What type of investor would invest in Target Company?
and what questions may an investor ask the management of the company?
i understand the proccess of investing, but is their a certain title of investor that would invest in this company such as an angel investor, or corporate investor etc…?
investors will review the 10K; 10Q; look at various message boards to get info from upset or content shareholders; scan news articles; look for dividend possibilities; look at the ROI and ROA; see if management is deemed favorable by wall street; investigate how the company fairs against competition (walmart; meijers; best buy etc…); investigate technical analysis; look to see when management bought or sold shares; look at msnbc, reuters, S&P rating, moody ratings, forbes, bloomberg for signs of weakness/strength; observe how fast the company is turning its inventory and accounts receivables and investigate the company’s sales mix and challenges that may hinder sales growth; look at how much of the company’s assets are tied up in real estate investment versus rental; the ability for the company to generate cash (cash flow) and access to cash (working capital facility); furture store opening and growth plans; among others…
Only the big investors speak directly with the company’s Investor Relations team. Target is a publicly held company so it is very little reason for one to contact the company directly unless you are banker or a creditor. Investors would go through the exercise mentioned in the first paragraph.