Archive for June, 2007
Fundamental Analysis: It’s Not All About Earnings
The first thing any investor learns about is the importance of earnings to stock prices. The simple reasoning behind this is that a business is ultimately only worth what it can earn after paying down all its obligations. Earnings, however, can be distorted by all sorts of accounting maneuvers – one time events, interest, depreciation, [...]
read more »Fundamental Analysis: Working Capital
Fundamental analysis is a lot more qualitative than technical analysis. As we all know from the Enron scandal, financial statement in and of themselves are subject to the manipulations and approximations of the accountants and auditors who create them. That being said, assuming that the numbers reported are generally correct, it is possible to delve [...]
read more »Book Review: Market Neutral Investing
Market Neutral Investing: Build Consistent Low-Risk Profits by Creating Your Own Hedged Portfolio by Eric Stokes is a very quick read. It claims to introduce the reader to a market strategy which will allow profits in “any type of market – bull, bear, or sideways” and teach the reader how to manage the three major [...]
read more »Share Buybacks and Shareholder Value
I just read a very good article on the use of share buybacks by companies in order to boost earnings per share and as a result bring value to shareholders. Check out PeridotCapitalist.com‘s Chad Brand’s piece on Share Buybacks. In the blog post, he is refuting the critics of AutoZone’s (AZO) current reliance on share [...]
read more »Fundamental Analysis: The Three Sheets (Part 3/3)
Last but not least, the statement of cash flows. Here again is another link to an example cash flow statement. I would like to make mention that the company that I am using in all these examples is not an endorsement for it. It was completely random that I chose it and I have no [...]
read more »
