Stock Selection Process
In addition to high quality of earnings and lack of any foreseeable
negative events, we pay very close attention to reasonable valuation.
Great expectations might be already priced into the stock and a company
might be overvalued at the present time. With our growth equity focus
we select companies with attractive future earnings growth rate
expectations. Our primary valuation measure is PEG – P/E divided by
IBES Long Term Growth Rate Estimates (both current and forward P/E).
This stage eliminates another 20-25% of the stocks, leaving about 60 stocks.
The process described above cannot, in and of itself be
used to determine which securities to buy or sell or when
to buy or sell them.
|
