Information
relevant to the individual company that you should look into includes:
- Annual report - know what to read and what's
being said between the lines.
- Directors - who are the directors and what
are their qualifications for the directorship of this company?
- Management team - a high quality management
team is one of the key success drivers for a business.
- Debt levels - understand the risks and
benefits of varying degrees of debt.
- Cash flow - understand why cash flow is
more important than profit, and how to find the right information.
- Market position - what position does the
company have in its sector?
- Branding - understand the importance of
brands and the associated difficulties in measuring brand value.
- Technology - how important is technology
to the business?
- Competition - what is the competition?
Where are future threats? Is the company prepared for them?
- Ratios - learn which financial ratios you
should use in measuring a business, how to calculate them and
where to find the information.
- Sustainable profitability - the value of
a company is based on its future sustainable earnings. Learn
what that means and how to prepare your own analysis.
- Abnormal items - do companies really report
the good news above the line, and bad news below the line as
an abnormal item?
- Dividends - how
important is the dividend rate? What is a dividend yield? What
is an imputation credit?
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