Course 202: Analyzing a Company
Put Them through the Wringer
In this course
1 Introduction
2 First Quality Check: Growth
3 Second Quality Check: Profitability
4 Third Quality Check: Financial Health
5 Fourth Quality Check: Valuation
6 Put Them through the Wringer

A company doesn't have to shine in each of these four categories; few companies would pass such a test. Rather, think of these as the quality checks necessary to make an informed purchase--the due diligence of stock-picking. By checking out how a company measures up in each area, you'll spot its weaknesses, and you'll certainly avoid buying a piece of junk. And don't stop with these four quality checks. Before buying a stock, read its latest 10-K and 10-Q reports and its annual report, which we described in the first level of our stock classes. These reports are jam-packed with useful information and are the sacred scriptures for stock enthusiasts.

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