The document discusses a method called Comparative Growth & Value Indicator (CGVI) for selecting shares. CGVI combines three share indicators - earnings yield, dividend yield, and re-investment rate - to provide a single comparison value. The document explains how to calculate CGVI for a share and interpret different CGVI levels. It also discusses how CGVI can be used to identify optimal buy prices and set price targets and stop losses.
Analyzing shares using the Comparative Growth and Value Indicator (CGVI) method
1. Rather than take notes all the information on this method is found on www.sharesguru.com/forum/index.php To Download copy of this presentation look for CGVI on http://www.lainie.com.au/sharesguru/index.html For latest CGVI figures, or screen for stock using CGVI: http:// www.sharefilter.com / * Email the addresses to a friend to help their Investing * C G V I Explained
2.
3. “ C G V I “ A “COMPARATIVE GROWTH & VALUE INDICATOR” FOR SELECTING SHARES “ If you can’t calculate a “CGVI” for a share then you are Speculating” A Jodi Robertson Scientific Business Slide Presentation
4.
5.
6.
7.
8.
9. THE “CGVI” FORMULA EPSc + DPSc EPSc - DPSc CGVI % = ------------------ + ------------------ $ SHARE PRICE $ NTA Backing EPSc = Earnings Per Share in cents DPSc = Dividend Per Share in Cents $ NTA = Net Tangible Assets Backing Per Share $ Share Price. All data in Daily Financial review. Warning: If first part of calc is less than 9.3 or second part less than 7 then this share’s calcs may be suspect
10.
11. Using NAB National Bank as Example DATA: NAB $28.88 . DPSc 166 NTA$ 10.34 . EPSc 270 1. Add EPSc to DPSc & divide result by $ Share price. 2. From EPSc take DPSc and divide by $NTA 3. Add these two numbers to get a share’s CGVI. Step 1 270 + 166 = 436 divide by $ 28.88 = 15.09 Step 2 270 - 166 = 104 divide by $ 10.34 = 10.05 Step 3 CGVI = 15.09 + 10.05 = 25.14 Accumulate to Price of $ 43.90. BUT Check The Trend. CGVI of 25.1 equates to Optimum Buy Price of $ 31.30
12.
13.
14.
15. New single Screen display of CVGI Calculations
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27. Even If CGVI is HIGH must Check PRICE TREND NEVER BUY WHILE PRICE TRENDS DOWN National Australia Bank NAB
28. ION Ltd. Had a High CGVI but Trend Gave a Warning
29. SFC Schaffer Corporation Ltd A CGVI Find At $3.75 & CGVI = 50 ( was worth a Try) As High as $15.35 & CGVI= 21.07 This is Type of Share You may find very early Paid $1.20 dividend pa for years, 2004 & 2005. PROFIT MAXIMISATION ~ OUT AT THE TOP FELL to under $5. You Need to Have STOP LOSS Limit Ready dependant on your average cost.
30. Timing Is Important. Remember: Blue over Red ~ Blue over Red ~ Red over Blue & Green
34. Example of a ”CGVI Plus” calculation and it’s usage on a Computer may follow. One word of caution is that anything displayed is not a recommendation to BUY nor Sell, It is a demonstration of what we can do with financial data in better understanding Share Investment.