Saturday, August 14, 2010
Step-3: Examine the recent & historical performance of the Stock
By performance we mean both operational and financial performance of the company. Take out some time to find out how the company has done in its business over the years. Were there issues with its operations such as labor strike, frequent breakdowns, higher attrition or lagging deadlines? If any company has a history of serious problems, it does not make a good buy because chances are high it may have similar problems again. History is a good predictor of future! It is also extremely important to find out the historical financial performance of the company – growth in revenues, profits (earnings), profit margins, stock price movements etc. Use the following table to understand the stock movement.
Posted by Saral Gyan at 12:20:00 PM
3. Examine the recent & historical performance of the Stock