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Monday, December 27, 2010

What is PEGGY Method

What is stock market PEGGY Method?


PEGGY Method is to evaluate stocks base on:

PE: PE Ratio
G: Growth
G: Gearing
Y: Yield (Dividend)

Many people evaluate stocks base on just one factor. Example, some buy shares just base on low PE ratio but without knowing the dividend yield. Some buy shares because the dividend yield is high but ignoring the PE ratio or growth. Some buy shares because the company got potential to grow, not taking into consideration other factors.

In order to have a better evaluation of a company, there are many many factors that we need to consider. But we have no time and we are not expert or analyst, and we don’t know how to evaluate a stock.

PEGGY Method is easy to use because:
1)the name PEGGY is easy to remember.
2)PE Ratio, Growth, Gearing and Dividend Yield are the most easily available information.
3)these PEGGY figure are very easy to interpret or evaluate.

PE ratio – The lower the better
Growth – The higher the better
Gearing – The lower the better
Yield (dividend) – The higher the better


For more info on PEGGY Method, here… http://politemarket.blogspot.com/search/label/Peggy%20Method

7 comments:

  1. Sign going to pay 4sen dividend soon. At current price of 77sen, seem to be quite attractive.

    ReplyDelete
  2. I strongly believe the combination of FA & TA, it is much better if you change to PEGGYTA..1sen opinion. ..Alfred

    ReplyDelete
  3. I tried to learn technical analysis, but still don't understand. Thanks

    ReplyDelete
  4. hai,
    Your PEGGY method is really impress me. I am a new bird in share market, i don't know how to select the right stock to buy.
    After reading your article i feel ease. But one thing strike me
    like thunder, "how to choose few stocks to analyst their PEGGY?".
    In current Bursa market they are 1000shares,can you advise me?

    thanks in advance

    ReplyDelete
  5. PEGGY Method as mentioned in my other articles, need analyst figures to forecast.

    We can get it from analyst research reports via brokers, newspaper, website, blog, etc.

    What I normally do is read some research reports provided by my brokers. They normally cover (do analysis) about 50 - 100 stocks. Some they recommend buy. I normally look at the figures, PE, growth, gearing, dividend. Very fast. If interested then only i read more.

    Some brokers will publish all the stocks that they cover, with most of the figures. So with just few pages, you can see many stocks within few pages and can do selection already.

    ReplyDelete
  6. Hi si fu, may in ask how u study company growth, is it through earning per share for years? Thx

    ReplyDelete
    Replies
    1. Growth is the profit growth forecast for the next few years. More accurate will be the earnings per share growth for the next few years. Can get broket from research reports.

      Delete

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