INVESTING BIBLE

I just went on Amazon and found the Investing Bible used for .73 cents. Boo for me since I thought I was getting a great deal with my 40% off coupon at Borders. Oh well, it's still an informative reference source!

WHEN PICKING A STOCK...

Ask yourself these questions:

1. Does the company produce high-quality products or services? Would you want to be a customer?

2. Is the stock reasonably priced?

3. Is the stock priced competitively compared with the other companies in the same industry?

4. What are the company's future earning prospects?

5. Has the company's earnings continued to improve?

6. What do the important financial ratios say about the corporations prospects?

7. Does the company have a clean balance sheet?

8. Does the corporation's cash flow statement set off any warning bells?

9. Are there any time bombs ready to go off such as extensive lawsuits, expiring patents, or aggressive competitors?

10. Does a company have patents, government regulations or other barriers to keep rivals or potential competitors at bay?

11. What percentage of the company is owned by insiders? What kind of insider trading activity has occurred in recent months?

12. What percentage of stock is owned by institutional investors?