Investment: Update on new investment principles.

John Neff's investment principles:
1) Low Price to earning ratio (P/E)
2) Fundamental growth of 7% and more
3) Yield protection
4) Superior relationship of total return to P/E paid
5) No cyclical exposure without compensating pe multiple
6) Solid companies in growing field
7) Strong fundamental case

Care and Maintenance of a Low PE Portfolio
1) Inflection Points Abound (Bulls and Bears)
2) Beware the drumbeat of popular Opinion
3) Measured Participation (Buying the correct sector)
4) Don't chase highly recognised growth stocks (Limited upside appreciation)
5) Weigh the virtues of less recognised growth
5a) Growth rates of 12 -20 percent
5b) Single digit multiples of 6-9 earnings
5c) Dominance or major participation in definable growth areas
5d) Easy Industries to understand
5e) Unblemished record of double-digit historical earning growth
5f) Outstanding returns on equity, therein signifying management accomplishment, not to mention the internal capacity to finance growth
5g) Significant capitalisations and net income totals therein qualifying companies for insitutional consideration (in short: M&A targets)
5h) Ideally, although hardly essential, some wall street coverage, so those that need their hand held will have a wet nurse (in our context: some brokerage coverage so that there is motivation for buyers to buy)
5i) 2 to 3.5 percent yield in most cases (Dividend yield)
6) Moderate growers are solid citizens
7) Don't sweat market weighting (Concentrate assets in undervalued areas)
8) Learn what makes an Industry tick (Top down and bottom up)
8a) Are an industry's prices heading up or down?
8b) What about costs?
8c) Who are the market leaders?
8d) Do any competitiors dominate the market?
8e) Can industry capacity meet demand?
8f) Are new plants under construction?
8g) What will be the effect on profitabilty?

Building a Fact Sheet:
For any value investor, a fact sheet is very important as it will show everything at once infront of your very eyes. What should you include in your fact sheet?
1) The amount of shares owned
2) Average cost
3) Current price
4) Historical and projected EPS
5) Historical and projected growth rate
6) Historical and projected PE ratio
7) Yield
8) ROE
9) Price projection based on earnings expectation and resulting PE ratio
10) Appreciation potential

After finish reading the book: John Neff on Investing with S.L. Mintz, i realise what i need to add on to my FA analysis. In addition i just read finish a small booklet on Candlestick reversal technique. Hopefully, i can combine this 2 techniques to gain a fruitful experience.