How to analyze ICPA, Here my clue!
From my mail of another posts about finding gems!
There are however qualitative factors which
can be the key to the really huge gains.
The most important factor will seem rather
obvious.
Where will future growth in sales come from?
It may seen obvious but it's likely something
even experienced analysts miss.
If you're investing in a company for the long
term it's because you think they will
continue to grow.
Before investing you should have a very clear
picture of where this growth will come from.
If it is a fast-food restaurant with stores
in California maybe the next 2 years of
growth will come from expanding to Nevada
and Oregon.
And then the next 5 years of growth may
be expected to come from franchising.
You get the point.
You cannot just extrapolate the last 5
years of growth into the future.
Something caused the last 5 years of sales
growth.
What caused it?
Will this continue or pitter out?
When Televisions and Radio's were introduced
the manufacturers experienced explosive
sales growth.
But as every household in the nation
came to own a television - Sales leveled out.
A one-time speculative profit can be made
from a company that for some reason is
about to have a growth spurt.
But for a long-term investment, if you're
hunting for the next Dell or Microsoft you
need to know where growth will come from
for the next 5 to 10 years.
Once you ask this question - Your investment
decisions will be easy.
Do they have a plan in order to increase
sales for the next 10 years?
If so, does this plan seem doable?
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