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Fundamentals |
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Stocks with solid fundamentals usually have rising sales, good earnings (control costs), and are well managed. They also have sufficient cash flow to fund operations and expansion in many cases. Having good fundamentals is not accidental, it is indicative of strong leadership and sound management. I would also recommend stocks that have to be turned around very often. I really like management to be long-term and not be celebrities. The best managers are ones we rarely hear of. They operate in relative obscurity. One thing I look for in a fundamentally sound company is a balance sheet that is not too debt heavy. While debt may help a company grow faster, I would rather a company grow in a more measured way that will not blow up in a recessionary environment. A few fundamentally sound companies to examine are: PANERA BREAD CO (PNRA) BHP BILLITON LTD SPONSORED ADR (BHP) CAL DIVE INTL INC (CDIS) COVENTRY HEALTHCARE INC (CVH) |