The Four Core Financial Statements

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If you are Value Investor and doing Fundamental Analysis in your stock selection, you have to know:

  • Balance Sheet
  • Income Statement (Profit & Loss)
  • Cashflow Statement

However, you just need to selectively know what are the key financial information and financial ratio for the Fundamental Analysis of Stock Investing. You don’t need to know everything.

You can view this video to have the basic understanding of what is the core of the financial statement. I know it is tough and you will see ***STARS*** if you do not have any accounting and financial background but this can be learned. I was electronics engineering trained but I understand those financial statement pretty well now, after seeing many rounds of STARS when I get started. What you need to do is to learn and practise oftenly when doing your Fundamental Analysis of your stock. If I can do it, you definitely can do it!

Enjoy the “Star”! 🙂

 

 

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APPLE (AAPL) Fundamental and Technical Analysis

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For my team member.

  • Current Price: $373.80
  • Current PE: 17.82

Fundamental Analysis (base on FY10)

  • Gross Margin: 39.38%
  • Net Margin: 21.48%
  • ROA: 22.8%
  • ROE: 35.3%
  • Current Ratio: 2.1
  • Debt to Equity: Net Cash

 

  • Cash Flow Growth Rate (1-3 Years) = 19.35%
  • Cash Flow Growth Rate (4-10 Years) = 15% (capped)
  • Beta = 1.34
  • Discount Rate = 7%
  • Discounted Cash Flow Model Intrinsic Value = $412.98

Technical Analysis

  • Breakout from consolidation pattern and 52 weeks high resistance at $363.30.
  • Apple stock price is trading above 20D, 50D and 200D MA.
  • 20D crosses above 50D MA.
  • Need to monitor whether Apple can stay above the Immediate Support (resistance turned support) at $363.30.
  • 2nd support at about $342 (20D MA and also the resistance turned support).
  • Since Apple stock is currently under value, can start accumulating when the stock pull back to the support level (provided support is not broken).

 

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