It’s also important to see some sort of upward trend in revenues and earnings growth.

It’s also important to see some sort of upward trend in revenues and earnings growth.

Value Line Investment Survey is found in most libraries and does a nice job showing long-term company trends. No one likes a company that constantly does worse than the year before, no matter what the value is! Every company needs some sort of “curb appeal” for you to profit from your investment. At some point, you need to sell in order to make money from your investment.

Upward trends help on the resale side of your investment.

Many investors find it hard to distinguish between “cheap” stocks and value stocks. Most times, stocks are low because they deserve to be low. There is nothing wrong with buying a “cheap” stock as long as you know and understand the risks. There are many stocks out there that have large annual losses, high debt levels and no equity. That does not necessarily mean you can’t make money on them, but you should call it gambling rather than investing.


http://myinvestingnotes.blogspot.com/2010/07/characteristics-of-value-stocks_23.html