Go For What You Know

Your financial advisorThe best stock picks are the ones you recognize

annual report and quarterly reports. If the company is large and has a broad product line, a new product may not significantly impact the bottom line, cautions Dunagan. But if the company is small, a new hot-selling product could boost earnings, he says.

Don’t be afraid to ask questions of the folks in investors relations. If the company is currency unprofitable, you’re allowed to inquire when the company expects to turn a profit, how fast it projects sales will grow and its competition.
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