THINGS TO CONSIDER BEFORE INVESTING IN A COMPANY While investing in the stock Exchange, it is important for a person to find those companies that they understand and agree with from a leadership as well as business perspective. It is also important to ensure that the company operates with a strong management and has the capabilities to be successful. Here are a few factors that every investor must consider before investing in the stocks of a company: http://www.stockpicker.se/
COMPETITIVE ADVANTAGE A competitive advantage, sometimes referred to as an economic moat, is when a company is performing better that its competitors. These rankings are based on superior products, patents, brand power, technology and operating efficiency. Hence, while investing in a company, an investor should always ensure that the company has a competitive advantage over their competitors.
REVENUE TRENDS Revenue, or more commonly known as a company’s top line, is the basic amount of money that a company makes from sales of their product or service. While investing, an investor should look for a company that has its revenue trending up each year for the past few years. Although, it is not realistic to expect a company’s sales to increase every year, a company with a trend of falling annual revenues signals that it has trouble selling its products or services.
PROFIT MARGIN Profit margin is the percentage of revenue the company takes in as profit after expenses, interest and taxes have been paid for. While looking for companies to invest in, investors should look for a company with stead or growing margins every year. Companies that have growing margins show that they can command higher prices, as the consumers are willing to pay for their product. http://www.stockpicker.se/tjanster/