Rich Growth; Cheap Shares
One of the regular discussions -- and often arguments -- around Chez Melvin has to do with what does and does not work in the markets. I regularly rail and rant against such flawed ideas as the "Fed model," earnings projections and discounted cash flow. I am not a big fan of most of the multi-factor economic models or technical-analysis coloring-book projects I see all the time either. Over the years, I have found that they contain flawed assumptions and will fail when you need them the most.
Instead, I think most investors are better off focusing on tangible book value, credit scores and dividends. When evaluating growth stocks, a climb in book value is as important as that in the more easily manipulated earnings figure. While I didn't necessarily win last night's round of the discussion, it did spark a screen idea that may have some merit....629 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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