Saturday 10 April 2010

How to spot tell-tale signs of stocks to avoid

1. View expansion plans with a critical eye

2. Be careful of a company that changes its key managers, auditors or accounting firms

3. Watch out when companies delay putting out financial statements

4. Be careful when a company ventures into an unrelated business

5. If a company is involevd in a lot of litigation, it will distract it's management from day-to-day operations

6. Directors fees should be in line with companies profitability

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