No matter what people think or tell you, a company should have good fundamentals. Investing in a company that does not have good fundamentals is not a sound investing strategy. What are good fundamentals?

Good fundamentals are a basic analysis of the company’s balance sheet, income statements, and cash flow papers. Investors can uses these papers to conver into formulas and see if a company fits their investing strategy. Some of the key components are:

• Return on equity (profitability of company)
• Net Income (net money made)
• Sales Growth 17% + (growth over a year’s past sales)
• Debt Ratio  (debt to cash on-hand)
• Growth Rate (company’s growth rate)
• earnings growth 25%+

The fundamentals above should be present in the stick you purchase. This way, you have a higher percentage to get a true growth stock to make huge gains. To see these, you need to go to Yahoo or Google finance sections.