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
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