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Byline: Jonah Keri
Investor's Business Daily
An astute investor will weigh fundamental and technical strength equally while pondering stock buys. When mulling a sale, consulting a stock's chart usually tells you more than profit or sales figures will.
But sometimes a stock's fundamentals also can be a warning sign. Sales growth may start slipping. Profit margins could drop.
Perhaps most telling, earnings growth may run into trouble. Decelerating earnings growth
is never a good sign. If profit slows by two-thirds or more, you probably should abandon ship.
Microsoft zoomed 50-fold from the start of the 1990s to late 1998. That was no surprise to investors, given the software giant's usual robust earnings growth.Microsoft broke out of a four-month base in November 1998, a month after posting a 56% profit gain.