Sticker Price is my term for what Investools call "Target Price" on their valuation tool. You can find it on the left side of the page on any stock under the heading "Fundamentals".
As for using it:
Start by reading the post on my site called 'YUMMMMY'. [Now, "YUMMMMY = 4M".] Then read the Google Posts. That's how you do it the hard way. With Investools it's easier.
1. Do a "global search" on Investools and input the phase II numbers you want to search for.
2. From that list, click on the first stock symbol, then click on Valuation (under the Fundamentals menu on the left side of the window).
3. On the Valuation screen find the projected growth rate box. It has the Zack's est. growth number in it. Find the Discount Rate box. If it doesn't already have 15 in it, put it in it. Find the Projected PE box. It uses historical PE if there is one. Reduce that number to the smaller of historical PE or two times the projected growth rate. Don't exceed 50 in any case.
4. Click on Calculate. They call the resulting number "target price". That's retail to my Rule #1 way of thinking. That's the $1.
Divide that in half. That's what I call the MOS Price (margin of safety). Half of a dollar. That's what I want to pay... or less.
5. Look at the top line by the name. Today's selling price is listed. Is it below the MOS Price? If it is, put this one into your Watch List portfolio for further study.
6. Now that you know its cheap, do you want to own this thing? Do the 4M thing on the stock and do it well.
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