Category Archives: Stock Picking
We have decided to post these articles in our stock picking category because sometimes knowing what not to buy can be just as important as knowing what to buy. These articles are by no means comprehensive in
Penny stock scammers could be the owners of the company, penny stock brokerages, and fraudsters who spot the potential to make a quick buck. This is how a pump and dump scam can work. A team of
Penny stock scams are no longer limited to unsolicited boiler room phone calls. Penny stock scammers lurk everywhere and nowadays, even on social media sites. For example, in 2010 the SEC obtained an emergency asset freeze against a
Financial statement analysis is also referred to as ‘Quantitative Analysis’. It is one of the most important steps while analyzing a company from an investment perspective. Massive amounts of numbers in a financial statement may be bewildering
Profitability reflects the final result of a company’s business operations. Profitability Ratios are also called Income Statement Ratios since most of the items used in their calculations are picked up from the Income Statement. Profit margin ratios and
Asset ratios measure the efficiency by which a company is using its assets (these include fixed assets, inventory and receivables). These ratios are generally applied by management to analyze the company’s performance over multiple periods. They serve
Liquidity ratios are sometimes referred to as Balance Sheet ratios since most of the variables are taken from the balance sheet. Liquidity ratios measure the short term solvency of a company. In other words, they indicate a
Debt to Assets Debt to Asset ratios determine the proportion of external financing used to purchase business assets. A ratio of 0.6x indicates that 60% of the total assets are financed through external debt. It is
It is generally assumed that the market value of a share reflects both the past performance and the expected performance of a company. It indicates how the company is perceived by the market, even though the market
Financial ratios provide valuable insights into a company’s performance, efficiency and future growth prospects. However, when analyzing a stock you must keep certain things in mind before interpreting these ratios. Ratios cannot be interpreted in isolation. They
