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

To: MoonDog who wrote (130)	3/31/1999 4:17:00 PM
From: Mark_H	Read Replies (1) \| Respond to of 752

I think you are talking about the P/E ratio, where P is the share price of the stock and E is the annual earnings per share.

To: MoonDog who wrote (130)	4/1/1999 10:16:00 AM
From: Dusty	Read Replies (3) \| Respond to of 752

Pays to get a handle on just who's advice one takes action on. Many on the various threads are into "shorting" a stock. The best advice to anyone not real experienced is do NOT buy anything until they have been on SI for a minimum of a year. Just read, and learn. Read the horror stories. Never but never spend any money you cannot afford to lose! Because, 99% of the time this is what happens. If anyone is willing to "share" inside tips and or information, head for the hills! Always, ask yourself, WHY the information is being offered and who is the most likely to benefit from it. It is a known fact that ANYONE promoting and "sharing" ALREADY has a position in the stock, PRIOR to passing on the tips and information... ESPECIALLY, be weary of anyone who makes it a point to tell everyone who will listen, just how HONEST they are and comes across as the person next door that anyone would like to have as a neighbor. Keep your guard up at all times. There some slick cons on these threads and only experience can teach this. The Internet is a wonderful tool but it can cause great harm as well. Most of the penny stocks are being touted by "groups" of individuals who take very large positions prior to "sharing" the pick. By groups,I am not referring to the general group who posts to a particular thread; there are groups within the threads who prey on the sheep who are unaware of the tight network of investors who network together. Sharpen up the analytical tools and tear apart every post and look for the signs, they are there; we just fail to see and heed them. Don't be hasty to jump on the bandwagon, there will be another along shortly. Watch how a stock trades for a few months prior to buying. Read press releases with a jaundice eye and question everything and trust no one! The investment arena is not for the faint of heart. Happy Investing! Dusty

To: MoonDog who wrote (130)	4/2/1999 7:41:00 PM
From: EL KABONG!!!	Read Replies (2) \| Respond to of 752

Chuck, Currently my best idea on DD is to go to the companies web page and see if I like it and thats not what I need. There are two stories to every BB company. The first story is the company's story. You get it by going to their website, reading their press releases and listening to the touts (professional or otherwise) on the company's thread(s) here on SI and other chat boards. You'll rarely hear anything more than promises and plans (and in the event of missed deadlines, excuses). This is the story the company wants you to know. Everything is presented in the best possible light; best foot forward sort of thing. The second story is the one you must dig up for yourself. Forget whatever products or services the BB company is offering. The whole key is the management and executives. Investigate them thoroughly. No source is to be overlooked. You want a complete history of the company and everyone they've ever associated with. Specifically, you're looking for dirt. And in many instances you'll find it. The SEC is a good place to start. Newspapers specific to the region where the company is located are another good source. A full search of the internet (using multiple search engines, the more the better), the internic listings, the Secretary of State where the company is incorporated, the NASD site and on and on and on ad infinitum. Experience also helps. You'll learn to recognize that scams seem to be associated more with certain cities than other. Specifically, Boca Raton, FL & Salt Lake City, UT & Palm Springs/Coachella Valley, CA & Houston, TX & Las Vegas, NV and a small number of other cities show up time and time again. (I guess that scammers like the warm weather resort areas...) You said in your post that the stock I mentioned was of "highly dubious value" how can you tell? Well, to start with, it's out of Boca Raton, FL. I've yet to see a good, honest, clean BB company from that area. Let's look for touts: December 15, 1997 bredex.de February 24, 1998 (Press Release) pathfinder.com March 9, 1998 www4.techstocks.com March 24, 1998 (apparently the stock price collapsed) Message 3825310 May 26, 1998 (OOH! A "positive" post) www3.techstocks.com Of course, all this was over the last year and a half. Management, having proven themselves highly uh... "successful" at this venture, now decides that they have the expertise to acquire and run an internet company. Yeah, right... And that's why I've decided this company is a highly dubious investment at absolute best. Note that I haven't even bothered to check into the management and executives' background. I already have enough for me to know that this stock is not going into my portfolio anytime ever... KJC