people are buying some really stupid stocks and we got to stop talking about those stupid
stocks and get back to what actually makes people wealthy and of course the stock market being so
unpredictable we really don't know but there's ways that we can at least be ahead of the curve
let's talk about two really quick articles I want to share with you exactly what I do
when I pick out a stock so we can stop picking these stupid stocks look right here right here
on cbnbc it says are you feeling nervous about your portfolio today the classic Wall Street
advice dictates that good investors should know when to cut their losses short and certainly
some folks get lucky and manage to time trades perfectly so as to sidestep Big Market drops
but hold on a second it goes further to say in this article over here that investors sell
winning stocks too early regardless of their demographics now when it comes down to selling
the stock too early that could be something like let's say you bought Tesla you sold it back in
2018 you're probably kicking yourself right now I bet you might be because you know if you put
ten thousand dollars always get ready for this ten thousand dollars in 2011 on Tesla and just
let it sit there today that value be worth over one million dollars but if you're sold too early
you don't have a million dollars but the same thing goes into reverse some people say well
things are going down and this little stupid stock that I was advised to get because I watched some
stupid video on somebody that just made sense to me at the time I went in it dropped and I'm just
gonna hold because the reason I want to huddle is because it's going to go back up well and
the question would be then why is it going to go back up and then the answer is well it just looks
like they're going to do a good job but there's no fundamentals behind find that and that's the
whole problem if you don't have any fundamental research behind the company you're just blowing
your money away and hoping that the magical money failure well it's like the Tooth Fairy you're just
hoping that you're gonna put some money under your pillow and the Tooth Fairy or the money
fairy in this case will give you more money if it sounds ridiculous it's supposed to sound
ridiculous because that's what's happening in the YouTube space and I'm gonna come clean with you
and explain that I know for a fact that some of you who have followed me for a while are going
to be like but you talk about weird Investments like Shiba Inu I'm gonna I'm gonna expose myself
but I'm also going to expose the stoppage that we need to have of some of these stupid stocks
let me give you some examples let's go over here to Seeking Alpha for example and in the case of
if you hear of any type of stock that somebody thinks that it's going to 10x 20x or 30X you
need to say okay that's cute that's interesting I'm gonna do some research on my own the point is
you need to be the one in power so you can make the best decision so you you can make a ton of
money and what you don't want to do is just take their word for it because they sound cool and they
sound like they know what they're talking about and then before you know it you're left holding a
bag like a lot of people are right now who bought into things like Voyager and they're like oh crap
or coinbase or really anything like that uh even you know this stock right here Beachbody b-o-d-y
b-o-d-y so you buy into something like Beachbody because you think man it's going to go to the Moon
look what moon it went to I don't think it went to the right Moon it is down 84 percent on the
year 84 so if you bought when it first came out of that s-pak look at this a 1072 a share in July
July of last year 1072 let's say you yoload a lot of money into that you're hurting right now unless
you sold it on the way down somewhere here but why would you buy this without doing some fundamental
research and that's what I want to share with you in this video today stop buying dumb stocks right
here's what you want to do you want to look at the following metrics number one the price to earnings
ratio historically 13 to 15 is the p e ratios of most companies and in the case of something
strong maybe 25 okay fine but if it's something really high or really low you should be a little
bit concerned about that and in this case there's literally no p e ratio as you see right here on
secant Alpha because it is a newish company to the stock market beachbody's been around for a very
long time but it's new to the stock market doesn't have quite the calculation for the p e ratio but
let's move on to number two we want to look at the EPS versus the analyst so the analysts the
people out there on Wall Street and some of the investor analysis they put together their thoughts
on the earnings per share and then we look at the actual like how is the company actually doing if
you scroll on something like Seeking Alpha you can see that quarterly they're looking pretty bad look
at the negatives this should not be going down it should be going up if we look at the annual
we come over here and click on annual this looks just as bad we're going negative we're supposed to
be going positive when it comes down to earnings per share number three we need to look at Revenue
growth is this company actually growing their revenue you come up here to something like the
financials all of this stuff is available you could even go on the company's website and look
at their own reports to see how they're doing and this is what the smart investors do they look at
the fundamentals look right here 790 to 755 to 863 to 873 now that looks pretty good but that
brings us to the next Point what's their profit margin you could be making all this revenue and
looking hot and sexy but are you spending so much money that you're actually not making any
type of profit come down here on the front page and we look at the profitability you can see the
gross profit margin of 56.7 percent however the margin is in the negatives as is the return on
Equity as is the return on assets this is looking terrible that's why seeking outfit is giving it
an F rating on this particular case and that is just bad the momentum is bad after you look at
profit margin you move on to the next step number five is their assets versus the reliability so
basically how much do they own versus how much do they owe in liabilities and if there's a negative
number on that they're also looking pretty bad which means if they sold off everything are they
still positive can they still float can they still pay back their investors if they have to liquidate
the company so if I go over here to financials Tab and I click on the balance sheet for this
we're going to see the same type of thing here I'm going to give you another stock example in just it
but because I don't want to just beat up on this particular company but if you look at their total
assets there we go 544 their total liabilities right now which is up here total liabilities at
226. that's looking pretty good so that's great ownership potential are they issuing more and
more shares to raise more Capital which means your shares and your ownership of the company
is basically getting diluted and that's really it p e ratio EPS versus analyst Revenue profit
margin assets versus liability and ownership six steps that you can look at if you want if it's a
dividend paying company you can look at the payout ratio but if you look through and you truly look
at what is going on with these type of companies you're going to quickly realize that hey they're
actually not performing as well as they probably should be look at the operating income for example
the operating income is in the negative because they just released a few other things now a lot
of people get into this trap to say yeah but you don't realize that they're about to introduce this
and they're going to be doing that and they're going to be issuing x amount of widgets over
the next five years the problem with that method the problem with that mindset is that the fact
is you're saying they're going to we need to see results especially as fundamental investors you
don't want to just wish and hope and pray because the issue with that is they may not actually do
it they may not actually be able to perform or if they do it might be a complete flop don't worry if
you then find that this company all of a sudden starts cranking it and starts doing things and
starts actually putting the pedal to the metal so to speak well then what we're going to start
seeing is a much better financial report and then when we see a much better financial report guess
what that means buy opportunity potentially and if it's a buy opportunity because they
are producing theoretically the price would then go up because there's going to be more evaluation
on that particular stock guess what else the hedge funds the big money all that kind of stuff
will also start flowing into the stock there's a reason this is sitting at 1.38 cents because it's
a sleeper stock because nobody really is trusting and believing in what they have going on on the
same thing can go for something like tattooed Chef that somebody was asking me about the other day
same type of deal here 674 and if you go over to the summary tab look at what has happened to this
particular fund over there look in one year it's down 66.22 if you look behind the curtain and we
look at the p e ratio which you can see the p e ratio is also blank here the earnings per share
are in the negative look at the revenue look at the profitability look at the ownership potential
look at all these smart steps every time you hear about a stock you can make a much better decision
and at least have some fundamentals behind what's happening then if they start producing what they
say they're going to produce you can get more excited a lot of people think yeah but I can
get in on this and then it's going to ride up once they start producing don't worry you're not going
to miss the boat because once it starts Rising you can jump in on it and still go up guess what
I actually in one of my newest brokerage apps decided to invest in Apple a couple weeks ago
actually no it was two months ago and of course what has been happening over the last two months
the whole stock market's going down down every month it keeps going down we've had a terrible
2022 but it's funny to me that apple right now is up I'm actually up I'm in the green on Apple
could it still go back down of course it could but I'm doing fundamental analysis on that company I'm
keeping my eye on it if it shifts and goes the opposite direction that could be an opportunity
to sell but with the idea that'll still be up on my money but a lot of people just keep throwing
out these funny random stocks that don't make any sense without some fundamental research now
I'm gonna call myself out because even though I just gave this preach about you know fundamental
analysis and making sure that we're buying the right type of things and the right type of stocks
you got us pause and think what about all that weird cryptocurrency to talk about right like
what about Shiba Inu well Shiba Inu is a little bit of a different game for me when I look at my
overall portfolio I am investing primarily into good value companies and mostly most to my money
honestly is going into index fines index funds are easy because then you don't have to do all
this like weird analysis that we just talked about you don't have to go on and look at every single
individual company instead with something like you know an S P 500 company you own everything
or at least a portion of the top 500 companies or a total stock market index you own everything in
the stock market that's kind of cool you don't have to worry about it you just invest set and
forget and don't worry about it up down doesn't matter it's about the long game I invest in that
kind of stuff first then for fun money that I would typically take and use at a bar or eat food
with it or buy something with that's fun money I'm throwing away right that's the stuff I'm going in
on cryptocurrency and because I'm so excited about shib and what they're actually doing and the fact
that I got in early on ship it makes it kind of exciting obviously right because as this goes
up or down it doesn't really matter if the thing goes down even more and I continue to lose tons
of money and let's say I'm down a thousand dollars who cares I don't really care it's money I don't
need the money I need and grow and want to grow well that's obviously either in my expense account
or it's in my portfolio safely protected right but if it's in a cryptocurrency I know it's volatile
I know it's going to go up down sideways upside down and inside out which is why you always got
to make sure that your financial Foundation is set up correctly before you jump in and if you
have questions about that and you'd like to see more on that how to actually set up your financial
Foundation the right way let me know down in the comments and I will dedicate a video series just
for you you so I can help you get off on the right foot because if you're facing a mound of
debt and you're not sure how to make the ends meet at the end of the month I'd love to help you out
a little bit more and even for free you heard me it's true so the next time you hear somebody even
myself talk about any type of stock that has to do with anything oh this stock is looking pretty
good there's this there's that say that's cool do your research before you jump into it always
always take a step to look at what you're doing before you jump into something that's going to
leave you butt hurt at the end of the year like something like this you don't want to be down all
this money and then have that thing to say am I either going to hold on to this because I'm
just hoping it'll go back up and as long as if I don't sell I'm not actually taking a loss I'm just
down on paper or do I just cut my losses and maybe move that money into another stock and hope that
goes up stop the repetitive cycle of crap guys you're better than that you're worth it and you're
awesome and I want you to live the ultimate Sweet Life this video was helpful if you like these kind
of rants drop me a comment down below so I can keep making them I got so much more to whine and
complain about and it's so much fun so check out this video next we'll see you on the next video