Equity Investment

40 %
60 %
Information about Equity Investment

Published on September 23, 2007

Author: nusantara99

Source: slideshare.net


Great presentation slides in nine warning signs of a stock's decline

Nine Warning Signs of a Stock’s Decline

You can download this presentation at: www. L earning P resentation.com Visit www. L earningPresentation.com for more presentations on personal finance and investing

Sign 1: Earnings Slow Down or Head South Profit is the lifeblood of a company. The lack of profit is a sign of a company's poor financial health. Watch the earnings. Are they increasing or not? If they aren't, find out why.

Sign 2: Sales Slow Down Before you invest in a company, make sure that sales are strong and rising. If sales start to decline, that downward motion ultimately affects earnings. Although the earnings of a company may go safely up and down, sales should consistently rise.

Sign 3: Exuberant Analysts Despite Logic Too often, analysis give glowing praise to stocks that any logical person with some modest financial acumen would avoid like the plague. Why is this? In many instances, there is, alas, a dark motive (or something not so dark such as ... ugh ... stupidity).

Sign 4: Insider Selling Heavy insider selling is to a stock what garlic, sunrises, and crosses are to vampires: an almost certain sign of doom! If you notice that increasing numbers of insiders are selling their stock holdings, you can consider it a red flag.

Sign 5: Dividend Cuts Of course, if a company is having modest financial difficulty, perhaps a dividend cut is a good thing for the overall health of the company. However, usually analysts see a dividend cut as a sign that a company is having trouble with its earnings or cash flow. In either case, a dividend cut is a warning sign that trouble may be brewing for the firm as it becomes ... uh ... less firm.

Sign 6: Increased Negative Coverage Take the negative reports as a signal to further investigate the merits of holding on to the stock or as a sign for selling it so that you can make room in your portfolio for a more promising stock choice.

Sign 7: Industry Problems Sometimes being a strong company doesn't matter if that company's industry is having problems; if the industry is in trouble, the company's decline probably isn't that far behind. Also, try to be aware of industries that are intimately related to your industry.

Sign 8: Debt Is Too High or Unsustainable Excessive debt is the kiss of death for a struggling company. We still get a kick out of reading an old issue of a financial magazine that listed the defunct company the year before its demise as one of ten stocks "for the long haul!" Yikes! Writers like that end up getting hobbies like hang-gliding during hurricane season.

Sign 9: Funny Accounting: No Laughing Here! Understanding a company's balance sheet and income statement, and making a simple comparison of these documents over a period of several years, can give you great insights into the company's prospects. You don't have to be an accountant to grasp key concepts.

Source of Reference : Paul Mladjenovic , Stock Investing for Dummies , Willey Publishing

Add a comment

Related presentations

Related pages

Equity (finance) - Wikipedia, the free encyclopedia

Equity investments. An equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and firms in ...
Read more

What is equity investment? definition and meaning

The equity investment by the principals should be distinguished from their roles as employees of the company and rewarded only based upon the performance ...
Read more

What is Equity Investment? definition and meaning

Definition of equity investment: One or more shares in the ownership of a business or corporation that are purchased by investors who are then entitled...
Read more

dict.cc Wörterbuch :: equity investment :: Deutsch ...

Englisch-Deutsch-Übersetzung für equity investment im Online-Wörterbuch dict.cc (Deutschwörterbuch).
Read more

dict.cc | equity investment | Wörterbuch Englisch-Deutsch

Übersetzung für equity investment im Englisch-Deutsch-Wörterbuch dict.cc.
Read more

Equity Investment | The U.S. Small Business Administration ...

What Is Equity Investment? Business loan applicants must have a reasonable amount invested in their business. This ensures that, when combined with ...
Read more

Equity Investments | Investment UK

Equity Investments Companies need capital for meeting their current fund requirements or growth plans. An equity investment is an investment by individuals ...
Read more

Equity (KO,PEP) - Investopedia - Educating the world about ...

BREAKING DOWN 'Equity ' Generally speaking, the definition of equity can be represented with the accounting equation: Equity = Assets - Liabilities
Read more

Private Equity Investment - Privatkredit - Darlehen ...

private equity investment - Service zur Suche nach Kredit - Darlehen - Finanzierung - Kapital von privaten Geldgebern und Investoren von privat an privat
Read more