Research

You'll probably want to do a bit of research on any company you are thinking of investing in. Things to consider include what multiple of earnings is the company trading at versus other companies in the industry. How has the stock done lately, is it near a high or low; Does the company have good products, good management, good future prospects? Are they being sued? Do they have patents? What's the competition like? Do they have long term contracts established? Is their brand name recognized?; When compared with other companies in the industry, how much times the book value or times sales is the company trading? Is the management competent?