FUNDAMENTALS

Today I want to just touch on the basics. First if we want to buy a stock for our portfolio we don't want to pay to much, right. How do we know if we are paying to much? In the market today there are alot of stocks that can be concidered bargains if wefollow a couple of steps.First we need to look at earmings. Earnings should be based on day to day business not one time sales like a sale of part of the company or something like that. You'll also want to know what past earnings have been. With past earnings it will let you see what direction the company is headed. Once we get this then we'll figure out the P/E of the stock witch is nothing more then taking the earnings divided by number of share to get earnings per share but most of this is already done so we don't have to do the math. Next we'll take the price of the stock and the earnings to find out what return we are getting from each stock. I'll pick up here tomorrow. It should be a busy week in the market this week. Lets see how it goes and maybe we can get some good buys and make ourselves some money.