Jun
21Due diligence: How to research before investing in a stock
Filed in: Finance, business, investing by admin on 06-21-10
What a roller coaster ride. Stocks up, stocks down. World stocks up, world stocks down. I wrote about how to invest if you’re a poor man on the totem pole. It’s not rocket science. There are stocks out there that are good picks if you know what to look for and what to do about it.
First thing out of the gate is the stock screener. As I referenced in my other article, I use Yahoo Finance ( http://finance.yahoo.com ). If you’ve got Google, MSN or something similar use that.
Warren Buffet is a shrewd business man. He sought out stocks that were under performing or were selling below what he thought the should and created an empire that’s made him wealthy beyond his imagination. Did he take risks? Yes. Did he always succeed? No. Research was the key and the risk was minimized.
Are you and I as rich as Wareen Buffet? Nope. But neither should we shy away from a good stock that has been screened and researched correctly. You’re not looking to pick the entire garden, you’re only after the stocks that, after careful screening and research provide a modest gain in this topsy turvey world of finance.
I researched “ANY STOCK” with at least a 5 yr growth on Yahoo. Here is what the screener brought up.
ASYST TECHNOL INC 3.01 46.31 55.498%
CMD CRITICARE SYS INC 3.28 61.89 46.227%
ISIG INSIGNIA SYSTEMS 2.50 21.74 65.173%
LPSN LIVEPERSON INC 3.97 38.92 52.726%
MSII MEDIA SCIENCES INTL 3.60 900.00 55.477%
SFE SAFEGUARD SCIENTIFIC 1.76 9.72 40.184%
TGA TRANSGLOBE ENERGY CP 4.68 15.55 27.037%
TRID TRIDENT MICROSYS 4.99 10.69 171.704% http://finance.yahoo.com/q?s=T RID
USOO.OB US 1 INDUSTRIES 1.59 5.37 30.487%
Trident Microsystems has had a 171.704 % growth in the past 5 yrs. When I went to the anaylysts opinion I got from http://finance.yahoo.com/q/ao? s=TRID :
RECOMMENDATION TRENDS
Current Month Last Month Two Months Ago Three Months Ago
Strong Buy 1 1 2 5
Buy 5 6 8 11
Hold 12 12 9 3
Underperform0 0 0 0
Sell 0 0 0 0
The stock has traded as much as high as $23.59 per share and as low as $4.83. The target estimate is $9.50.
Would I purchase this stock? Only if i did a little more research. As TRID stands now I’m tempted to purchase it, only becuase its a few pennies short of its lowest price by $.16. If the stock climbs to its $9.50 mark that will mean positive dollarrs of $4.67 per share in profit.
Do you need to purchase this stock. Not Read More »

