preview

Essay on Investments

Good Essays

Investments INVESTMENT JOURNAL

I started doing my research in the Microsoft Network using the Custom Search feature in the Stock Screener. Since I was looking for a conservative stock to start with, the first restriction I put was that the stock be a member of the Dow Jones Industrial Average. I also wanted a Large-Cap company so I put the Market Cap to be above 5 billion dollars. Another restriction I added was that its P/E ratio be the lowest possible and that the EPS Year to Year be above 13%. After running the search I got 20 matches. The top three were Exxon, SBC Communications and American Express. After researching them a bit more I decided that Exxon would be a good option because it was a solid company that had a …show more content…

* 1. Most of the companies that came up were technology based and are currently going through difficult trends. But I did find a company that I liked a lot called AmeriCredit Corp. The company basically seeks to attract consumers who have credit limitations or past credit trouble and to shoppers buying late-model and new automobiles. Even though it does not sound so exciting, their numbers are outstanding. What especially caught my eye was the positive trend in EPS and the fact that the estimated price at the end of the year was higher than the current price. Multiplying the current P/E * estimated earnings = estimated future price. Another factor that finally convinced me to buy the stock was the fact that it had a Stockscouter rating of 9. I bought 170 shares of ACF at $60.87.

The fourth transaction I made was based on the “Righteous Rockets” stock screen. I made a few modifications to the screen but basically left it the same; I changed the market cap to at least half a billion dollars instead of 50 million and I also added a new restriction (StockScouter Rating * 9). I only got one result off my screen and that was Downey Financial Corp. (DSL). After running it through the research wizard, the stock seemed to be wonderful. The estimated earnings were about 20% higher for FY 01 than the previous year and the price was estimated to be higher than it currently is. The only negative characteristic I found in the stock was when I

Get Access