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Objective: Identify companies with a current or expected profile
substantially superior, both quantitatively and qualitatively, to both broad
market and industry averages.
Criteria: |
Measures: |
| Management |
Track record as managers
Ability to fulfill management's functions
Motivation, integrity
Distinctive corporate culture
Board composition |
| Ownership |
Senior management and director's ownership
Institutional ownership
Potential dilution |
| Industry Position |
Unique or proprietary products, services, in more
dynamic economic sectors |
| Growth Rate |
Real and inflation component in revenue in pretax
income, net income, and E.P.S. |
| Profitability |
Margins (pretax), return-on-equity, return-on-assets,
return on capital |
| Liquidity |
Cash / current assets ratio
Short term debt / current liabilities ratio
Retained earnings + depreciation / capital outlays ratio
Current assets / Current liabilities ratio |
| Leverage |
Long term debt / equity ratio Total debt / total
capital ratio |
| Stability |
Quarter pattern of sales growth, margins, income growth
Number of years of good, uninterrupted income growth |
| Size |
Market capitalization; dollar revenues Volume traded
daily, Float |
| Valuation |
Cash flow; PIE; yield Net income / market
Market Cap / Sales
Present value of future earnings and dividends
Taxable Bond Portfolio Attributes |
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