- If we still haven't raised any red flags, then step six is to have a look at the company's Web site. A slow-loading, ugly-looking site is a very bad sign -- especially for a technology, Internet or telecom company. A lousy site suggests a shell company with no true assets or products. These are, not surprisingly, good stocks to avoid.
- If all these steps haven't dampened your enthusiasm yet, then go to step seven: Order an investor relations package from the company. You want to receive something professionally written on high-quality paper with glossy photos. It should arrive quickly (but not by express mail). It should contain no typos or printing errors, and certainly nothing that looks like it was quickly and cheaply photocopied.
Seven Steps for Handling Stock Tips
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.