Fundamentals

RobcPettit

Member
53 1
Hi, Im using Sharescope and want to make more use of the Fundamental data. I was thinking along the lines of using Fundamentals to select a pool of shares, and TA to time the buy and sell signals. Can anybody advise either books or web sites were I can get a good grounding to male better use of Sharescope. I was thinking about the Zulu Principle but woundered if it was still relavent to todays markets.
Regards Robert
 

ZigZag

Active member
123 0
RobcPetit. For a fundamental approach I dont think you will find a better method. Jim Slaters method is based on value i.e the PEG ratio plus 5 or 6 filters which zones in on the balance sheet to identify companies that are strong with growth potential. For ideas on how to construct a trading plan it is hard to beat. It is true it didnt work when the market turned after the bubble but what did. What makes it incredibly simple is the publication of REFS which lists the shares in alphabetical order for the various financial filters. There is also a C.D which makes it easier still. Both published monthly or every quarter. I found the quarterly publication (cheaper)more than adequate. Its my intention to return to the method, and as you are planning . and to use T.A .in conjuction with the value data. IMHO a low risk, high reward trading plan. If you have not seen REFS Hemmington Scot.(spelling ?) they will send you a previous copy. The book I would recommend for financial analysis ( considered to be the Analysts bible) is "Interpreting Company Reports & Accounts by Holmes & Sugden published by Prentice Hall. Good Luck
 

RobcPettit

Member
53 1
ZigZag,
Thankyou for your reply, this sounds like the best approach for me. The REFS CD sounds good so Ill look into that also. Thankyou again.
Regards Robert
 

Bill G

Member
92 2
I have used the ' Zulu' approach in association with Sharescope and found it moderately successful, but for a good grounding on fundamentals it s excellent.
I'm interested in the Refs , is it a magazine ?
All the best
Bill
 
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RobcPettit

Member
53 1
refs

Bill g, Ive just done a search and found refs at www.companyrefs.com. Its a CD listing UK equity with there relevant statistics including tables ranking companys by various criteria, I think with ref to the zulu principle. There looks like theres a search filter on the CDs also. If you give them your details they send a free copy, which I have done. Works out to 350.00 a quarter. As Im using Sharescope Ill try and do as much with that as I can.
Regards Robert
 

ZigZag

Active member
123 0
RobcPettit. Rob check that price again for the quarterly publications. I think you will find its much cheaper. Also remember
that data in its self is meaningless unless you use Slaters basic trading plan and his financial ratio filters. e.g. from memory.
EPS growth at least 3 years....PEG less than 1... P.E. less than 20
.. cash flow in excess of EPS... High relative strength 1 YR & 1 Month.... gearing(net borrowings) less than 75%.. cluster of directors dealings. THe chances are these figures are outdated and have probably changed. Since you have started me thinking again Ive upgraded REFS on my list of things to do list plus of course using the system in conjuction with T.A. (Which I didnt use
the first time round) Good Luck P.S. Just sent away for Sharescope data mining C.D.
 

RobcPettit

Member
53 1
ZigZag, my mistake Iment to say 335.00 a year for quartely CDs. Good luck with the Sharescope CD. Ive got that myself and although it explains the basics better than the instruction book, it could have been a lot better. Ive ordered the zulu book which comes Tommorow.
Regards Robert
 

ZigZag

Active member
123 0
RobcPettit. Have quickly ran through the data mining C.D. and am somewhat disappointed. THe idea is great but I consider the number and importance of the fliters used as inadequate. I would have liked them to include filters of ,cash flow, ROC, ROCE, debt, capital expendure ,profit margin. I will give it another try perhaps Ive missed something. But it looks like I will have to look to company REFS for my research. Good reading , its worth its price.
By the way his second book is an upgate of his first but if my memory serves me right there was no that much difference. ( Beyond The ZULU Principle.) Regards Norman
 

jsd

Active member
232 3
way back when i was first getting into the markets i applied the principles that slater offers, im certainly a big fan of it, it makes sense to focus on the smaller companies that have demonstarted excellent growth consistently (previous five years etc) and often with market caps under 100 million as slater says elephants dont gallop and brokers often cover these stocks less frequently because of their relative small size, giving the private investor great opportunity to be in before the institutions pile in.

10 years ago before i had a p.c i used to go to the library and they stock the recent quarters of company refs for you to use in the reference section of the library, i also obtain a copy of the book a guide to using company refs.

another book i aquired was written by a city brooker its title was how to choose stockmarket winners, corny title i know, but its an excellent read packed with details on how this broker made money valuing companies it tells you exactly what details you need to start recording regarding stock prices etc, a few stocks i remeber buying back then were, adare printing, toy options (character group) prism leisure, martin shelton, but that required you to often hold for 6 months, year, upwards etc expecting stock prices to double , i then became aware of the futures market and realised i would like to look into that, WOW, i was an excellent investor, but wanted to get into the riskiest investment out there, (thinking the greater the risk, the greater reward expectations for assuming that risk) which is true, but so bloody difficult, about 6 years later im only beginning to note that my account has stopped falling and is increasing.

whether the zulu principle is still relevant to todays market is a good question i was thinking over the weekend that we are entering a new era regarding risks for world markets, that of terrorism, what effect will that have on stock valuations if terrorism continues and grows as i expect it will, will stocks that used to warrant pe rations of 15,20,30 all be valued at 5, 4, 3 etc because of the terrorist factor, ie the fact that it may well be too risky to hold stocks because the markets will plummet when a terrible device (nuclear? chemical) detonates. Im not a doomsayer but how many of us would be surprised to hear on the news one day that a primitive nuclear or chemical device has exploded in (whatever western society).

i would look at it and probably think, well its finally happend, god help us.. i just cant see the authorities controlling it.
thats when the markets will meltdown.

I hope it doesnt happen in my lifetime but we are at a time when its VERY POSSIBLE

jd.
 

RobcPettit

Member
53 1
Hi, Thgought Id post an update to my original post. Ive now read the Zulu principle and found it to be a good grounding in fundementals. I now trying to use the information along side Sharescope. I want to try and find the info myself without subscribing to Refs as I think this will give me, over time, a better understanding. With using Sharescope Im testing there PEG calculations to see if its along the same lines as Jim Slaters. If that turns out to be so I thought Icould filter my selection based on PEG, positve EPS over 5 years and possibly capitalisation. What I wont be able to do is look back at PE History. To get around this I thought I could use somebody like MoneyAm to get the Fundemental Data and edit it in excel. Anyway this is a work in progress, thought it would be good to update thgis thread.
Regards Robert
 
 
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