Look for three characteristics of Growth - superior brand, good management and superior technology.
Buying:
- A PEG less than 0.75
- Market Capitalization greater than GBP 20m
- PE less than 20
- High projected Earnings Growth 1 - 5 years.
- Highest 1, 3, and 5 year historical Earnings Growth
- High continuous EPS Growth, historical and current.
- Positive Earning Surprises.
- High Revenue Growth.
- Positive Cash Flow. Cash Flow per share should be greater than Capital Expenditure per share. Cash Flow per share should exceed EPS. Low P/CF ratio.
- Positive Relative Strength over the last 1, 3, 6, and 12 months.
- Net Gearing less than 50%. Interest Cover, Quick Ratio, and Current Ratio need to be healthy.
- Look for high Margins relative to the sector and a high ROCE.
- Pay attention to Directors' Dealings
- Check recent Brokers' Estimates
Entry
- TA signals
Exit:
- If the PEG has doubled.
- Trailing Stop/Loss of 10%
http://www.docstoc.com/docs/7984050/Investment-Strategies (Page 96)
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