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.
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
ROE: return on equity
NI / OE
net income / owners equity
NI / Net Assets
net income / net assets
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
So you have my method and criteria. Here is my watch list for healthcare.