Tuesday, April 24, 2007

101 Investing Tips

38) The best way to find a cheap growth stock.
Divide the forward PE ratio by the expected growth rate. Less than 1.2 may be an undervalued growth stock. The caveat is the assumption of earnings and growth.

39) Stocks come in all sizes- Large-cap stocks
Large cap have market value of $5 billion or more.

40) Midcaps
Market value of $1-5 billion

41) Small-caps
Less than $1 billion

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