by Lyndon W

Created on: February 26, 2007   Last Updated: April 20, 2007

Take heed before you read on: Be an informed investor!

Firstly, you may wander about the phrase "due diligence". Did you catch a keyword in the topic title? It is - 'research'! How?

You, as an investor, have to do a systematic and close inquiry into everything related to the stocks of the company - its fundamentals, products, services, tangible and intangible assets. Other areas include include management of cash-flow, the company's balance sheet, and of course status and presence of competent management.

How and What you can get hold of, research on and sift through:-

- Annual and Quarterly Reports. Read on the company's performance, goals and projections.
- Analysts' projected earnings estimates.
- Press Releases. Happenings and news relating to company events.
- Industry Reports. The bigger picture of all other similar companies as a whole.
- Competitive Analysis. Company's market share and competitiveness against other competitors.
- Intangible Assets. Patents, brand names etc.
- Management Depth. Get to know the experiences, achievements of the people high up on the management scene - directors, managers etc.
- Contact the Company. Do not be shy! If you have queries that you want to resolve, go ahead and make them clear by calling them up!
- Talk to the experts. Financial advisers, people who have bought the stocks, and so on, do ask for their opinions and advice.

You have it all now - 'Due Diligence'.

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