How does Jim Slater use his own statistical service, REFS, to pick shares? At first sight, the data looks dauntingly difficult to read but remember the information is intended for serious investors who are already familiar with the terminology of investment. Here is how Slater himself describes the process that led him to buy one of his greatest recent successes, the sports retailer JJB Sports. The different elements he refers to are labelled for easy cross-reference. In the key on the right-hand side of the page, the darker and fuller the ‘moon’, the more highly a share rates on that particular valuation criterion.
PEG = Price/earnings/growth rate factor
PER = Price/earnings ratio
PBV = Price/book value multiple ...