Want 20% Return in Your Stock Investments? Here are the 5 Crucial Numbers a Company Must Possess! By Robert Marsh

It is downright tough finding the right stock picks to invest in with such and up and down Economy! With all the financial companies going belly up and the housing Market in a slump, it is a challenge to get any kind of positive rate of return with good stocks!
Here are the 5 crucial characteristics a Company must have to be able to make a rate of return of 20% or more each and every year if you invest in it..
1. ROIC- Return on investment capital is simply the rate of return a company makes on the cash it plows and invests in itself each and every year. It should be above 10% per year for the last 10 years.
2. Sales - A Company's Sales is the amount of dollars they bring in from the sell of their Products. You want to look at the last 5 years and see a continuing growth in sales each year.
3 EPS- This stands for Earnings Per Share. It is a very important figure of the Company and its operations. It takes the complete earnings of a company and divides it by the number of outstanding shares. You want this figure to be high. It means that each share is generating a very good amount of profit!
4. Equity - This figure is the amount a Company would be left with if it sold off everything, paid off all debts, and took the money that was left! Of course, the higher this is the healthier and more attractive the Company is to invest in.
5. Cash Growth - This figure allows potential investors to know if a company's profits are aligned with making hard, cold cash. Profits are great on paper. But cash growth tells what the company is worth in accurate dollar amounts! The higher, the better.
I hope these stock tips give you some insight in to what makes a company a potentially good investment. Remember, always be selective and do your research before investing in any good stocks.
Robert Marsh owns a site where he provides the top hot stocks and stock tips for the beginning investor as well as the experienced one!Also visit his other site where he shows you how to make free money with the best money making opportunities on the Net !

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