Stock Selection Guide Tutorial

Table of Contents

• Introduction
• Overview of the Stock Selection Guide
  • History
  • Purpose
  • Role in the NAIC Methodology
  • Adding Judgement
• Sources of Fundamental Data
• The Top of the SSG Form
  • General Information
  • Capitalization
• Section 1 -- Visual Analysis of Sales, Earnings & Price
  • Recent Results
  • Plotting the Data
  • Estimating Historical Growth
  • Projecting Future Growth
  • Interpreting the Results
• Section 2 -- Evaluating Management
  • Entering the Data
  • Calculating 5-Year Averages
  • Judging the Trends
  • Interpreting the Results
• Section 3 -- Price-Earnings History as an indicator of the future
  • Entering the Data
  • Calculating P/E Ratio
  • Calculating Payout Percentage and High Yield Percentage
  • Interpreting the Results
• Section 4 -- Evaluating Risk and Reward over the next five years
  • Choosing a High Price
  • Choosing a Low Price
  • Zoning
  • Upside/Downside Ratio
  • Interpreting the Results
• Section 5 -- Five-Year Potential
  • Calculating Present Yield
  • Calculating Average Yield
  • Interpreting the Results
• Conclusion