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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: star56 who wrote (2550)	2/10/1999 12:57:00 AM
From: Dave Gore	Read Replies (2) \| Respond to of 52051

Sure, doing good DD involves digging, verifying from more than one or two sources, and some "gut feelings" Some "Musts" 1) Call the PR firm; get Outstanding Shares and Float and general perspective....why they like, what the company's pro's and con's are. Does the guy really know what he is talking about? Some firms are full of hype so gotta be careful 2) Call CEO or other principals of the company; sometimes I talk to the CEO and call right back and talk to someone else and check to see if their stories match, and also whether they match the PR guy's. 3) Check all historical news 4) Check all posts on SI and messages.yahoo.com. What's the sentiment? Are the posts intelligent or just hype like "buy the stock, it's goin' to the moon?" You must make sure a stock has no skeletons in their closet: 1) no lawsuits 2) no convertible debentures and hopefully no shareholders that received really cheap stock that they dump into every rally. IF the company raised any financing money, get the TERMS of the financing. 3) little or no insider selling, hopefully buying 4) Large amounts of Authorized or outstanding shares, more than 30 million shares O/S and 10 mil in float is not very ideal Good is probably 5-15 O/S and 1-5 mil in the float Too little in the float can be bad too. 5) See if they have a PR firm and what other stocks the PR firm represents. Has the firm been successful at promoting other stocks? 6) Read the SI threads and see if there appears to be long term holders and PM them, ask them what they think; also see if there are shorters on the thread or people badmouthing the stock. 7) ONE OF THE FINAL THINGS TO CONSIDER: Is this stock exciting or in an exciting sector? If you give me a mining company or something boring, not many on SI will care, including me. PS-- BEFORE you call the company do a little research so you ask intelligent questions!!!! etc.....that will give you a start