stock share business for beginners

[porcelain_doll]

Re: stock share business for beginners

@Southie

Suppose you have two choices - stock A or stock B.

Both are in the same industry. Both have strong balance sheet - that is, total cash in their asset column easily covers the debt they owe. Both have positive cash flow. That is, every quarter, their cash is increasing. They are making money. Both have strong earnings. That is, their net income is quite high.

Let us assume EVERYTHING about the two companies is identical. Both are selling at Rs 100 per share.

Just one difference. Stock A earnings per share (EPS) is Rs 10 in the last 12 months. Stock B EPS is Rs 5 in the last 12 months.

Which stock would you PREFER to buy?

i will buy stock A