Investing Strategy - Growth Investing

Growth Investing


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)