How To Do DD

[greencat]

From another board.

This is the most comprhensive post I have seen on how to DD.

When doing due diligence, this is EXACTLY how i do it......if you want to use these notes, thats fine, if you have your own methods, thats fine too

1. The obvious.....chart......where has the stock been, how long has it been up......how long has it been down.....a number of charting services out there.......pick one............very simply, stock breaking out of a downtrend........you can nitpik or complicate a chart to smithareens, but for the time being, this is just about the best indicator i know.......

2. http://pinksheets.com/pink/index.jsp
a you then go to company info and get the name of the ceo.....
b get the name of the transfer agent and make sure it isnt select american(lol) .........
c. check for reverse splits, how many, how often

3 http://www.google.com/
a. ceo name
b other names associated
c. transfer agent...give them a call, ask for info.
d. search: symbol spam........ie....msft spam (example)
e. ceo name: john doe vs.
f. ceo name: john doe litigation
g. full company name

http://searchwww.sec.gov/EDGARFSClie...MainAccess.jsp
use the sec.gov search and check there for litigation.......and or filings as well



3 https://esos.state.nv.us/SOSServices...orpSearch.aspx
then get the legal name of the company and to to the state it is domiciled in and then google.."state sos" state being the name of the domiciled state.....go to online and try to ascertain whether or not the corporation is up to date in their state filings and while you are at it, get the authorized shares......this can be important for non reporting companies.....with reporting companies, a/s is a moot point without a registration filing to increase i/o, contrary to what you read on messageboard by nervous lil rookies. listed above is nevada, for instance

4. http://www.networksolutions.com/whois/index.jsp check out their website...see how long they have been around, and look for partner sites, too......sometimes if they have 3/4 other sites tied in under various other business models this can be a flag

5. http://www.knobias.com/individual/pu...tm?ticker=GOOG just change the symbol to the appropriate stock and see if they have had some emailers or news taggers lately.....if there are too many of them and theres a good chance the online brokers may have a restriction.....just change the symbol in the address line and refresh

6. http://www.nasdaq.com/ learn to navigate around this site for filings ........once you have found the filings.....check 8k's, 10q, s8, sb2, regdex, form 4---these are your most important filings.....if you dont know what they are......use this link........http://www.gsionline.com/support/formtypes.html ...if you are still confused go back to number 3 above

7. do people like the stock, hate it, optimistic about it, etc, and if they dont like it, is it because its at a bottom......that's usually the main reason, your thoughts and THEIR thoughts may be 180 degrees apart because they are stuckholders and you are NOT.
due dilligence is NOT checking with other people on a messageboard who also dont know how to do any of the above....
due diligence is NOT checking with the CEO......
due diligence is NOT checking with the IR guy the company is paying......

if you dont see too many flags or negative input........you may have your self a play