director sale of stock, page-10

Quality - pick 10 key metrics set bench marks based on industry standards. There is your quality analysis. Valuation look at reported profit after tax and cashflows after PPE average the 2. Never ignore the cashflow position. I like to review the casflow after PPE and dividends. If the figure is negative then where the heck is the cash going to come from for your next div or the planned capex spend. (debt or cap raising) (ie mce in 2011 negative casflows with crazy high future iv)and you look at the capex spend and what are its future capex needs. Stick with companies with the best quality metrics and in no order Lyl, Arp, rea, crz, ptm, ont, fwd, ire, wtf, orl, fge and Ire. Note the enterprise value will always be lower than the market capitalization as these all have net cash except orl has a bit of debt When you value a company add the net debt or net cash to the equation. Otherwise you get crazy values like Jbh after the capital raising last year it had a mountain of debt and a Sky high IV based on a high roe inflated by debt. Also the companies above I only own fge ptm and orl as some others are a bit pricey and others I will buy on a down day. Finally the order book and the announced contract wins if you are buying a bad boy mining service company. Brokers probably know what fge will earn because fge have done a darn good job with its disclosure something matrix lacks. With retailers like Orl who rarely update the market you got to review fy hy and Agm updates.