Quote:
Originally Posted by scho63
Don't conflate trading analysis with investing analysis. While they can overlap at times, financial analysis of a company rarely if ever relies on a chart.
Trading analysis always relies on charts and rarely on fundamentals, that why traders will buy a very over priced stock on the way up and short an undervalued one on the way down.
Learn to read a 10-K and 10-Q along with knowing some basic tests to run against a balance sheet
Current Assets - Current Liabilities is called the "Acid Test". It's tests a companies true cash position with working capital.
There are a bunch of them.
Also look at how a company has performed against their piers:
-Do they have better or worse margins?
-Is there market share increasing or decreasing?
-What is their yield per employee?
https://quizlet.com/6020906/accounti...s-flash-cards/
You will be able to really analyze a company when you learn some of these.  |
Good stuff here. Thanks.
And you're right. I more evaluate a company based on long term investing not trading. Reading the Intelligent Investor right now and it's definitely a learn on investing for long term and companies with sound financial plans. Has tons of scenarios relating to the dot.com boom that are just fascinating for someone who was in middle and high school at the time and didn't pay attention to any of it! Crazy how some of these companies went from gains of 1000%+ down to penny stocks in a matter of months.
Thanks for the link.