BUSINESS

19 - Sunday, February 26, 1989 —- North Shore News

Research pays dividends for investors

IF YOU'VE decided it’s high time
to try your hand at investing, a lit-
tle research now will pay dividends
in the long run.

First, ask yourself what you
want your investment to do for
you. How much risk are you will-
ing to take? How much disposable
income do you have available? Are
you more interested in having a
Steady flow of income from the
investment than in the growth of
your capital? How will your in-
vestment affect your tax position?

How well does the type of mar-
ket you’re about to plunge into
meet your investment objectives?
For thos: intent on maximum
short-term gains, for example,
buying common shares may not be
the best investment strategy.

However, if buying stock is the
best strategy for you, the next step
is determining which stocks to buy.
And that involves more than just
picking one out of the blue. It
means getting to know certain in-
dustry sectors well and determining
which company’s shares represent
good value for the money.

One of the more common ways

to measure value is through

various financial ratios. Several of
these ratios, such as Price Earnings
(P/E) which indicates a cornpany’s
performance {carnings) relative to
the cost of its shares, are reported

ce

daily or weekly for stocks listed in
the financial pages of many news-
papers.

By monitoring several of the
tatios and share values of a com-
pany over time and comparing it to
similar information of other com-
panies in the same sector, you may
be able to develop a sense of its
relative standing in the field and
whether its shares represent a good
buy.

You also might consider
calculating several of the ratios
yourself. To calculate the Price
Earnings Ratio, you need two
Pieces of information —- the most
recent price per share of the stock
you’re interested in, and the total
earnings per share over the most
recent four quarters. The former is
available from the newspaper and
the latter from corporate financial
reports which you can get directly
from the company library or from
a stockbroker.

This do-it-yourself method can
be more consistent than the ratio
information carried in the papers,
as the basis of the calculation will
be known to you, but it is also
much more time consuming.

Corporate annual reports also
may contain financial ratio figures.
Even if they do not, however, such
reports are among the most infor-
mative publications available to

Business Management
; Department
invites you to aitend an
INFORMATION MEETING
If you are interested in a career in business and want to
know more about our 2 year full-time Business Management
Diptoma Programs which start in Sepismber or our 10 month

accelerated program that starts in July, come to our special
Information Meeting on Monday, February 27 at 7:00 p.m.,

in Room H 501.
You will fearn about our

rams, including Accounting/

Finance, Administration, and Marketing as well as our new

Business Computing Co-op

Program that has 8 months of.

paid work in addition to 16 months of academic study. We
can heip you to make your future education plans and be
“job ready". Call $64-4966 and let us know that you're

coming.

ROLLYBURN ELEMENTARY

is now accepting kindergarten

registration

Kindergarten Open Houses

March 7, 9:15-10:30 am

March 8, 11:00-12:00 noon

s March 9, 12:30-1:30 pm

Parent Orientation Meeting
March 9, 7:00-9:00 pm, Hollyburn Library

1329 Duchess Ave.
West Vancouver
Inquiries 922-9348

West Vancouver Residents Only

investors. Typically, they contain
detailed financial information on
corporate performance cver a
Period of years, both balance sheet
and income statements, as well as
more general information on an
erganization’s objectives, long-

tange goals and plans for invest-
ment.

By comparing annual reports of
companies in the same sector, you
will develop a sense of the types of
challenges facing that sector, get a
reading of the market share held

by companies in the field and, so,
be better able to assess the value of
the competition’s stock.

Moneycare is general financial
advice by Canada’s chartered ac-
countants. Valerie Barker is with
the Toronto Dominion Bank.

TURN ON A FRIEND!

eee your friends out in the

o “ESF

TO

cold this winter, TURN THEM ON

THE SPORT OF SKIING.

sing them to the mountains

2s” with you and we'll take care of

the rest! SKIS, BOOTS &

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LIFT TICKET and
INSTRUCTOR await!

in en will be turned on by

a

lunch, but we can't guarantee

they will stop skiing to join you!

"SHARE YOUR
WINTER WARMTH"
Call today for details:

~~ oe

IS BELIEVING &