Good Campany or bad Campany???

Question

If you want to know some Company is can be trusted What kind of search you can do?

Answer 1

Oodles of places. Cnn.com/business, WSJ.com, businessweek.com, valueline, investors business daily, etc. Brokerage website ought to have good research info. The company itself often has good information on the investor relations link, or some similar name. Edgar and free-Edgar from the SEC is good, but slow. The stock exchanges themselves have good data. Honey, if you can't find it in any of these you need to leave the money in the bank.

Answer 2

You ask a very good question, for it is never easy to know whether or not you can REALLY trust management of a particular company. At best, in most cases you have to rely upon analysts and government regulators and trust that they are looking out for shareholder interest. Unfortunately, government oversight is sometimes too little too late and analysts generally operate in pack mentality (ala Enron). Assuming the government does step in when fraud is detected, sometimes you still have to rely upon the threat of class-action lawsuits before company managers began to pay attention.

BUT...I digress…

To answer your question directly, you can never really know, unless you are at the company and making the decisions. Consequently, you have to rely upon regulatory reporting (i.e. annual reports over several years). You should also observe how much of the company is owned by management and institutional investors. This will give you some indiciation as to how much of their own money they willing to risk on their decision. You should note if management is a net seller or a net buyer, and observe the trend over a period of time (2 – 3 years). This will help you, again, determine if they have skin in the game for the long haul or if they are just gamblin’.

One quick note; you should become familiar with the company’s product or service and understand what they are selling. This will give you an opportunity to “test” their offering for yourself to see if what they have to sell or offer is of decent quality. If you don’t understand their business or have doubts, there is a good chance you shouldn’t be buying their stock. I hope this help. Good luck.

Answer 3

yahoo finance