This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Balance Sheets Matter Now More Than Ever

What should you look for when you're trying to pick the next rocket stock?

Well, for starters, don't be fooled into thinking that there are red flags aplenty. According to Lamdin, "If we knew what [the red flags] were, chances are the stock price would reflect this. There may be smaller less brightly colored ones that one can look for; inventories or accounts payables rising are worth looking into, for example."

If you're looking at a stock with a strong balance sheet, don't forget about just how much valuation plays into the equation. Lamdin says, "A high-quality corporation with an overpriced stock is not a good investment, whereas an average-quality corporation with an underpriced stock is."

Although not all companies with healthy balance sheet numbers are bound for double- or triple-digit glory, those without them are finding themselves in dire straits, as liquidity dries up in the credit market.

Want a chance at making money in 2009? Stick to companies with solid balance sheets.
Jonas Elmerraji is the founder and publisher of, an online business magazine for young investors.
4 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
C $51.44 0.31%
DD $55.77 0.20%
CSCO $27.88 -0.29%
GOOG $654.48 1.20%
GM $33.24 0.67%


Chart of I:DJI
DOW 17,129.01 -2.85 -0.02%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,812.92 -25.7230 -0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs