G'day finch2 great topic and think roger does a great job in...

G'day finch2 great topic and think roger does a great job in most of he's analysis but i think a basic intrinsic formula should come about in comparing your own work with that of asx listed companies.A good example maybe ask yourself what your prepared to pay for the business if you were to own it outright.

What i do is ignore the share price and work out what the companies worth cause if i look at the sp i might be influenced by it.I have several formulas of my own but i don't use these formulas on spec stocks and don't use them on companies that continue to report losses yoy.

This to me is more for the TA'S out there as they might be more educated on reading charts on a day to day basis and as for myself i focus more on companies with good earnings over the years as well as management that are capable and honest and don't lie to shareholders. This is where i invest the bulk of my money.But if there's a spec i like i check the general trend of the chart as well as if the company has enough cash to be around for a year or 2 rather than more spin by management i.e. high grade this high grade that and new rights issue that dilutes existing shareholders.