Don't ever put your money into a stock without seeing the company's annual report. That's always been the case and it's especially true these days. We've certainly seen some "creative" accounting in recent years, so it's never been more important that you understand the "numbers" contained in annual reports.

True, an annual report is not exactly a Grisham novel, but it's a clue to what goes on behind the scenes. Most listed companies now put their reports up on their Web sites. You can also get free annuals through the Public Register's Annual Report Service, a Connecticut firm that offers more than 3,600 reports. Visit www.prars.com or call 860-974-2233. We love this site!

Be sure to read the CEO's message. The tone of his or her comments is often enlightening. You can skip the pages with pretty pictures accompanying text that tells how dynamic and socially responsible the company is. They all pay public relations people handsomely to come up with that kind of spin.

What should concern you most are the financial pages. You'd be amazed at what can be found in the microscopic print. Look for the "Management Discussion and Analysis," also known as MD&A, which should give you a description of the business, financial information about revenues and profits from different lines of business or geographic areas, as well as a rundown of sales and expenses.

Dolan Smart Money Move: This is the part you want to examine with a microscope - almost literally. Below the balance sheet is often a gray mass of tiny but all-important footnotes. Read these even if you have to invest in magnifying glasses! This is the information the company is required by law to reveal, but some companies hope that if they make it small enough, investors - "and the press" - won't bother to read it.

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