When strong earnings are reported, check the story behind the results to make sure the good news is not due to a one-time event but is the product of conditions that probably will continue. Your questions should include the following: • Are there any new products or services or positive industry changes? • Is the company gaining market share? A market is ultimately dominated by just a few companies. • What is the company doing to increase revenue and expand margins? • What is the company doing to decrease costs and increase productivity?
