“Advanced Acid Tests” by Kathleen Richards
Description

“Advanced Acid Tests” by Kathleen Richards
Description
Using the BetterInvesting Stock Selection Guide (SSG), discover why the
latest four quarters matter, how to spot fundamentals that are “out of trend,”
and the difference between “golf balls” and “bubbles.” You’ll also learn why
a bowing graph can be a serious warning sign.
Discover how the “Torpedo Graph” highlights pre-tax profit (PTP) trends.
Sales drive PTP, which drives earnings per share (EPS) and, ultimately,
share price. A drop in PTP can signal future declines in EPS and price,
allowing investors to spot trouble early.
See how share buybacks can increase EPS and share price even as PTP
declines—potentially masking weakening profits.
