FNF Investment Guidelines use to select stocks:
SALES/EARNINGS/NET PROFIT increased continuously for 5 yrs?
SALES/EARNINGS doubled in 5 to 7 years?
Does the company paid out DIVIDENDS?
If so, have they increased continuously for 5 yrs?
Does the company have a stable OPERATING
MARGIN (OM)?
(Operating Margin
measures Management’s ability to extract profits from the sales of company’s
products)
Is current LONG TERM DEBT less than 1/3 of Total Current Assets?
Are CURRENT ASSETS twice CURRENT LIABILITIES?
Is the company’s “Value Lines” -
TIMELINESS ranking between 1 and 3?
(Value Line ranks stocks
between 1 and 5 for “timeliness”, a prediction of “relative price performance
for the next 12 months” – in other words, how fast its price will grow relative
to other stocks.)
Is the company’s “Value Lines” - SAFETY
ranking between 1 and 3?
(Value Line measured the
volatility of a stock’s price around its own long-term trend. The narrow the
band of fluctuation, the lower the rating and the safer the stock.)
Is the company’s - BETA ranking
between 0.80 and 1.20?
(Beta is a number that
compares the volatility (movement) of a stock’s price relative to that of the
total market. A beta of 1 means that a stock price moves up and down at the
same rate as the market as a whole.)
Is the company’s P/E (Stock Price
(divided by) Earnings) no greater than 35?
(P/E means Stock Price
divided by Earnings. Example: If a company’s P/E is 33, that means it’s stock
price is 33 times its earnings. So if it’s earning were $1.50, the stock price
would be $49.50: $1.50 X 33 = $49.50. The P/E will change as the price
changes. If the stock losses $9.50 in one day, the P/E for the next day will be
26.6: $49.50 - $9.50 = $40.00 divided to $1.50 = 26.6. That is way P/E is
sometimes referred to as multiple.)
Is the company’s Standard & Poors Five Star Rating System at or above 3 stars?