Once you have analyzed stocks qualitatively, it is time to look at qualitative values. By using SWOT analysis approach, you can have structured way to research them.

Strength

Find out, what is so special about their products or services than the rest. It can in the form of cheap in price, strong brand name, high entry barrier, leader in industry or proven to be more reliable than others. Secondly, do some homework on how strong the company is. For example, a listed company can have extra advantage if its CEO is the founder or is backed by other business tycoons.

Weakness

No matter how strong you think the company is, there must be some weaknesses as well. The fact is, nothing is perfect in this world. Dig deeper on how productive is their employees, how effective are the management team and how efficient is their business operation. Avoid companies that have weak customer support, low quality products or lack in innovation as these give clear indication that the products are losing their competitiveness.

Opportunities

Opportunities arise when there are changes in trend that can bring more profits to the company. For instance, as people become wealthier, high end products will benefit the most. As more and more people love to spend holidays overseas, travelling agents and airline stocks can have above average return potential. Same goes to other lavish products such as luxurious cars, five stars hotels and expensive golf courses.

Threat

Low entry barrier and price elastic industry are susceptible to growing competition the most, and changes in economic direction can bring disaster to their businesses. Totally depend on price to compete should be the last thing any business would do; simply because, it is not sustainable in the long run. On the other hand, low entry barrier businesses results to growing competition. Unless if the companies are able to differentiate themselves from others.