The Motley Fool: Every Sunday, useful tips on investing

Ask The Fool

Q: Where can I access earnings reports that companies file with the SEC?

A: Many Web sites include access to these filings in their stock-data offerings. You can also go o the source at www.sec.gov (look under "Filings & Forms"). You're smart to look up 10-K and 10-Q reports — they can tell you a lot about a company.

My dumbest investment

The automatic "No"

Dear Fool: My first stock purchase, in the 1980s, was from a cold-calling broker who sold me on a recently reorganized regional air carrier that "was positioned to do well." Six months later, it was suddenly bankrupt. I knew nothing about investing or airlines.

Later I found out the shares were from the broker's inventory, from a secondary stock offering that had been executed to get capital to avoid bankruptcy.

I've since noticed I've never bought a product or service that was presented over the phone or in the mail where I ended up happy with the result. So today, if I haven't initiated the contact, a pitch gets a "No."

The Fool responds: That's a smart policy. We should dig into companies before investing in them, and we would do well to be extra careful with airlines, a very tough business.

The Motley Fool take

Nike grows in China

"Swoosh!" describes the sound heard over China as Nike (NYSE: NKE) reorganized itself in August to better exploit opportunities it sees there.

China was part of Nike's Asia Pacific operating segment, encompassing 13 countries. Now, Greater China has become its own operating unit, as Nike focuses on China's youth.

At the company's annual shareholders meeting in late September, Nike CEO Mark Parker called the Olympics in Beijing "the biggest win of all" for Nike in fiscal 2009.

For 2009, Nike's revenue in China grew 22 percent year over year. Its U.S. revenue growth for that period was 2 percent. However, during a year of economic crisis, Nike's having grown revenue at all reflects a fierce global competitor.

In terms of total revenue, net income and operating margins, Nike is the clear winner among competitors, boosting margins by eliminating its poor-selling styles.

The company has 600 to 700 styles in the works at any one time. According to Parker, "that's too many ... we're really trying to edit the product down to fewer and better product."

As Nike promotes events such as "The Nike+ Human Race," it is sure to attract more and more Chinese youth. Last year, the race featured 780,000 participants worldwide.