Minimum Requirement Of Stock Picking

Minimum Requirement in Stock Picking:

Subject : Minimum Requirement Of Stock Picking

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(I)

ROIC > CTAC

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(II)

ROA > CICC

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(III)

Grevenue > CICC

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(IV)

Gnet_income > Grevenue

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(V)

Gnet_income > CTAC

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(VI)

Gtotal_equity > Gtotal_assets > Gtotal_liabilities > CTAC

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(VII)

(1 + Ginvested_capital Ratio)

= (1 + Gnet_income)² ÷ (1 + Ginvested_capital Ratio)

> 1, intrinsic value constructive

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The higher the Growths, ROIC and ROA, the better the firm could resist regression.