STOCKS IN GENERAL financial strength • The... - Deepstash

STOCKS IN GENERAL

financial strength

• The cash position. With $16 in net cash, I know Ford is unlikely to drop

below $16 a share. That’s the floor on the stock.

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These are some lessons that peter lynch thought us in one up on wall street

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Must remember

For instance, a $20 stock with $2 per share in annual cash flow has a 10-to-1 ratio, which is standard. A ten percent return on cash corresponds nicely with the ten percent that one expects as a minimum reward for owning stocks long term. A $20 stock with a $4-per-share cash flow gives you a 20 p...

WATERING THE WEEDS

I’m constantly rechecking stocks and rechecking stories, adding and subtracting to my investments as things change. But I don’t go into cash—except to have enough of it around to cover anticipated redemptions. Going into cash would be getting out of the market.

My idea is to stay in the mar...

THE CASH POSITION

Find out how much cash is the company is sitting on 

formula= cash from opertions - Purchases of new plants,machinery etc - Long term debt  = Free cash

Now just divide this cash by number of shares out standing and you will get Free cash per share. 

peter lynch ...

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