Answer for Shortlisting Stocks

Hello CN Lum,
a) NAB is the book value per share.
b) That depends whether how serious you treat your money is. For my case, since i’m investing at least 10% of my asset in a stock (should i decide to invest), it represents a big portion of my money. Thus, i can’t afford for mistakes, especially mistakes by another brokerage company due to my laziness to verify from the source itself. 
I’ve seen a number of mistakes by brokerage company, and i just can’t afford such mistakes which i could have avoided.
Also, brokerage company uses the recent year’s earnings as the denominator, while i would prefer to use the normalised earnings (conservatively calculated) as the denominator. This 2 numbers would be similar if the company is a consistent earner, but it might be different by a wide margin when the company’s earnings are erratic, or recent year’s earnings is abnormally high or low.

About The Author

Peter Lim

Investor (Not Speculator).