How Helping Others Helps You

By admin, September 4, 2009 9:21 pm

Can you give me info. on how to do DD on a company?

Like the Question asked. Please give me a website or any other info. to help me do Due Diligence on a company who’s stock i would like to invest in. Thanks.

Yahoo finance has really good data for a free source

Consider the industry (some industries have limited upside or are hyper competitive which isn’t good for equity investment)
Consider the management team (quality, reputation, turnover, etc.)
Track record regarding earnings
Price multiples (P/E, P/B, PEG – if applicable)
Leverage (especially now that the market places a premium value on lower levered firms – yes, there’s still some ‘scared to death’ factored into prices)
Relative pricing (buying in a dip)
Relative comparison to other firms in the industry

etc etc etc…

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