YOUR GUARDIAN ANGEL'S FUNDAMENTAL ANALYSIS BASICS
Fundamental Analysis - is the process of investing by examining the underlying financial data of a company. There are many pieces to the puzzle including SEC filings, company reports, industry group comparisons and analyst projections.
Average Volume - refers to an average daily volume and is used as a measure of the liquidity that can be expected in the market and a measure of the strength that a particular price movement exhibits.
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Book Value - is an accounting term for the difference between a company's assets and liabilities.
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Cash - simply refers to cash on hand and is used to evaluate the financial strength of a company and more subjectively its attractiveness as a possible acquisition target.
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EPS - earnings per share is one of the most basic elements of value oriented analysis.
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Float - refers to the number of available shares to the public. A lower float tends to make a stock more volatile.
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Insider Activity - is a gauge of sentiment within a company. Value investors take insider buying as a sign of strength and belief in a company's prospects.
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Institutional Holdings - give a measure of the strength of the support that a company will enjoy and is a gauge of sentiment within the financial industry.
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Market Value or Capitalization - is simply the number of outstanding shares multiplied by the current share price.
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Outstanding Shares - are the number of authorized shares that are held by investors, company officers and employees. Does not includes shares in the company treasury.
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P/B or Price to Book - is the book value divided by the number of outstanding shares which yields this ratio.
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P/E or Price to Earnings - indicates the relationship of the company's earnings to its share price so that they can be compared to other companies in the same industry.
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P/S or Price to Sales - is a more forward-looking ratio to value a company, and is currently accepted as a more accurate way to value internet and technology companies that are not yet showing a profit but may have promising futures.
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