Financial Reports

One of the very first things I do when I pick a stock symbol is look for the company's financial reports. Are they current in their filings? I like to use http://www.otcmarkets.com/stock/fofu/quote to get most of that information. While reading financial reports can be tedious, it is very necessary in order to find out the transparency of a company. Most publicly traded companies use SEC form 10Q to report their financial earnings or losses. What a company's financial condition plays a big part in whether I invest in it or not. I have seen traders just look to see if the company is current and never look in the report to see whats actually in there. Big mistake. Alot of times shell companies are current on their filings but have no revenues or actual products and the only place to find that out is in their "current" SEC 10 Q form. So, I urge you to be careful and take the time to read everything in those reports. Debt and liability that is not readily advertised to investors is often buried inside those financial reports. Even a polished piece of garbage stock (a company with a nice gleaming newsletter or press release), can be revealed to not be a good investment when you dig a little deeper. Tomorrow Ill talk about finding out who runs these companies and why it is important when you are trading their stock. Enjoy your Sunday. GO TEBOW