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

To: Stitch who wrote (32)	3/28/1999 4:27:00 AM
From: Frodo Baxter	Respond to of 752

>How far back to you go when looking at a new stock you haven't owned before. Any rule of thumb? No. It depends on your general experience with the industry your company participates in, the volatility of business conditions and earnings, whether there has been a recent change in management, strategy, or lookout, etc., etc. Having said that, it's crucial to read back at least to the 10K, as they contain far more information (and footnotes, remember those pesky footnotes) than the quarterlies. Personally though, I get bored after trudging through maybe two year's worth. On the other hand, if you're modeling the company's revenues, earnings, cash flow, and balance sheets from scratch, the more years the better.