Over long period of time, a company's stock price should correlate closely with its earnings. Each quarter, every public company is required to provide an accounting of its business. In a perfect world an individual would be able to properly evaluate a company ’ s prospects by looking at its current valuation and judging whether the market is factoring the company's growth prospects into its share price fairly. Aside from the benefits delivered to shareholders, by generating free earnings a company puts itself in a position to do great things for their employees and communities as well. This is a wonderful time for the company and the right time to participate in its stock. It is this brief period in a company's life cycle that makes it a magnet stock.