Method Five: Find What I Call a “Check List Stock”
I am not going to give you any stock symbols here, but I will say that I don’t get involved with any company at this point unless it passes almost all of these items on the check list.
Here is My Official Check List:
- An operating company.
- No reverse splits ever. Ever.
- No preferred stock of any kind.
- No convertible debt created for the likely reason of issuing shares.
- A very promising product that is already available.
- Patent protections or other IP protection that makes it safe from competition.
- Management that I like and trust. This takes making phone calls and getting them to answer.
- They are not in an industry to take advantage of key words that tend to be used for promotional purposes. They must REALLY be in the industry, and they need to be well respected in their industry.
- They don’t need to outsource research and development. This is key for medical companies. I have found those that need to raise funds to get research done elsewhere really are not doing research on a day to day basis. The are just marketing stock.
- The stock is reasonably stable. This is subjective.
- The company only puts out valid news releases.
- The company is in control of its investor awareness and does not hire the wrong people.
- The company does not post or answer posts on Ihub. Ever. They answer emails and the phone, but not chat rooms.
- The key researchers have advanced degrees.
- Nobody at the company offices out of his or her home.
There you have it… Five great methods. Email me if you have any questions!