Company-Specific Risks

Company-specific risks relate to a firm’s business plan, stock valuation, profitability, accounting practices, growth strategy, and other factors particular to the company, rather than to the overall market.

Some of the risks listed in the following pages are serious enough to disqualify a candidate from further consideration and are identified as such in the description. Others are less severe and by themselves would not disqualify the stock. However, in the end you’ll do best by picking the candidates with the fewest risk factors.

Products on Allocation

Companies selling products into markets where demand exceeds supply can only fill a proportion of each customer’s order until the firm is able to ramp up its production. ...

Get Fire Your Stock Analyst!: Analyzing Stocks on Your Own now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.