A fellow blogger emailed me asking for more details about my “upside” and “downside” analysis. I often discuss those 2 factors when I make stock picks and they are a critical part of my stock analysis. It’s not as easy to explain how I use them compared to other factors such as a P/E ratio for example. I’ll still give it a try today. Basically, I feel like every stock has a profile that can be defined among other things as upside and downside.