May 30, 2008, Newsletter Issue #120: Comparing Like Companies

Tip of the Week

When researching stocks for investing, compare them with the stocks of other companies in the same industry. A P/E ratio or debt amount that seems astronomical for one industry may be standard for another. The only way to know is to research several stocks from the same industry. When you find that a company has an unusual statistic, find out why. You may uncover the next big stock...or avoid the next big dud.

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Jerry Mayo