As a result of Step 2, I’ve found that Factset Systems (FDS) is the clear front-runner for consideration as my next stock to buy. I used StockCentral’s on-line Take $tock software to confirm that the company’s Quality Index of 10 was justified on the basis of FDS’s track record of sales and earnings growth and the trend in profit margins.

All I have to do at this point is note the “Buy Price” (the highest price at which I could buy the stock and still meet my goal of doubling my investment every five years) on the same page to see that the current price of around $48 (as of this writing) is well below the “Buy Price” of $73.42. [See, I told you this was even easier than the second step! You didn't even have to click your mouse to get this answer!]

It’s always a good idea to heed the “Mood Indicator’s” admonition. So, I check the recent news items carefully to make sure the public, whose interest in the stock has cooled, might not know something bad about the company that I don’t know. And, I’m satisfied that today’s low price is nothing more than the temporary result of “the herd’s” depression.

Next step: Buy it!

Ellis How to Invest, Investment Concepts earnings growth, evaluating the price, how to buy a stock, Profit Margins, Quality Index, sales growth, Stock Central, stock price, Take $tock