When Researching A Company

Never invest in something you do not understand

1. Listen to the latest earnings call

You get to hear from the business leaders and the vision of the business and get some background information.

2. Understand the basic products of the business

What problem are they solving?

3. Research the history and the leaders

Who is running this thing?

4. Look at the stock stats

Market cap

Stock price

Shares outstanding

Ownership

5. Look at the Revenue

Is it growing quarter after quarter?

6. Look at the Net Income

Are they profitable or spending too much?

7. Look at the Debt

Not too much please.

8. Does the investment fit in with your investing strategy?

What are you going after?

9. Is the overall industry growing?

If the industry is growing that may benefit the business. If the industry is shrinking it may hurt the biz.

10. Buy, watch or sell

You must decide