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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV