Pitney Bowes Inc. (PBI), Frontier Communications Corp (FTR): Improving Your Portfolio by Knowing What to Avoid

Canacol Energy Ltd. (TSE:CNE) is already on its way down. The company’s share price has decreased from about $6.60 in June 2012 to its current level of around $2.60. The company has increased spending substantially over the last four years in a spend-to-survive attempt. It spent $33 million in 2009 and $155 million last year, when Canacol Energy Ltd. (TSE:CNE) finally realized a profit. Despite that profit, in the first quarter of 2013 it lost $1 million, and negative net income isn’t new for this company. In 2012’s third quarter, it lost $6 million.

Give a full analysis

While the aforementioned indicators can help you easily identify stocks in which the prices will likely drop, you should follow up with a more thorough analysis. The most recent quarterly reports and any news relating to the company can keep you updated on firms’ trends. In addition to recent reports, I like to investigate activities over the last five years, and compare any increase or decrease in revenue and profit margin. Using these three steps will narrow down the vast field of companies where you could put your money, and help you achieve investment success.

The article Improving Your Portfolio by Knowing What to Avoid originally appeared on Fool.com and is written by Phillip Woolgar.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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