What do you look for in a company before investing?

2016-06-13T22:13:19-04:00

P/E ratio, Dividend Yield, Intrinsic Value.

I personally look at a company and see their main sources of income.. For example, GoPro... Was the stock to have at their IPO, but their source of income was dependent off of one product that is shatter resistant... I also look for steady monthly cash flows (REIT's), consumables (Oil, Water, Food) and cutting edge (Alphabet"Google")

Response by SPC(P) Private RallyPoint Member made Jun 13 at 2016 10:16 PM

2016-06-13T22:16:10-04:00

Apple, majority of their sales come from 1 product, their phone. People will eventually get tired of the same recycled candybar phone that hasn't been changed aesthetically since it's launch in 2007. From that, I will then look at it's current price per share and get into the technicals

Response by SFC Joe S. Davis Jr., MSM, DSL made Jun 13 at 2016 10:16 PM

2016-06-13T22:16:50-04:00

SPC(P) Private RallyPoint Member I look at the ROI and their past performance over a 10 year period.

Response by CPT Joseph K Murdock made Jun 13 at 2016 10:27 PM

2016-06-13T22:27:33-04:00

Positive PE and earnings growth

Response by 1SG Private RallyPoint Member made Jun 14 at 2016 7:32 PM

2016-06-14T19:32:52-04:00

Innovative products, market penetration, overhead to production ratio.
Your GoPro example had the latter two, but they will be a victim of their own success unless they come up with something new.
In my opinion, the best bet for an owner of that stock is to hope that the company is purchased by another company, giving a fine premium on share price, Their earnings have almost certainly peaked.

Response by SPC(P) Private RallyPoint Member made Jun 14 at 2016 8:48 PM

2016-06-14T20:48:52-04:00

LTC Yinon Weiss I'm curious of your process

Response by Sam Carter made Mar 29 at 2017 2:49 PM

2017-03-29T14:49:46-04:00

It is best to look at the ownership,management, and the numbers. You want to make sure that there is growth. If they are a new company, then it is better to look at the team and their experience as well as their business plan (executive summary).

Response by Jack Law made Nov 12 at 2021 12:15 AM

2021-11-12T00:15:41-05:00

I'd advise you to stay away from IPO's; they are for experienced investors and traders.
As for what to look for; it really depends on what kind of an investor you are. Some prefer to invest into established companies so P/E, Dividend Yield, etc. are important to them, while others prefer growth stocks so they ignore the fundamentals and believe in growth.
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