Rent 9780452284739 | The Neatest Little Guide to Stock Market Investing (RevisedEdition)

Summary Table of Contents Author Biography

From the time of its first publication five years ago, The Neatest Little Guide to Stock Market Investinghas established itself as a clear, concise, and highly effective approach to stocks and investment strategy. Since the dot.com crash and ensuing bear market, significant changes have come about in the investing world, and The Neatest Little Guidetakes this into account. In this revised edition, readers will learn: Strategies on how to double the Dow with one simple investment and the latest products required for this approach Methods investors can use to avoid disasters such as Enron and WorldCom Thoroughly updated reference lists, including new websites, new software, new brokers, and new publications With the right information for investors to keep pace, and rooted in the principles that made it invaluable from the start, The Neatest Little Guide to Stock Market Investingis a resource that no serious investor can be without.

Speak the Language of Stocks	p. 1
Why Stocks Are Good Investments	p. 1
Stocks Allow You to Own Successful Companies	p. 2
Stocks Have Been the Best Investments over Time	p. 3
How Stocks Trade	p. 3
Preferred Stock vs. Common Stock	p. 4
How You Make Money Owning Stocks	p. 5
Through Capital Appreciation	p. 5
Through Dividends	p. ... MORE5
Total Return	p. 6
All about Stock Splits	p. 6
Why and How a Company Sells Stock	p. 8
Selling Stock Is a Great Way to Raise Money	p. 8
Going Public Raises Even More Money	p. 9
New York Stock Exchange (NYSE)	p. 10
American Stock Exchange (AMEX or ASE)	p. 10
National Association of Securities Dealers Automated Quotation System (NASDAQ)	p. 10
Working with an Investment Banker	p. 11
Making a Secondary Offering	p. 11
What People Mean by "the Market"	p. 12
How to Choose a Broker to Buy Stocks	p. 14
Three Types of Brokerage Firms	p. 14
Full-Service Brokerage Firms	p. 14
Discount Brokerage Firms	p. 16
Deep Discount Brokerage Firms	p. 17
The Case for Discounters and Deep Discounters	p. 17
Technology Has Made Full-Service Brokers Obsolete	p. 17
You Need to Double-Check Full-Service Information	p. 18
You Should Monitor Your Own Investments	p. 19
How to Evaluate Stocks	p. 20
Growth Investing vs. Value Investing	p. 20
Growth Investing	p. 20
Value Investing	p. 22
Fundamental Analysis vs. Technical Analysis	p. 23
Fundamental Analysis	p. 24
Technical Analysis	p. 24
Some Fundamental Stock Measurements	p. 25
Cash Flow per Share	p. 26
Current Ratio	p. 26
Dividend Yield	p. 27
Earnings per Share (EPS)	p. 28
Net Profit Margin	p. 29
Price/Book Ratio	p. 30
Price/Earnings Ratio (P/E or Multiple)	p. 31
Price/Sales Ratio (P/S or PSR)	p. 32
Quick Ratio	p. 33
Return on Equity (ROE)	p. 34
Some Technical Stock Measurements	p. 34
Beta	p. 34
Max and Min Comparison	p. 35
Relative Price Strength	p. 36
Volume	p. 36
How to Read the Stock Pages	p. 37
Three Stock Classifications You Should Know	p. 39
Company Size	p. 40
Industry Classification	p. 41
Growth or Value	p. 42
How the Masters Tell Us to Invest	p. 43
Meet the Masters	p. 44
Benjamin Graham	p. 45
Market Fluctuation and Emotion	p. 45
Stock Valuations	p. 46
Margin of Safety	p. 47
What You Should Retain from Graham	p. 48
Philip Fisher	p. 49
Characteristics of Superior Companies	p. 49
Characteristics of Superior Investors	p. 51
What You Should Retain from Fisher	p. 52
Warren Buffett	p. 53
The Stock Market	p. 54
Buying Quality Companies at Bargain Prices	p. 54
Attributes of a Quality Company	p. 56
Determining a Bargain Price	p. 57
Managing Investments	p. 58
What You Should Retain from Buffett	p. 59
Peter Lynch	p. 60
Use What You Already Know	p. 61
Know Your Companies	p. 62
Categorize Your Companies	p. 62
Components of a Perfect Company	p. 63
Know Why to Buy	p. 66
What You Should Retain from Lynch	p. 68
William O'Neil	p. 69
Use the CAN SLIM System to find Growth Stocks	p. 69
C: Current Quarterly Earnings per Share Should Be Accelerating	p. 70
A: Annual Earnings per Share Should Be Accelerating	p. 70
N: New Something or Other Should Be Driving the Stock to New Highs	p. 70
S: Supply of Stock Should Be Small and Demand Should Be High	p. 71
L: Leaders in an Industry Should Be Your Target	p. 71
I: Institutional Sponsorship Should Be Moderate	p. 71
M: Market Direction Should Be Upward	p. 71
Ignore Valuation	p. 72
Managing a Portfolio	p. 73
Automate Buying and Selling	p. 73
Focus, Make Gradual Moves, and Track Your Winners	p. 75
What You Should Retain from O'Neil	p. 76
Gary Pilgrim	p. 77
Automate Growth Rankings to Avoid Emotion	p. 78
Elements of Good Growth Stocks	p. 78
High Earnings Expectations and Positive Earnings Surprises	p. 79
High Earnings Acceleration Rate	p. 79
Strong Balance Sheet	p. 80
Ignore Valuation	p. 80
Managing a Portfolio as an Individual Investor	p. 80
It's Dangerous to Pursue Earnings Momentum Like PBHG	p. 81
A Value Approach Might be Better for Individuals	p. 81
You'll Fail Trying to Get Information Quicker Than the Pros	p. 82
Strategies to Adopt as an Individual Investor	p. 83
What You Should Retain from Pilgrim	p. 85
Where the Masters Agree	p. 87
Automate Your Strategy with Proven Criteria	p. 87
Look for Strong Income Statements and Balance Sheets	p. 88
Look for Insider Stock Ownership and Company Buybacks	p. 88
Compare Stocks to a Proven Profile	p. 89
Conduct Thorough Research	p. 89
Know Why to Buy	p. 90
Buy at a Price Below the Company's Potential	p. 91
Buy More of What's Working	p. 93
Take Advantage of Price Dips	p. 94
What You Should Retain from This Section	p. 95
How History Tells Us to Invest	p. 97
Testing Popular Measurements	p. 98
The Best Value Measures	p. 99
Price/Sales	p. 99
Dividend Yield	p. 99
The Best Growth Measure--Relative Price Strength	p. 100
Combining the Measurements	p. 101
Cornerstone Value Strategy	p. 101
Cornerstone Growth Strategy	p. 103
Combining the Strategies	p. 104
What You Should Retain from History's Lessons	p. 106
Dow Dividend Strategies	p. 108
A Short, Sweet Look at the Dow	p. 109
Dow Companies Will Endure	p. 111
High-Yield Dow Companies Make Great Investments	p. 112
How to Invest in High-Yield Dow Stocks	p. 113
Listing the Ten Highest-Yield Dow Stocks	p. 114
The Dow 10	p. 116
The Dow 5 Plain	p. 117
The Dow 5 Focus	p. 118
The Dow 2	p. 120
The Dow 1	p. 121
Choosing a Dow Strategy	p. 121
Get Ready to Invest	p. 123
Know Why You're Investing	p. 123
Precisely Define Your Goals	p. 123
Make Them Specific and Exhilarating	p. 124
Write Them Down	p. 124
Assign Time Frames to Those Goals	p. 124
Choose Acceptable Risk Levels for your Goals	p. 125
Choose a Discount Broker	p. 126
Ceres	p. 126
E*Trade	p. 127
eBroker	p. 127
Fidelity	p. 128
Jack White and Company	p. 128
Schwab	p. 129
Others	p. 129
Get Money to the Broker	p. 130
Your Core Account	p. 130
Putting Money into Your Core Account	p. 131
Asset Transfer	p. 131
Direct Deposit	p. 131
Electronic Bank Transfers	p. 132
Place Orders	p. 132
Bid, Ask, and Spread	p. 132
Orders	p. 134
Market	p. 134
Limit	p. 134
Stop	p. 136
Ways to Place Orders	p. 137
By Phone	p. 137
By Computer	p. 138
In Person--How Quaint!	p. 140
Research to Riches	p. 141
Publications	p. 141
Magazines	p. 142
SmartMoney	p. 142
Worth	p. 142
Kiplinger's	p. 143
Newspapers	p. 143
The Wall Street Journal	p. 143
Investor's Business Daily	p. 144
Earnings per Share Rank	p. 145
Relative Price Strength Rank	p. 145
Accumulation/Distribution Rank	p. 146
Volume Percent Change	p. 146
Barron's	p. 146
Newsletters	p. 147
Dick Davis Digest	p. 147
John Dessauer's Investor's World	p. 148
Louis Navellier's MPT Review	p. 148
The NeatSheet	p. 148
Louis Rukeyser's Wall Street	p. 148
The Outlook	p. 149
Outstanding Investor Digest	p. 149
The Red Chip Review	p. 150
Value Line	p. 150
The Parts of a Value Line Page	p. 151
The Rankings	p. 151
Price Projections and Insider Decisions	p. 154
P/E Ratio and Dividend Yield	p. 154
Price History Chart	p. 154
Historic Financial Measures	p. 155
Capital Structure	p. 155
Current Position	p. 155
Annual Rates	p. 156
Quarterly Financials	p. 156
Business	p. 156
Analysis	p. 157
Where to Find Value Line	p. 157
Limited Coverage in Value Line	p. 158
Standard and Poor's Stock Guide	p. 158
Companies Themselves	p. 159
Request an Investor's Packet	p. 159
Read the Investor's Packet	p. 160
Annual Report	p. 160
Balance Sheet	p. 161
Assets	p. 162
Liabilities	p. 162
Stockholders' Equity	p. 163
Income Statement	p. 163
10-K and 10-Q	p. 164
Stock Databases	p. 165
Morningstar U.S. Equities OnFloppy	p. 166
Power Investor	p. 167
The Internet	p. 169
Commercial Services	p. 170
America Online	p. 171
The Motley Fool	p. 171
Morningstar	p. 172
Company Research	p. 172
CompuServe	p. 172
The World Wide Web	p. 173
Search Tools	p. 174
AltaVista	p. 174
Excite	p. 174
HotBot	p. 174
Lycos	p. 175
Webcrawler	p. 175
Yahoo!	p. 175
Stock Research	p. 175
Quotes and Earnings	p. 175
Fundamental Data	p. 176
Small Companies	p. 177
Government and Stock Exchanges	p. 177
Discussion Forums	p. 177
One-Stop Research	p. 178
Investment Organizations	p. 178
American Association of Individual Investors	p. 179
Investors Alliance	p. 179
National Association of Investors Corporation	p. 180
This Book's Strategy	p. 181
Build a Core Portfolio	p. 181
Maintain Your Stocks to Watch Worksheet	p. 182
Find Companies to Watch	p. 184
Personal Experience	p. 184
The Investment Grapevine	p. 186
Investment Publications	p. 187
Magazines	p. 188
Newspapers	p. 188
Professional Publications	p. 189
The Internet	p. 189
Gather the Worksheet Criteria	p. 190
Company Basics	p. 192
Company Name, Symbol, and Phone	p. 192
Current Stock Price and 52-Week High/Low	p. 193
Market Capitalization	p. 194
Daily Dollar Volume	p. 196
Sales	p. 197
Company Health	p. 199
Net Profit Margin	p. 199
Cash and Total Debt	p. 202
Stock Health	p. 203
Sales per Share	p. 203
Cash Flow per Share	p. 205
Earnings per Share	p. 207
Dividend Yield	p. 208
Return on Equity	p. 209
Insider Buys/Ownership	p. 210
Stock Buyback	p. 212
Past Performance	p. 212
EPS Rank	p. 212
Relative Price Strength Rank	p. 213
Five-Year Sales and Earnings Gain	p. 214
Five-Year Price Appreciation	p. 215
Projected Performance	p. 216
Sales and Earnings	p. 216
Projected Stock High/Low	p. 217
Rankings	p. 218
Value Line Timeliness/Safety	p. 218
SandP STARS/Fair Value	p. 219
Stock Ratios	p. 220
Current Price-to-Earnings	p. 220
Average Price-to-Earnings	p. 222
Price-to-Sales	p. 222
Price-to-Book	p. 225
Current Ratio	p. 226
Quick Ratio	p. 227
Max/Min	p. 227
Track Your List	p. 228
Compare Competitors	p. 228
Ask Why	p. 230
Store Company Information in Folders	p. 231
Keep the Information Current	p. 231
Use Your Reasons and Limits Worksheet	p. 232
Discerning Growth from Value	p. 234
How to Use the Reasons and Limits Worksheet	p. 235
Growth or Value	p. 235
Company Strengths	p. 235
Company Challenges	p. 235
Why to Buy	p. 236
Why to Sell	p. 236
Buy Your Stocks	p. 238
Choose a Market or Limit Order	p. 238
Make Gradual Purchases	p. 240
Buy That Baby!	p. 241
When the Market's Up, Down, and All Around	p. 241
Ignore the Gurus	p. 242
Forecasting or Marketing?	p. 243
We Could All Be Gurus	p. 244
You Knew This Was Coming, So Why Worry?	p. 244
Review Your Reasons and Limits	p. 245
Reverse Your Emotions	p. 246
Sell Your Stocks	p. 247
Ignore Rumors and Popular Opinion	p. 248
Rely on Your Reasons and Limits	p. 249
Review Your Stocks to Watch	p. 250
Choose a Market or Limit Order	p. 251
Make Gradual Sells	p. 251
Sell That Baby!	p. 252
Track Your Performance	p. 253
Portfolio Profits, Losses, and Commissions	p. 253
The Fearsome Foursome	p. 254
Good Buy Points	p. 255
Good Sell Points	p. 255
How to Improve Your Buy and Sell Points	p. 256
Bon Voyage!	p. 258
Reasons and Limits Worksheet	p. 259
Stocks to Watch Worksheet	p. 260
Table of Contents provided by Syndetics. All Rights Reserved.

Jason Kelly is the author of the bestselling Neatest Little Guide series

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