Ryan Irvine spoke in a Friday evening session on "Do it Yourself Stock Investment". Ryan Irvine is the President of Keystone. Part of this session had Aaron Dunn as the speaker. Their site is www.keystocks.com. I went because Keystone has given good talks in past Money Shows. It was a long session so I have broken my report into four parts.
This last section is on how to deal with Hot Tips. These are the questions you should ask yourself and deal with.
Step 1: Does the company have sales or revenue? Have someone actually paid for their product? It is an investment if they have sales but just a concept if there are no sales.
Step 2: Is the company making any money. Just looking at these first two items can remove 70% of ventures stocks from a list you might buy.
Step 3: Do they have a weak or strong balance sheet? If they have debt do they have the means of paying it off besides issuing new shares?
Step 4: Is there a positive or negative outlook for growth? To find this information go to the company's Management and Discussion Analysis (MD&A).
Step 5: Does the company have a reasonable valuation? What is the Price/Earnings Ratio? Is the P/E Ratio great than the current market? (The current market P/E Ratio is 18.)
On my other blog I wrote yesterday about Medtronic Inc. (NYSE-MDT)... learn more. Next, I will write about Equitable Group Inc. (TSX-EQB, OTC-EQGPF)... learn more on Friday, October 27, 2017 around 5 pm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.