As the old saying goes, “Numbers don’t lie, but liars can figure”. If you are good with accounting techniques you can make a bankrupt company look good – on paper. On CNBC-TV many folks watch the CEOs telling a great story about their company. You sure don’t expect them to tell you the whole truth and nothing but the truth, do you? That is why I always hit the mute button. And many times when you look to see what the insiders are doing in this wonderful company this executive and his buddies are selling out.
So you are to invest in the stock, you need to ask yourself some questions.
1. Is the Company Profitable?
2. What Does the Company Do?
3. What Is the Company’s Earnings History and Outlook?
4. Who is the boss of this company
The best analysts know very little more than you. They just have a bigger vocabulary about the market. You and your dart board can do as well. All any truly smart investor needs is common sense and the ability NOT to fall in love with any position. Know when to hold stock and know when to fold stock.