Hot Shares To Buy
Newbie stock traders and investors generally are curious to know which shares are hot to buy. You will want to know how to figure out on your own which shares are hot rather than just have someone tell you. Without knowing why the stock is hot you really are learning nothing and are just taking someone else’s word at face value that may or may not be founded on sound factual information. Now let’s talk about how you can determine for yourself if a company’s shares are hot or not.
• What is the catalyst for growth within the company?
This is a paramount question to inquire about before purchasing stock in any company. It is important that you understand their main agent of growth going into the future, more specifically, you need to know what products and services do they currently produce or are planning to produce which will work to fuel their growth well into the future? Visiting a company’s corporate website is a good way to find out about new products and what their plans are to drive growth. If you are having difficulty locating much data that shows growth of corporate profits, you should probably consider this stock to be in the “not” category instead of the “hot” category.
• Check the annual company report.
There is a plethora of relevant and important information regarding every company listed on the major world stock exchanges located in their annual company report. Annual company reports are detailed statements that go over the specific of a company’s activity for the last year, and its future plans. The Director’s report, Chairman’s report, and the company financial statement are some of the more important features of the annual report you will want to focus on. Typically a company will make its annual report available to the public on their main website.
• How does a prospective hot stock stack up against its competitors?
Each company on the major stock exchanges is classified into what are called industry sectors. You will find other similar companies here to the one you are studying which will typically be competitors. By comparing the financial positions and factors contributing to continued growth of other companies to the company you are researching, you can determine whether or not a prospective hot stock to buy is keeping pace with its sector and its competitors.
• Don’t invest blindly in stocks
Never take anyone’s “hot” shares tips at face value. It’s ok to get shares recommendations from people you know or your stock broker, or even people you don’t know that well. You should never just blindly buy stock in a company on the rumor that you heard about it being hot. Take all shares recommendations with a grain of salt and do your own research before you invest. A large amount of brokers have a financial interest to get you to trade as often as possible, this might cause them to make dishonest trading recommendations.You will notice that many so called hot-stock-tips are derived from similar self-serving people and may be less than honest. Do your own research and get familiar with any company before deciding they have hot stock to buy.
The 5 Steps to Buying Hot Stock IPOs