margins margins margins. You don't have to sell a ton of goods if your margins are killing everybody else. Next question what are good margins? A: It depends. You my friend are opening up a can of worms. Have fun and realize this....all fundamental data is discounted and reflected in the price of a stock. Trying to attach an intrinsic value to a company and then hoping the market accepts this is just that......hoping. Much better (for me) is monitoring market conditions and buying the best/leader (highest P/E's, P/S etc) companies when everyone else is scared. Always sell too early and aim for 3:1 reward to risk. You can go broke for two reasons: Taking profits when you haven't given it a chance to hit 3:1 and riding a stock down. Always always cut your losses short. It keeps you from having to sit through drawdowns/hoping syndrome. I'll say it again the problem with fundamental analysis comes from the trade looking better and better as your getting crushed. Enron's P/E was in the single digits and analysts were saying it was a generational trade. Pull up Jim Cramer telling no one to panic while Lehman is crashing, "Lehman Bros are fine. Do not sell" The point is he is an ex-hedgie, CNBC anchor, Mad Money author/personality and an ex-Goldman Sachs partner (don't quote me on the partner part). He has access to the best/most information and if he can't know that Lehman is going out of business NO ONE can. I'm done and I noticed you didn't ask about the market but hey it's always good to know. "If you're going to panic, it's best to panic early".