Students bought the stock, with a resulting two-month return of 30 percent. They invested in modular home company Champion Enterprises. It's risen 80 percent in 11 months. The student fund recently set investment criteria for the first time. Know the amount of cash a company holds compared with the past.
More cash indicates better cash flow.
Establish a clear pattern of earnings growth. Use the previous eight to 10 quarters as a time frame to indicate trends in the business. Compare actual earnings to expected earnings. Stocks of companies that barely miss quarterly expectations often plummet to undervalued levels. It's the only time not to operate long-term.