| Summary: | 碩士 === 東吳大學 === 會計學系 === 94 === Most investors in the stock market are eager to have some insider information of Stock Leaders to have winfalls profits. The stock market is fluid and affected by many variables and uncertainties which increases the difficulties precise of market forecast. This study was to categorize some financial characteristics of Stock Leaders based on financial ratio by the factor analysis method. The study findings could help investors’ decision on the stocks in advance.
The three groups of samplings have been substantiated three times, and it came out to be nine results of substantiation. The three groups of samplings are (1) The Stock Leaders, (2) The One-Hundred-Dollar Clubs, and (3) Other listed High-priced Stocks. The three substantiations include (1) the three-year period before the stocks become Stock Leaders or One-Hundred-Dollar-Priced Stocks, the current year which the stocks become Stock Leaders or One-Hundred-Dollar-Priced Stocks and the next year after the stocks become Stock Leaders or One-Hundred-Dollar-Priced Stocks plus 34 substantiation variables, (2) the three-year time before the stocks become Stock Leaders or One-Hundred-Dollar-Priced Stocks and the current year which the stocks become Stock Leaders or One-Hundred-Dollar-Priced Stocks and the next year after stocks become Stock Leaders or One-Hundred-Dollar-Priced Stocks plus 24 substantiation variables, and (3) the three-year time before the stocks become Stock Leaders or One-Hundred-Dollar-Priced Stocks, the current year which the stocks become Stock Leaders plus 24 substantiation variables.
According to the findings, the three most influential factors of becoming Stock Leaders or One-Hundred-Dollar-Priced Stocks appear to be Earnings Per Share, Earnings and Solvency, and Growth of the company. Those factors encompass earnings per share, pre-tax income per share, operating income per share, book value per share, stock dividend per share, sales per share, cash flow per share, return on assets, return on stockholders’ equity, current ratio, quick ratio, liability ratio, gross profit ratio, operating income ratio, pre-tax income ratio, growth rate of sales, growth rate of gross profit, growth rate of operating income, and growth rate of pre-tax income. Furthermore, Stock Leaders have two additional factors which are accounts receivable turnover, and cash reinvest ratio.
The three mentioned major factors which affect the Stock Leaders and One-Hundred-Dollar-Priced Stocks are common financial ratios and can usually reflect whether a company is operating well or not. The study suggests that those financial ratios will provide investors useful information when they choosing stock companies forming portifolios. It is also recommended that the prospects of the industry, the niche products, the market size, and the management team may be good indicators as well. Hopefully, the earlier the thorough data collection of potential companies can be done, the earlier the investment can be made.
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