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Fundamental due diligence when looking for a stock trade other than a day trade.

Information is king on Wall Street. Absolute king.
What you don't know you don't know can hurt you, while what you do know, and the more you know, can only help.

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Fundamental analysis
involves looking at any data, besides the trading patterns of the stock chart, that can be expected to impact the price or perceived value of a stock. As the name implies, it means getting down to basics. Unlike its cousin technical analysis, which focuses only on the trading and price history of a stock, fundamental analysis focuses on creating a portrait of a company, identifying the intrinsic or "fundamental" value of its shares, and buying or selling the stock based on that information.

enroll here

 Read > interesting article re: stock valuations

    This is what you'd see using www.finviz.com regarding AAPL:
Index DJIA S&P500 P/E 11.54 EPS (ttm) 9.42 Insider Own 0.10% Shs Outstand 5.56B Perf Week -1.21%
Market Cap 604.03B Forward P/E 10.85 EPS next Y 10.02 Insider Trans -14.73% Shs Float 5.54B Perf Month 7.46%
Income 53.73B PEG 0.99 EPS next Q 1.99 Inst Own 59.40% Short Float 0.95% Perf Quarter 13.27%
Sales 234.99B P/S 2.57 EPS this Y 42.80% Inst Trans -0.73% Short Ratio 1.23 Perf Half Y -0.96%
Book/sh 23.07 P/B 4.71 EPS next Y 10.39% ROA 19.20% Target Price 134.35 Perf Year -12.55%
Cash/sh 6.85 P/C 15.86 EPS next 5Y 11.63% ROE 42.80% 52W Range 91.11 - 132.09 Perf YTD 3.79%
Dividend 2.08 P/FCF 11.83 EPS past 5Y 33.60% ROI 28.30% 52W High -16.54% Beta 0.98
Dividend % 1.91% Quick Ratio 1.00 Sales past 5Y 29.10% Gross Margin 40.10% 52W Low 21.00% ATR 1.87
Employees 110000 Current Ratio 1.00 Sales Q/Q 1.70% Oper. Margin 30.30% RSI (14) 65.71 Volatility 1.63% 1.55%
Optionable Yes Debt/Eq 0.49 EPS Q/Q 7.10% Profit Margin 22.90% Rel Volume 0.94 Prev Close 108.66
Shortable Yes LT Debt/Eq 0.41 Earnings Apr 25 AMC Payout 21.40% Avg Volume 42.65M Price 110.24
Recom 1.80 SMA20 2.94% SMA50 9.01% SMA200 0.06% Volume 13,090,002 Change 1.46%

Click the links below to see what it means and why it's important. You'll thank me for this later.

Index P/E EPS (ttm) Insider Own Shs Outstand Perf Week
Market Cap Forward P/E   EPS next Y   Insider Trans Shs Float   Perf Month
Income PEG   EPS next Q   Inst Own   Short Float   Perf Quarter
Sales P/S   EPS this Y   Inst Trans   Short Ratio   Perf Half Y
Book/sh P/B   EPS next Y   ROA   Target Price   Perf Year
Cash/sh P/C   EPS next 5Y   ROE   52W Range   Perf YTD
Dividend P/FCF   EPS past 5Y   ROI   52W High   Beta
Dividend % Quick Ratio   Sales past 5Y Gross Margin 52W Low   ATR
Employees Current Ratio Sales Q/Q   Oper. Margin RSI (14)   Volatility
Optionable Debt/Eq   EPS Q/Q   Profit Margin Rel Volume   Prev Close
Shortable LT Debt/Eq   Earnings   Payout   Avg Volume   Price
Recom SMA20   SMA50   SMA200   Volume   Change

 

  stock trading

     How much emphasis you will put on fundamentals versus the technicals of the chart is up to you as trader. Most traders will emphasize the technicals while not totally ignoring the multiple and the current price. It really depends on how much you're putting into that trade and how long you plan to be in it.

For those of you who have to see and do the computations, you analytical types, come here. This is way too much overkill for a trader. but you will learn something. Traders trade mostly on technicals, not the crunched numbers.  


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