Tag Archives: profit growth

Don’t Be The Dumb Money In The Stock Market

Smart money or dumb money. Truth is we are all somewhere in between. Including those that trade for a mutual fund or ETF. Or even professional stock analysts. To be dumb in stock market investing means that you trade based on information that has little relevance. For instance, what other traders say on bulletin boards.… Read More »

What Do You Want In A Business Of Your Own?

You could say that I am a business owner. I have my own corporation that does technology consulting for other companies. There is a problem with it though: I am my only employee. I trade my time for money. It is not the ideal business. So what is an ideal business and how do we… Read More »

Evaluating Facebook Further

Here is a video I recorded to show you other ways you can evaluate a stock on MSN: The rules of thumb I use to evaluate whether a stock would be one I want to buy are as follows: Cash Position – Current ratio greater than 1 Current ratio is how much cash a company… Read More »

How Do You Value A Company To Buy?

The short answer is discounted present value of future earnings (profits). You can do that in two formulas within a spreadsheet… However, let’s understand it from a basic pretend stock. Acme Widgets earns $5 per share per year. They have earned $5 per share for the past 5 years and are expecting $5 per share… Read More »