Friday 26 February 2016

Fundamental Analysis Of Stocks | Things You Should Know

Books :
One Up On Wall Street : Amazon, FlipKart
How To Make Money In Stocks : Amazon, FlipKart

Things To Look For On Balance Sheet

  1. Growing Net Worth
  2. Less or no debt. 25% of equity (Net Worth) is acceptable.

If company is taking debts for expansion

  • Look for secured debts. Secured debts are taken against assets.
  • Unsecured debts are debts taken against earning power of business.
  • If unsecured loans are rolling in, dig deeper and find more about expansion plans, order book and market conditions.
  • If you want to remain on safe side, don't invest in company that doesn't match first two conditions of list.

On Profit Statement look for

  1. Increasing Net Sales Turnover
  2. Earnings Per Share

Keep eye on men of importance

  • CEO, CFO, Promoter, Financial Advisor, Board Of Directors, Marketing Team and Reputation Management Team

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