Winning Stock Pick

Winning Stock Pick

A bit of research and homework can make you a winner in the stock market.

Things to note before you pick the stocks

Avoid companies with high debt level

Avoid stocks with excessive volatility

Avoid stocks with poor profits

Avoid poor growth companies

Avoid stocks which are highly expensive

Keep an eye on the following red flags

Cash flow not matching reporting profits

Cost (expenses) items treated as investments and assets

Difficult to value assets making up a large part of the balance sheet

One-off item propping up the profits

Sales of shares by insider and promoter pledges

Mismanagement of balance sheet (too much debt, over reliance on short term debt)

Comments on accounts by auditors

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