TIPS FOR PICKING PROFITABLE STOCKS 1

Stock selection could be a difficult task for most people.One of the most frequents questions people ask me ,is how to choose the best stocks.You will find bellow tips on how to select the most profitable stocks,whenever you want to make your investment decision.
For convenience,I have divided the stock picking tips into two broad categories;Qualitative and Quantitative.Enjoy your reading.
The
QUALITATIVE TIPS

MANAGEMENT
One of the major things you must consider before buying shares of a company,is the company's management.This is because human resoure is the most important factor of production.He organises the other factors of production,and he determines the success of the organisation or otherwise.
The importance of good management in the life of an organisation cannot be over emphasized.A good management will continue to surpass the expectations of stakeholders from time to time.History is replete with stories of turnaround of organisations by some management.We also have situations, where flourishing organisations have gone under, because of an ineffficient management.The CEO and other board members are very key in the life of an organisation.Their commmitment to shareholders' wealth is very important.The management of Companies like,Guaranty Trust Bank, Guinness plc and First Bank have demonstrated un-parralled commitment to Shareholders' wealth.The followimg are things you should find out about the company's management before you part with your money.
Companies where the owners are the managers
One way to make huge fortunes fom the capital market,is to invest in stocks,where the owners are managers.That is, a company where the CEO and other principal officers of the company own substantial amount of shares in the company,especially companies where the founder is the CEO or Chairman.For instance,a company like Guaranty Trust Bank where the the MD/CEO,Mr.Tayo Aderiokun,has over 300million shares,will continue to surpass stakeholders expectations.This is becuse He will continue to strive to make the company better, because as the company is improving, his fortune is also improving.This information can be found in Annual reports of companies.
The antecedent of the diretors.
What companies have they managed before?What are their antecedents?These are some of the questions you must find answers to before you part with your money.The likes of Mr.Felix Ohiweri, Chief Olusegun Osunkeye,Chairman of Nestle have written thier names in gold in this respect.
Timely release of information;
How promptly do they communicate with shareholders? Do they keep Shareholders abreast of happenings in their organisation? .These are some of the questions you must have answers to.This is because some management don't care about the shareholders' so to speak