Chapter 20

Ten Things to Look at When Analyzing a Company

IN THIS CHAPTER

Bullet Running through ten of the most basic things fundamental analysts should check for

Bullet Reinforcing some of the fundamental analysis techniques that matter most

Bullet Showing how several of the types of fundamental analysis may complement each other

Bullet Considering some signs that a company is beginning to lose its competitive edge

When you see that pile of dirty dishes in the sink, you might feel a tinge of guilt telling you that you really should wash them. But you just might not be in the mood.

That same sense of reluctant obligation might also apply to your portfolio. You might own some individual stocks and realize you should be analyzing their fundamentals, but other things just seem more interesting. So the annual reports and proxy statements just pile up.

Certainly, performing a complete financial analysis of a company takes time as you run through all the financial statements, calculate dozens of financial ratios, and study the industry, just to name a few things. Fundamental analysis can take a bit of effort, seeing ...

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