Welcome. We hope you enjoy our unique style of 'visual' investor education. |
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The Stock Market Mentorship |
| For a lifetime of superior returns |
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Since 1987, our unique style of investing education has helped over 80,000 “Main Street” investors earn superior returns by investing in only the highest quality growth stocks.
That success comes from making it easy for busy investors to quickly assess a company’s growth, financial and operating fundamentals.
See for yourself how one of the mentorship's software tools lets you take a quick and informative look at a company's growth fundamentals.
Use the accompanying "Great Stock or Troubled Stock?" test on some stocks in your portfolio. |
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Great Stock or
Troubled Stock?
Test |
Please enter a
stock symbol or a company's name
to view its
growth fundamentals.
Note that data files for relatively small and/or illiquid stocks may not be found in our database of 6,000+ Canadian and U.S. companies. |
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For a richer understanding of growth fundamentals, please read on.
Microsoft Corporation – A Great Company but a Troubled Stock
Microsoft is the world’s largest software company. It sells a huge variety of products for a wide range of computing devices. The company's dominance arises primarily from its Windows operating system and its Office suite of business productivity applications.
Other product lines include video games, digital music, Internet search, mobile computing devices and Internet television.
Here’s why Microsoft is a "Great Company" |
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1. Microsoft has Great Products
You can easily see the strength of Microsoft’s product line from the quite steep trend in its annual revenues (or “sales”). Such a long trend tells you that the company is selling more and more products, very consistently, year-after-year.
Like most other companies, sales growth last year was slowed by the recession. |
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2. Microsoft has Talented Management and Staff
That talent is evident in the next growth chart. There the green trend shows earnings per share ("EPS") growing along with revenues.
You may find this surprising, but only a team of unusually talented people can operate a business with sufficient efficiency to deliver strong growth in revenue and EPS, quite consistently, for a long time. |
A "Troubled Company"
If you think it’s easy to grow like Microsoft, take a look at Kodak’s history of revenue and EPS growth.
It’s a good example of a troubled company; one with a deteriorating product line and inefficient operations.
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| So, Microsoft is a great company because its products and people have
driven revenues and earnings higher, consistently, for a long time. |
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Too Bad that Microsoft has a "Troubled Stock" |
The stock is “troubled” because, for most of the last six years, its price has failed to increase along with the company’s EPS.
Instead, the stock’s annual high-low price range (the grey bar) has moved sideways.
The failure of a stock’s price to grow with EPS, for so long, tells you that buyers have been paying a lower and lower price for each dollar of the company’s EPS.
As long as the market’s valuation for Microsoft’s EPS continues to decline, it will be difficult for the stock of this great company to move up with its EPS.
Future Price = Future EPS X Future EPS Valuation
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| Helping Investors Earn Superior Returns Since 1987 |
We hope you have enjoyed learning how quickly ShareOwner's unique style of visual education lets you quickly recognize the growth fundamentals of both great and troubled companies and their stocks.
Superior Returns
Of course, there’s more to learn before you can reliably capture the superior returns from a growth portfolio.
For example, there's:
Buying
Knowing how to recognize growth stocks that (1) have strong prospects for future growth and (2) are currently trading in their Buy Zone.
Diversifying
Knowing how to build and manage a well-diversified growth portfolio for a retirement, tax-free savings or other investing account.
Selling
Knowing how to recognize growth stocks moving into their Sell Zone. |
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| The Stock Market Mentorship |
You can learn all about successful investing in growth stocks by enrolling in The Stock Market Mentorship.
Since 1987, ShareOwner has taught over 80,000 investors how to earn superior returns, more reliably.
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