Analyzing a Stock Before Investment (part 2)
Investing in stocks should involve a bit of analysis which everyone can do with the right guidance. Applications like InvestSika makes this analysis process very easy and intuitive too.
There are a few things to consider when looking at a company you want to own a part of and we have looked at how the category a company belongs in and the size of the said company can be good pointers to look at in the first part of this series here. In this post, we will look at the next few pointers to consider when analyzing a stock to buy.
Management of the company
One good thing to check out for inna company is the management of that company, this could be a simple Google search for the CEO or other c-suite management staff. You can find out a lot about the mission and vision of a company through these people. You can also notice that news about some founders tend to affect their company stock price so this is also very important to look out for.
InvestSika provides you with information and recent news about any company that is listed on the app and names of the CEO also. We believe that this helps in the decision process for our customers.
Your investment strategy
What is your game plan for buying this particular stock? Do you think that this company is offering so much value and the stock price is low and so would eventually get to the value they truly deserve. Or do you think that this company is popular and so has growth potential so you want to join their growth journey?
Knowing exactly what your strategy is can help you streamline for what you are optmizing for and you can have different strategies or motivations for different compsnies you buy
Dividend paying companies
This is kind of related to the previous section, you might eant to also invest in companies that regularly pay out dividends to their shareholders so that you can own a part of the company and still get extra compensation for doing so without having to liquidate your position.
With the InvestSika app you can invest in dividend paying companies and the dividends you get goes straight inside your InvestSika wallet which you now withdraw to your mobile money account instantly
This is a great way to earn passive income and a lot of good investors include dividend stocks in their portfolio.
Analyst opinions
In the stock market there are analysts who have degrees in assets analysis and management and have studied the stock market to watch trends around news, company management, speculations and the economy in general. This analysis is now found in a lot of votes they make on stocks available in the market.
InvestSika provides you access to some analyst opinions on almost every stock listed on the app, this helps you to also manage expectations after you have done your own research.
The more the analysts the richer and more balanced the results of the analysis would be. If company ABCD had 532 analysts saying this stock is a good stock to buy and another company DEFG has 12 analysts saying you should hold your position on this stock. You can easily tell that you would most likely trust an opinion of over 500 people combined more than just 12 people and InvestSika tells you exactly the number of analysts that voted on a stock to help you make a more informed decision.
Wrapping up
InvestSika lets you buy shares of companies that are publicly listed on local and global stock markets like NYSE and NASDAQ easily using your mobile money in just three clicks. Join SikaTribe to learn more about financial freedom through investments.
