If you do a wiki search on analyzing stocks, you will find that there are main 2 schools of thoughts. Fundamental analysis is concerned with analyzing companies Technical analysis studies market and stock trends.
For value investment philosophy, the investor should not be concerned about trends. It explains that one cannot predict trends and secondly, once a trend is established, it will be broken. Thus value investors should concentrate on using fundamental analysis to value stocks.
So what are the basics of fundamental analysis? Using Google Finance, you will find the income statement and balance sheet. Reading these "report cards" are very tedious, so to sort through thousands of companies faster, the stock summary from Google Finance helps you with your decision making.
The value investor will be mostly interested in P/E or price earning ratio and EPS or Earnings Per Share. P/E ratio is simplest way for investors to decide whether the stock is worth researching. You can find the explanations at http://en.wikipedia.org/wiki/P/E_ratio#Interpretation
FUNDAMENTAL ANALYSIS FOR SOCCER BETTING
How do we conduct fundamental analysis for soccer betting? In the same way, we first need to find the "report cards". Then we will need to have some ratios to decide whether a game is researching on. We will reserve this for the next post.
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