Some thoughts on Analysing Stocks (Keep It Simple and Safe).

Ideally a stock you plan to purchase should have all of the following charateristics:

• A rising trend of earningsdividends and book value per share.

• A balance sheet with less debt than other companies in its particular industry.

• A P/E ratio no higher than average.

• A dividend yield that suits your particular needs.

• A below-average dividend pay-out ratio.

• A history of earnings and dividends not pockmarked by erratic ups and downs.

• Companies whose ROE is 15 or better.

• A ratio of price to cash flow (P/CF) that is not too high when compared to other stocks in the same industry.