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Tuesday, October 6, 2009

Tips for buying Stocks




Stocks a certificate

One day when I visited the chatroll.com one of the community there were talking about stocks and company power. I was then interested and talked to them then they told me about their company. The dealer told me that it is a talked of the wall street so I ask her to give me the URL. Then she gave me the complete URL of the site. To my surprise the company was not that okay. Is aid this because I checked their earnings and another thing that is every notable was there were every huge volume from there company meaning it is not that competitive. The company’s profitability is decreasing and assets are not that big. The company’s liabilities are very huge so why invest. I told to the dealer that there company were not that performing well they have to improve their profit/earnings to attract investors. I know that some of the viewer at that time where just watching over us so in that manner, I inform all the viewers that they should not invest to that company because it is not safe. Volume of stocks is not a good indicator to invest or else you just buy a certificate for your wall to display.
Actually there were lots of stockholder today who are not that knowledgeable on stocks. I said this when I attended a stockholders meeting here in the Philippines many stockholders were not that active in asking with their dividend and earnings per share. They have no copy of the financial statement of the company and even the annual reports (earnings).
For those who want to invest be sure you know the efficiency of the company, profitability, assets, and liability. If possible please compute the Okun Law’s to succeed in investing. The company’s stocks certificates are always ready for you but their hidden data are well saved and in order to open it be knowledgeable before investing for the certificate.
Actually investors buy a certificate not the company so it’s very common you let other handled your money without any hesitation and daunt that it is in a good hand. Investing with out any knowledge from the company is a game of chance so why play for a game chance buy stocks with good profitability and follow the Okun’s law.
Okun’s law can be seen in finance and economics books for your reference.

Stockholder's Advice:
1. Don’t buy stocks with huge volume.
2. Buy expensive stocks.
3. Checked the profitability of the company.
4. Company name’s doesn’t matter.
5. Checked the true assets [Money cash on hand (Not check or bank account but cash)].
6. Checked the equipment and materials within the company.
7. Checked their liabilities and debt from other financial institution.
8. Make surprise visit to the company before invest.

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