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Typically when potential investors evaluate a stock to buy, they look at the usual suspects; stock price history, P/E ratio, total revenue, corporate management, etc. There are however, other places you can look to give you a more complete picture of the company and industry you are examining. You can look to analyst reports, most everyone does, and successful analysts do their homework, so you don't have to. Except that you still do have to.

There are at least a couple areas that you need examine to get a better picture of the equity that you're considering.

1 - Government regulation. Look at proposed government regulations that may affect your industry, and company in particular, in the future. This is a very broad area that can have huge repercussions. If for example, the firm owns a large piece of real estate that is about to be impacted by land use regulations, that can make a difference in the firm's future profitability. Government regulations can encompass different areas such as; environmental, land use, health and safety, financial, licensing, and more.

In many states (27, mostly in the west), there is a popular initiative and/or referendum process that can give you an additional source of legislation beyond the state legislature. A popular referendum or initiative is legislation that is initiated by private citizens and placed on the ballot for popular vote. You can look on the Internet in most states to find pending or proposed legislation, either from the state's legislative bodies or from the state's citizens. In many states, you'll be able to find bills that are in committee or about to be voted on. A little knowledge here could really help your portfolio. The cost of compliance with certain legislation definitely affects corporate profits and impacts their lines of business. Many industry associations have watchdog groups that are keep an eye on state and federal legislators to be aware of any pending legislation that could affect their industry.

2- The supply chain. Take a look at vendors that supply the industry that you're considering, and their suppliers. For example, if you want to get a better picture of the future of natural gas production, take a look at the production and future orders of companies that produce drilling equipment. See the trends. In addition, you'd want to look at the firms that produce the component parts for drilling equipment. Is demand strong for their component parts? That will give you a picture of what the drilling equipment business will be producing in the future.

If you were evaluating the broadcast industry, you'd want to take a look at orders for production equipment. If a company that made HDTV production equipment, such as Grass Valley (a firm that makes HDTV production equipment), for instance, had reported a large order, you can be pretty sure the company that placed the order is undergoing, or will soon undergo, expansion in it's business. There are places you can look to find information besides the Internet, although that is a key resource. Most industries have trade publications that get you inside information not usually found in the business sections of the newspaper or in general business magazines. Even better, many of these trades are available for free. All you need do is obtain a business license and indicate you have a business need for the publication and many of these trade journals will be sent to you for nothing. I currently receive about 6 that provide a wealth of information on production orders, personnel changes, pending legislation, and other pertinent facts.

In short, make sure you're well informed about not just the company in which you considering tying your future to, but any other area that could affect that company, for it too is affecting your future.