You have new money. As an investor, what are you going to do with it? The simplest thought might be to add to one of your holdings. Using your PER report, consider the following as you decide what to but:
- If PEG ratio is over 1.25 or PE is too high, DON'T BUY IT
- If U/D ratio is under 3/1, DON’T BUY IT
- Relative Value should be under 100
- If the three - (3) items above look good, the stock looks cheap. But maybe there's a reason it's cheap. Look at earnings and profit margin. If earnings are down, DON''T BUT IT.
As an example, suppose your portfolio has 10 stocks. On examination,6 have a quality problem. That leaves four -(4) which are cheap and good quality. Buy the one you own the least of.
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