nd the amount of shares you own will double. A stock split is almost all the time positive for stocks because this will often attract new buyers into the stock (Sheimo 89). When stocks get upgraded from brokerage firms with target prices to go along with them you will often find a sharp price run up. Some brokerage firms often project the company's earnings for the next year or so and this is a nice figure to go buy when researching for new stocks. A 25 percent of growth in a company is a nice growth percentage to see in a years time and it would make for a nice core holding in any portfolio. Now that you know what to look for in a stock lets learn about what is good to avoid in a stock. I become some what nervous when dealing with high PE ratio stocks for long term holdings. Stay away from stocks with PE ratios in the triple digits, it seems like it can be very easy to get burnt from these stocks especially on the long term aspect. I try to avoid stocks without earnings, but if there is profitability in the near future and revenue is strong I probably would not let that stand in my way of buying a stock. "Never buy a cheap stock just because it is cheap" (Sheimo 75), this is one mistake many Morgan 5beginning investors make. Just because you find a cheap stock does not mean that it is a good value. When looking for penny stocks you must do more research that just looking at the price, treat it as you would treat any other stock. "Avoid heavy positions in thinly traded stocks"(Sheimo 103). A thinly traded stock is considered to be a stock that has a volume of 10,000 or less a day. If you have stocks that are thinly traded there is a possibility that they might not trade every day and this might cause you to be forced to delay a sell and increase your losses in that particular stock. Be very careful when dealing with penny stocks, they are extremely volatile especially thinly traded stocks.If you have a serious interest in...
