Press release, news and SEC filings are the most important aspect of determining the fundamental
    fitness of a company.  Be sure to recognize the difference between press releases from the company,
    independent news stories from other sources, and SEC filings.  The only thing we should take from Press
    Releases are the facts, which are often light, and maybe how investors react.  We can take a little bit more
    away from independent stories, however, be sure to determine whether or not the release is actually
    unbiased.  Biased reports will disclose exactly how much they were paid directly from the company or via a
    third party within the document.  This is often found at the very bottom in smaller typeface, and these reports
    are often mass distributed via Email, fax or other means.  We do not engage in this sort of activity, but it is
    important to keep in mind what level of hype may be out there, and how it may move the stock.  SEC fillings
    are by far the most important documents to read.  If we were on a Dessert island, and could only receive
    one data feed concerning our investment, SEC fillings would be what we pick hands down.  Think of it as
    looking to buy a local business in your community, whereby the first thing you would want to see is their
    financial statements.  Try and remember that companies try to find a healthy mix between making their
    company look good to potential investors, and crunching the numbers in a way as to pay the least amount
    of taxes.

Look at all of the numbers in relationship to each other, and when in doubt, always fall back on, and rely on
these numbers.  Integrity in the market place has gotten a lot better recently, and although there is nothing
to stop firms from outright lying about their results, SEC fillings are the best we have to go on.  Be sure to
do a search for the companies auditors to see if they have a history of getting in trouble.  In a worst case
scenario, relying on false SEC filings will at least make you a candidate for a shareholder lawsuit, should
these documents prove to be false.  Bottom line, know your company inside and out, examine every
document you can find, and leave the hype, rumors and insider information for management to deal with.
    Press Releases & SEC Filings
    PSW Staff
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