As a new investor in the stock market, the most important question that one asks is ?how to pick up good stocks?? The answer to this question is very critical to be a winner and a consistent profit maker in the stock market. Although there is no full proof formula that may teach one to be a good investor, there are several methodologies and studies that one may apply to pick up good stocks.
The first and foremost question is whether one wants to be a ?growth investor? or a ?value investor.? These two groups have different strategies for choosing and investing in stocks. However, both must do a thorough study of the companies they choose to target. These companies must show healthy signs of growth and not go bankrupt to prevent the investor from losing all.
Some of the signs of a good stock are as follows: The account records of the company must show a good flow of cash. Even after paying the shareholders, it must have enough cash for other activities, such as mergers and acquisitions.
The company should have a good history of consistent dividend payment; this dividend however should not be too high. If this is the case, the company has a greater chance of going bankrupt.
The company history should also suggest that the stakeholders have raised this dividend consistently and not at one go.
Now coming to growth investors; these investors look for stocks that are considered ?hot? in the market. Thus, they target smaller and growing companies that have good potential for growth quickly. Determining this potential is the toughest job for a growth investor. He/she may however evaluate various criteria to reach a logical decision. The company should have a track record of good revenue generation, say over a 10-year period. This requires a thorough study of the company track record.
It should also have a projected growth rate of 10-12% Analyst reports are very useful to make these projections.
The company should have a low pre-tax profit margin. If the company surpasses its previous 5-year average of pre-tax profit margins it should be a good stock to invest in. The return on equity (ROE) of the company should be high and should average well over the previous 5-year period.
All these and more can help a growth investor gauge the real potential of the stock to invest in.
Value investors however follow a strategy which is different from a growth investor. Though, some of the criteria they look for investing in a stock may be overlapping, the fundamental strategy remains discrete. They look for companies to invest in, which can show good potential for growth in the long run, though they may not show a high stock valuation at present. They too look at various criteria:
The stock should have a low value of 25% below its 5-year average and its profitability level should also be low.
However, these stocks must belong to a big company. Big names provide a good reassurance of recovery suggesting a history of such fluctuations.
The company management study is also very important as people make a company. Thus knowing facts such as the educational background of the top managers and their management strategy, can give a good idea of how strongly the company will recover and grow in the long run.
Moreover, a long-term profitable stock will show a history of consistent ROE. This is also a big factor while making a decision. Low-debt stocks are also more favorable as they have a good potential to recover. However, in spite of all the tips, it takes experience for an investor to become an expert.
With few guidelines, a patient can know about plastic surgeon's training and qualifications. Easiest way, naturally, is to ask. Almost all plastic surgeons will be delighted to tell you about their background, their training and years of experience. If they are not willing to help you or do not wish to answer you, you have a right to be suspicious.
Another thing that can help you to find out about your surgeon indirectly are the professional organizations worldwide that publish lists of their members. This is a good starting point. In the US, the American Society of Plastic Surgeons has a doctor finder web site which also help you. In addition to that, you could also ask if the plastic surgeon is board certified in the field of plastic surgery. It is very significant if he is, although this is not a guarantee of a good result. While it definitely gives you assurance about doctor's training. It's better to check that then to be a unlucky victim of botched plastic surgery.
One more thing you can do is try to talk with your family doctor and a medical association nearby. It is sure that they will give you a hand because they often have a personal knowledge of a plastic surgeon's reputation. His associates and people who work in hospitals also have first hand experience about your doctor's work and his results.
One more good move you can make is to find people who have had cosmetic procedure. If certain plastic surgeon is getting consistent results, you should be able to find this by people talk. Simple, right?
Usually, hospitals have training requirements to allow doctors to work as medical staff. This is just another great place to begin with your search.
This covers the first factor, plastic surgeon's qualifications.
You probably know that the second factor, the plastic surgeon's personality, is also meaningful. If all goes well, you will see the doctor only few times more. If it happens that you have a problem , you and the plastic surgeon are going to have to go through some difficult times and issues. In that case, it is really important that you can get on well with the surgeon. Try to talk to more then one plastic surgeons and soon you will get a feeling of the one you understand. If the surgeon you like is qualified, you you have the best surgeon.
Always try to remember that no matter how qualified or nice the plastic surgeon is, some difficulties can occur. Be aware that 1 of 100 patients will have a medical problem after any type of surgery - and plastic surgery is no exception.
It is important to have patience and be aware that you will need some time to to get all the details you need. Being patient is greatest way to inform yourself and have a successful surgery.
Both Vijay & Samuel L. Drogba are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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