Relevant analysis of financials

sh50 · #1 5th April 2005, 08:42 AM

In one book I read that if you took your wife/girlfriend to watch a match at a jampacked stadium , lost them and tried to find them,(everyone may not try) that is trying to find the relevant information from irrelevant information. To me this applies to the sharemarket more than anything else. Even Lee Iaacocaa and Winston Churchill demanded one page summarized reports.

The most important in fundamental analysis to my mind is ratio analysis. Among all the sites that I know, www.indiainfoline.com gives the most comprehensive ratio analysis. In the inclosed file iinfo.doc, the analysis of Bongaigaon refineries is given. Per share ratios, profitability ratios, liquidity ratios, payout ratios etc one can figure out. However coverage, component and leverage ratios are bound to be different for different industries. It would be interesting if people could throw some line on that.

I think the market capitalization ratios are missing in this analysis apart from price earning ratios. Is anything else missing?It would be interesting to pinpoint both general and specific points for each industry.

joy_mitali · #2 5th April 2005, 09:01 AM

Sir,
THanks for ur interesting attachment.I really am becoming a fan of urs.Can u plz tell me how can i make a new post.
The new thread button seems to be absent from my screen
Sincere Regards---joy_mitali

sh50 · #3 23rd April 2005, 08:26 AM

Basic issue is what is relevant analysis. Extract from stock market rules by "William.F.Eng"

Quote:

As an intelligent person you try to understand the basics of any situation:you ask who, what, when, where and why. The markets because it is composed of infinite variables, raise many more who, what , when, where and why. This can create more confusion than clarification yet it does not deny the need to know about the markets. In order to forecast imminent price moves, we absorb as much information as we can. There is danger however if we go to the extreme and learn more than is needed to trade the mkts successfully

oilman5 · #4 2nd July 2006, 08:56 AM

sh50, u r GENIOUS, its the holy grail ......RIGHT QUESTION
THEN RIGHT ANSWER
USE OF INFORMATION[ NOT RUMOR]
EXECUTION OR TRADE
& RISK MANAGEMENT
thanks alot, for helping all new comers
oilman5{youngoldfo2000@*************}

jsathe · #5 13th November 2006, 07:22 PM

Hi,
Will some one tell me how to separate Large Cap, Mid Caps and Small Caps Is it based on Equity? If so what should be the size ?

Thanks in Advance
Jayant Sathe

sujittalukder · #6 7th July 2007, 04:18 PM

Dear Jayant, there is no official or authorative differentiation of L-cap,M-cap & S-cap. These are the terms used by market participants. Normally LCap shares are those which are in index say Nifty & Sensex. However there are some other shares alos which can belong to Lcap, usually mcap above 1000cr. SCaps are those which are very small in size say upto 100 cr Mcap between 100 to 1000 cr are mid caps segments.

jsathe · #7 8th July 2007, 07:38 PM

Thanks for the information

nitin1528 · #8 16th July 2007, 12:58 AM

well i have to make an fundamental analysis of airtel and hutch...so how should i do that....what r the various things which i take into consideration to do fundamental analysis....

sujittalukder · #9 16th July 2007, 10:27 AM

Dear Nitin1528, fundamental analysis cannot be made in a general manner. YOu have to do this keeping some objective in mind ie what are the conclusions you want to make? Normally the objectives are to calculate fair value of a share or projected EPS or PEG Dividend yeild etc etc. So unless you specify your objective, no guidance can be provided.
Airtel is a listed company and Hutch is an unlisted company so what are your analysis objectives?

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