Leading provider of independent small cap stock picks and small cap stock investing Investment Research. Any analyst can refer to a company's fundamentals without actually saying anything meaningful. So here we define exactly what fundamentals are, how and why they are analyzed, and why fundamental analysis is often a great starting point to picking good companies. The goal of analyzing a company's fundamentals is to find a stock's intrinsic value, a fancy term for what you believe a stock is really worth - as opposed to the value at which it is being traded in the marketplace. If the intrinsic value is more than the current share price, your analysis is showing that the stock is worth more than its price and that it makes sense to buy the stock. Leading provider of independent small cap stock picks and small cap stock investing Investment Research.
small cap stock picks
small cap stock investing
small cap research
small cap oil stocks
small cap mining stocks
small cap junior mining stocks
small cap investing
small cap growth stocks
small cap gold stocks
small cap stock research
In plain English, this means that a company is worth all of its future profits added together. Leading provider of independent small cap stock picks and small cap stock investing Investment Research. And these future profits must be discounted to account for the time value of money, that is, the force by which the $1 you receive in a year's time is worth less than $1 you receive today. The idea behind intrinsic value equaling future profits makes sense if you think about how a business provides value for its owners. If you have a small business, its worth is the money you can take from the company year after year (not the growth of the stock). And you can take something out of the company only if you have something left over after you pay for supplies and salaries, reinvest in new equipment, and so on. Leading provider of independent small cap stock picks and small cap stock investing Investment Research.