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Quality Stock |
An ideal quality stock. Why?
- 15% historical growth - adequate growth rate
- Consistent, smooth growth - more predictable future growth rate
- Lines parallel - sales being efficiently changed into earnings
- Future growth acceptable
This is how the visual analysis chart for a quality company might look.
Graphic courtesy Jim Thomas
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Last Modified 2006-02-28
March 7, 2006
How do you determine which industries to avoid? I tend to avoid industries that are subject to the economic cycle. All one has to do is look at the graph on the face of the SSG. When you see a chart of cyclical results you can be sure you have a cyclical company. This is the type that the brokers like to push because they want you to buy, reaize a quick profit or loss and then sell.
Ralph Seger