07-08-2014, 02:23 AM
I can spend several hours analyzing a company before I invest. Once I think I know how they operate and earn their money, it doesn't take much time after that.
One method I use is to watch how far the stock is moving vs. the market. If the market overall, and I've found the S&P 500 and DJIA pretty much track each other, is up/down 1/4% and a company on my watchlist is moving up/down a couple percent, then I dig into why. Most of the time it's just an over-reaction to something by the traders (earnings beat or miss, perhaps) but sometimes it's a material change in the company. Let's face it, most dividend growth companies are pretty well-known names if you've been around the market for any length of time. You shouldn't be jumping in and out of a stock position for a couple quarters of earnings surprises or disappointments.
One method I use is to watch how far the stock is moving vs. the market. If the market overall, and I've found the S&P 500 and DJIA pretty much track each other, is up/down 1/4% and a company on my watchlist is moving up/down a couple percent, then I dig into why. Most of the time it's just an over-reaction to something by the traders (earnings beat or miss, perhaps) but sometimes it's a material change in the company. Let's face it, most dividend growth companies are pretty well-known names if you've been around the market for any length of time. You shouldn't be jumping in and out of a stock position for a couple quarters of earnings surprises or disappointments.