Of course. Or else how do you tell if the company is a good investment?
Annual Audited Reports are more important because it has been 'checked' by auditors. all annual report is audited right? i still very new to stock trading , has been trading demo forex for 8years , still havent achieve any significant successes. furthermore , auditor can give inaccurate data as well right?
Quarterly reports give an information of what is going on throughout the year before the Annual Report is out but it might not be trustworthy because it hasn't been checked.never heard of them , will have a look when got chance.
If you're young and don't have much to invest, invest in yourself first (i.e. education). If you have extra money, just save it in a fixed deposit. You only invest if you can afford to lose the money. Meaning you don't need it for emergencies, to buy a house or a car.
not particular young , learning how to invest for now , no cash on hand , " own " a car which take up more than 50% of my gross income , which regret quite alot as car is liability so far costing alot to me , even if it become asset , it was still a high maintenance and depreciating asset , though we need a car here.
For s start you can paper trade. Meaning you plan to buy how many units of a particular stock at what price. Then, you write it down on paper but do not actually trade it. Then, few months later you come back and see how much you made/lost.any platform to paper trade? looking good at Astro , but seem like no insider support , maybe when 5g coming astro will not be needed as much. not that fast to there , still thats the future.
There are numerous ways to evaluate a company such as:
1) EPS growth: There must be growth in EPS for share price to riseI dont think this is true for certain case , but basically yes. i have no experience though.
2) Gearing: Highly geared companies are risky and can go bankrupt especially in recession
Yes
3) Payout ratio: How much a company is paying out from earnings as cash dividends. Low payout ratio means most is reinvested into the company (Apple does not pay dividends). High payout ratio especially when above EPS is unsustainable.
Never heard of this , from a few company that i see they practice 75% profit as dividend.
4) Market capitalisation to GDP: Used to see if a company is overvalued in it's sector/country
Interesting indicator
Last 2 advice:
1) Distinguish between investing and trading. Trading is speculation especially those penny stocks.
2) Don't be afraid to cut loss when your stock is down -8%. Warren Buffett's rule is to never lose money!
Fact: Most people make losses and they
cannot beat the market. So you should just
invest into an ETF which is safer but gives lower returns. As long as it's above inflation, it's good enough.
Market will never be beat , we can only earn what we can.
just learn recently that ETF has very very low return as most profit has go to the management side , and ETF will fail when stock market crash as they invest in stock as well , unless i dont want to learn about investing , then etf is a choice. i can be wrong , just sharing what i learn.
Thanks you Yggdrasil.