For the skill I learned
most importantly
FUNDAMENTAL
what mean by fundamental
as an overall
a company must have a sufficient cash amount which will enough to cover their liabilities which including the long term liabilities
this is the first step
after that we will look more into the growing of the company by looking at their 5 years profits
and the growing on receivables, inventory and payables
which will indicate whether there are any overtrading or overcapitalisation incurred
that was the first part of the analysis of fundamental
after that will check the distribution of dividend by the company
whether it will distribute yearly or not
I will prefer the company which will distribute yearly which will maximize my wealth as a shareholder
after that check out the major shareholders in the company
a very important organisation is Employee Provident Fund (EPF), Amanah Saham and some of the big companies and hold most of their shares
This is the part that I learned recently
every company has their own industries
we need to use the P/E to indicate our benchmark of buying or selling a share
which also depends on personal risk appetite
by comparing an accurate P/E, we need to compare the company which has a similar product
other than that reviewing the annual report also very important
because the annual report will disclose about the dilute earning per ordinary shares which is like warrant and ESOS which will indicate also the benchmark of the price that buying this company share at the most suitable time
this told the important of the usage of P/E
different industries got different P/E
same industries got their average P/E but
to be more accurate is to compare the P/E among the industries companies which produce the same product
after that is it very important to know about the industries
What will affect this industries?
What is the big influence to this industries?
What is their main businesses?
What is their most important material?
Lots of this questions have to ask, and will need to check on Forum and also newspaper to determine whether to add more investment or is time to let it go.
All these factors are very important
Type of risk appetite very important for every shareholder
Whether the investment is for long term/short term?
The level of risk that you will take?
Benchmarking is very important in facing these problems
a benchmarking will determine your own selves level of share price holding a share
buy it when is on the average or lower than the average of your benchmarking
sell it when is over your benchmarking
which most importantly minimize your cost and maximize your gain
all these will be determine by the P/E
Another thing is to looking at the technical analyst which really have to spend time to learn
This is the way I analyze the performance of industry
which I'm really happy I get to learn all these in 1 year time
really thank to my friend
really learn lot from him
this is just my way of doing investment and share with my friends
and also just for my personal notes that help me to refresh all what I learn through blog
Happy always
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