Updated 03/26/21 Feedback? Let me know on Twitter. Some penny stocks might be substituted as they move above the $5.00 threshold. Also, those penny stocks that consistently have $0 in revenue or a lack of available financial information. This is the most up-to-date financial information that could be found on …
“What is a dividend safety score?” Simply Safe Dividends has developed a system to quantify the safety of a stock’s dividend payments. This score specifies the likelihood of a stock’s dividend being cut in the future. A broad range of factors are analyzed to calculate the safety of a stock’s …
“Which is the cheapest source of financing?” Debt is generally considered to be a cheaper source of financing than equity. Particularly during times (such as these) when interest rates are low. Beyond the “low cost of money,” debt also benefits from a tax advantage that equity does not. Debt, in …
“What is a safe harbor statement?” It is a forward-looking statement that doesn’t pretend to be a fact. It is merely speculation about future events and therefore should not be relied upon as a certainty. Before I delve into this subject, the distinction must be made between actual forward-looking statements …
“What are the benefits of a long-term strategy?” All things being equal, buying and holding is easier than frequent trading. If you decide to buy and hold for the long-term, then you want to invest in a company with a long-term outlook. This will ensure that they are operating on …
What are some limitations of risk assessment? Not gathering enough information. Not being able to accurately analyze the information gathered. Not knowing what information to gather. Risk management consists of three components – identifying, assessing, and controlling. Failure can occur at any of these three stages. In previous posts, I …
“How do you develop a risk management strategy?” Risk management strategies are methodical and logical plans for pinpointing, analyzing, and addressing risk. The company you’re analyzing faces any number of business and operational risks. Therefore, it pays to research the strategies they’re using to manage these risks. Risk management strategies …
Business risk management is the identification, analysis, mitigation, and monitoring of threats to a company’s overall well-being. Owners and managers manage risks in an effort to minimize or eliminate the damage done from adverse events. Business risks can be known or unforeseen, probable or unlikely, frequent or rare. Risks can …
“What is included in a competitive analysis?” A competitive (market) analysis consists of the stock you’re analyzing and its most appropriate competitors. Metrics are chosen to compare each company with the goal of understanding which is best poised for growth. Some metrics are universal, others are more industry-specific. In order …
“Why bother calculating financial ratios?” Financial ratios are used by investment analysts to put financial statements into context. Financial ratios simplify the financial statements, which in turn makes the information easier to understand. On any public company‘s financial statements you’ll find a lot of very large numbers. It’s difficult to …