Stock Check List

NAIC Classic

NAIC recommended to teach you, step-by-step, the NAIC way

Stock Check List

A Beginner’s basic analysis of a company

Evaluates company growth and value

Use the SCL to learn these concepts of growth and value

Eventually you may move to the more detailed Stock Selection Guide

Why Growth?

Sales and earnings growth increase company value

Growth drives share price higher

Over 5 years, a company with 15% growth has the potential to double your investment

Stock Check List - Part 1

Measure 5 year growth for:

Sales

Stock Check List - Part 2

Measure 5 year growth for: Earnings per Share (EPS)

Explain reasons for growth differences

Stock Check List - Part 2

Research company to:

determine reasons for past growth

make informed judgments about future growth

Why Value?

Buying at a reasonable price increases your potential to double your investment over 5 years

Price-earnings ratio measures value

Purchase when current P/E is same or less than historical average P/E

Stock Check List - Part 3

Determine fair value compare current price-earnings ratio

(P/E) to 5 year average P/E

Stock Check List - Part 3

Measure 5 year growth for:

Price

Stock Check List - Part 4

Conclude whether company meets your goals for growth & value

Identify a growing company

EPS growth should be supported by similar sales growth

Buy at a fair price (for P/E expansion)

current price-earnings ratio (P/E) is same or less than average P/E

Goals Review

SCList Operation

Load data into the Stock Check List

Electronically: Datafiles provide fast and easy entry

Manually: Type in data from a published source such as Value Line or S&P

SCList Operation

Follow step-by-step instructions

The Prompt window is your tutor

Refer to it every step to:

follow a consistent approach

focus on important points

SCList Operation

Use Help features for in-depth assistance

Right-click for What’s This? and More Help

Help links

F1 key

Glossary

Stock Wiz

Internet Features

Direct access to company, research, club and favorite web sites

Update prices from Internet for company or entire database

Click on SSG, SDF or CSV files to load immediately into Classic

Internet Features

Direct link to STB Investor Software web site

help as needed by phone, fax, or e-mail

more tips and techniques for getting the most from Classic

slideshow presentations

register your software

Getting Started

Choose your study report

Choose your data source

Start

Created by STB Investor Software Inc.

NAIC Classic

NAIC recommended to teach you, step-by-step, the NAIC way