research

WHERE TO START

Doing an exhaustive and effective market research is one of the most vital components in determining which stock to buy or sell.  Doing the dirty work, looking and uncovering essential information about a company is not hard at all. Now days, you are able to find vast amount of information on the internet in a matter of seconds. Yet, with that huge amount of information available it is easy to get lost, be overwhelmed and have no idea where to start. That’s why you should know exactly what to look for, in order to make the best decision.

INDUSTRY ANALYSIS

In here you will be able to review information on current economic market conditions and get some knowledge regarding the economic marketplace.After this, you can identify the companies that are performing well and that have a good potential to provide great returns in the future. After you have decided in the company you would like to invest in, you will have to do some in-depth analysis about it.

FINANCIALS

Company financials include Income Statements, Balance Sheets, Statements of Cash Flow and Financial Ratios both on a quarterly and an annual basis. With this information you will be able to evaluate the company’s performance. Your task is to figure out where the company has been, where it is now, and where it’s going. You don’t need to read thoroughly the whole annual report. You just want to see the relevant sections to get the answers you need to decide whether you should buy or not.

ANALYST OPINION

You should look for detailed analyst’s stock recommendations for the stock you are interested in. Usually they are experts that lean and make prediction about a company’s future performance.  That’s why, most of the time, analyst rating are the most quoted part of a report. However, you should just keep in mind their opinions, but do not based your decision on solely their recommendations.

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CUSTOMER OPINIONS

One of the best ways to get this kind of soft research is looking into customer’s reviews or opinions about the company you are interested in. Also, if you know someone that works in that company, ask them about insights about it.

COMPANY NEWS

Is important to see what has been said about the company in the news.  You should regularly scan for breaking new on your target Company. Things are always evolving, so you have to be aware of what’s happening in real time.

At the end of your research you wave to have a clear understanding of what does the company do, is the company is profitable or not?, the company’s earning history, how clean is the company balance sheet?, do you see future potential?, these are some question you should ask yourself. There are some pages like HowTheMarketWorks or Virtual Stock Exchange that provide a very complete quotes page. I always like to go there and do my research. I don’t like going from one page to another looking https://landing.kapitall.comfor information. There, you can have everything you need to do an in-depth research and based on that a good decision.

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