So I’ve always been a trader on technicals, but recently I’ve decided to do the more longer term investing since I can’t be active on the market everyday from 9.30-4pm.
Currently I’m using 3 metrics to find potential investments to hold for a few months/years. This is the process I use:
1) Look at charts – has it been uptrending over the last 6 months?
2) Look at the Cash/Debt ratio – Looking for ratios 4 or above
3) Look at PE – ideally want it around the 20 mark, but depends on industry when compared to peers
Using this criteria, I found the following potential investments:
> OCLR – 60.8 PE – 31.01
> TTWO – 6.65 PE – 352.93
> GNTX – 1000+ PE – 17.88
> MRVL – no debt PE – 380.73
> MOMO – no debt PE – 48.67
> SLM – no debt PE – 23.15
> YHOO – 34.5 PE – -202.85
Now from here, I’ll be looking more into the companies and see what they’ve been promising/doing over the last year and what they plan for the next year. How have they been with Analysts predictions? After all of these check out, I’ll probably take a position.