Any stock exchange in the world will tell you that it is always best to have a well traded company, with a decent to high price on your stock, as well as plenty of action. It does not do anyone any good if your stock is priced high but deserted. Well, this is true to some extent, but now that we are in the days of actual reporting of insider trading (as opposed to the “insider trading” allegedly known by reporters at the turn of the century) due to technology and online accounts, it is pretty easy to look up a company’s inside dealings and financial reports and to found out the actual health of the organization.
Whether or not you have a publicly traded company or trade in stocks yourself, there are a few basics which outlast any other trading or company evaluation strategy in the current market. “Keep it simple,” is still one of the best mottos around.
Number one, insider buying is always an indicator of the stock going up in the future, even if the insider buying is a ploy to get others to buy. By the same token, insider selling should indicate the stock going down in the future. It may not go down right away, but as soon as you know about it: that would be a good time to start planning.
Number two, a steady stock is a much safer investment for long term income investors than the kind that spikes and falls. Spiking stock may be good for arbitrators, provided they understand how to do this process, but long term income investment is most benefitted from low but consistent dividends and steadily maintained stock.
Number three, if you ARE into long term income investing, it is best to know how to evaluate a business as if you are going to buy it. After all, if you are into it for the long haul, then you really are buying it, if but a small part of it.
These basic principles are in the most simplistic terms, but they pack a lot of punch in the real world. CMM Technology believes in investing in our own business and keeping our value as high as possible through lowering the cost of drug and alcohol testing and offering LifeLoc FC10 personal breathalyser devices and Oraline saliva drug tests at reasonable, and sustainable, prices. We want drug and alcohol test prices to lower and stabilize just as much as you do. You are our investors. Call CMM Technology today: (+61) 1300 79 70 30.