My Stock Winners

Capital Appreciation

Value: Value is a measure of a stock’s current worth. MGI has a current Value of $7.15 per share. Therefore, it is undervalued compared to its Price of $3.26 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. We advocate the purchase of undervalued stocks. At some point in time, a stock’s Price and Value always will converge.

RV (Relative Value): RV is an indicator of long-term price appreciation potential. MGI has an RV of 1.36, which is very good on a scale of 0.00 to 2.00. This indicator is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, AAA Corporate Bond Rates, and risk. RV solves the riddle of whether it is preferable to buy High growth, High P/E stocks, or Low growth, Low P/E stocks. We favor the purchase of stocks with RV ratings above 1.00.

Stop (Stop-Price): Stop is an indicator of when to sell a long position or cover a short position. MGI has a Stop of $7.14 per share. This is $3.88 above MGI’s current closing Price. A stock’s Stop is computed from a 13 week moving average of its closing prices, and is fine-tuned according to the stock’s fundamentals. High RV, high RS stocks have lower Stops, and low RV, low RS stocks have higher Stops. In the We system, a stock gets a ‘B’ or ‘H’ recommendation if its Price is above its Stop and an ‘S’ recommendation if its Price is below its Stop.
Sales Growth: Sales Growth is the Sales Growth Rate in percent over the last 12 months. MGI has a Sales Growth of 15.00% per year. This is very good. Sales Growth is updated each week for every stock. It is often useful to compare Sales Growth to Earnings Growth to gain an insight into a company’s operations.

Meanwhile, here is a link to see my past articles of some good picks:)
http://www.mystockwinners.com/comments-on-iag/