Many stocks, making a variety of stock families, have a stable and average image range.
Here is an indicative table:
|
Depressive market
(mkt average img. = 0,6) |
|
|
Neutral market
(mkt average img. = 1) |
|
|
Buoyant market
(mkt average img. = 1,7) |
|
Fairly cycle-resistant blue chips
They are stocks of companies having reached an
impressive size, leaders or co-leaders
in their various markets. with quite integrated, balanced and not too cyclical activities.
Their profit
performances may be somewhat reaching a ceiling, but their good
management has avoided a decline.
Fairly
cycle-resistant good medium-size firms.
They are rather well known firms that grow
at least as fast as the whole economy
and resist without too many problems in difficult periods. Their performances and
economic prospects, rather above those of the blue chips, stay well under those
of the steady emerging firms (see below).
Defensive stocks, a refuge for the
rainy days.
By definition, these firms have their
sales and costs protected from economic cycles.
They supply bread and games, taking an example that goes back to the Antiquity.
Days and nights, through foul and fair
stock market weather, their stocks keep the
same light-colored raincoat and the same dull image.
Here come the dessert, our great hope: the
steadily emerging stocks.
They are intermediate species between
emerging stocks and great growth stocks.
To identify those that are passing by, peep behind a hole in a newspaper and use
the following anthropometric sheet:
-
Confirmation of the qualities of emerging firms, and ascent
towards those of
great growth stocks,
-
Attractive business sector, wider than just a niche, currently
growing in size,
and still promising and visible in the short and long term,
-
Large share of this market,
-
Fast and fairly steady sales and margins growth in the last 4-5
years,
-
Clear (commercial and technological) edge on competitors,
-
Good management / marketing : "dynamism" is not
enough efficiency also
is a must,
-
Still not too high stock image.
