“Basic Acid Tests” by Kathleen Richards
Description

Description
Is this stock worth investigating further? Use the BetterInvesting Stock
Selection Guide’s three “Basic Acid Tests” to find out.
Acid Test #1: Are sales rising, and do the fundamental graph lines
follow a straight, parallel upward trend?
Acid Test #2: Is the company performing better than it did at this
time last year?
Acid Test #3: Is the company profitable, turning profits into more
profits, and keeping debt at a reasonable level?
Three yes answers may indicate a high-quality growth stock worth
further research. Otherwise, learn how to “put up a barbed-wire fence”
and throw the stock out.
For a more in-depth evaluation, take “Advanced Acid Tests” after
completing this class.
