Fundamental Analysis:Watch List Healthcare August 2012

Watch List Healthcare August 2012

This is an exercise that I created to learn and embrace fundamental analysis. I am no expert in technical analysis, but I have made gains via technical analysis. In the end, making money is a clear demonstration of one’s ability and a show of expertise given certain input, i.e. money is proof of my ability with technical analysis.

Fundamental Analysis

Instead of the stodgy skill-set that requires endless ratio analysis, my fundamental analysis is very streamlined. What does that mean?

Some, … firms that wish to hire analysts require:

  • 13 different ratios to be measured before making a trade
  • a projection of earnings 10 years out, broken down by year, to project short term gains before trading
The list goes on. It just seems ridiculous. I am not being lazy, I am simply far more involved with real world, accounting, input-output calculations.
Here are my methods:

Fundamental Analysis

ROE: return on equity

NI / OE
net income / owners equity

NI / Net Assets
net income / net assets

dupont ratio
roe = ni / sales * sales / assets * assets / equity
ROE = +10% – +40% than industry

Criteria of Companies to Watch
– must have income
– eliminates highs and lows
– eliminates volatility

The criteria would, at first glance, seem to be a no-brainer. I have one word to say to that:

dot com.

So you have my method and criteria. Here is my watch list for healthcare.

1. QCOR
2. NBIX
3. NVO
4. OSIR
5. ELN
6. ACUR
7. EXEL
8. PMD
9. SPPI
10. CBP

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shakaama

Ex law school student. I was kicked out for revealing I had a heart actually beating inside. I used to be in a modern dance company. I'm working on my 7 miracles to be proclaimed a saint by the pope. #1 is really hard, but once i get over that hump the other 6 will be a cinch.

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