9 points to check before picking a multibagger

For most of us investing in stock market is a fascinating investment option. We always look to invest in those stocks which can fetch handsome returns. Mutlibaggers are stocks which have the potential to earn multifold returns in a stipulated period of time.
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For most of us, investing in stock market is a fascinating investment option. We always look to invest in those stocks which can fetch handsome returns. Mutlibaggers are stocks which have the potential to earn multifold returns in a stipulated period of time. A stock that gives returns up to five-fold is called a five bagger, while the one which gives 10-fold returns is called a ten bagger. However, identifying them can be like finding needle in a hay stack. Moneycontrol.com takes help from SP Tulsian and PN Vijay to know the nitty-gritties of investing in multibagger stocks.

According to experts, following characteristic should be kept in mind while scouting for a multibagger:

> Look for companies having lower equity base because lower the equity base higher would be the valuations and earnings per share (EPS).

> Stocks where promoters holding is higher, the free float is lower, so there are chances of prices jumping on the back of strong earnings.

> Dig deep through information to recognise a substantially undervalued stock.

> Stocks which are not much noticed by market can be potential multibaggers.

> Investors should opt for companies with strong positive cash flows and robust business model.

> The share price of the stock should not reflect its earnings growth. One should also take a note of availability of inherent liquidity in the stock.

> While selecting companies, investors must always be cautious about the fact that selected company follows the required corporate governance norms.

> The quality of the management and goodwill of the promoters should be considered.

> One should try and avoid looking for multibaggers in troubled sectors, which are not in sync with the economy.

Multibaggers and misconceptions

When investing in multibaggers one should have a view of five years or more, however investors keep a view of just six-12 months and start expecting blasting returns, highlights Tulsian.

"Investors expect multibaggers to start giving enormous returns overnight, one has to keep a view of at least three years," Vijay adds.

All small stocks, which are not much talked about are considered as being multibaggers despite them not having basic multibagger characteristics, this according to Vijay is another very common myth amongst investors.

Following are examples of classic mutilbaggers

Hindustan Zinc , Hero Moto (earned over 25 times returns in the last 10 years)

Jindal Steel and Power (earned 5 times returns in the last 5 years)

Titan Industries (earned 5-6 times returns in the last 5 years)

Vijay feels, identifying multibaggers is one thing, but making big money out of them is another. "Wine needs time to mature. So, to bag "multi" fold returns, investors should be patient. Secondly, one should not be tempted to book profits after a 25 to 30% rise," he recommends.

harsha.jethmalani@network18online.com

Finding the Best Stocks to Buy

As investors, it's important to know how to go about finding the best stocks to buy. Before it's possible to successfully choose the best stocks, you first have to understand some of the fundamentals of evaluating these securities. For example, what are the desired characteristics for a stock?

What Stocks to Buy?

The answer to that question is fairly straightforward: You are trying to figure out which stock to buy, before the rest of society wants to buy that same stock. It's called the stock market for good reason. It's a very efficient market, one that follows the law of supply and demand. As an investor, you want to buy a stock just before demand for that stock increases. This means you need to buy an "undervalued" stock.
Additional Resources

Five Good Stocks to Buy in 2011 Finding the Best Stocks to Buy Identifying Takeover Targets Poison Pill Defense Dividend Paying Stocks Understanding Dividends Understanding Market

Now that we know what kind of stock we want to buy Capitalization (undervalued ones), we have to be able to identify the specific companies in which we'd like to invest our hard-earned money. There are roughly 3,000 companies listed on the New York Stock Exchange alone, so unless you have a lot of time, we need to quickly narrow the list. The following guide will help you through that process, but there is no substitute for conducting your own research.

Researching Good Stocks to Buy

In fact, the entire approach outlined below is based on a series of articles dealing with the topic of stock research. We've already addressed one topic in our article entitled - the Ten Best Stocks to Buy. In this publication, we're going to discuss the mindset you should have when you're trying to decide if buying a particular stock makes sense for a serious investor.

Pick a Market Sector that You Understand

Many people like to play the market on gut, but we're not comfortable buying shares of a company that is in a business we don't even understand. We'd rather spend our time focusing on sectors that we know and understand, rather than learning about topics such as nuclear physics. That means focusing on business sectors that we interact with daily: car manufacturing, toothpaste, or lawnmowers.

Pick a Stock with Real Value

The best stocks to buy will be those that demonstrate good fundamentals. Now some of you might be thinking - this magazine is old school; they aren't even going to mention technical analysis. Well, you're correct in that thinking. Technical analysis is the study of trading patterns and historical prices of a stock. If you've ever been a day trader in a bull market, then you might be forever sold on technical analysis. The techniques described in this publication rely more on in-depth stock research. Fundamental analysis means you are looking at, and comparing, Price / Earnings ratios, book value, cash flow, and return on assets. If you're not familiar with these terms, then take a look at our article on Understanding Financial Ratios. Basically, you are looking for stocks with real intrinsic value. Something we discuss at length in our third publication on stock research.

Avoid Stocks with Potential Liabilities

There are many stocks to choose from, so it is a good idea to stay away from stocks that are in the news because of large and looming lawsuits. Legal problems can drag on for years and lower a company's stock price, so your best bet is to steer clear of companies that have legal problems.

Look for Companies with Bright Futures

Although past performance might be a good indication of future returns, the reverse can also be true. If you find a stock with good fundamentals, then make sure you look at the predictions of the analysts that track the stock. At the very least, make sure they are predicting stable or growth in earnings per share. If there is one lesson everyone has learned from the dot-com bust of the 1990s, it's that companies need to be profitable to remain in business. Don't be confused when people start talking about revenues. A company can have a huge revenue stream, but earnings are the measure of a company's profitability. If you're serious about investing in the stock market, then you need to understand fundamental research topics such as earnings per share estimates.

Finding a Stock that is Not Popular

This is probably one of the most difficult things to do. You want to pick a stock that is not popular today, yet could be popular tomorrow. Remember, it is supply and demand forces at work in the market. If a stock is popular, then this means that demand has already pushed the price higher. You want to find a "sleeper" stock. This is a stock that is currently being ignored by the market, but has the future potential to rise in price. If you follow these guidelines, then you should stay one step ahead of the crowd. By finding a fundamentally strong stock in a sector that you understand, you should rest comfortably knowing that you picked a stock with the potential to provide for rewarding returns.

About the Author - Finding the Best Stocks to Buy Bill Sharlow is the Editor of Money-Zine.com. Copyright 2004 - 2011 Money-Zine.com

Thursday, September 22, 2011

The Magic of Multibagger Stocks

Investing money in stocks is cool but investing money in potential multibaggers is absolutely fascinating and mesmerizing since multibaagers are the only friends who can actually help you become a millionaire or a billionaire.

Indeed, becoming a millionaire used to be the ultimate dream, the difference between the rich and the poor. Times have changed thanks to inflation and its compounding effect. These days, having a million is not enough for most of us to retire. While winning $1 million in the lottery used to be the ultimate dream of millions, these days, any jackpot under $10 million will not generate much excitement. As Sean Parker said in the Facebook movie, You know whats cool? A Billion Dollars.

And I say to you forget 1 billion dollars and just aim for 1 billion rupees and thats cool too unless you are extremely greedy in which case Lady Luck herself will have to whisper the name of the next multibagger! Wishful thinking. Not easy to make 1 billion rupees even if you have one crore surplus funds since your stocks should then have to become a 100 bagger! No, not at all easy. Its tough, really really tough to identify and invest in a potential 100 bagger.

Now lets get back to the real cool stuff called multibagger stocks. What precisely are multibagger stocks and how can an investor go about identifying such dream stocks that can change your life forever. Whats so magical about multibaggers.

What are multibagger stocks?

Multibagger stocks have true magic in that it can transform your stock investment of say Rs.1 lakh into Rs.10 or even 20 or 30 lakhs in just over 5 years. No bank, mutual fund or Government on Planet Earth could present you with such fascinating returns. Thats the magic and mystique of multibagger stocks. Enter the world of Multibaggers

Multi-bagger stocks are stocks that go up 2-fold, 3--fold etc. A stock that say goes up 5fold is called a Five Bagger and a stock that goes 10-fold is called a ten bagger. Like legendary investor Peter Lynch said, to be a millionaire, all you need is $10,000 and to invest it in two ten-bagger stocks.

Multi-bagger stocks do not come from investing in established companies, but they exist in the realm of small companies. When you buy an established company, with a wide economic moat, you can make consistent profits of say 15%-25% like Warren Buffett. However, to make multiple returns on your money, you have to know how to pick the

right Small Capitalization Stocks before they become medium, big and eventually, mega capitalization companies.

HBJ Capital specializes in finding the stocks of small cap companies before they become famous brands, before they develop an economic moat and before stock analysts and investors even know they exist.

A simple example of a multibagger stock is Titan Industries Titan was in dire state way back in 2003. It was also undergoing a restructuring exercise with a target of increasing earning at a fast pace. The companys strong brand equity in the domestic watches market and the prospects of strong growth in the jewellery business accompanied by improving margins made the stock a potential multibagger at that point in time. The stock eventually multiplied 16 times, from Rs.67 to Rs.1070; all in a span of 5 years a great 16 bagger!

While most folks know that Rakesh Jhunjhunwalla [ RJ ] made great profits in Titan, what many dont know is that RJs forst multibagger pick was Tata Tea. He bought 5000 shares @Rs.43/share and sold the entire quantity @Rs.143/share thereby making a cool profit of Rs.5 lakhs [ 715000 minus 215000 ] and that too in 3 months. Thats what I call a High Speed Multibagger 3.3 bagger in 3 months!

I would like to mention that we at HBJ Capital hunt for multibaggers which have a robust business model, good P&L and balance Sheet strength. We never recommend stocks like Kaleidoscope Films Limited and we are least concerned if such scrips become multibaggers.

Kaleidoscope Films Limited - having declining topline, losses and eroded reserves and yet it had a dream run .......from July 2009 at 98 paisa to rupees 42 in April 2011. Means in almost over one a half year the stock has become a 42 bagger!

And yes, if somebody tells you Cals Refinery is destined to be the next multibagger of the Indian bourses then please take him or her to a Financial Doctor who will grill and drill him thoroughly to understand why this person thinks that Cal will be a winner and then prescribe the poor person with some nice prescriptions.

How investor can identify multibagger stocks?

An investor must look at the following factors whilst searching for multibaggers.

Low Equity base lower the Equity base, higher the EPS and higher the valuation

Promoters Holding higher the promotors holding lower the floating stock and hence stock price can shoot up if y-o-y and q-o-q results are good.

Sector Choice - choosing the right sector is as important as selecting the right potential multibagger

Earning Visibility investors must search for companies having a robust business model with promising earning visibility going forward. Price Earnings Ratio if a company has good business model, strong fundamentals and balance sheet strength backed by +ve cash flows and if such company is quoting in the range of around 10 PE then we may look at such stock to see the multibagger potential.

Book Value if the price of a stock is much below the book value then the investor must dig deeper to find out the potential of the stock in becoming a multibagger Zero Institutional holding this one is crucial for the obvious reason that a discovered and well researched stock would in all probability be having institutional support. So,investors need to look out for scrips having virtually no institutional holding. Positive Cash Flow needless to mention investors need to take a hard look at companies having consistent positive cash flow for the past several years backed by the above factors.

And dont you ever forget that to identify a multibagger is like identifying Karishma Kapoor in her teens. And sometimes you have to rely on your hunch or sixth sense think Infosys and you will know what I am talking about. You have to catch them young and not when Tom, Dick, Harry, Amar, Akbar and Anthony know about these stocks then it hardly matters whether you own Naryans Infosys or Steves Apple! And yes if you buy stocks containing above ingredients when blood is running in the streets then the chances of such stocks becoming multibaggers gets accelerated you become richer faster! Kishor S. Khot, [Kishor@hbjcapital.com], Equity Strategist, HBJ Capital Services Pvt Ltdhttp://www.hbjcapital.com/2011/09/magic-of-multibagger-stocks.html.

How to Choose Stocks

27 authors | 87 revisions | Last updated: July 26, 2012
GameMaster, Ben Rubenstein, Robert Freedland, Axiom, Kent Smith, Manuel_Montenegro_THANKS!, Dave Crosby, Lucas Halbert, Flickety, KnowItSome, Sondra C, Nixta78, Bigben, Zack, Travis Derouin, Rojo Don Poho, Hafizsteen, BR, DifuWu, Mark Potter, Wingrider, Mountain Dew, Monica, Harri, Tipsy, Maluniu, 80_Calo Article Edit Discuss

When you want to see more growth from your funds, it is time to take them out of the bank, and invest in stocks. When you know nothing about investing, it is a bit scary because you fear losing all your money. Learn first, how to understand how stocks work, and how to choose the correct ones for you.

Edit Steps
1. 1 Read as much as you can about publicly traded companies, the stock market, accounting, finance, financial statements, etc. There are tons of free websites devoted to these topics. 2. 2 Read the Wall Street Journal, and the Business section of your local paper. The more you read, the more you'll learn about the market and what to look for in a company. 3. 3 Start with industries with which you are familiar. No matter if you are a student, a teacher, whatever, you are familiar with at least some publicly traded companies. 4. 4 Think of products you like or companies that provide services you think are good or popular. 5. 5 Look up the company or parent company that makes the product or service you like by going to finance.yahoo.com or http://moneycentral.msn.com/home.asp, for example. 6. 6

Look at the company's official website, especially everything in the Investor Relations section. 7. 7 Look at the company's financial statements. It takes lots of time to learn how to analyze these properly, but you should definitely have looked at them before investing in a company. 8. 8 Become familiar with the free Morningstar.com website. Especially look at the "5-Yr Restated" financial page--this page can identify the consistency of revenue growth, earnings growth, dividend record, stable number of shares, free cash flow, and the balance sheet. 9. 9 Decide how much money you are willing to risk. Imagine you were to lose all the money you invested, how much would you put in? 10. 10 Enter an order for a certain number of shares after you have followed the stock for a couple weeks to see where it is. 11. 11 Learn how to identify stocks with criteria that may indicate potential for future price appreciation. 12. 12 Determine a method of knowing when to be buying a stock and when to avoid adding new money to your investments. 13. 13 Learn technical analysis tools like candlestick charting, EMA, MACD, etc. to better time your entries and exits. 14. 14 Read Benjamin Graham and learn about value investing.
o

Learn what the "margin of safety" means. Warren Buffet learned this concept from Benjamin Graham and Warren said that this is the most important three words ever written about Real Estate. The Margin of Safety is buying a stock when the price of the company (value of all the shares) falls below the price of its assets (cash, land,

buildings, equipment, stocks, bonds). A key-ratio called "Price-to-book" is the stock/assets and when it is below 1, there is a margin-of-safety. 15. 15 When you have read Graham, read all you can about Warren Buffett's strategies. Buffett studied under Graham and got very rich by improving on Graham's approach. The book "Buffetology" by Mary Buffett is a good start. 16. 16 Think logically about the stocks that you buy. Consider the fundamental profit-producing factors of the company; a stock that is cheap could be undervalued, or it could be nearly worthless and overvalued by some betting on a miracle and some hoping to sell to those people before the company collapses meaning that it has more going down than going up to do. Think also about trends and decide which is the best. For instance, if you know that a mass group of immigrants are about to come to the United States it is logical for you to think that they would talk to their relatives, it would make sense to get stock in the company that provides international telephone service.

Edit Tips

Be careful about buying the "hottest stock". It may indeed be a good buy but do your own homework to determine whether it meets your own criteria. Read "One Up on Wall Street" by Peter Lynch. You will not regret it. Do not buy a stock without seriously thinking about it first. Imagine if it fell 10% the next day, would you think you had made a bad investment or would you still believe in it? If you still believe in it, that is just an opportunity to buy more at better prices. Expect price fluctuations. If you plan to buy 100 shares in a company, for example, do not buy it all at once. Instead, buy it in increments of two or three. For instance, you may buy 30 shares now, and enter order to buy another 30 shares when the price drops 10%, and the remaining 40 shares when the price drops 20%. If the price never drops to the level of your subsequent order, fret not, as there will always be other opportunities available. 1. Benjamin Graham did a study of 100 years and the stock market crashed 19 times in 100 years so every 5.3 years the stock market crashes 40% or more and every 2 years there is a minor crash where the stock market crashes at least 20%. Warren Buffet knows the companies that he likes and during these crashes he invests most of his money. When the stock market is not crashing, Warren Buffet is hoarding cash. Warren Buffet and friends would get together every couple of years and ask the following question, "If you were to go to a deserted island and you had to invest all your money in one stock for 10 years, what stock would it be?" Warren Buffet said that this helps them to focus on long-term buying of a stock rather than the short gain that requires a quick exit. Be greedy when others are fearful and be fearful when others are greedy.

Edit Warnings

Do not impulse buy stocks. Make sure you know what you're getting into. Don't place orders overnight. The stock might rise and open higher and you'll spend more money than you intended to.

Don't sell when a stock falls unless you're sure it's only going to drop further. Panic selling is a top reason people don't come out ahead.

Edit Related wikiHows

How to Buy Stocks How to Get Started in the Stock Market How to Get a Venture Capital Investment How to Invest in Stocks How to Invest Small Amounts of Money Wisely How to Find High Yield Stocks How to Invest in Quality Dividend Stocks How to Decide Whether or Not to Read a Book

Edit Sources and Citations

http://www.morningstar.com http://www.stockcharts.com http://www.yahoo.com http://www.growthstockanalytics.com http://www.stockta.com http://www.howthemarketworks.com/questions/what-stocks-to-buy.php

Article Info

5 Must-Have Metrics For Value Investors

May 21 2011| Filed Under Fundamental Analysis, Stock Analysis, Stocks, Warren Buffett If you're a value investor, there's no "right way" to analyze a stock. Even so, any successful investor will tell you that focusing on certain fundamental metrics is the path to cashing in gains. That's why you need to keep your eye on the metrics that matter. As a value investor, you already know that when it comes to a company's health, the fundamentals are king. Fundamentals, which include a company's financial and operational data, are preferred by some of the most successful investors in history, including the likes of George Soros and Warren Buffett. That's no surprise, as knowing the ins and outs of a company's financial numbers - like earnings per share and sales growth - can help an in-theknow investor weed out the stocks that are trading for less than they're worth. But that doesn't mean that all metrics are created equal some deserve more of your attention than others. Here's a look at the five must-have fundamentals for your value portfolio. Tutorial: The World's Greatest Investors 1. Price-to-Earnings Ratio

While the price-to-earnings ratio (also known as the P/E ratio or earnings multiple) is likely one of the best-known fundamental ratios, it's also one of the most valuable. The P/E ratio divides a stock's share price by its earnings per share to come up with a value that represents how much investors are willing to shell out for each dollar of a company's earnings. The P/E ratio is important because it provides a measuring stick to compare valuations across companies. A stock with a lower P/E ratio costs less per share for the same level of financial performance than one with a higher P/E. What that essentially means is that low P/E is the way to go. But one place where the P/E ratio isn't as valuable is when you're comparing companies across different industries. While it's completely reasonable to see a telecom stock with a P/E in the low teens, a P/E closer to 40 isn't out of the line for a high-tech stock. As long as you're comparing apples to apples, though, the P/E ratio can give you an excellent glimpse at a stock's valuation. (Learn more about the P/E ratio in our Investment Valuation Ratios Tutorial.) 2. Price-to-Book Ratio If the P/E ratio is a good indicator of what investors are paying for each dollar of a company's earnings, the price-to-book ratio (or P/B ratio) is an equally good indication of what investors are willing to shell out for each dollar of a company's assets. The P/B ratio divides a stock's share price by its net assets, less any intangibles such as goodwill. Taking out intangibles is an important element of the price-to-book ratio. It means that the P/B ratio indicates what investors are paying for real-world tangible assets, not the harder-tovalue intangibles. As such, the P/B is a relatively conservative metric. That's not to say that the P/B ratio isn't without its limitations; for companies that have significant intangibles, the price-to-book ratio can be misleadingly high. For most stocks, however, shooting for a P/B of 1.5 or less is a good path to solid value. (See Digging Into Book Value to learn how book value per share is normally calculated.) 3. Debt-Equity

Watch: The Debt To Equity Ratio Knowing how a company finances its assets is essential for any investor especially if you're on the prowl for the next big value stock. That's where the debt/equity ratio comes in. As with the P/E ratio, this ratio, which indicates what proportion of financing a company has received from debt (like loans or bonds) and equity (like the issuance of shares of stock), can vary from industry to industry.

5 Must-Have Metrics For Value Investors

May 21 2011| Filed Under Fundamental Analysis, Stock Analysis, Stocks, Warren Buffett If you're a value investor, there's no "right way" to analyze a stock. Even so, any successful investor will tell you that focusing on certain fundamental metrics is the path to cashing in gains. That's why you need to keep your eye on the metrics that matter. As a value investor, you already know that when it comes to a company's health, the fundamentals are king. Fundamentals, which include a company's financial and operational data, are preferred by some of the most successful investors in history, including the likes of George Soros and Warren Buffett. That's no surprise, as knowing the ins and outs of a company's financial numbers - like earnings per share and sales growth - can help an in-the-know investor weed out the stocks that are trading for less than they're worth. But that doesn't mean that all metrics are created equal some deserve more of your attention than others. Here's a look at the five must-have fundamentals for your value portfolio. Tutorial: The World's Greatest Investors 1. Price-to-Earnings Ratio While the price-to-earnings ratio (also known as the P/E ratio or earnings multiple) is likely one of the best-known fundamental ratios, it's also one of the most valuable. The P/E ratio divides a stock's share price by its earnings per share to come up with a value that represents how much investors are willing to shell out for each dollar of a company's earnings. The P/E ratio is important because it provides a measuring stick to compare valuations across companies. A stock with a lower P/E ratio costs less per share for the same level of financial performance than one with a higher P/E. What that essentially means is that low P/E is the way to go. But one place where the P/E ratio isn't as valuable is when you're comparing companies across different industries. While it's completely reasonable to see a telecom stock with a P/E in the low teens, a P/E closer to 40 isn't out of the line for a high-tech stock. As long as you're comparing apples to apples, though, the P/E ratio can give you an excellent glimpse at a stock's valuation. (Learn more about the P/E ratio in our Investment Valuation Ratios Tutorial.)

2. Price-to-Book Ratio If the P/E ratio is a good indicator of what investors are paying for each dollar of a company's earnings, the price-to-book ratio (or P/B ratio) is an equally good indication of what investors are willing to shell out for each dollar of a company's assets. The P/B ratio divides a stock's share price by its net assets, less any intangibles such as goodwill. Taking out intangibles is an important element of the price-to-book ratio. It means that the P/B ratio indicates what investors are paying for real-world tangible assets, not the harder-to-value intangibles. As such, the P/B is a relatively conservative metric. That's not to say that the P/B ratio isn't without its limitations; for companies that have significant intangibles, the price-to-book ratio can be misleadingly high. For most stocks, however, shooting for a P/B of 1.5 or less is a good path to solid value. (See Digging Into Book Value to learn how book value per share is normally calculated.) 3. Debt-Equity

Watch: The Debt To Equity Ratio Knowing how a company finances its assets is essential for any investor especially if you're on the prowl for the next big value stock. That's where the debt/equity ratio comes in. As with the P/E ratio, this ratio, which indicates what proportion of financing a company has received from debt (like loans or bonds) and equity (like the issuance of shares of stock), can vary from industry to industry.
The Death of the PC

Beware of above-industry debt/equity numbers, especially when an industry is facing tough times it could be one of your first signs that a company is getting over its head in debt. 4. Free Cash Flow While many investors don't actually know it, a company's earnings almost never equal the amount of cash it brings in. That's because companies report their financials using GAAP or IFRS accounting principles, not the balance of the corporate checking account.

So while a company could be reporting a huge profit for its latest quarter, the corporate coffers could be bare. Free cash flow solves this problem. It tells an investor how much actual cash a company is left with after any capital investments. Generally speaking, it's a good idea to shoot for positive free cash flow. As with the debt-equity ratio, this metric is all the more significant when times are tough. (Watch out for accounting trickery when looking at free cash flow, see Free Cash Flow: Free, But Not Always Easy to learn more) 5. PEG Ratio The price/earnings to growth ratio (or PEG Ratio), is a modified version of the P/E ratio that also takes earnings growth into account. Looking for stocks based on their PEG ratios can be a good way to find companies that are undervalued but growing, and could gain attention in upcoming quarters. Like the P/E ratio, this metric varies from industry to industry. (For further reading, check out Move Over P/E, Make Way For The PEG.) Going Beyond the Numbers When it comes to investing, the numbers aren't everything. There are times when low valuations are justified, and there are qualitative metrics like management quality that also factor into a company's valuation. Just because a stock seems cheap doesn't mean that it deserves to increase in value. Ultimately, the only way to improve your fundamental analysis skills is to put them into practice. With these five must-have fundamentals under your belt, you're well on your way to finding the most undervalued stocks on the market. For additional reading on value investing techniques, check out The Value Investor's Handbook. Read more: http://www.investopedia.com/articles/fundamental-analysis/09/five-musthave-metrics-value-investors.asp#ixzz2AUSUzAZQ