lowtrade

[lowtrade]

WOW all the right questions.

First I'll cover;

Is there something that says to you this should be a trade only and not build a position along with trades?

That's a great strategy for good mid to large cap companies, with dividends. But you looking at a "to date", faltering small cap, without dividends. There is nothing in the fundamentals showing investment grade. That's why the long climb and investor support confuses me with such poor management. Almost seems like someone is driving this, more then investing in it.

Next I'll cover bad management.

You can see management performance in the fundamentals quickly. Gross, operating and profit margins, at Finviz. One should expect declining performance in each level as cost to do business are counted in each. But if you have a large gross, well managed companies still have positive operating and profits. If you see a large gross, with large negative profit margin, management SUCKS bad. If profits are just a little negative, may just be a bad Q. Then you check the annual report for year over year financial data. To see if the company has had 3 bad Q's in a row poor performance. Before you give up on the company management.

Next we'll talk about picking a stock, because you have interest or knowledge about the industry. This is always a GOOD thing to do. Invest in something you know about. But being a drinker or not, doesn't really qualify as knowledge in an industry. LOL Because lots of people use industry products, doesn't make it a good industry, let along a good company for investment.

Last I rap up some info about investment worthiness. Dividends, analysts coverage, and institutional interest. Tells investment worthiness. You want dividends at least equal to a rate you can get on a bank CD. You want at least 2 analysts covering the company stock regularly. And you want to see at least a 30% institutional investment interest in the company.


At a glance ucky investment worthiness.