Section 5: Investment Analysis

In this section

• Chapter 13: Fundamental and Technical Analysis
  • 13.1 Methods of Equity Analysis
    • 13.1.1 Fundamental Analysis
      An in-depth exploration of fundamental analysis as a method for evaluating intrinsic stock value using financial statements, industry conditions, and macroeconomic indicators.
    • 13.1.2 Technical Analysis
      Technical Analysis is a method of evaluating securities by analyzing historical data primarily consisting of price and volume. This section explores the use of market price patterns and trends along with various technical indicators.
  • 13.2 Fundamental Macroeconomic Analysis
    • 13.2.1 Economic Indicators
      Explore the impact of economic indicators such as GDP, inflation, and interest rates on corporate performance and equity valuations.
    • 13.2.2 Monetary and Fiscal Policies
      This section covers the influence of monetary and fiscal policies on economic variables, stock prices, and overall market dynamics.
  • 13.3 Fundamental Industry Analysis
    • 13.3.1 Industry Life Cycle
      Explore the stages of an industry's life cycle: emergence, growth, maturity, and decline, and their implications for investment analysis.
    • 13.3.2 Competitive Landscape
      An in-depth analysis of the competitive landscape in an industry using Porter's Five Forces and understanding market structure dynamics and their impact on profitability and entry barriers.
    • 13.3.3 Regulatory Environment
      An examination of how industry-specific regulations affect corporate strategies and market potential.
  • 13.4 Technical Analysis
    • 13.4.1 Chart Patterns
      An introduction to the chart patterns used in technical analysis, including head and shoulders, double tops, and triangles, and their implications for predicting price movements.
    • 13.4.2 Technical Indicators
      An in-depth exploration of technical indicators like Moving Averages and Relative Strength Index (RSI), their application, and significance in analyzing financial markets.
    • 13.4.3 Support and Resistance Levels
      Exploring the concepts of support and resistance levels as key price barriers within technical analysis, and their importance in predicting stock movement reversals or accelerations.
    • 13.4.4 Limitations of Technical Analysis
      Examine the inherent limitations of technical analysis, focusing on assumptions and biases that affect the reliability of trading decisions.
• Chapter 14: Company Analysis
  • 14.1 Performing Company Analysis
    • 14.1.1 Overview of Company Analysis
      A comprehensive guide to evaluating a company’s performance through strengths, weaknesses, opportunities, and threats analysis.
    • 14.1.2 Financial Health Assessment
      An in-depth exploration of assessing a company's financial health through liquidity, solvency, and profitability metrics.
  • 14.2 Interpreting Financial Statements
    • 14.2.1 Income Statement Analysis
      Delve into the intricacies of analyzing income statements to assess a company's financial performance by evaluating revenue, expense patterns, and earnings analysis.
    • 14.2.2 Balance Sheet Analysis
      An in-depth guide to analyzing a balance sheet, focusing on asset composition and liabilities & equity structure.
    • 14.2.3 Cash Flow Statement Analysis
      An in-depth exploration of cash flow statement analysis, focusing on operating cash flows, investing, and financing activities.
  • 14.3 Analyzing Financial Ratios
    • 14.3.1 Liquidity Ratios
      Application of liquidity ratios to assess a company's ability to cover its short-term obligations.
    • 14.3.2 Profitability Ratios
      Profitability ratios including Gross Margin and Operating Margin to assess earnings efficiency and operational success.
    • 14.3.3 Solvency Ratios
      A detailed examination of solvency ratios, focusing on the debt to equity and interest coverage ratios, critical for assessing a company's financial health and its ability to meet long-term obligations.
    • 14.3.4 Efficiency Ratios
      Exploring how efficiency ratios, such as Asset Turnover and Inventory Turnover, are crucial for evaluating a company’s ability to manage its assets effectively to generate sales.
  • 14.4 Assessing Preferred Share Investment Quality
    • 14.4.1 Creditor Preference
      Understanding the priority and role of preferred shares within capital structure and liquidation processes.
    • 14.4.2 Dividend Policies
      Comprehensive examination of dividend policies focusing on dividend stability and coverage as crucial aspects of preferred share investment quality.
    • 14.4.3 Market and Credit Risks
      The intricate factors influencing preferred share investment, focusing on their sensitivity to market conditions and the creditworthiness of the issuer.