you have been through most of my website, you may notice that I didn't write a
lot on fundamental analysis. However, it's important to understand fundamental
analysis because most of the big players in the stock market look at them.
I see fundamentals as 2 parts. The earnings and the current sentiment
If you've never gone through the the financial statement of a listed company before, don't worry too much as the report is structured as flows
If you have never analyse a financial statement before. It's really simple in terms of concept.
Just think you are a parent and your daughter is being this guy home. You want the best for your child and
How much money does he earn in a month? How much does he spend in a month?
How much money doses he have in the bank. How much debt does he have?
Below I will break down what I expect from each section. Some of my conclusions may not be standard accountancy
I look for earnings increase combined with sales increase. Typically profit increase without sales increase is a one off item that blister profit
Here I look for cash in bank or current cast/ cash deposits and I use this figure to see in section 4 , debt repayable within 1 year. It's important because companies short of cash may come up with creative debt financing and the most common one is rights issue. Most of the time, a rights issue announced and the share price tend to gap lower because of the impending share dilution. Don't be a 菜头
I give weight to this part because my accounting teacher says it's important and it as tick in my mind for the longest time
And this is sometime I will look for when I decide whether my children's spouse are financially credible. As you can see, thus section is a bit personal
I use it more to compare growth over 2 or more years. I want to see it tending up
Undervalued shares can get more undervalued. Don't be naive.
Standard crap, full on the blank. Probably it's a requirement by the exchange. Jude then bit by their words but by their actions
After investing in a company, it's important for an investor to keep track of the company announcement everyday. Yes, everyday.