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Preparing SSG Using ToolKit 4.0

Leverage the SSG Toolkit 4.0 for detailed historical growth rate analysis and management evaluation to make informed stock investment decisions with maximum profit potential. Learn how to assess profit margins, price-earnings history, risk, and reward. Utilize key checklist steps and tools provided in this comprehensive guide.

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Preparing SSG Using ToolKit 4.0

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  1. Preparing SSG Using ToolKit 4.0 Features By Felicia Ware-Joyner

  2. Historical Growth Rate Change • Double click on side 1 SSG • This brings up the Visual Analysis Graph • Click the Historical Growth Rate Change Button • This brings up the Historical Growth Rate Change Graph

  3. Analysts’ EPS Growth Rate Page 134

  4. Preferred Procedure Page 134-138 Completely Optional (for Advanced Users Only)

  5. Section 2 Evaluating Management Page 139 - 141

  6. Evaluating Management • Front page • Good track record of growth and earnings • If not do not go further • Can Management Sustain the Growth? • If not, then stock is selling at a low price for good reason • It is not a high quality, great value stock • The worse a company performs, the better a value it will appear to be.

  7. Profit Margins • Review % Pre-tax Profit on Sales • Stable over 10 years? • Last 5 years? • Compare to Industry Averages • Value Line Survey or www.marketguide.com • Serious Down Trends

  8. Pre-Tax Profit Margin Graph Page 140 - 141

  9. Section 3 Price-Earnings History Page 142 - 145

  10. Price-Earning History • Eliminate Outliers • Average High and Low P/E • High P/E will be radically inflated by one or more years of abnormally low earnings per share

  11. Upside Down Side Ratio 4D Back Side SSG

  12. Question • What is our Target Upside/Downside Ratio?

  13. Forecast Low Price

  14. Average Low P/E

  15. Recent Severe Market Low

  16. Price Dividend Will Support

  17. UPS Historical Prices

  18. Relative Value • The relationship between the Current P/E and the Average P/E • Calculated • (Current P/E) divided by (Average P/E) • Expressed as a percentage • Desired Range • 85% to 110%

  19. Check List • Update Prices • Data • Place your Name in the Prepare space • Note the last full year & month fiscal year ends

  20. Check List SSG Front • Front Side SSG • Note Insider/Institution • High insider is good • Institutional Ownership over 50% is bad • Recent Quarter Figures • Visual Analysis

  21. Check List – Visual Analysis • Historical Growth • Est. Sales Growth • Est. EPS Growth • Preferred Procedure (optional)

  22. Check List – SSG Back • 2 Evaluating Management • UP UP or UP Even or Up Down • Remove Outliers • 3 Price-Earnings History • Remove Outliers • Note payment of dividends

  23. SSG Back • 4 Evaluating Risk and Reward • Defaults of High & Low Price • (comes from figures on front) • Select Potential Low • Forecast Low – Growth • Average Low – Cyclical companies • Recent Sever Market Low – turnaround/volatile companies • Price Dividend will support

  24. Check List – 4C and 4D • 4C Zoning • Buy, Hold, Sell • 4D Up-Side Down-Side Ratio • 3:1 desired

  25. Check List – Relative Value • 4E Price Target • Potential price appreciation over next 5 years • Relative Value • Relationship between current P/E and the Average P/E • Guidelines 85% to 110%

  26. Check List – Projected Relative Value • Based on estimated earnings for next 12 months • Guidelines 80-100%

  27. Check List – 5-Year Potential • Total Return • Price Appreciation & Dividend Yield • Want average gain to be at least 15% • More mature companies will return less • Small growth companies will return more

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