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Strategies & Market Trends : Due Diligence - How to Investigate a Stock -- Ignore unavailable to you. Want to Upgrade?

To: Patricia Trinchero who wrote (11)	3/26/1999 2:24:00 AM
From: Frodo Baxter	Read Replies (1) \| Respond to of 752

>Maybe a highly experienced investor/trader can post the first 5 things he considers when investing in a particular company. 1) freeedgar.com 2) freeedgar.com 3) freeedgar.com 4) freeedgar.com 5) freeedgar.com If you can't understand SEC filings, you shouldn't invest for yourself. Period.

To: Patricia Trinchero who wrote (11)	3/26/1999 9:17:00 AM
From: Don Pueblo	Respond to of 752

the best DD sites on the thread header It's been done. I use it often. It's for links only, no chat. Really good. Here it is: Subject 18891 and here is the one page that I use most often: dailystocks.com Your suggestion about five things to look for is good. What are yours?

To: Patricia Trinchero who wrote (11)	3/29/1999 9:36:00 PM
From: Eggolas Moria	Read Replies (1) \| Respond to of 752

Patricia, Why not start with a stock you are interested in and tell us why you find it interesting. Then we can all write ways for you to spend your time.

To: Patricia Trinchero who wrote (11)	3/30/1999 3:00:00 AM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 752

Patricia, Maybe a highly experienced investor/trader can post the first 5 things he considers when investing in a particular company. I am a long term, buy-and-hold type of investor, not a daytrader and not a short term trader. These suggestions are for NASDAQ, NYSE or AMEX, not the OTC-BB or worse... The five most important things I look at: 1) Fundamentals (especially the bottom line: profitability/EPS) 2) P/E ratios (in particular current P to past 12 months E and current P to projected next 12 months E) 3) Rates of EPS Growth/Sales Growth and Growth to P/E ratio (using the above P/Es) 4) Relative P/E ratio (how expensive is the stock today compared to its' historical average expense) 5) Management analysis Also very important: 6) Current price trends of the individual stock, the stock's particular industry (competitors), the stock's particular sector and the market trend in general. 7) 52 week Hi/Lo prices (especially how close the current price is to a Hi or a Lo) 8) Return on Investment/Total Yield (includes dividends and capital gains) 9) Upside price potential versus downside price potential 10) Opinions of other investors (chat threads, analysts, news media, etc.) It is their collective opinions that will ultimately determine the direction of the stock's price. For OTC-BB stocks: 1) Management 2) Management 3) Management 4) Management 5) Management The least important factor in an OTC-BB stock is the product or service offered. Remember, if the product is particularly good or the service is unique or something like that, the bigger companies will either buy out the little guy or trample him with competition. Almost no exceptions... KJC