently.
8. Different phases of the market cycle have different strategies.
9. I favor small caps as they would not not be 'discovered' by funds.
10. Any pending lawsuits.
I used to research stocks by looking at the balance sheets. Not any more as most reseraches can be bought at reasonable cost.
I group the reseraches from several soucres into a score. When the score is within a certain range, it is a buy. When the score is too good, it usually does not perform. The reason could be it has been discovered.
The market is not always rational. I've several stocks with expected P/Es less than 5 and they turn out to be losers.
2. Sector timing and sector rotation.
3. Insider buying. No one knows the company better than those running it.
4.What market is behaving currently? To me, the market is behaving not too rationally. My usually trustworthy indicators do not perform well as before. To me, it seems the market condition behaves like it is in the bottom phase of the market cycle.
5. The value of the market in general like the average P/E. P/B... Should use expected earning and P/E compares to the average in its industry. Book values for some older companies have no meaning.
6. Cash flow. Harder to cheat this value.
7. TA if you trade the stocks in and out frequently.
8. Different phases of the market cycle have different strategies.
9. I favor small caps as they would not not be 'discovered' by funds.
10. Any pending lawsuits.
I used to research stocks by looking at the balance sheets. Not any more as most reseraches can be bought at reasonable cost.
I group the reseraches from several soucres into a score. When the score is within a certain range, it is a buy. When the score is too good, it usually does not perform. The reason could be it has been discovered.
The market is not always rational. I've several stocks with expected P/Es less than 5 and they turn out to be losers.