Mike Perras'  Instablog

Mike Perras
Send Message
Mike Perras is a former media executive and faculty of business professor. Today he is a freelance writer, manages several blogs including, Canadian Stock Alerts. He is a social media strategist & marketing consultant.
My blog:
Canadian Stock Alerts
  • Stock Research & The Company Balance Sheet 0 comments
    Sep 24, 2009 9:29 AM

    If you are a seasoned investor then you are keenly aware of just how important the company balance sheet is. For some, a very quick look can easily determine whether they would consider investing at all in that company.

    The day trader of course pays no attention to the company balance sheet as he or she is only in the stock for a short while. Yes yes, I get that, but here’s the flaw in the day trader’s plan.

    If while day trading a certain stock that you haven’t thoroughly researched and in context I’m talking about the balance sheet, you could have serious issues. Let me explain.

    As a day trader the stock share price starts to go against you, down by 10% and 20% and even 40% .. now what? Sell at a loss or wait for the comeback, if it ever does comeback.

    A quick check of that balance sheet may have told you for the last 8 quarters the company has had a larger debt to carry every quarter and still have never actually generated any sales at all.

    The debt comes from operations with no sales, existing loans and the dreaded dilution issue, where the company keeps doing private placements to raise money.

    The lesson is, either read the balance sheet and get a sense of what you are investing in, or as a day trader, make sure you never stay in the stock for more than a few days tops.

    Don’t get me wrong here, I am no expert when it comes to reading balance sheets, but I can spot growing debt and zero sales when I see it. And when in doubt but still interested in a company, just pick up the phone and call them.  

    Stock Research Portal.is the only site I know of that offers a comprehensive package of information on each of the stocks they cover in the mining and oil & gas sectors. I use to research a company by using 3 or 4 websites, not any more. With a free email subscription, Stock Research Portal will give you everything you need, segregated news releases, insider trades, and the all important company balance sheet.

    About The Author:  Mike Perras is a former media executive and faculty of business professor. Today he is a freelance writer and also manages the Canadian Stock Alerts blog. It is updated weekdays in real time, and the primary focus is to find stocks with higher than usual trading volume. Mr. Perras doesn't advocate buying the stocks he mentions. Nothing in this article is either designed to meet readers personal financial situations, or intended or taken to be investment advice.

Back To Mike Perras' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • On September 3rd I wrote about YAN.V and it's up 50% to .075 today .. have a great weekend >>>
    Jan 17, 2010
  • Canadian Stock Alerts - October Performance http://bit.ly/Wce1p
    Nov 9, 2009
  • Canadian Stock Alerts - MOLY MINES LB- MOL.TO @ .84 on 3.3 million shares traded http://htxt.it/DX3O
    Oct 30, 2009
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.