Post by liquidator on Aug 21, 2004 12:59:24 GMT -5
Picking the right stock
When someone first begins to trade stocks, thier success depends on some fairly simple fundamentals. It's a bit more complex than throwing a dart at a list or picking a name that sounds dynamic. Playing the market for income is a bit more complex and dependant upon some
principles that are not that difficult to understand.
The stock market is not a lottery and luck has very little to do with a successful investors
methods. The key to success in the market depends primarily on information that is reliable and ones ability to properly analyze that information in a way that allows the investor to fully comprehend what is going on within the company of interest to the investor.
Sound business principles
Five key elements will be examined here that will improve your ability to pick stocks with greater potential than the average stocks traded in the market.
1.) Strong leadership
A CEO with strong leadership skills is an important factor in determining a companies potential for success. Being charasmatic is not enough to bring success to a company and prior decisions made by a companies leadership are a very important element in determining future growth potential.
2.) A good business plan
A strong business plan is the foundation upon which any company is built. Without a good business plan you can do everything else right and still fail. Examining a companies goals
and expectations, along with thier ability to reach these goals, is a fundamental aspect of determining the future success or failure of a company.
3.) Earnings up/Debt down
Keeping control of debt is an important part of future growth. Typically, a company with good earnings and little debt is in a position the make acquisitions and begin new ventures that carry with them some risk, while also providing the possibility of financial success.
4.) High volume
A company trading in the OTC and Pinksheet markets, require volume to be successful. The higher a companies volume, the more visibility they have, which brings with it stronger sales of stock and a greater ability to grow in the forseeable future.
5.) Strong PR's
Every market, be it the AMEX or the Pinksheets, depends a great deal on positive press releases. These PR's are what drives the price, and understanding this principle will make you a better investor.
Keeping these 5 principles in mind, you will see how CMKX for example, follows these principles. Each of these 5 fundamentals are present in a company that has shown an extremely strong potential, not only in the near term, but for many years to come.
When you pick stocks to invest in, keep these 5 fundamentals in mind and do your Due Diligence. Analyze the company from a business point of view for indications that show that a company has what it takes to be successful.
Liquidator
When someone first begins to trade stocks, thier success depends on some fairly simple fundamentals. It's a bit more complex than throwing a dart at a list or picking a name that sounds dynamic. Playing the market for income is a bit more complex and dependant upon some
principles that are not that difficult to understand.
The stock market is not a lottery and luck has very little to do with a successful investors
methods. The key to success in the market depends primarily on information that is reliable and ones ability to properly analyze that information in a way that allows the investor to fully comprehend what is going on within the company of interest to the investor.
Sound business principles
Five key elements will be examined here that will improve your ability to pick stocks with greater potential than the average stocks traded in the market.
1.) Strong leadership
A CEO with strong leadership skills is an important factor in determining a companies potential for success. Being charasmatic is not enough to bring success to a company and prior decisions made by a companies leadership are a very important element in determining future growth potential.
2.) A good business plan
A strong business plan is the foundation upon which any company is built. Without a good business plan you can do everything else right and still fail. Examining a companies goals
and expectations, along with thier ability to reach these goals, is a fundamental aspect of determining the future success or failure of a company.
3.) Earnings up/Debt down
Keeping control of debt is an important part of future growth. Typically, a company with good earnings and little debt is in a position the make acquisitions and begin new ventures that carry with them some risk, while also providing the possibility of financial success.
4.) High volume
A company trading in the OTC and Pinksheet markets, require volume to be successful. The higher a companies volume, the more visibility they have, which brings with it stronger sales of stock and a greater ability to grow in the forseeable future.
5.) Strong PR's
Every market, be it the AMEX or the Pinksheets, depends a great deal on positive press releases. These PR's are what drives the price, and understanding this principle will make you a better investor.
Keeping these 5 principles in mind, you will see how CMKX for example, follows these principles. Each of these 5 fundamentals are present in a company that has shown an extremely strong potential, not only in the near term, but for many years to come.
When you pick stocks to invest in, keep these 5 fundamentals in mind and do your Due Diligence. Analyze the company from a business point of view for indications that show that a company has what it takes to be successful.
Liquidator
