At that price point, (36), you will have to overcome the fear and anxiety accompanying a purchase of common shares whilst in the throes of distribution. For some whose job it is to know exactly what they are buying, the task still involves great trepidation. For those who don not?
You should know the entire life history of the company you are buying, and in the context of differing economic cycles, where the stock has traded in relation to such measurements as: price-to-sales, price-to-book, price-to-sales growth, price in comparison to other leading competitors, etc.
You should have a good idea of company-sales to geographic location; individual- flagship store sales in relation to other facilities; where economic growth is most robust in relation to open stores, and where growth is slowing and company exposure to it.
Have you compared the profit-and-loss statements of the company over the company's lifetime to get an idea of how each measure relates to another; this will help you identify discrepancies and provide ample warning of a pitfall ahead.
Have you spoken to the CFO? Can he be trusted? Is his accounting aggressive or conservative? Has he lived up to other conversations made previously. Are officers buying or distributing the company's common shares. And, why? Is the explanation credible? Do they use FIFO, or LIFO accounting? How do they account for store openings? How is inventory distributed? Where are the central hubs-what are those locations like?
It requires several hours of research each day to own a common share of any individual company. Above, is but a fraction of what I must ask to feel confident with what I own. Then your research should lead you to the tomes of economic history, and on, and on.
I do not understand your question,"who do I post for?" I post for myself; this is a hobby come vocation twenty-three years into its infancy. I'm still learning how.
P.S> Should HD arrive at 36 in the next several months, there likely will be a significant rally attempt. There will be rallies in the broader context of a "staircase,"or waterfall movement down.
Best of Luck |
