Book Review: Corporate Financial Analysis

I wish I had found this book years ago. Fundamental Analysis when done right requires a thorough understanding of every line item in every financial statement- what is it, what ratios use it, and most importantly, what does it tell you about the business you are trying to analyze.

I have read more than a few books on this subject, most take the approach of showing each line item of each statement and then providing an explanation of the ratios that use it and then how these ratios work. This approach of explanation has all the excitement of reading the dictionary and as a result when reading these books I often find myself staring off into nowhere or deciding that now is the perfect time to go out and clean those pesky rain gutters.
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The Significance of Fundamental Analysis

Investing is done successfully by understanding direction, and velocity, not by looking at velocity alone. Velocity (in this simplified context) is the speed and distance a company achieves over time, this may be earnings, profit, sales or margin. Direction is which way the company is pointing, up or down, this speaks to a deep value assessment, or an understanding of the health of the overall business.

If you would like to profit from the stock market I would argue that you as an investor need to have a thorough understanding of each of these elements to truly estimate your risk in any given investment. Too often the analysis of companies is lopsided towards an appreciation of the sheer velocity with little regard to direction.
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Free Stock Analysis

As a new service for readers we are now offering free stock analysis. None of that automated technical analysis you see on other sites, and no one is going to contact you about purchasing services after you submit, I am talking about straight forward free fundamental analysis.

All you have to do is provide the company name, ticker symbol and we will do the rest. Submit the stock you would like analyzed here and once a week we will select one reader’s request to perform free stock analysis. Sorry we can’t process more than one at the current time!
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Dashboard Tool for Fundamental Analysis

I have been rather displeased with the tools that are out there on the web for analyzing stocks. Their is no limit to the tools that can be found for technical analysis, but when it comes to fundamental analysis I seem to always find myself staring at raw numbers on a balance sheet. All I was looking for were some simple graphs and a dashboard that would let me look at a company’s overall fundamental condition- so I started building one.
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The Right Investment Tools For the Job

Give us the tools and we will finish the job. Winston Churchill

The evaluation of companies was once a very laborious exercise. Information about historic earnings and historic pricing information involved significant research and compilation. Today that effort is significantly reduced, thankfully there are numerous sources one can access to retrieve sets of desired information. Choosing just one source in all these options is often difficult though. Today we are going to have a look at some of the tools I use in analyzing companies I would love to hear so of your feedback and suggestions on other tools you use.
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