Once market analysis has indicated a favorable time to invest in common stocks and industry analysis has been performed to find those industries with the most promising future, it remains for the investor to choose promising companies within those industries. In doing company analysis an investor should think in terms of the two components of fundamental value – dividends and required rate of return or alternatively, earnings and the P/E ratio.

Companies are analyzed through the study of wide range of data, including P/E ratios, EPS, NAV per share, net profit or loss after tax, reserve and surplus, market categories and so on. According to these criteria of company analysis I selected the following companies which are shown in the following table-

There are four category – A, B, G and Z. The turnovers of ‘A’ category companies are higher than other categories (B, G, Z).

Managing Equity Risk: Strategies, Stock Index Future, And Portfolio Insurance

Options, Futures and Other Derivatives, John C. Hull

Fundamental of Investment, Charles P. Jones, Frank k. Reilly, Keith C. Brown

The Evolution of Portfolio Insurance, Hayne E. Leland and Mark Rubinstein

(Published in Dynamic Hedging: A Guide to Portfolio Insurance,

edited by Don Luskin (John Wiley and Sons, 1988)

www.dsebd.org (Dhaka Stock Exchange)

http://www.secbd.org (Securities and Exchange Commission, Bangladesh)

www.investopedia.com

www.dynaporte.com

www.in-the-money.com