Three Key Ratios For Investors


question mark 200x200 Three Key Ratios For Investors
if you could only have four ratios to evaluate a company what would they be? This is a fun question that is popular in investing circles. For a laugh I’ll take my shot at it, what would you pick?

1) Current Ratio

Current Assets / Current Liabilities

The Effects of Layoffs on a Business


pink slipA recent mass layoff at my company has given me a fresh perspective on layoffs. Normally, as an investor, we see layoffs as a courageous way to drive profits forward by shaking off some areas of weakness. I have personally invested in companies shortly after a mass layoff if I believe that such changes will benefit the profitability of the business. From a purely financial perspective viewing a company as a machine is an easy thing to catch one’s self doing. However there are some soft costs involved in layoffs to a company culture that I wasn’t really aware of until the week after I witnessed fellow employees walking out the door for the last time:

Best Insider Traders


insider tradingI am willing to concede that company insiders know more about their businesses than I could ever learn about it by reading financial statements. This is why I use insider trading as part of my assessment critieria. The fact that all company insiders are not created equal should come as no surprise- who would you trust to know more about a business, the chief accountant or the janitor?

The Balance Sheet: Goodwill


good will on the balance sheetTo understand a balance sheet requires that we understand every line item, what each means, and how it can be manipulated. Today we are going to look at the line item for Goodwill.

Madoff Tips for Prison


investor bernie madoff mugshotToday Bernie Madoff was sentenced to 125 years in prison. To send him off here are a few tips for Madoff on going to prison, bullet points are borrowed from a prison blog Top 10 prison survival

Easy ways to Make Money: Secretary Calls


secretary+on+phone 1 Easy ways to Make Money: Secretary CallsAsk anyone who works at a large corporation and they know that if you want to learn the dirt about what is going on in the office you just need to talk to the secretary. Secretaries know everything about what is happening in the company, they may not have the acumen to diagnose the severity of problems but they certainly have the acumen to understand how upset their bosses are that week.