Thursday, 5 May 2016
Wednesday, 4 May 2016
10 Rules of Fundamental Stock Analysis
A fundamental market analysis can help you find quality
stocks
Fundamental market analysis includes looking at all the
fundamentals of a company
Technical analysis software can help make your research much
easier and simple
1. Look a the earnings per share during the fundamental
market analysis. This factor can help indicate the growth rate and profit
ability of a company, which will allow you to predict more accurately the
future of the company. The earnings per share is found by using the number of
common stock shares that are outstanding and dividing these into the companies
profits after taxes.
2. Use technical analysis software to help you do the
technical analysis faster and more efficiently. There are a number of software
programs available that can help you compare and analyze stocks and the market
according to the criteria you set. This method is faster and requires less
time, because the software program does a lot of the work for you.
3. Stock chart analysis will help you understand the price
pattern of the stock, so you can be more accurate in attempts to predicts where
the price will go, up or down. Understanding how and why to analyze the the
stock chart will help you find the winners in the market, and avoid those
stocks that are falling in price.
4. Fundamental trading can be profitable, but you must use
caution that only stocks in the same industry are compared against each other.
Comparing the fundamentals of two different stocks from different industries
will not help you at all, because both stocks must be in the same industry for
the comparison to be accurate.
5. Look at the earnings history for at least the last three
years whenever possible. Even companies that have only been public a short time
should have this information from before the IPO was offered, when the company
was private. It may not always be possible to see three years back, but you
should at least check the last six quarters of the earnings if three years of
earnings history is not available.
6. A fundamental market analysis is all about the
fundamentals of the company. Make sure to research all of the information
possible on the stock or company because this will give you more information to
do the analysis with. You must look at all the factors together to determine
the probable future moves of the stock.
7. Look at the sales of the company for at least the last
six quarters, and preferably longer. The sales should be growing and expanding
over the last four quarters, even if it is by small amounts. Look at the sales
for the company four quarters ago and then again today. A good way to determine
this factor is to consider whether the sales have risen at least twenty to
twenty five percent over the last four quarters.
8. Use technical analysis software together with fundamental
market analysis. Combining these two types of analysis when considering stocks
can help you see the big picture, instead of little bits and pieces.
Fundamental analysis does not happen to a company in a vacuum, so make sure to
analyze all the factors and components.
9. Return on equity is an important factor during
fundamental market analysis. This component is a sign of the financial
performance of the company and stock. Many experts recommend using a return on
equity percentage of twenty percent or higher for quality stocks.
10. One of the biggest considerations during the fundamental
market analysis should be the product or service offered by the company. Look
for stocks in companies which offer products that are new or unique. This
creates a higher demand for the product, and raises the potential earnings of
the company significantly. These stocks are hidden gems, and smart investors
will look for them carefully during the fundamental analysis.
The Importance of Stock Market Research
Who should you go to and trust in stock market research? Why
is the history of a potential investment so important? What’s the easiest way
to accomplish the best stock market research?
Stock market research is required in order to make a smart
investment decision. Stock market research is essential if you want to earn a
significant return on your stocks. Before putting your money in the stock
market you should be aware of the company and its return patterns. This
research will enable you to find out a lot about the company, its
strengths and
weaknesses, profits and earnings and how it has been performing in previous
years.
Stock market research will help you decide which industry
you should invest in. Thorough research will help you identify the companies
that have great potential and can provide even greater returns. After deciding
on the industry, you must locate companies that you think are performing well.
After you have decided on the company, with the help of stock market research,
you must look into its historical information which includes going through its
financial statements and the return it has provided over the years to its
investors.
As a lay man you may not be able to judge the company on the
basis of its financial statements, and you may need an expert or professional
to help you. Contacting a broker will help you to evaluate the company
correctly. They are the main players in the stock market and are fully aware of
the stock market. They have all the relevant and accurate information which is
why people contact them for research purposes. Brokers also help investors in
managing their investment in stocks. They have as good an idea as anyone about
when the price of a stock will rise and when it will decline because they have
all the information available to them readily. This is why they can promptly
take advantage of the situation.
Stock market research is the best way for acquiring
information for a first time investor. Research needs a lot of time just as
investment needs a lot of money. You must determine what kind of risk and how
much risk the stock carries that you are planning to invest in. Based on the
risk factor you should see what return it offers and then decide whether to
invest or not. If it carries a huge risk then the potential return should be in
proportion with the risk. You should also look into and evaluate the factors
that you think might affect the performance of the stock. Risk management is
another important aspect of investing in stocks. You must be able to manage the
risk or else you will not succeed in the stock market.
Investing in stocks without proper research would be
tantamount to throwing away your money. This research will enable you to
identify some great investment opportunities which you might have not thought
about if you were just going on passing recommendations and not doing the
research yourself. Smart investors know the importance of this research and
will do everything to take advantage of it.
Wednesday, 20 April 2016
Arun Jaitley Defends Appeal In Vodafone Tax Case
Defending move to appeal against the Bombay High Court
verdict in the Rs 8,500-crore Vodafone transfer pricing case, Finance Minister
Arun Jaitley on Wednesday said the case had nothing to do with retrospective
tax issue and no company is immune from paying taxes.
"Why should the government not file an appeal when it
thinks that it is an appealable order," he told ET Now. "There is no
company in the world that is immune from paying taxes."
Jaitley was responding to a question on the tax department
deciding to challenge an October 8, 2015 decision of the Bombay High Court in
the Supreme Court through a Special Leave Petition (SLP).
"There are important questions of law which go to the
Supreme Court. This case has nothing to do with the retrospective tax
issue," said Jaitley, who is here on a seven-day official tour.
Vodafone had got favourable verdicts from the Bombay High
Court in two tax cases last year.
The first one pertained to the High Court rejecting tax
authorities claim that Vodafone priced the shares of its stakes in its Indian
companies sold to other arms of Vodafone in a way to avoid taxes. The Income
Tax Department had sought Rs 3,000 crore in taxes.
In the second case, the High Court had on October 8 ruled
that the Department did not have the jurisdiction on the sale of Vodafone's
call centre business to Hutchison Whampoa Properties and assignment of call
options to Vodafone International Holdings BV in 2007-08.
The Income Tax Department has decided to appeal against the
second verdict. It has, however, decided not to appeal against the first case
alongside a similar transfer-pricing case won by Royal Dutch Shell.
Besides the two cases, Vodafone is fighting a separate
larger case relating to imposition of taxes using retrospective legislation
over its 2007 acquisition of an Indian telecom group. The case is awaiting
international arbitration.
"There can't be a principle that a company had once an
issue of retrospective taxation, this company is immune from other forms of
taxation. So If there are legitimate issues with regard to other areas, it is
between the company and department to sort them out," Jaitley said on
Vodafone case.
He said retrospective tax is an issue of the past.
"It is an issue which the previous government has
created. It is an issue which we have resolved. For one or two cases which are
pending, we have given several options of resolving these issues," he
said.
The Minister was referring to his Budget proposal to waive
interest and penalty if the companies involved in retrospective tax cases like
Vodafone and Cairn Energy plc of UK paid the principal tax amount.
"We want a predictable tax regime. Therefore, the
predictability of tax regime is ensured by not having retrospective taxation
and that is the clear policy of the government," he said.
Investors, he said, are very clever people who understand
the sea change that has taken place in India. "I don't have to smoothen any
nerves, investors are very enthusiastic and bullish about India."
Asian Shares Near Five-And-A-Half Month Highs on Oil Rally
Asian shares held near five-and-a-half-month highs on
Thursday as oil prices rallied over 4 per cent overnight thanks to a smaller
than expected increase in US crude inventories and abiding hopes that producers
may eventually agree ways to ease a global glut.
MSCI's broadest index of Asia-Pacific shares outside Japan
rose 0.6 per cent while Japan's Nikkei gained 2.0 per cent. Australian shares
rose 0.9 per cent and Hong Kong's Hang Seng added 1.5 per cent. Shanghai was
little changed.
Wall Street shares ended less than 2 per cent short of a
record-high close on Wednesday as a rebound in oil prices added to optimism
sparked by a raft of earnings reports.
The S&P 500 gained 0.08 per cent to 2,102.4, and had
gained 15 per cent since mid-February.
Oil prices surged on Wednesday and eventually popped up to a
five-month high after a smaller-than-expected build in US crude inventories
offset oversupply worries stirred by Kuwaiti oil workers strike ending a
strike.
Oil bulls also bet that major crude producers would meet
again to try to curtail output even as Moscow denied media reports that Russia
planned to host such a meeting.
Last Sunday, Russia and OPEC (Organization of Petroleum
Exporting Countries) nations had failed to reach an agreement on freezing
production at a meeting in Doha, Qatar.
"Despite the denial from Russia, oil prices were
strong, pointing to strong market sentiment. I suspect there is speculation that
oil producers will eventually agree on an output freeze," said Masahiro
Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.
US crude rose above $44 a barrel to touch their highest
since November. Brent crude dipped a little to $45.55 a barrel after rallying 4
per cent overnight to near $46, their highest in five months.
Many other commodity prices were also firm, with copper
rising to as high as $4,989 a tonne, its highest level in a month.
The Thomson Reuters Core Commodity Index also rose above its
March peak to its highest level since early December.
Silver extended gains after Tuesday's sharp gains to hit an
11-month high of $17.185 per ounce. It last traded at $17.10, up about 5 per
cent so far this week.
In contrast, safe-haven gold stayed in its well-worn
$1,210-1,280 range since February and last stood at $1,247.91 per ounce, up 1.2
per cent on the week.
In the currency market, commodity-linked currencies held
firm.
The Canadian dollar hit a nine-and-a-half-month high of
1.2593 to the US dollar. It last stood at 1.2656.
The Australian dollar was at 0.7796, having hit an 11-month
high of 0.7830 on Wednesday.
Against other currencies, the US dollar maintained a firm
tone overall, and held an upper hand against the euro ahead of the European
Central Bank's policy meeting later in the day.
ECB President Mario Draghi is likely to drive home the case
for ultra-loose monetary policy on Thursday, hitting back after a barrage of
criticism from German officials who dispute the bank's recipe for tackling the
euro zone's economic malaise.
"The task now for the ECB lies more along the lines of
promoting the effectiveness of these new expansionary policies and assertion
that the Bank can do more if needed," said Rodrigo Catril, FX strategist
at National Australia Bank.
The euro traded nearly flat at $1.1299, having fallen 0.5
per cent on Wednesday.
Against the yen, the dollar nudged up to a two-week high of
109.90 yen.
Sensex Above 26,000 To 4-Month High; ICICI Leads, Wipro Slumps
The BSE Sensex jumped over 225 points to edge past the
psychological 26,000 mark for the first time since January 4. The broader Nifty
surged over 60 points to inch near the key 8,000 levels.
Domestic stock markets were buoyed by strong trading in
Asia, where shares held near 5-1/2-month highs tracking a rally in oil prices. Japan's
Nikkei gained 2.5 per cent, while markets in China traded with a positive bias.
Private sector lender ICICI Bank jumped over 7 per cent to
top the Nifty50 index, after Credit Suisse upgraded the stock to outperform.
Recognition of bad loans and the moderation in steel sector stress (to which
ICICI Bank has significant exposure) will aid ICICI Bank's re-rating, the
investment bank said.
State-run Bank of Baroda and State Bank of India also saw
strong buying interest amid renewed optimism in banking stocks.
Meanwhile, IT major Wipro slumped over 5 per cent after a
string of brokerages downgraded the stock post Q4 earnings. Wipro's IT services
margins fell by 10 basis points to 20.1 per cent compared to the prior quarter.
On a year-on-year basis Wipro's margins fell by 2 percentage points.
For the Jan-March fourth quarter, Wipro reported a
consolidated net profit of Rs 2,235 crore. Analysts on average were expecting
the company to report profit of Rs 2,343 crore for the three-month period,
according to Thomson Reuters data.
Citi downgraded Wipro to "sell", saying organic
growth is slowing and margins are under pressures. Morgan Stanley also
downgraded Wipro to "underweight", citing weak Q1 guidance. EBIT
margin is likely to face pressure, it added.
As of 09.30 a.m., the Sensex traded 194 points higher at
26,038, while the Nifty was up 51 points at 7,966.
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