Jan. 16- Have you chosen your multi bagger stock?

I have read yesterday a research study from a certain investing firm about FOUR PROVEN APPROACHES TO PICKING MULTIBAGGER STOCKS

So what is this all about? Simply how to find stocks amongst hundreds others who could give us the highest returns over a long term period. Multibagger as defined is a multiple of your return. It's just a colloquial term. It means 2 bagger is doubling your return, 10 bagger is ten times. If I invested 10k on a stock then I got a return of 100K, that's 10 bagger!

There are four ways as stated in the research:

- Buying stocks with low price in relation to Earning

- Buying stocks with low price in relation to Book value

- Buying stocks with low price in relation to liquidating value

- Buying stocks using Benjamin Graham's magic multiple


To summarize as per Graham's profitable margin:

- Market price must not reach over 15X of its earnings

-Market price must not reach over 1.5X of its Book value
whereas: BV= Summation of Asset & Liabilities/ shares outstanding

- Market price should cost less than their net current asset value (NCAV) and thereby no value to the fixed assets.

- Graham's magic multiple of lower than 22.5 have generated more returns than those whose output was greater.
This is P/E 15 X BV 1.5 = 22.5

Any lower multiple than 22.5 is what he suggested a good margin of profit for the longer term...we can also expect as what the research suggested as a MULTIBAGGER!

Have you spotted your multibagger stock? I have picks

LFM and SPC they may not manifest for the meduim term but they are already giving out dividends, and time will be my friend.

Breaking note:


PDTC Dividend Advisement: SPC Cash Dividend

Please be informed per PDTC advisement CA-2013-014 that the cash dividend declared by SPC POWER
CORP. (SPC) with record date December 28, 2012, payable on January 15, 2013 will be credited only after
PDTC clears the funds, which is likely to be on January 17, 2013.

...and that will be tomorrow! 8.3% yield 
If I was able to get the previous dividend last June total yield could have been 10.4%---

An investment instrument giving out at least 10% yield for my money is my choice of long term investment. 


God Bless everyone!