CEO & Analyst of Keystone Financial, Ryan Irvine, recently sat down with BTV Host, Taylor Thoen to learn the 3 things investors should research before investing in a junior company.
The three things that I would advise an investor to look at is first of all, you got to look at the top line as we said. You got to look at revenues, you got to look at a company that’s actually producing a product or a service and selling that. And then, are they making money with that service that they are employing in the market. Now if they’re not doing that we wouldn’t even put them on our radar screen. We also want growth in terms of that, in terms of those revenues and cash flow and then we want that company to be trading at a reasonable price and not be debt-laden.
The other things we look at too is a good management team because it’s the intellectual capital behind a company that we actually look at. We want that management team to have a stake in the company so often the companies we recommend they have the 10 to 20 percent management stake, so they are aligned with us as shareholders. They are pulling on the same rope and driving. Their incentive is to drive the stock price, drive earnings which drives the stock price going forward.