Stock Valuation Analysis

Stock Valuation Analysis

In determining the shares to be purchased in principle must be assessed prior rules to avoid speculation and avoid unexpected losses. The price of shares in the stock market fluctuates from time to time. From fluctuations in prices, there is opportunity for profit (capital gains) and losses opportunities. Basically, there are several Teknika analysis of fundamental analysis, technical analysis and market psychology analysis.

Fundamental analysis.

Fundamental analysis focuses primarily on the analysis of macro conditions, industry conditions and firm fundamentals.

Macro analysis is the analysis of government policies in force as well as macro economic conditions. Things that are analyzed include income per capita (GDP), money supply, inflation rates, interest rates and geopolitical conditions.

Industrial Analysis is an analysis to determine the condition of an industry is in the early stages, growth, maturity or decline (decline) and how its impact on corporate profits. Industry analysis is carried out through two stage approach: (1). Industrial Life Cycle model consists of stages of growth, expansion, maturity and decline (decrease). (2). Profit Life Cycle Model of perumbuhan revenue, profit margin negative (expansion), profit margin and total earnings increased (maturity) the last sales and margins tend to be flat prifit that earnings decline (decline).

Fundamental Analysis, Company (Micro) is an analysis to determine the condition of the company as a whole, both the product analysis and marketing companies, earnings growth analysis and performance management.

Technical Analysis.

Tehnical analysis in assessing the stock price formation emphasize more the stock price by changes in supply and demand without seeing why. The origins of analysis currently used Dow Theory originated from mid-1900 compiled by Charles Dow.

Excess is the analysis of technical analysis is relatively quick and easy, no need to engage in financial figures are complex and give the signal when it is appropriate to invest. Stock trading strategies using tehnical analysis include:

Opinion contrary, is to conduct a transaction contrary to other investors because investors menggangap others less capable.

Smart Money is doing transaction in line with other investors because other investors menggangap more capable.

Analysis techniques, and Volume Price:

1. Note the volume of transactions is very important because it means the transaction.
2. The existence of the opening price (open), the highest (high), low (low) and closing (close).
3. The existence of so-called support level of support levels and resistance levels. Support levels are below the support level where investors expect a big increase in demand with a significant price increase. Resistance level is the level of support over which investors expect a large supply kenaikkkan with a significant price increase.
4. Dow Theory, where prices move in a specific direction (trends) where there is a trend toward 3, ie short-term trend, medium term and long term.
5. Graph or chart is a diagram of the open, high, low and close prices that aim to identify patterns that occur and likely to recur in the future. Chart consists of several forms, including candle charts, bar charts and point-and-figure charts.
6. The presence indicator, which is an indicator tehnical mathematical calculation applied to the stock price or trading volume. This is done to anticipate future price pergerakkan. Tehnical indicators include: MA (Moving Avarage), MACD (Moving Average Convergen divergent), Parabolic SAR, Relative Strengh Index (RSI), Stochastic Oscalator, etc..
7. Market psychology.

Approach In Choosing Stock

There are two types of approaches most frequently used in selecting stocks by analysts:

1. Top Down Approach where this approach focused on the macro economic conditions and sector-sektro analyze any industry or not affected by macroeconomic conditions. The next step further analysis of the industry sectors which have good performance and then choose which companies stocks have the best performance in the sector.
2. Bottom Up Approach in which this approach to start the analysis of company shares which have performed well, and then grouped by industry sector and industry sector analysis which best performers and then compare the effects of macro conditions on the industrial sector so that the selected industry sector will truly represent shares which deserve to be invested.