|
in any event, here are some tips from Peter Lynch:
divide p/e of stocks in T. Rowe Price New Horizons Fund by p/e of S&P 500; buy emerging growth stocks when the above index is < 1.2
before investing in a low-priced stock of a shaky company, see what's happening with the price of the bonds. If a company is solvent its bonds will sell for 100 cents on the dollar.
Look at a chart book (in libraries): buy stocks when the stock price is at or below the earnings line. Stock price higher than earnings line is a danger zone.
a stock should sell at or below its growth rate (the rate the company increases its earnings each year); but compare company p/e with p/e's of rest of market, too.
Valueline is a proven winner for advice
I have some other people to pay attention to also if you want
|