Stock market & Finance

Picking up Under-Priced stocks and producing Multi-Fold returns is an art .One needs to develop it .Ganesh from orkut told us safest way for how to select stocks that can give you such Tremendous returns .

When you pick up a stock you needs these points to do research on it :->

1) IS THE COMPANY IN PROFITS?
2) HAVE THE PROFITS BEEN ON THE RISE? IF YES THEN HOW STEEP HAS BEEN THE RISE?
3) WHAT IS THE BUSINESS OF THE COMPANY?
4) DOES THE BUSINESS OF THE COMPANY HOLD GOOD POTENTIAL IN THE FUTURE?
5) HOW ARE ITS PEERS BELONGING TO THE SAME SECTOR DOING?
6) CAN U EXPECT AN INCREASE IN PROFITS OUT OF THE BUSINESS OF THE COMPANY? OR CAN THE
PRESENT SET OF NUMBERS BE AT LEAST SUSTAINED GOING AHEAD?
7) WHAT IS THE PE OF THE COMPANY? IT HAS TO BE LOW......IDEALLY AROUND 5.....LESSER THE BETTER
8) AND OF COURSE EPS?.....GOOD EPS FOR A LOW PE IS A BRIGHT PICK
9) DOES THE COMPANY HAVE AN ALTERNATIVE OR AN ADDITIONAL BUSINESS? IF YES HOW
PROFITABLE IS IT?
10) DOES THE COMPANY HAVE ANY BRIGHT STORY SUCH AS LAND BANK, OR TAKE OVER OR DEMERGER OR MERGER?
11) HOW GOOD IS THE PROMOTER HOLDING? ANYTHING IN EXCESS OF 60 % IS VERY SOUND.
12) HAVE THE PROMOTERS BEEN INCREASING THEIR STAKE? IF YES, A GOOD SIGN.
13) OTHER MATTERS SUCH AS DIVIDENDS, BONUS, SPLIT AND RIGHT ISSUES.
14) NEWS AND RUMOURS. AS THEY SAY BUY ON RUMOURS AND SELL ON NEWS.