Below is a list of questions that NT suggests asking when evaluating any share – my plan being to use the below as a template for my research…
- What’s the company worth (Market Cap)?
ADVFN quote page – Share price x number of shares
Looking for £50m to £950m - What are the full year pre-tax profits?
Full year, preliminary, interim results
Look to see if the market cap is 15x this at most. - What is the net debt?
Should not exceed 3x full year pre-tax profits - Big spread?
Anything more than 5% = bad - Is the share price rising?
ADVFN yearly charts - Profits rising?
Full year, preliminary, interim results
Yes = good; no = bad - Dividends rising?
Full year, preliminary, interim results
Yes = good; no = bad - Is the outlook positive?
Full year, preliminary, interim results
Yes = good; no = bad - Anything negative happening?
- Are markets improving or getting worse?
- What dividend does it pay and when?
- Sector?
- Next statement due on?
- Company website good?
- Any recent director share dealings?