As the world changes, so does the stock market and so do individual stocks and the companies they represent. As an investor, it’s imperative that we know what’s going on in a company when it’s happening and assess how those activities are going to affect the stock price.
A golden boy stock of one year may be a huge failure the next. BlackBerry (BBRY) comes to mind. Once a favorite in my portfolio, today it’s still alive as a company, but just barely. I sold the stock I owned years ago.
First Solar (FSLR) is another example. It’s stock price was over a $160 a share in February 2011, then fell to as low as $15 in July 2012. Had I had a magic ball I might have realized that was the perfect time to buy again. I didn’t. Today, the stock is hovering around $70 a share.
So why is this blog titled “Beware of Research?”