junzhang1993
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$RLX Technology (RLX.US)$ What happened?
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junzhang1993
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Reporter: "If investors decide to invest in individual stocks, how should they gather more information to understand the company?"
Buffett: "Investors first need to think about whether they understand enough and whether they deserve high returns. Investors should read the company's financial statements like I do, including annual reports and quarterly reports. But if after reading these public documents they are still not sure if they understand the company's business, it is best for them not to invest or to buy index funds instead."
The information provided by financial statements allows value investors to see undervalued companies and make investment decisions. Their confidence in investment comes from financial statement analysis, which provides objective data and logic based on data, as well as understanding of various business models. Why is studying financial statements the first step in value investing? What are the functions of financial statements? This article will answer these questions for you.
1. Discovering "suspicious points" in financial statements
Some companies falsify transactions before their IPOs in order to complete the listing smoothly and raise as much capital as possible. Listed companies, on the other hand, aim to reduce their holdings at the highest possible price. The higher the stock price, the more these initial investors, executives, or original shareholders can cash out. By paying attention to cash flow, liabilities, and other information in financial statements, suspicious points can be identified. Click here to read previous articles.2. Discovering a company's core competitiveness and providing reference for investment
Emerging markets are the cradle of future leading companies, and market demand is...
Buffett: "Investors first need to think about whether they understand enough and whether they deserve high returns. Investors should read the company's financial statements like I do, including annual reports and quarterly reports. But if after reading these public documents they are still not sure if they understand the company's business, it is best for them not to invest or to buy index funds instead."
The information provided by financial statements allows value investors to see undervalued companies and make investment decisions. Their confidence in investment comes from financial statement analysis, which provides objective data and logic based on data, as well as understanding of various business models. Why is studying financial statements the first step in value investing? What are the functions of financial statements? This article will answer these questions for you.
1. Discovering "suspicious points" in financial statements
Some companies falsify transactions before their IPOs in order to complete the listing smoothly and raise as much capital as possible. Listed companies, on the other hand, aim to reduce their holdings at the highest possible price. The higher the stock price, the more these initial investors, executives, or original shareholders can cash out. By paying attention to cash flow, liabilities, and other information in financial statements, suspicious points can be identified. Click here to read previous articles.2. Discovering a company's core competitiveness and providing reference for investment
Emerging markets are the cradle of future leading companies, and market demand is...
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junzhang1993
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$NIO Inc (NIO.US)$ It's cold
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junzhang1993
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$Palantir (PLTR.US)$ sell or hold??
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junzhang1993
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$Palantir (PLTR.US)$ You can add more positions! It's about to take off, hold on tight.
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junzhang1993
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Hi, mooers! So far, moomoo has conducted more than 20 earnings conference calls for everyone. @moo_LiveHave you gained a certain understanding of financial reports through these earnings conference calls? Do you know which indicators we need to pay extra attention to? Let's learn together!
Earnings Per Share (EPS)
Earnings Per Share (EPS) refers to the ratio of net income to the total number of shares, which is an important indicator for determining the investment value of a stock. It is a fundamental indicator for analyzing the value of common stocks, and also an important indicator that comprehensively reflects the company's profitability.
Tesla $Tesla (TSLA.US)$ will release its financial report on January 27th, with the market expecting an EPS of $0.6 for the fourth quarter, a 131.7% year-on-year increase. Tesla's Q4 global delivery volume exceeded 1.8 million units, so will its earnings meet expectations?
Free Cash Flow
Free Cash Flow refers to the maximum amount of money available for distribution to shareholders and creditors, without endangering the company's survival and development.
For example, Netflix $Netflix (NFLX.US)$ indicated in its 2020 Q4 earnings conference call that its user base exceeded 200 million, and more and more users are willing to pay for content. Its cash flow will turn positive in 2021, leading to share buybacks.
Price-Earnings Ratio (P/E Ratio)
P/E Ratio represents the ratio of a company's share price to its earnings per share. It is a commonly used indicator to evaluate the valuation of a company's stocks, providing insights into the investment risk and return potential offered by the stock.
Earnings Per Share (EPS)
Earnings Per Share (EPS) refers to the ratio of net income to the total number of shares, which is an important indicator for determining the investment value of a stock. It is a fundamental indicator for analyzing the value of common stocks, and also an important indicator that comprehensively reflects the company's profitability.
Tesla $Tesla (TSLA.US)$ will release its financial report on January 27th, with the market expecting an EPS of $0.6 for the fourth quarter, a 131.7% year-on-year increase. Tesla's Q4 global delivery volume exceeded 1.8 million units, so will its earnings meet expectations?
Free Cash Flow
Free Cash Flow refers to the maximum amount of money available for distribution to shareholders and creditors, without endangering the company's survival and development.
For example, Netflix $Netflix (NFLX.US)$ indicated in its 2020 Q4 earnings conference call that its user base exceeded 200 million, and more and more users are willing to pay for content. Its cash flow will turn positive in 2021, leading to share buybacks.
Price-Earnings Ratio (P/E Ratio)
P/E Ratio represents the ratio of a company's share price to its earnings per share. It is a commonly used indicator to evaluate the valuation of a company's stocks, providing insights into the investment risk and return potential offered by the stock.
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junzhang1993 : The state has introduced strengthened regulations on the e-cigarette industry, including the possibility of inclusion in the scope of tobacco taxes. Simply put, the industry has been restructured and needs to be regulated